Convert For "Sale By Owners" - Get Buyers in the Process!

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Convert For "Sale By Owners" - Get Buyers in the Process!

Another FSBO converted to a listing, but with a whole different approach. I haven't seen a post that suggested this yet, so allow me to share. Next time you see a FSBO as you're driving down the road, pull over and stop in front of the house! This may be the hardest part of it all!

Have courage, be strong, don't be a prisoner of fear. Get out of your car, go up and knock on the door. When the owner answers the door, simply say these words:

"Hi I'm Brad (please use your name though) and even though I'd love to talk with you about the prospects of selling your home, that's not why I am here. I want all your visitors!" The FSBO will become dis-armed and wonder what visitors you are referring to.

You say, "These are the folks who have come through your home to preview it, said thank you very much, and then never came back again. I am sure your home is beautiful inside, but for whatever reason, those visitors left, and you will probably never see them again. I have many homes listed for sale, some like yours, and some that are different. It may be that I can find them a home since they didn't buy yours."

Now the FSBO becomes a little less resistant. "If I left you an Open House Register, would you be kind enough to have your visitors fill out their information when they come in to preview your house? If they don't buy your home, I'd like to try and help them out." If I do find a visitor a home that you referred me, it's possible that I could reciprocate."

The FSBO might ask, "what do you mean reciprocate?" You reply "that simply means that if you scratch my back, I'll scratch yours. For example, I will try to assist you with some of the things you will need while in the process of selling your home. As I was driving by today, I noticed your sign and realized that NO REALTOR in the area has access to your listing from the MLS, or any other systems we use to find our buyers homes.

There's no MLS data, no flyer, no marketing, no loan program scenarios, just a sign in the yard that says, "For Sale By Owner!" If you scratch my back, I'll let all the other agents in my office, plus the ones that I work with in the area, know about your home being for sale. What I'm saying is, I'll try to drive some business and buyers your way. What do you think?"

How can the FSBO say no? Thank them for their time, drop off a guest register, give them your card and just walk away. When you leave, they will know, you mean business. Now, very important...Come back the very next day and knock on the door again. The reception should be a little warmer this time, as you are still fresh in their mind.

Ask them this question. "You know it dawned on me as I was driving away yesterday, I work with alot of sellers, but I also work with a lot of buyers too, who may be interested in YOUR home. I'm Not even sure how much you're asking or what it's like inside, do you mind if I come in and take a look around?" You are in! At this point you can preview the home, complimenting all the highlights, and establishing a relationship with the FSBO.

Do what it is you do best, SELL YOURSELF, (because this business is relational, not transactional,) and then SELL your knowledge and service. When the time is right, ask to see the disclosure reports, the CC&R's, the termite inspections and appraisal or comps which helped them determine the sales price. Ask lot's of specific, non threatening questions.

FSBO Cabin

Basically ask your way right into taking the listing. When the FSBO starts to appear overwhelmed by the legal documentation necessary, and the liability they are taking on by trying to sell their own home, you can say, "I know, let me help you out here." I think you know where this is going. Once somebody likes you, they'll listen to you. Once somebody trusts you, they'll do business with you.

Sell your value, not the house. Trust that the follow -up with FSBO's is what gets the listing. Not the "One Time Wham Bam."

I have known many agents to convert FSBO's, you just need a solid plan, the ability to Voice your Value, and you have to dis-arm the FSBO and convince them of your value. The hardest part? Pulling over, getting out of the car, and just knocking on their door!

Now, if after your second visit, you feel they are still not receptive or ready to list with you, there's always the third visit a week later, when you come by to pick up your guest register. Bring another agent or friend with you to preview the house once again, but this time, have them sign your contract before you leave!

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Posted by Brad Andersohn on 03/08/2007 02:21 AM

Comments (73)

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Originally posted at: Real Estate 2.0 Technology : Convert For "Sale By Owners" - Get Buyers in the Process!

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73 Comments on Convert For "Sale By Owners" - Get Buyers in the Process!

MAR

2007

Does "(Mention Activerain)" in you post mean you are an advocate of encouraging ActiveRain Members to post FSBO properties on ActiveRain as part of their FSBO conversion strategy?

