by Blanche Evans
Special to Realty/Builder Connection
Sellers can be rough stuff. Unless you are lucky enough to get one as a referral from a satisfied former client (not the ones you pay 35 percent of your income to get) you are most likely going to be approaching a seller as a stranger and having to prove to them why you are the right agent to help them sell their home.
But cold-calling a FSBO seller or potential neighborhood client can be daunting, especially for new agents. Some sellers are antagonistic toward Realtors. Others are more open to getting a Realtor’s help — they just don’t want to pay for the service. And still others are very open to working with a Realtor, but may prefer to use a former agent or an agent referred from a friend than use a complete stranger.
So how does a new agent get a foot in the door?
Atlanta area agent Joshua Jarvis is trying to make a career out of calling on the FSBO seller, using e-mail.
“I’d like to give you some impressions of e-mail and how it effects prospecting,” says Jarvis. “I’m finding that FSBOs are now going online to screen what Realtors do and say, and then they go FSBO using Realtors’ tactics.
“They’ll e-mail me about their homes and ask this or that, and if I give them information, I’ll never hear from them again. It’s like giving an address and a price over the phone, except less personal.”
He asks for the opportunity to answer their questions in person, and brings along information to show them.
By this time, Jarvis already has an idea of what kind of FSBO he’s dealing with. He notes that FSBO seller personalities fall into some predictable categories. Noting these categories helps him overcome their objections, using attitudes and scripts that are most likely to get the response he wants - the listing.
“People’s personalities and how it relates to real estate fascinates me,” says Jarvis. “I tend to group them into three categories: 1.first-time home sellers, 2. tough sellers, and 3. unmotivated sellers.”
He explains, “First-time home sellers just want to save the commission. Just two or three visits and you should have a listing. The tough sellers are often people who’ve already talked to a few agents and know our routines. ‘Need a CMA?’ and the response is, ‘Got a few already, thanks.’”
“The sellers who aren’t motivated are generally not interested in selling unless that one-in-a-million buyer comes by and offers “sticker” at the right time. They are generally not home, hard to contact. I’ve learned to get past them, or I am at least trying to,” says Jarvis.
The type of market he is in may be a factor.
“It’s a huge buyer’s market here,” notes Jarvis. “There are quite a few FSBOs and the majority are unmotivated sellers, from my experience. The rest are tough sellers, and very few are first-time sellers. First-time sellers end up listing very quickly, while tough sellers typically list with a good agent or a cheap agent (5 percenters or less). While unmotivated sellers can often beat an agent up.”
How does Jarvis handle objections?
“Most agents have all had the training to handle objections, and that’s really all they need,” he said. “Listing a home is a two-visit (or more) process for me. I go the first time to build rapport and the second time to list, or the third time to list.
“I try to feel out if that friend or cousin in real estate is real or imaginary and if that desire to save 1 percent commission is really there or not. I’m a die-hard competitor so it’s tough for me to leave a home, especially after a presentation and not have the listing. I even fill out the listing form before I go in.”
After getting in the door, the rest is all about handling objections, says Jarvis.
“‘Your price is too low,’ I’ll say, then I show them the CMA again and ask them if they believe it’s correct,” explains Jarvis. “‘Your commission’s too high,’ they’ll say, then I go over that objection until they understand.”
Sometimes it doesn’t work. Most of the time it does.
Everything from “my house is different” to “I don’t want a sign or lockbox” (which is one I really don’t understand). Marketing plans, open houses, and agent prospecting, these items are negotiable. I’ll tell a seller I’ll do whatever makes them happy. If having an open house is something they want, I’ll schedule
a day to do it, but
not before I explain to
them what an open house
really is.”
One objection Jarvis gets is about his age, which he overcomes with humor.
“I’m a bit on the young side,” Jarvis admits, without revealing his stats. “I find my appearance becomes a topic of conversation that usually puts me at a disadvantage in the beginning. I try to make it more endearing by making fun of myself. I’ll joke, ‘Will you drive me home, I had to walk because I don’t have a driver’s license yet?’ Of course, that puts a lot of pressure on the presentation because it needs to come off flawlessly. So that’s where I get serious. It’s a numbers game, anyway.”
How does Jarvis defend his commission?
“I’ve had some just beat me up, and if I give in to the lower commission, they’ll list,” he says, “but, I never do that anymore. It’s not worth it. Five percent really isn’t enough to get anyone to see the home, nor worth my efforts to find buyers.
“I tell a lot of people who ask, I start at 6 percent and work my way up depending on how quickly you want to sell. Higher commission is going to attract more agents, buyers etc. Saying this does a lot, but the best thing is that the seller feels like they ‘won’ because it’s not 7 percent or higher.”
He explains, “I’m still new to the business, but there are two things that will stop me from listing a house no matter how badly I want it — price and compensation. If it’s not 6 percent or higher or my price, then I won’t
take it. It’s not because
I’m too good, or want to
make the most money (I do),
but simply because I can’t
sell it.
“Of course, this is all textbook stuff to an experienced agent.”
— Blanche Evans is the publisher of Agent News and the associate editor of Realty Times.