When a FSBO or potential one begins to ask me for advice...I listen. I access what they are concerned about and then use that to my advantage. I don't give free advice unless I expect it to pay me in the end. After I listen, I ask questions to help them understand one thing.
They don't understand.
There has been a great deal written on how to convert a FSBO. Home owners will dig and dig and dig to collect all the free advice possible. Do you work for free? Not me. At least not on purpose! The next time a person is digging for a freebie from you, why not try my strategy?
I bombard them with questions. With the right questions you will be earning your value with them as you speak. These questions are meant to be rhetorical and thought provoking to the individual that wants to "save money" by selling their own home.
Try a few of these:
1. Do you know what the disclosure is and why it is necessary to keep from being vulnerable to lawsuits?
2. Do you understand what a clear title is and how to guarantee there is one?
3. Are you familiar with option periods to avoid unnecessary and deadly "specific performance" issues?
4. Do you plan to move before you close and then what if you don't close?
5. You like the people and you trust them but what if you could be wrong?
6. Who is looking out for your own good?
7. How do you know your house is actually worth what you are selling it for?
8. Could it be worth more?
9. Are you leaving money on the table?
10. Are you familiar with how an inspection is handled and just what you are responsible for?
11. Are you familiar with appraisals and what they mean to you, and to the buyer?
12. What about financing?
13. Will you know if they are really approved and will be funded?
14. Did you know that national statistics tell us that people who sell their homes through professional Realtors make an average of 18% more than if they sold it themselves?
15. Did you realize that I could represent you by selling your home and you will likely walk away with more in your pocket than if you sell it yourself?
Final Question: May I draw up the listing agreement right now so I can get started marketing your home?
Now of course there are hundreds more questions that you can ask them. Have fun putting your questions together that YOU feel would be important.
Lenn Harley wrote words that made me laugh and dig in my heals. Lenn tells us that; If they (FSBO's) ask where they can get some information about selling their home, I politely suggest that they start with real estate school.
I love it Lenn!
and Proud of it! Deb
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Check out my website at: www.debs-realestate.com.
Debra, great checklist for dealing with FSBO's.
Great Post!
Thanks Mark, It works for me! I have converted a few! Especially the one's that are listed on Buy Owner's sites.
Bart, just formulate your questions as you're visititng with the person. The conversation will give you tons of opportunities to think of these things.
Thanks Missy, I've done the same darned thing. Then I thought...when do I get paid?
Nancy, freebies are what people are looking for these days. It all comes down to discovering the value of an agent.
Marey, Marey, how are you doing? Thanks for the comment and I will stop in to visit you soon.
Thank you Michael, feel free to add more questions. We need as much ammo as we can get.
Gary, awe shucks. Going to Bandera? You haven't said anything about it. Thanks.
Chris, thanks. It does really work. It makes them realize there is more to than having a garage sale!
Later in the rain~Deb
I like a post from another agent on the topic of buyer brokers. You have to be employeed to begin working!
Ross, I don't want you to think I'm tough! Just smart. Just remember you're asking these questions because it's for your own good.
Gary, I'm sorry to hear that you're not coming! Another time?
Nancy, I think it's wrapped up with a little pride...I can do it better than you can!
Darleen, I understand. Just remember you will never teach them enough to sell their own home in a few meetings. Spend your meetings marketing their property!
Thank you Luis.
Later in the rain~Deb
Evelyn, I'm not sure what you mean. Explain more?
Elizabeth, take control girl! You've been to school for this stuff. Let them know it. :-)
Robert, You had better use them! Ha.
Later in the rain~Deb
Debra;
I enjoyed the salient remarks, questions, that you pose. I always ask how long do you think it is going to take you to sell on your own? I have had some great replies.
I like you plan of attack. Every angle to market yourself has the potential to bring more business to the table that you wouldn' have otherwise had. Other real estate agents not wanting to bother with FSBO's mean less competition for you!
Good post!
Gayle, I had no pre-conceived ideas about Realtors when I got my license...little did I know.
Rob, we don't get paid unless we perform!
Renee, you're welcome. Try it...it works.
Chistina, high praise from a fellow Realtor and friend.
Lorraine and Loretta, that is a great question!
Perrin, I have made a lot of money selling fsbo's houses! I find that a good reason!
Thank you Dave. Asking questions is the key to true clear communication.
You're right Casey, I have fsbo's that call me for everything now...and they send me referrals.