(Graphic to post says "Passion", how appropriate)

Brad I like the idea of trying to disarm them by using a different approach. I don't think I would want to clutter Active Rain with a bunch of FSBO listings but would be willing to try and get an L/O to do a mortgage sheet or something of value for them.

I'm curious. . . How long have you been using this method and how many FSBOs have you converted to listings? Thanks for sharing your method, it does sound interesting.

The idea is not to post FSBO listings on AR, but to share with a FSBO how you have access to a network that spreads across the US and Canada. If you did have a buyer whose needs matched the FSBO property, you could or would still write the offer right? Just sharing with a FSBO your Knowledge might be great, but letting them know of the access you have to the AR network should generate some leverage in helping you get the listing. A place to promote and help get it sold (after they sign the contract only) It's an awesome listing tool for my area. I guess I was a little unclear on that part. Sorry. In my opinion, I would never endorse putting FSBO listings anywhere in AR, the idea here on this blog post, was to try and help you get the listings, and generate more buyers from the visitors that had previewed that FSBO only! Wouldn't you want to know who those people were that are looking for a home, and checking out FSBOs? It's a great excuse to knock on that door. I have seen many others here on the west coast use this method. It does not always get them the listing, but it does help them be motivated and feel more comfortable just approaching these FSBO's.

MAR

2007

I agree with what others have commented on. But any FSBO experience will be much appreciated so that others can learn!

MAR

2007

Brad,

I love your approach. I must say that I tried it the old fahion way for many months of calling, or being brave enough to knock on the door....but then I did what every other Realtor in the area did.....i simply asked for the listing and left a small flyer.

In the last few months I devised a new plan...I wasn't EVER going to ask for the listing, I know it sounds rediculous. Here is what I did. I would knock on the door, with a very nice, professional and FULLY informative flyer, the most advertising it had on it was my name and phone number on the back. THAT WAS IT. The rest was all info on how to sell your home(now, stats show a FSBO only stays on the market 6-8 weeks top, then they list. And, only 13% of FSBO actually sell). I would offer advice, tell them I didn't want to list their house...and like you said, they become a lot more friendly. Then, i would offer to email them a report that I have through my website (Market Snapshot). BAM! I got ALL of their contact info now!!

Email the report the following day, follow up 2 days later for any questions. Then write a thank you note, and drop it in the mail. Next step. Ask them where they plan on moving. By the time they decide to list...and they will you not only have their trust, you get their listing and to sell them a new home.!!FSBO's are now where the majority of my leads come from :)

Liz

Way to go LIZ!!!! Thanks for sharing that with us. I LOVE IT! Your approach is awesome, i know readers of this blog will sure appreciate all the great ideas and creative ways people like yourself have come up with, to convert FSBO's. Excellent post, keep em' coming. Great Stuff and very much appreciated! Thanks.

APR

2007

The way the market is in my area I'd rather have the Visitors anyway! Listings are money pits right now!

APR

2007

It's that way in many places right now Endea, thanks for the comment. The market, like a roller coaster will have peaks and valleys, this is the part of the ride that everybody screams.!! :-)

Brad - I must admit that I am not a Fsbo specialist. Thanks for your insight and advice!

Neither am I Gerhard, I just learned from others successess, and then shared!

APR

2007

"The idea is not to post FSBO listings on AR, but to share with a FSBO how you have access to a network that spreads across the US."

Don't forget about Canada!

I'm Sorry Luther, my bad! See edited comment/post above! Thanks!!

APR

2007

I like your approach, especially the lead generation idea of leaving a sign up sheet. I notice that some FSBOs just don't want to deal with paperwork; ie, property disclosures. They have to fill them out anyway, but quite often they don't have any idea of what all is involved in trying to sell their own home. Termite inspection? appraisal? home warranty? comparative market analysis? Closing attorney? Contract negotiation? etc. Then of course, they get frustrated because their house didn't sell.

APR

2007

Jon, this is so true. The paperwork is definately a big part of the battle, but I still feel that it has been and always will be about the money. FSBO's just don't realize the value of a "Realtor"! Not, just the paperwork, but the resources, the liability, the overall worth of a good agent is well worth more than the 6% commision that gets paid. Just the negotiating alone is worth that!! Thanks for your comment, an excellent point!

