In our previous post we discussed how to create momentum by establishing consistent and repetitive lead generation sources.  We explored the first two steps of a five step process for converting For Sale By Owners to listings, and now we’ll explore step 3 - “Identifying the FSBO Personality.”    

The Process:   

1. Understand the FSBO Mindset
2. Know Your Facts
3. Identify The FSBO Personality
4. Create a Point of Differentiation
5. Close or Assist

There have been many theories and classifications of personality types with various authors laying claim to the work, but the origins were identified as early as Hippocrates in his text, “Nature of Man” and refined into four archetypal types by Henry Sigeristo in the mid 1930s.  The importance of their works is that they were both social visionaries who were also medical historians.

Originally personality identification was developed to assist sociologists in relationship building to heal compulsive behaviors.  Since real estate sales is about relationship building, it’s not a stretch to appreciate that if you can identify the personality of your prospect and adapt your presentation to fit that personality, you have a greater chance of establishing the relationship.

Four archetypal personalities:

1. Analytical: Not physically demonstrative.  Slow to make decisions and requires proof and details to substantiate claims.  Appears to be quiet and in control.
2. Dominant: Not physically demonstrative.  Quick to make decisions, controlling, concerned with the bottom line.  Appears to be hurried.
3. Likeable: Physically demonstrative.  Agreeable, team player, empathetic.  Appears to be easy going.
4. Expressive:  Very physically demonstrative.  Outspoken, animated, and constantly physically moving.  Desires to be the center of attention.  Appears to be multi-tasking.   

Of these four personalities, the majority of FSBOs are analytical with the sub-majority being dominant.  Analytical types possess a primary motivation to save money.  Dominant types believe they can accomplish anything and can easily sell their own home. 

The analytical FSBO is going to require that you show them physical evidence of why you will increase their net on their home sale.  They are not likely to list with you immediately as they are slow to make decisions, so you are going to have to exercise some patience. 

The dominant FSBO believes they can easily sell their own home; although they also possess a secondary motivation of saving money.  They likely made the decision to list FSBO with little thought.  Dominant personalities represent the listings that are obtainable on an initial meeting.

Properly Gauging and Increasing the FSBO’s Motivation

Whether you sell widgets or homes, all successful salespeople are efficient.  Consider the efficiency model:

Efficiency = Effectiveness/Economics

Efficiency is the key element to your real estate success.  If you list a home with a highly motivated seller and price it right, you will likely sell it quickly with minimal marketing dollars and time invested.  Conversely, if you list a home with an unmotivated seller and price it too high, in retrospect, you will wish you had not taken the listing. 

You must properly gauge the FSBO’s motivation so you do not risk becoming inefficient.  To properly gauge the prospect’s motivation you have to ask the right questions.  It’s a common theme: qualifying. 

Saving money is the primary motivation with an analytical FSBO.  So you must address return on investment in a quantifiable way.  

• How can I exceed the FSBO’s expectations on meeting their needs?

Possessing the belief that they are capable of selling their home themselves is the primary motivation of the dominant FSBO personality.  So you must expose the challenges of selling a home to them without belittling. 

• What problem is the FSBO trying to solve?
• Why would hiring me versus my competition benefit the FSBO?

These scripts will assist you in specifically addressing the above motivations.  Because the prospects’ motivations are different, SCRIPT II branches to emphasize different values.  The analytical script provides you with proof to convey to the FSBO concerning why they will net more money on their home sale if they list with you.  The dominant script provides you with solutions to common challenges faced by the dominant FSBO.

You can view our scripts online at:

FSBO Script I: Gauging and Increasing Motivation

FSBO Script II: Separate Yourself from the Competition

FSBO Script III: Assisting the FSBO

The quicker you increase the FSBO’s motivation and earn their trust, the sooner you will be able to obtain their listing.  When evaluating the FSBO’s motivation, consider the following model: 

Motivation = Attention + Relevance + Confidence + Satisfaction

• Attention: in the first thirty seconds that you are addressing the FSBO, you need to capture and sustain their attention. 
• Relevance: once you have obtained the FSBO’s attention, the FSBO is going to wonder how your message pertains to their interests and goals. 
• Confidence: the FSBO has to be confident that you can complete the task.  They understand that success is not a guarantee, but they must believe you are up to the challenge.
• Satisfaction: if the outcome of what you say is consistent with or exceeds what the prospect expects, they will be satisfied and list with you.

We believe in the four tenets of real estate:

1. Winning listing presentations
2. Pricing properties correctly
3. Qualifying buyers
4. Negotiating price reductions when necessary

For those tenets to happen you must have sustainable lead generation.  To assist you in establishing your lead generation, we are pleased to offer any Active Rain member a free trial of our FSBO data service.  Sign up by sending an email to fsbo@archtelecom.com that contains your name, email, home zip code and phone number.  No credit card or agreement is needed to get started.

Next post we’ll demonstrate tactile strategies to create points of differentiation so that you are perceived as the agent of choice.  

Arch Telecom  210 Barton Springs Road, Suite 275, Austin, TX 78704 

800-882-9155  www.archtelecom.com