A great strategy for chasing FSBOs

Real Estate Agent

 I’ve made a lot of money off of FSBOs. But, I have to say they are the hardest leads to convert. FSBOs are much different from an Expired or Pre-Foreclosure. They want to sell, but they don’t want to use an agent.

  So you have to take a different tack with a FSBO, versus what you would do with and Expired. Most FSBOs end up listing with an agent. The key is to be the agent they are talking to when they do decide to list. But, at the same time, you can’t call them 24 hours a day. A good way to be that agent is to check in with them weekly in a nice, non-threatening way. When you call, you say, “Hi, it’s Agent X again, I was just calling to check in and see if you had maybe considered talking to an agent.”

  Here is a different tack I have tried, and it’s worked pretty well. You tell the FSBO that they can get access to the MLS, all the buyers working with all the other agents. At the same time, they are able to sell the home themselves and pay no commission. If they get a buyer thru their own marketing, their own craigslist, or newspaper ads, then you get out of the way and they pay no commission.

 This gets you the listing before the other agents. Why? Because it gets rid of the “I want to list, but what if there is some buyer out there and they call me on my ad tomorrow? I’m going to lose 6%. I don’t want to risk that,” the FSBO thinks to them self. There are only two reasons a FSBO won’t list: fear of losing money, or they’re irrational and not motivated anyways. Let’s not waste time talking about the irrational, unmotivated ones. But, we can convert the rational ones.

  This method works. Here’s what happens after the FSBO lists with you. They stop working to sell the home. And a few weeks later, you have a normal listing. If you can get it sold, then you make a commission.

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Ben & Chris Curry The Short Sale Agent's Advocate