MAY

2007

Today, I walked up to my very first fsbo,but nobody was home. So, I wrote on the back of my card," if you decide you would like to list with a real estate agent, give me a call. I would be more than happy to assist you."and left it in their door. Kind of a bummer,nobody being home, I really had myself all ready to talk to them. But, I did get their address. I am going to mail them some info tomorrow.:)

MAY

2007

Edith, 3/4 of the battle was won just by walking up and knocking on the door! Congrats!! Sorry they weren't there. Follow - up will be your key to success. You might also ask for the buyers that have come thru to view the FSBO's home, but didn't buy it. They are still looking and maybe you can help them find their next home. That's what this post is all about, converting the FSBO lookers into your buyer clients! :-)

JUN

2007

Brad, I have several FSBOs in my own neighborhood. I'm going to try this technique tonite!

Robert - please come back and lt us know if you can generate a list of "potential buyers" from the FSBO's in your area, or convert any to listings. I have seen different results from various areas around the West Coast. I also have another link regarding FSBO stuff from other members on Active Rain.

FSBO Post's from other Active Rain Members READ MORE >>>>>>
(some really good one's here)

JUN

2007

Great idea I gotta try that

Makea - it's easier done than said, so let us know how it goes. :-) Thanks!!

JUN

2007

I love this post and all the comments. I am actually going to start offering to do Open Houses for the FSBO's. I will inform them that I am doing this to get their visitors information (which I will get also) and tell them, even if they find a buyer from it, I will not take a fee. That way, I get in the house, can ask all questions regarding the house and even be able to photograph it to enable me to advertise the Open House. I will keep you all posted how this goes..Wish me luck folks!!

Michelle, no luck is involved or needed. Perseverance will always prevail! Just provide the same value that you do to all your other clients, family and friends and you will be awesome! Be yourself, that's what people love most about you! Go Getem'! :-)

JUN

2007

Thanks Brad! ;]

Michelle, Anytime!! :-)

JUL

2007

Ok.....so.....I read this the other day and decided to try it. Well it worked!!! They have agreed to use a register book and give the contact info to me. I am also giving them helpful tips and information they need without asking for their listing and they have mentioned twice that if they can't sell their home they would like me to list it. They aren't ready yet, but when they are it's mine. I have no problem knocking on people's doors. I prefer the face to face method. Great post!!! Thanks for the wonderful advice Brad.

JUL

2007

Pamela, thanks for coming back to comment!! I know these are steps that most will read but never try, you have proven that this does work. I have worked with many agents that have done the same and ended up with listings and full 6% commissions. CONGRATS to you, and I hope you are able to get this listing and a registery of potential buyers as well. Your comment is my reward for this post. If you can, just remember First American if the opportunity presents itself! :-) (BIG SMILE)

JUL

2007

Brad: Thanks so much for a simple and great idea for working with FSBOs. I am going to buy some sign in books and give it a try, I'll let you know how it works. Thanks again

Mark - you can also just print up a few "branded" pages and use those too. Maybe publisher or word can create a simple sign in sheet that has YOUR information on it. Keeps it in front of the FSBO that way, and they're just going to give it back to you anyway. Just trying to save you a couple bucks if it makes any difference. Looking forward to hearing your report back. Thanks Mark!

JUL

2007

Brad I am going to give it a try, although we do not have a lot of FSBO in our area. It alway nice to know another way to approach people. Thank you for the explanation

Brad-Great post! I have to say, door knocking is my favorite prospecting approach and I can't wait to give your method a try on FSBO's. I look forward to coming back to your post and following up.

Brad,

Great post!! I've been racking my brains on trying to figure out an opening approach to use when meeting a FSBO. I've got the possible services for them in the mutual scratching of the back....but I never thought of the approach you suggest.

This is pretty good advice. I'm going to go look for an FSBO to convert tomorrow. =)

Thanks Brad...I am going to use this approach. Reading your blog and all the responses have given me the nudge to just jump in and knock on the door! Will post my progress.

Brad, I started working on FSBOs shortly after getting my license, and even though I sat down and tried to think of a million different approaches, I never came up with anything like this. I haven't even tried it yet but I'm convinced that it'll work more effectively than what I've been doing. Thanks and much respect to you!!

I think that is a great idea i have never thought of that . I am going to put it in my package

JUL

2007

Daniel - great to hear that folks in yor area know better than to try and sell their homes on their own. At least you have one more method to add to your toolbox that will enable you to approach a FSBO when and if there are any. Thanks.