Thank you all for the input!
Later in the rain~Deb
I love your approach Deb, especially "How do you know your house is actually worth what you are selling it for?"...
From a consumer's point of view, most of us don't really know what's going on in real time in our neighborhood.
Those are some thought provoking questions for anyone considering selling a property without an agent. Sometimes the do it youself method is not the best way to save or make money.
Thank you Marti! I sold a home of 13 years once with a 1% Realty in Dallas. I was too cheap to pay their fees. It was a nightmare. If I had a good Realtor to explain all the aspects of the sale to me I would have walked away with much more! I learn everything the hard way. :-)
You know I think you're right Norma! I really don't usually pull those out of my pocket at listing appointments and I wonder why? hum.
Later in the rain~Deb
Great post Debra.
I sell FSBOs and have trained many agents to sell them, with great care.
But, I draw the line at helping FSBO sellers. I don't want their listing and unless there is a good chance that they'll want to list and I can refer it to one of the agents in my network, I really don't give them the time of day.
If they are upside down, they may be a short sale listing, if that's what they called about. Otherwise, I simply
RESPECT THEIR DECISION TO TRY TO SELL WITHOUT A LISTING AGENT AND LEAVE THEM ALONE.
Lenn, I don't blame you. They don't seem to have the type of respect I prefer. I can tell you one thing though...if I do take the time with them...they will by mine!
I try to respect their decision if they choose to go it alone but I get testy. Thanks Lenn.
Later in the rain~Deb
Ryan, it is good because it opens an entire new Pandora's box for them. Things they have never thought of. It scares them as well it should.
Ruth, I'm so glad this will help! I like Lenn's take on it but I have to convert fsbo's for the sheer sake of making a living!
Later in the rain~Deb
I personally don't like working with FSBO's. It just seems like you have to return to the scene too often to get the listing. Normally on any other listing appointment it's a one-shot deal for me - knock on the door, smile, break the ice, take them to the safe island (sound familiar?), see the property, walk out with the listing.
However, formulating questions at just the right time for a seller considering selling on their own - well, now that's not only common sense, but it does depend lot on timing.
It's good to not get rattled in a listing appointment - keeping a level head and asking the right question at the right time is key.
Practice is as well. I love the idea of role-playing so you have the words practiced so you don't stumble on them. Hey, in front of a mirror works well if you don't like playing with your peers...
Good post. Thanks!
Goodness, "cocky"? I said your post was a good one and don't consider "cocky" necessarily a positive trait or comment, not sure where that came from. Yes, I do get listings and sell them if they are sellable; that is probably a result of my training and how I have been able to assimilate it into my other knowledge. It's just fact and I don't know why it came across as boasting or "cocky." FOR ME, the key to getting the listing is keeping a level head, and I guess I left out "intuiting" the client's desires, and knowing what to say and when that has helped with my business.
Hmm, a novice? Have been licensed for awhile but not forever - I role play or practice on my own each new training I take advantage of, or training developed by others or myself that I am responsible for when training other agents. Doing so helps me "automate" if you will the things that must be covered so I can then relax and tackle unique questions or respond to issues that arise out of the ordinary.
'nuff said, thanks for your post.
Hi Doug, those questions should rattle anyone! Each question can create more and more questions and who best to answer them???
Their REALTOR...YOU! Let them know you're watching their backs and maybe they can justify payment! Thanks a bunch!
Later in the rain~Deb
Staci, absolutely a good balance is necessary! I don't mean to sound cocky about this at all. We will never get anywhere by being rude or simply closed mouthed. We must posture ourselves with confidence, humility and self worth. Rapport is the "most" important thing between client and agent. If we don't listen and try to help...then what are we there for?
Thank you for that perspective. You are right! Later in the rain~Deb
Dee, I'm wondering how it's going with your fsbo friend. Those are two strange words together, ha-ha. Pull out the crystal ball and start with the prophesies girl! Good luck.
Later in the rain~Deb
I know I am late on commenting on this, but it still applies. Thanks for sharing. Just like others I have been giving away free information. It dawned on me that one FSBO thought that I was smart enough to get suggestions and advice from but not enough to sell his house. Hmmm. No more of that, like you said, I don't work for free!
Great post Deb. I live in Anderson. We need to meet and have coffee one day.
Brenda, we WiLL do that! I'll look forward to it. We are not that far from each other. It should be fun!
Later in the rain~Deb