by Bernice Ross
Inman News Features
If 80 percent of all for-sale-by-owners ultimately list their properties with a real estate agent, the question is how can you make sure that you’re the real estate agent they select?
Several years ago, many traditional real estate companies were concerned that the Web would ultimately replace agents and/or dramatically reduce the fees they receive. In fact, a number of for-sale-by-owner companies were touting the fact they would ultimately replace traditional real estate companies and that eventually everyone would be listing their homes on the Web using this format.
Like so many other predictions about the “new economy” in the 21st Century, these predictions have also turned out to be inaccurate. There has been some reduction in fees, but this is largely the result of a strong seller’s market.
When listings are scarce, agents cut fees to compete. The percentage of FSBOs listing their homes with an agent has actually increased from 76 percent to 80 percent.
Furthermore, while the Web has been effective in generating buyer leads, sellers have yet to make the transition. In fact, a huge proportion of today’s sellers will still choose to list with one of the “name brands” that handle the bulk of the business in their location.
To take advantage of these trends, here are seven strategies that can help you convert FSBOs listed on the Web into signed listings for you:
1. First and foremost, real estate is and will always be about personal connection. Connection takes place between two people when they are face-to-face—not through a Web site. Consequently, to market to FSBOs, you must get face-to-face with them. Given that 80 percent will ultimately list with an agent, the key is to have already formed the connection with the FSBO prior to the time they list their property. The way to do this is to provide service to the FSBO while simultaneously promising to never ask the FSBO for the listing on their home. You can provide information on interest rates, coupons, updates on what has sold, etc. Your goal is two-fold — to be there when they decide to list their home and to earn the right to their referral business and/or represent them when they purchase their next home. (Two caveats: Never tell the FSBO you have a buyer for their home. Second, when you say you won’t ask for the listing, you must mean it. They have to ask you — you never ask them for the listing.)
2. Instead of bemoaning the fact that FSBOs are listed on the Web, use the Web as a resource of potential FSBO listing leads. In addition to checking the newspapers and watching for FSBO signs in your neighborhood, spend a few minutes each week searching the Web by typing in “For Sale by Owner” and your geographical location. (Caveat: Since some FSBOs list with FSBO companies, you must be careful not to solicit a property where there is an actual listing agreement, even if the property is being marketed “by owner.”)
3. Next, contact the FSBO in person and ask for the opportunity to preview their home. Remember, connection does not take place via e-mail — set up an appointment to preview the property.
4. While you are viewing the property, ask about where the FSBO is moving. If they’re staying in the area, ask if they would need assistance in locating their next home. If they’re moving out of the area, ask if they need a relocation referral. Remember, you gave your word you would not ask them for the listing—be sure to honor this.
5. If they’re still not interested in your services, you can still offer them your print or e-mail newsletter that updates people in your service area on recent sales.
6. When you have finished viewing the property, thank the FSBO and go for the follow-up appointment. Here’s the simple script:
“Thank you for allowing me to preview your home. To say thank you, I have a coupon for a discount at (this can be the local hardware store, moving company, coffee or anything else that may be popular with potential owners in your area). I’ll be in the area later this week. Would Thursday afternoon or Friday morning be the best time to drop it by?”
7. Since your goal is to be there when the seller decides to list, keep in face-to-face contact by dropping off information or other items that may be useful once the seller has sold their home.
Repeated contact coupled with great service is the best way to convert FSBO Web leads into signed listings.