Julie - we all look forward to hearing back from you and reading your successes and comments. Thanks for your comment and best of luck to you with this.

Terry - this is really a warm call and an opportunity to just get in front of the FSBO with a purpose. It's just one of many ways other agents have been successful at getting listings and buyer referrals.

Rondel - I hope you find one and are able to convert. Let us know ok? :-)

Nancy - love that you've been nudged, looking forward to your return and comments!!!

Joshua - thanks for your very kind ad respectful comment. I do hope this approach will help you in growing your business and working with more FSBO's in your area. Thanks! B-)

Vicki - thanks, I'm honored! Just one more tool for your package that I hope brings you more success! B-)

JUL

2007

Brad great post! Thanks so much for this. I am re-vamping my FSBO Listing strategy, your post and all of the great feedback is encouraging!

Chris - good luck with your new strategy, I hope this will add to your plan as a reinforcement to your success! I have heard some really great success stories from this method! It can't hurt unless you don't try it! :-)

JUL

2007

Brad, I think your approach is really good. I'm going door knocking this evening.

JUL

2007

Great approach, the FSBO's are selling by owner because they don't want an agent or have been let down by one or a few of them in the past. What a great way to disarm.

Hi Brad I am also going to give this approach a try, we have quite a few fsbo here in Georgia. I have rated this post a 5 for all the great information you are sharing with us.

Thank You

JUL

2007

Todd - we"ll never know how it went if you don't come back and comment. Thanks in advance for sharing.

Lori - often times they also think or want to just save money. I have heard this to be the most common reason for FSBO's. Voice your value and find buyers homes in the process. Every FSBO loves your help if they don"t have to pay for it. That's is why so many ask for a reduced commission. I would gladly pay 6% commission to a REALTOR for selling my home, but that is because I understand all the aspects of doing it myself, not to mention the liability and risk I face as a FSBO. Again, just voicing your value won't get the bills paid and create clients for life. But the referrals generated from this source are never followed up with by any FSBO, so by you doing it, everyone wins and you get to voice your value to the FSBO in the process.

Disarming the FSBO is not really the objective in many cases, but educating them is certainly a must on every possible occasion.

Lorinda - let us know how it goes. I'd love to hear your results! Thanks for the HIGH 5, and your comment.

AUG

2007

Best info on FSBO's i have seen.

Great Job Brad and everyone.

AUG

2007

Thanks Jason and Deanna, that is quite a compliment, I sure appreciate it. Best of luck to you both in all your endeavors!!

AUG

2007

I love this different approach. Thanks for sharing.

AUG

2007

Brad: What a great and inventive idea. Thanks so much for sharing with us... especially sharing the dialogue you actually use. I will give it a try and let you know what happens. Karen Anne

SEP

2007

William - taking a different approach to FSBO properties is the key to yours and their success. Most agents prefer to avoid any approach to a FSBO for the fear of rejection. I hope this will help you in your motivation to take that next step towards knocking on the FSBO door. Thanks for your kind comment!

Karen - I am really looking forward to hearing back from you. I am sure many other readers are too in the hopes to confirm that this approach will work for them as well. I'd wish you good luck, but you won't need that, just a positive and motivated attitude should do it! :-)

SEP

2007

Brad - Great post. I am a loan officer and have been working with FSBO's for 3 years now. It's actually the only type of marketing I have done as a loan officer, other than the internet leads I purchased when I first started in the business. (you know how that went).

The last several months have been interesting for me.

I created a system that has all the tools a FSBO needs to market their home (its my offer to the FSBO's). I started letting non-competing loan officers that were not in my area use the tools I created. FSBO marketing has been good for us as loan officers, but as more and more people started using my tools all over the country a few smart Realtors ended up with the tools and started doing exactly what you are talking about.

To add another twist to the entire FSBO model you talk about... What they started doing is working in teams with Realtors, Loan Officers, Title Reps, etc. It has really created a fun environment for them and they are passing a lot of business back and forth.

Brad, If you are interested in how we are working with FSBO's I will let you have a copy of the "FSBO Marketing Manifesto" that I wrote. I have a link to it on my profile, all I ask is that you give me some feedback. I am wanting to fill the testimonial part of my profile with testimaonials from actual active rain members. So anyone that is an Active Rain member can have a copy, like I said a link to a copy of it is on my profile. All I ask is you give me some feedback.

