Why Are FSBOs Awesome?
Because 100% of FSBOs have an immediate desire to sell their home. They're practically raising their hands for help.
This on top of the fact that are 5 possible sources of income that come from FSBO relationships, making it one of the best lead generation sources.
FSBO Sources of Income
- Sell FSBO's home to a buyer
- Take FSBO's listing
- Represent FSBO on their purchase
- Get referrals from FSBO
- Provide service for a fee (ex: process paperwork for $500)
Why Sellers Go FSBO
The most common reason that sellers choose to go the FSBO route, is because of the perception of value. They just don't think (know) a Realtor is worth their commission because no one has explained it or shown them otherwise.
The strategy is to prove your value over time by differentiating yourself from the competition and having them self-discover what working with you will be like.
The #1 goal is to differentiate yourself from your competition. This means you must look, sound and behave differently from the very beginning.
How to Find FSBOs
Driving for Dollars – The best way to find FSBOs is by routinely driving around neighborhoods (that you would like to work in) and looking for the infamous FSBO yard sign. It may seem simple but it works and your competition probably isn't doing it.
Start by defining a couple of neighborhoods that you want to take listings in and planning to drive every street at least once a week looking for signs. Book yourself in your calendar and hold yourself accountable for being consistent.
Ask for Help – A great way to get FSBOs and build your social media presence is by putting out a call for help on Facebook and your other social media channels. Just say that you want to help x amount for sale by owners and instruct your friends to take a picture of any FSBO signs that they see and to private message you the picture and the cross streets.
You can also offer a gift card or prize to whoever sends you the most FSBOs by the end of the week.
Other Sources – You can also find plenty of FSBOs by searching Craigslist, Facebook Marketplace, and your local newspapers.
What You'll Need
Here's what you'll need to know and have to execute this method:
- Initial Phone Dialogue
- Viewing Dialogue
- Closing Dialogue
- Follow Up Dialogue
- Thank You Notes
- Sellers Disclosure (if applicable)
- Electronic Room Measurement Device
5 Step FSBO Follow Up System:
Note: Every time you get face-to-face with FSBOs, you must give them an item of value, aka something that will actually help them in their attempts to sell their home themselves.
Step #1 – The Initial Contact
Once you spot a FSBO, here's your script:
” Good morning my name is _______ with _________, and I noticed your home is for sale. I'm a Realtor in the area and I just like to keep up with all of the inventory in this area for my buyers. Would you be offended if I came over to view your home?”
If “Yes” (they would be offended):
“I promise to never ask for your listing. The reason for my call is not to list your home. I would simply like to put the home on my For Sale By Owner Inventory List for my buyers. You would like to sell your home to a buyer right? I won't take longer than 10 minutes and won't be a bother. What do you say? May I come check out the property?
Step #2 – Touring The FSBO
Once you've set the appointment to tour the home, make sure to print out an inventory sheet with all of the active, pending and recently sold listings in the area of your FSBO meeting.
Don't make it fancy. Avoid the urge to make a super fancy CMA and pre-listing presentation. Just find the listings and print out the basic MLS reports.
Once you arrive, here's your script:
“Mr./Ms. FSBO, thank you for allowing me the opportunity to view your home! What I like to do is tour the home, take some notes and measure the rooms. It's been my experience that room measurements are very important to buyers. It would be great if, as we walk around, you pretend I'm a buyer and point out what you feel are the selling features of the home.”
As you tour the home, it's important to engage with the owner and build rapport so that they feel comfortable sharing information with you. Also, don't just talk about business. Look for clues of things to talk about and use the FORD acronym to help look for commonalities to help build rapport. (Family Occupation Recreation Dreams)
When you're getting ready to leave, use this script to offer your item of value:
“Mr./Ms. FSBO, thank you again so much for showing your lovely home. I want to wish you the best of luck in selling it. Oh before I go, have you prepared a sellers disclosure?”
When they say “what's that?”
“It's basically a form that discloses that current condition of the property and it's actually required by state law that you supply each potential buyer with a copy. Here, I have an extra copy that you can have. (Hand them blank sellers disclosure)”
“I really appreciate you allowing the opportunity to view your home, and I wish you great success in the sale! Again, thanks for your time, and if there's ever anything I can do for you or anyone you know, please don't hesitate to call! (Hand FSBO your business card)”
Note: Send a thank-you note after visit #1.
Step #3 – Follow Up & Hand Deliver IOV
One week later, go back to the FSBO and deliver an item of value (IOV) and use this script:
“Hi! I just happened to be in the neighborhood, and I thought I would drop this off. I definitely think it can help you in the sale of your home! How did it go this week?”
“Are there any changes to the information you gave me last week?”
“Well, is there anything I can help you with? If you ever need anything, please don't hesitate to call!”
Note: If the FSBO is not home, put the follow-up item of value in an envelope and place it on the ground at the front door. Then, call FSBO to verify they receive the information you left.
Also, send another thank you note after this visit.
Step #4 – Follow Up & Hand Deliver IOV
A week after your 2nd visit, go back and deliver another item of value and this script:
“Hi, I was thinking about you the other day and since you're getting closer to selling your home, I thought this might be of value to you. How did it go this week? Any changes to the information? Is there anything that I can help you with? If you ever need anything, please don't hesitate to call!”
Note: The phrase “Since you're getting close…” is very important because it's designed to solicit a frustrated response from FSBOs.
Remember: If the FSBO is not home, put the follow-up item of value in an envelope and place it on the ground at the front door. Then, call FSBO to verify they receive the information you left.
Also, send another thank you note after this visit.
Step #5 – Follow Up Phone Calls
Another week after your last visit, begin weekly follow up phone calls using this script:
“Hi, this is ______ with ________ and I'm just touching base with you. How did it go this week? Any changes I should be aware of? Is there anything I can help you with? If you need anything, please don't hesitate to call!
Repeat this call weekly until the house is either listed or sold!
If you're still around after 6-8 weeks, the seller will start self-discovering that you are different from everyone else and you can begin to start asking for referrals and getting results.
By now, I hope that there is no doubt in your mind that not only can For Sale By Owners be a huge part of your business, but they're also just people who need your help. So next time you see that FSBO sign, pull over and just start with step 1 of our 5 step method.
Let us know how it goes for you in the comments below and thanks for reading! Cheers!