FSBO Marketing for Realtors: 5 Legal Tips to Win New FSBO Listings
FSBO sellers probably wouldn’t pay an agent anyway. Their minds are set. They have probably been called by dozens of agents who are seeking to grab the 3-6 percent charge. Often their homes are spending longer than they expected on the market and they’re starting to get disgruntled. But they are still a tough nut to crack for real estate agents. Because they aren’t convinced that hiring an agent would deliver value worth 3-6 percent of their home.
So how do you convince them to list with you?
1. Be very clear on what you’re offering.
A realtor is paid to market and sell a home yes. But the term “market a home” actually sounds vague. You need to be able to clarify what you offer in a more convincing way. Your ability to express these would make your FSBO campaign more effective. Here are some things realtors offer when it comes to selling a home:
- Training and experience in selling homes and offer negotiations. A realtor has taken classes and written exams before getting licensed. They have on-the-job and off-the-job training necessary to get a home exposure and ultimately sales.
- Time-saving. Agents and FSBOs alike know that selling a home take some hustling time to find the right buyer. A homeowner might not be able to devote the necessary time needed to show, prepare and market the home for sale. An agent can speed things up as s/he knows what works already.
- Local market knowledge. What new regulations have been passed to home sellers in your area? What are the local real estate market trends? A seller might not know these. It’s an agent’s responsibility to keep up with these trends. This is why over 90% of home sellers still choose to list with a real estate agent.
- Save sellers money. According to a 2015 Economists’ outlook report by realtor.org;”62 percent of FSBO home sales—five percent of total homes sold—were sold by the owner to someone they didn’t know. According to the 2015 Home Buyers and Sellers Profile report, sellers cited creating yard signs, listing their homes online on multiple websites, spreading the news through word of mouth, putting out classified ads, displaying on social media, hosting an open house, and registering with the Multiple Listing Service (MLS) database.”Marketing without a realtor can be more costly overall since FSBO sellers have no existing buyer networks, have no direct access to the MLS and can’t accurately value a property based on comparables.
- Handling documents and disclosures. A seller may not know what state-specific documents are needed when selling. They also may ignore disclosures about property defects.This could put buyer and seller at loggerheads later on in the course of the deal, leading to more time wasted and in a worst case scenario, a court proceeding.
2. Present value – offer specific selling tips.
Instead of the sales-y cold-call approach, you want to put your best foot forward. Odds are they’ve been contacted by a lot of agents with vague promises. You want to show what makes you valuable. Be personable in your approach and look forward to conversing with them on how to sell their home instead of dropping the big sales pitch.
Real estate agent Kelly Tagtmeier-Schmidt does this when she approaches an FSBO or an expired listing. In a post on Inman, she said “Our approach when we call does not come from a sales pitch; it’s all about why it didn’t sell and how a fresh approach just may be what they need”.
Ensure you are personable in your approach and possibly give them one or two tips to improve their listing, proving your value. Check these cold calling tips.
3. Give them what they want.
Instead of a random strategy to win over FSBO listings with FSBO mailers. You need to consider that sellers make decisions based on emotions many times. What is their major motivation for selling? For most FSBOs, it likely falls into these two categories:
A. To make more money on the sale of their home
B. They’re absolutely convinced they can sell on their own.
With FSBO marketing for realtors, knowing a seller’s motivation will help you determine selling points to win their trust.
- In the first scenario, a seller who wants to make more money on the sale of their home might not be interested in your data or how much experience you have as a realtor. He is concerned about making more money on the sale. You should consider offering your service through a limited service discount provider like ListwithClever. In this case, they get some assistance with their home sale while paying a lesser commission. But this also means you’ll provide reduced support.
- For sellers who would love to experience the intricacies of selling a home on their own, the best thing to offer is guidance. Chet Coombs of Landvoice says, “The truth is, most FSBOs will eventually list with an agent, but not at first. Not until after they have tried it alone and realized how much time and energy it takes to sell without an agent. Who they eventually list with, however, is up for grabs. They will most likely list with an agent they trust and they have built a relationship with.”
New Fsbo sellers want information. They are probably excited about the prospects of selling their home themselves until the excitement starts to dwindle. While other agents are pitching and trying to get their business, agents who develop a relationship by being a source of helpful information will make an impression. This relationship will probably lead to business or referrals later on.
While other agents are pitching and trying to get the business of FSBOs, agents who develop a relationship by being a source of helpful information will make an impression. #FSBO #marketing Click To Tweet
4. Keep following up.
After the first approach, you would need to keep yourself top of mind with your prospect. It usually takes an average of 5 cold calls to make a sale. But instead of calling every time (most people will block you if you call too much), try texts or emails. You can even follow them up on social media (in a non-creepy way). And make sure you’re not just trying to sell them but working towards building a relationship.
“All things being equal, people will do business with, and refer business to, those people they know, like, and trust.”
Make sure you’re mixing things up and carefully spacing your follow-ups, so you don’t appear intrusive, making prospects uncomfortable.
5. Create educational material specifically for FSBO sellers.
One way to keep yourself top of mind is to create print marketing material to educate FSBO sellers. This will contain compelling facts and figures to accentuate your authority.
However, one thing you don’t want is to have a “fact sheet” full of outdated information. Therefore, make sure to update this regularly.
And don’t just point out the “perils of selling a home on your own”. Most sellers will see your motivation right off the bat. You can have an attractive brochure as your fact sheet, containing specific tips on staging and marketing a home for sale, along with the FSBO stats. If you were an FSBO seller, wouldn’t you love something like this?
It should be mentioned that FSBO has become an industry on its own. Websites like Redx list FSBO properties for buyers and investors searching for these kinds of properties. This is great for buyers and investors, even agents, but not so much for a seller as it’s easy to get the price wrong.
Essentially, winning the business of FSBO sellers wouldn’t depend on how big you can talk or how much experience you have in the market, you have to prove your value. Therefore, stop hard selling and start demonstrating your value.