Great Job... by the way I would be willing to get you in touch with our team that is working with FSBO's in your area, if you would like.

Rock n Roll

Chris Clements

Brad, sounds like a good approach to use. I also liked the idea about holding an open house for a FSBO. Bookmarked for review.

Debbie

SEP

2007

Chris - I would love to get a copy, I'll check out your profile. Call me when you get the chance, I'd love to discuss this and some other items or opportunities that might be a win-win for us both. Thanks! My numbers are available from my profile page! Look forward to hearing from you soon.

Debbie - thanks, I hope you'll try this approach if you have FSBO's in your area! What have you got to lose? :-)

I like the approach. Simple, throws them off track (we're not here for the listing like everyone else), and offering them the use of our "valuable sources". GREAT TIP!! Thanks for sharing.

SEP

2007

Vincent - great to see you here. Thanks for the compliment my friend, I hope you'll try this and let me know how it works for you. Not sure if you have a lot of FSBO's in your area, but would love to get some results feedback from the different areas across the country. Thanks for the comment, and good luck out there!! B-)

Brad-

I tried to call you on Friday, but got your voice mail. I did not leave a message because I got another call at the same time I was calling you. I will try you again next week or you can give me a call when you have a minute. You can reach me at my office number 281-519-1187 x 101 .

Rock n Roll,

Chris Clements

http://www.ultimatefsbomarketing.com

Chris - sorry I missed your call, feel free to contact me anytime by phone or email. I spend many hours on the road and in the field everyday. Best way to reach me is on my cell phone, call me anytime! I look forward to hearing from you next week sometime! B-)

DEC

2008

Great Post. I have numerous FSBO's in the town where I live and the county and wanted a way to approach the homeowners without being pushy. Many have done that to my neighbor and they really resent having real estate agents come up to their home now. This is TERRIFIC!! I am going to put this too work this very weekend!

Hi Brad! I just did a blog that links to this one (and many others) so you will see some more traffic....looks like you already have! :)

DEC

2008

Cathy - let me know how this works for you. I have a side coaching and consulting business and many of my agents have done real well with this concept, but it does depend on the demographics and the way you approach these potential customers. I have seen some great successes come from this idea, but I have also seen others fail miserably when it's not done properly and the follow-up and follow-through process are not completed. :-))

Pamela - I noticed your post yesterday, congrats on your feature. Thanks for the mention and the linkbacks to posts like this. I hope this helps some members with marketing ideas for 2009. I can't give away all my secrets, but this one has been very successful for many agents I have coached in the past and present. :-)

Brad~ Did you mention above that you are coaching agents???

DEC

2008

Brad--

Great post & great advice! I'm going to give it a try!

DEC

2008

Vickie - yes, I have a select few that I work with across the Country, mostly brokers and lenders. Are you looking for some assistance or coaching yourself? Give me a ring and we can explore some options if you're interested. You know where to find me... :-) Happy New Year!

Demetria - let me know how it works for you, I love to hear the results both positive and negative though I doubt you'll experience the latter. :-))

DEC

2008

Sounds like a plan. However, I think FSBO's keep thinking that they will hear back from the "buyers"

and want to hold onto their name.

Are your comments highlighted because you are with Activerain?

Brenda - I think you'd be surprised, at some point, most really just want it sold. Every case is unique and different. Yes, I get the yellow highlighter thingy on all my comments. It's something new that was added by the AR programmers and support staff. Yours will be blue when you comment on your own posts. :-)

It works on commercial property as well. I go in, introduce myself, and offer to trade info with them. I want their potential buyer's names, and I offer to let my office know their property is for sale. After a week or five of conversations, talking about the market, about my website, about how I get the word out, I frequently get the listing.

Tim - thanks for the confirmation that this works on the commercial level too. It's great to know that this type of advice incorporated into a business plan with efficient follow-up still works, at least for those who apply themselves and invest the necessary time it takes to make it happen. I sense a great 2009 for you my friend. Happy New Year! :-)

JAN

2009

I never even thought about trying this out on commercial properties!!! Of course!! :)

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Brad Andersohn

Fairfield, CA

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