For Sale By Owners

For Sale By Owners – Discussion Points and tips to list more FSBO’s

1. Winning with FSBO’S is 90% mindset and 10% skills.

I’m not discounting that we need to have some skills to get the job done, I am suggesting that it’s what our approach and expectations are that will make us win or have more challenges with the when working with the by owner seller.

1. Fact: at least 70-80% eventually list with an agent.

If we know that the vast majority eventually list, why not say to yourself it’s going to be with me and in order for that to happen I have to insert myself into the conversation, the odds are in your favor. There are more by owner sellers than most agents have as a goal to sell each year. 

1. They are only a few things that can happen, they sell, the list or nothing at all. The serious and most qualified ones are most likely to list with an agent.

Our job here is to sift through all of them to find the aces in the deck…or at least the face cards.  The key is to never lose sight that the good ones are there and often we allow the others … the 2’s 3’s 4’s…the less qualified sellers influence us and discourage us.  There are a lot of good people out there that are in need of your services…believe in what you have to offer and the solutions you can bring to them.

1. Being organized and having consistent lead follow up is everything with this source of seller leads. (The spider web)

I like to say we have to be “sticky” like a stamp.  Another way to visualize this is to think of it like you’ve spun a spider web…nothing gets out of your web (once it’s in there) unless you choose to let it go.  Time on task over time beats talent every time.

1. Don’t look down on them for trying to sell the home themselves.

This is quickest way to turn someone off and shut us down.  It’s a tactic that I’ve heard many agents over the years use…fear and scare tactics don’t work.  Remember the saying…it goes like this…a man convinced against his will is of the same opinion still.  Be supportive (sincerely supportive and professional) and follow up until they’re ready to fold. 

1. Pre-qualify first, if they meet your standards then either make an appointment, preview appointment of create a new lead to follow up with.

The point here is to be sure the lead meets your standards.  When I say standards, I am talking about things like…location – within areas you service…price ranges…there may be a point in which you aren’t going to work a lead that’s at a lower price or higher price…this all depends on your experience, market and economic factors.  I always have a standard around people’s attitudes…you have a choice and don’t have to work with unhappy people, negative people that have stinkin thinkin…it’s just a chance to reflect and ask yourself “is this business I want to pursue?”

1. Don’t get caught up in their story or drama of why they “think” they can’t afford to list with an agent…they can’t afford not to.

First, on this one…ALWAYS listen with respect…I am just suggesting not to buy in to the story or get caught up emotionally.  We have to separate ourselves from their circumstances and understand that at the moment they may not think they can this or that and in the end they will do what they have to do if they really need to move and are unable to sell themselves.  Tell the story – seller NRH – not going to list, has a friend they’d list with and wouldn’t pay full comm.  Not only did I get the listing, I got a full commission. Smoke screens are sometimes sent our way and we have to have a big fan to blow it out.  Point: When the motivation is present, we all do what we have to do. 

1. The facts are, 85% of all homes in the S. sell in the hands of a Realtor. Statistics show homes that sell with Realtors sell for more money than private party, if not the industry as a whole would go away.

It’s important to keep this in mind…over the years and going back to the beginning of real estate as a profession, our industry represents (depending on the source) 8 to 9 out of every 10 homes that sell.  And for the 1-2 of ten that sell, in many cases wasn’t that a by owner actually found a traditional buyer, there was an arrangement where a neighbor bought the home or a family member etc.  If we have to offer didn’t work to bring homeowners more money, quicker sales with less hassles and reduce their risk/liability our industry would have gone away by now.  This is why it’s so important to be top of our game and continuously be upgrading what we do as real estate professionals. 

1. By owner’s have a process to go through, some are longer than others. The key is being there when they are done going through that process, be persistent with your lead follow up.

We never know where we’re meeting someone in their process … we only find out when we make contact with them…we don’t know if they’re just getting started or have been attempting to sell for months – tired of fielding calls – sitting their open houses – and being tied down to their homes.  The only way to know if to make contact.  Think about human behavior – are most of us by nature the type to stick with things when times are tough OR are do most of us tend to break down and give up? (WAIT).  Exactly – so if we realize that as a society we have that tendency use that to your advantage and stay the course because the odds are they won’t!

Visual – you have a wall in front of you, you can’t climb or jump over it. How do you get to the other side? Take down one brick at a time until you can step over it to the other side. 

1. Our job is to help them discover they have a problem and then offer the solution.

Again, we don’t want to make them wrong here.  This is a technique you can use to create doubt or curiosity in their minds.  You can do this by asking strategic questions. 

 Curiosity – If I could clearly demonstrate a financial benefit by working with me…you’d at least want to know what is…wouldn’t you?

 If we met and you felt I could get you more money, a quicker sale with less hassle, would you at least consider it? Testing the waters not all fish will bite, that’s ok.

Doubt: Since 85% of all homes sold in the US are represented by RE Agents…I was curious what marketing angles you’re using to tap into the 15%?

RECAP - Conversion Tips

1. Come from contribution.


2. Never make them wrong or look down on them.


3. First present a problem presentation, then go into your listing presentation.


4. Don’t buy into their story.


5. Avoid trying to list them over the phone.


6. Be careful not to share all your strategies before you arrive at the appointment.


7. Don’t give them tips or write the contract for them or offer them any tools you.

Follow up is everything, especially when working with this group of sellers.