I have read several posts on AR asking questions on how to market to FSBOs, and I wanted to share something that I started doing several years ago that seems to work like a charm.
First of all, you need to have a telephone call-capture system up and running (otherwise called an IVR system, or a "hotline" system). If you don't know what a call-capture system is, here's the nutshell version... for those of you familiar with them, skip the next paragraph!
Call-capture systems are toll free recorded phone lines. They usually look something like this: For Toll-Free Recorded Info Call 1-800-999-1111 ID#1234. I'm sure you've seen these in advertisements. When someone calls into a call-capture system for the advertised information, the system captures their phone number (similar to caller-ID). This enables you to call back all the people who called your system, and creates a great means of follow-up. I'll write a much more detailed call-capture post in the near future (probably several of them). But for now, you should have a basic picture of how it can benefit you.
Enter the FSBO. Let's say that you find a FSBO that you'd like to court. Make contact with the FSBO by calling them and asking them if you could take a look at their home, because you like to be knowledgeable about all of the homes that are for sale in the area (which you should be!). Schedule an appointment and go to see the FSBO.
Tour the home, talk to the FSBO like normal (use FORD of course - Family, Occupation, Recreation, Dreams). When you're done, ask them if they would mind paying you a fee if you brought them a buyer (whatever percentage you feel is appropriate, I won't use numbers here). Once that's established, ask them if they would like to expose their home to a wider number of people.
This is where call-capture comes in. Explain what call-capture is. Then tell them that you have a win-win suggestion for them. You will give them an extension for free on your system, along with a yard sign with the phone number on it (not one of your for-sale signs!). You will work with them to record an effective script for their home. Then, whenever anyone calls in on that ID number, you will let them follow up on the lead first. If the lead wants to buy their home, GREAT! They can work with that lead, without paying you a dime.
When they ask what's in it for you, you can explain the second WIN of the Win-Win. If the FSBO follows up with a lead, and they end up not wanting to buy that house, then it's your turn. You take the lead's info and call them to try to turn them into one of your buyers. You can also explain to the FSBO that you would really appreciate the FSBO considering you to act as their buyer's agent when they are looking for their next home, which won't cost them any commission.
Why does this help you list FSBOs? You are keeping in touch with them regularly! Every time a lead comes in, you have to pick up the phone and call them to give it to them (don't have it auto-emailed to them directly, it kills the conversion). Even if there aren't any leads, you start to create a relationship. In time, when the FSBO becomes one of the 80% or so that list with a real estate agent, your name will be first, or close to first, in their mind.
I hope that the idea helps those who are hoping to work more with FSBOs. Come to them from a position of helping, not selling, and you'll have a much greater chance.
Have a great Labor Day!
Bill
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