What is Your Killer Strategy or Script to Convert FSBOs?

9 Replies

I have trying so many different strategies and scripts on FSBO leads. I would like to hear your strategy or script I how you convert them.

Thank you, 

@Mahan Shahverdi

What are you currently doing?

How many FSBO's have you spoken with this week? How many have you followed up with?

@Chris Seveney   I suppose there are 3 avenues

1.  he is an agent and wants a listing  ( most common)

2. investor and wants to buy the property

3. unlicensed wholesaler looking to put contract on property and then flip the contract for a fee

I find fsbo pretty knowledgable as to value and not prime targets.. although you can run into some that are clue less and want way less than property is worth.

I haven't done this myself yet, but plan to implement it and see how it works. I was listening to a Real Estate Uncensored podcast earlier today on this topic and they suggested a strategy I hadn't heard before but that seemed to have potential. This is assuming the OP is a real estate agent trying to list the FSBO. Many FSBO listings will offer to pay a buyers Realtor, they just don't want to pay both sides, and most FSBO people likely get inundated with listing offers from every agent in town before you come along. The suggestion was to, either by phone or in person, ask first if they cooperate and offer compensation to a buyers agent. If so, ask to see the house and go over their numbers so that you can be prepared to offer it to buyer clients you may have or come across. If any glaring errors in their marketing or price are apparent, offer suggestions, but simply approach it as a "I love the house and I'm sure there's a buyer for your house out there, I'll try to find them". Without pushing the listing contract, you can build some common ground and get a conversation that all the Realtors mailing postcards begging for listings aren't getting. If you're well networked, you may potentially find a buyer and make a 2.5%-3% commission without it being listed on MLS. They'd love you for finding the buyer and may use you again. However, without an MLS listing it isn't super likely that a buyer will appear. But now that you've been at their kitchen table offering help with selling it as a FSBO buyer-side-commission only deal, they'll likely pick up the phone if you call to check in once a week or so. Call and let them know you're trying with your network, but not being on the MLS is a handicap. After a few weeks, they may prefer to list it with you for that additional seller commission cost as opposed to dropping their FSBO price. Obviously you should actually be trying to find a buyer all along, not stringing them along hoping to list. But by allowing MLS to help find a buyer from all local brokerages, their likelihood of selling increases and they've kind of eased into the acceptance of paying commission to both sides if they get to that point. Since as the agent, you'd either make the buyer side finding a buyer off market, or the seller side when listing, you really are able to do what's best for them and build the relationship. That strategy would take some time and practice and you wouldn't want to invest a ton of time in basically and open listing at first, but seems like it would give better results than mailing postcards to all FSBO listings in town.
Originally posted by @Jay Hinrichs :

@Chris Seveney   I suppose there are 3 avenues

I find fsbo pretty knowledgable as to value and not prime targets.. although you can run into some that are clue less and want way less than property is worth.

 Hi Jay,

Is this as someone trying to get them to a reasonable number with you agreeing to list it at that price, or is this as an investor trying to lowball them? I feel like I see the opposite - that FSBOs are delusional on value to the point of absurdity. Comps have it at $800k on the high end because it's a 2 bathroom, which means listing it for $749k in the Bay Area wouldn't be abnormal, but they want to list and sell it for $875k because a buyer could in theory build a 3rd bathroom, silly stuff like that (and of course no one has agents so I end up roped into this conversation somehow).

I sold a couple FSBOs last year. If I was inclined to hear from an LA, I would have wanted to know what my 30 day net would be. 30 day likely price minus commissions. I'd want to know that you will help make things easier on me. That you won't tie my house up for 6 months. 

What did I get instead? Condescending questions about how I came up with my price. If I knew what forms and disclosures to use. If I knew about fair housing and blah blah blah. Complete interrogations designed to scare me into a listing. I felt like I needed a shower after every call.

The bar is low. What would you want your mother to hear? Don't try and lock up a poor seller for 6 months. Tell them what your plan is and what their likely net will be. Be a compassionate human. 

Having experience selling FSBOs, I had to deal with many calls from realtors-and still do for listings that closed long ago... Everyone says the same thing. They have some sort of unique marketing system that will sell my house better than anyone else around. I have had some asking on how I price-which is an appraisal, but they have never been able to sell me on what they can do to make the deal go through. I can't speak for your average consumer, but the reality is that posting FSBO on MLS has gotten the deals done for me and it would be hard for me to pay more for someone else to answer the calls.

You may have luck with others that are not new to it, but personally, it would take a discount to make me consider it as I am not sure what you would be able to do that I am not able to do on my own. I can see how realtors would rather work with other agents than homeowners, but from my perspective, getting the home on MLS is what sells houses. I believe very few are sold based on a broker or agent relationship.

Now that systems have improved, FSBO listings have gotten easier where showings can be scheduled online without me even needing to pick up the phone.

One thing you might consider is offering a discount to sellers if they purchased a home using you or will use you to purchase their next home.  I used an agent to buy and he has offered a discount for listing my property if I sell down the road.  If you offer a discount to sell with the thought they may use you to buy their next property, it might be a win-win for both sides and you would still be better off than not getting the listing.

I wish you luck and think it is still worth a quick call, but the reality is that some may share the same viewpoint as me. 

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