Wednesday Objective: The Dos and Don’ts of FSBOs
Most agents are rude to FSBOs. Nobody likes to work with someone who is rude. So, when you approach the FSBO the way that most agents do, you will destroy any chance you have of listing that FSBO.
By showing a genuine interest in helping them, even when you have nothing on the line yet, you make yourself standout in the best way. You will leave a lasting impression and get the listing.
According to the National Association of Realtors, 66% of homeowners in America who hire a Realtor, hire the first Realtor they meet. They aren’t interviewing 3 or 10 agents. They are interviewing 1, and so long as they don’t make a terrible impression, they hire that agent and get on with selling their home.
If you can be the first person to meet with and interact with FSBOs and are able to develop a genuine relationship with them, the chances of you listing that home down the road are pretty high. There isn’t much competition, so being first shouldn’t be that hard. Talk to top agents who have 50, 60, even 70 listings and very few of those are going to be FSBOs because virtually nobody focuses on them.
Those top agents and the ones prospecting all day are focusing on expired’s – they are quick to get. FSBO takes a bit more time, but you will be one of the few, if not the only, Realtor pursuing those.
Microsoft actually did a study on sales and found that most salespeople will give up after the first contact. They hear a no and move on to the next prospect, never contacting them again. A small percentage will call a second time and by the third time around, 80% of your competition is gone. Taking that extra time to follow up just a couple extra times can get you many listings.
By the fourth contact, 89% of salespeople give up, by the 5th and 6th contact, they are starting to get to know you, and by number seven you have top of mind awareness.
There are three things you can do to dominate the FSBO market in your area.
- First, provide value. Don’t call them up just trying to get their listing- offer a small thing of value to help them out with their property. Don’t put yourself in the same category as every other agent contacting them.
- Second, is to build a relationship.
- Third, is to follow up.
Mistake 1: Telling the FSBO they are stupid not to hire an agent. No one likes to be told they are stupid. In most cases, you will only offend them – and destroy your chances of getting the listing.
Mistake 2: Not showing the FSBO how you can get them more money. This is crucial to getting the listing.
Mistake 3: Not following up. FSBOs take time to convert. You have to keep following up until they list with you.