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Archive for FSBO Postcards

4 Ways to Approach a FSBO to Win the Listing

Approach a FSBO

As soon as the weather gets warmer, you’re going to see it. Signs listing homes for sale, with the dreaded words “By Owner” in bold.

A FSBO represents a lost opportunity – both for Realtors® and sellers. Of course a real estate agent misses out on the chance to sell a home and build their portfolio and reputation. But the seller loses out too.

Many FSBO homes receive much lower offers than a traditionally marketed one. They aren’t well negotiated, and the lack of expertise regarding paperwork, inspections, and closing can leave the homeowner in a mess.

The question is, how do you approach a FSBO to show them your true value and win the listing?

Make it About the Homeowner

A seller knows that you have something to gain by listing their home. They assume that’s the reason you’re calling. They think you want to make money off of them by getting a commission.

Of course, that’s far from the truth. Using a professional real estate agent is a win-win for you and the homeowner. So when you approach a FSBO, focus on the benefits to the homeowner.

Before you contact anyone, really think: what does a seller gain from dealing with a Realtor®?

  • Less time handling calls and showings
  • A filter to keep “looky loos” from wasting time
  • A better marketing plan to reach ideal buyers
  • A better offering price due to the buyer’s perception of professional representation
  • Better negotiating to avoid lowball offers
  • Much, much more!

Practice Overcoming Objections

Think that roleplaying and practicing scripts is just for rookies? I’ve got news for you – even Roger Federer has a coach!

Professionals continue to work on their skills when they want to succeed at a higher level. So don’t push aside the idea of practicing your FSBO conversations. Whether you’ve been in the business one year or 21 years, you can always work how you approach a FSBO!

Here are some things to practice, preferably live with another person:

  • Your introduction to the conversation – the first impression really matters!
  • Overcoming specific objections
  • Responding to new concerns regarding technology and how “easy” it is to do it yourself
  • Your tone of voice throughout the conversation
  • How you respond when you get frustrated by an obtuse prospect
  • How and when you ask for the sale
  • The best way to wrap up the conversation to avoid the prospect changing their mind

You’re never too good to practice. You can always improve, and it will pay off big time in your business!

Consider Approaching a FSBO Through the Mail

The mail? Surely you should be calling them, to get the quick decision, right?

Not necessarily. A lot of agents will be calling, and sometimes the way to stand out is to use a traditional FSBO postcard.

It’s not like you’re losing a ton of time – the postcard will be there within a day or two if you live locally. But you are gaining an upper hand. Why?

  • You get contact whether or not the prospect answers the phone (or is willing to listen to a phone pitch)
  • There is less competition in the mailbox than anywhere else in real estate marketing
  • You avoid concerns about Do Not Call regulations
  • You stand out simply by being different than those who are only calling

Of course, you can combine FSBO postcards with other marketing outreaches. But using postal mail can be a great way to get attention.

Follow Up Consistently

Careful, I didn’t say “Hound them to death until they hate you.”

Instead, keep an eye on the home and continue to follow up from time to time. Maybe one postcard a month, plus one call a month.

“A month? The listing will be long gone by then!”

Well, if it is, then they managed to sell it! Good for them. I bet they won’t try that again after seeing the hassle and headache.

The truth of the matter is that sometimes it takes a few weeks or a couple months for a FSBO to realize it’s not going to work going alone. While they’re ready for a real estate agent, they probably already have a “Not THAT one” list. And you don’t want to be on it.

Be ready when they realize it isn’t worth the headache and lowball offers. Remind them that buyers who look at FSBOs are already pitching a lower price because they know the seller isn’t paying a commission. And without negotiating skills, the seller is going to lose big time.

Don’t disappear. If you can follow up without being obnoxious, you stand a good chance of winning the listing.

How Do You Approach a FSBO?

Are you someone who avoids FSBOs because they tend to be angry about hearing from so many agents? Do you use FSBO postcards? Or do you have another tried-and-true approach that really works for you?

We’d love to know! Share in the comments now.

The Art of the Deal: Marketing to FSBOs

Marketing to FSBOs: Art of the Deal

When I see a FSBO sign in someone’s yard, I always feel a bit sorry for them. Not in a condescending way, simply because I know they are leaving money on the table. And because I know they are getting themselves in over their heads.

Homeowners don’t seem to understand everything it takes to close a deal. I think that represents a huge marketing opportunity as you reach out to FSBOs this summer. Letting a seller know who has to be involved in a home transaction and what it takes to make things go smoothly can really open their eyes.

First Part of the Deal: Time

Homeowners don’t realize how much time it really takes to market a home correctly. Simply placing it on the MLS is not enough to get a great offer. You have to take professional pictures, create marketing materials, and spread the word.

The value you bring as a Realtor® isn’t just your time and money. It’s also your network. You know other real estate agents who represent buyers. You know who you can contact to get great Just Listed and Just Sold postcards. You have connections on social media and through your website that can help you sell a home.

A homeowner doesn’t have these specialized connections. They also don’t have the time, money, and expertise it takes to market their own home effectively.

Second Part of the Deal: Negotiating

Do you know how to drive a hard bargain? Do you know exactly how to price a home to maximize the value to the homeowner? If you’re a Realtor®, your answer should be a resounding YES! But most homeowners cannot say the same.

Negotiating starts with setting the right price, which takes market knowledge and business skill. Then, you weed out the looky-loos and negotiate with serious buyers. Sometimes you need nerves of steel to stand your ground against an aggressive buyer’s agent.

Let’s be honest. People are afraid of negotiating over a car. Dealerships market themselves as “no haggle” to attract customers. What makes homeowners think they can handle negotiations on a house, which is worth 10 times as much, by themselves?

Of course, you can’t say things that way in your marketing outreach to a FSBO, but you can point out that negotiating is hard on small things. It’s even more difficult when hundreds of thousands of dollars are at stake. A buyer’s agent won’t respect a FSBO and may take advantage of them. Having a Realtor® on the seller’s side offers protection.

Third Part of the Deal: People & Paperwork

Remember when I mentioned how much your network is worth? Your sales network is only half the story. The people you know that help you close the deal are equally valuable. As I mentioned in a previous post about the five people you should know, a great Realtor® is well-connected.

The connections you have with mortgage brokers, home inspectors, insurance agents, and escrow officers are extremely valuable to a seller. They almost certainly don’t know how to connect with high-quality professionals and may be in for a shock when an inexperienced inspector or escrow officer scuttles a deal.

Then, of course, there’s paperwork. The mountain of paperwork and disclosures required to sell a home would intimidate anyone, and it all has to be done right to protect the buyer and the seller. Without proper documents, a seller may be hit with extra fees or find themselves on the hook for post-sale repairs. Having a professional prepare and execute the closing documents is a huge relief for a seller.

You’re Worth More Than You Know

The next time you’re reaching out to a FSBO, look over all the value you bring to the table. Consider how much training, experience, and knowledge you bring to a transaction. You have mastered the art of the deal.

That poor FSBO doesn’t know what he or she is missing. But with the right marketing focused on the many services you provide, including time, negotiation, your network, and making the transaction go smoothly. How can a seller say no to that?

If you’re ready to reach out to FSBOs in your area, let us help. We have a variety of FSBO marketing postcards that can help you connect. Check them out today!