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REALTOR® Emeritus | SALES MEETING TOOL KIT: CONVERTING FSBOs | ||
|  Converting FSBOs: Introduction Component 1: Facilitator Talking Points Component 2: Agenda Component 3: Handout 1, Eight Reasons FSBOs Need You Component 4: Handout 2, A FSBO Prospecting Plan Component 5: Activity 1, Responding to FSBO Objections Component 6: Activity 1, Responding to FSBO Objections Answer Sheet Component 7: Handout 3, Ten Free Things FSBOs Want Component 8: Activity 2, Role Play-- FSBOs Face-to-Face Component 9: Activity 2, Role Play-- FSBOs Face-to-Face Discussion Directors Component 10: Handout 4, Getting Fees from FSBOs Component 11: Other Resources | Component 4 Handout 2: A FSBO Prospecting Plan Use this plan as a basis for prospecting FSBOs. Add other successful strategies you have tried as you learn more about what is most effective in your market. LOCATE FSBOs You should spend one or two hours a week (preferably right before the weekend) checking the sources listed for new FSBO listing. Focus in on FSBO properties that are in your market area or that you feel have a strong market appeal because price or features. · Drive-bys. Often FSBOs put up yard signs as a first step in marketing, so spending an early morning looking for yard signs can sometimes give you the first crack at FSBOs, suggest author and trainer Danielle Kennedy. · Your Web site. Place a free services package (See Component 10) offer prominently on your site, and let FSBOs find you. · Newspaper ads. Don’t forget free or less expensive neighborhood papers, which appeal to FSBOs. · Internet sites for FSBOs—including owners.com, sellyourhomeyourself.com, and homesforsaleguide.com Other sources of FSBO leads: ________________________________________ ________________________________________ DEVELOP A TRACKING SYSTEM You will often need several weeks of contact before you can convert a FSBO to a listing. Once they’ve spent some time trying to sell their homes, FSBOs are often more receptive. Your tracking system should include: Name, address, and phone of FSBO—use reverse phone directories or search title records for this information. Date and source where you first found the FSBO—for example, newspaper ad in the March 15th Morning Bugle. Continue to look for ads for the same property even after you’ve added them to the list to determine if a FSBO is still actively marketing or becoming discouraged. Date, time, medium of every contact, and response with FSBO, in chronological order—for example, phone call at 9 a.m. on 9/14, offered and sent free services package. If you do mailings or e-mails to FSBOs, be sure to include those contacts in your tracking system. Other tracking information you’ve found valuable: _____________________________________ _____________________________________ DEVELOP A SOLICITATION SCHEDULE Because they are initially less interested in talking to you than other homesellers, you must build relationship over time with FSBOs to gain their trust—and the listing. Regular solicitations once or twice a week are the key. Thursdays or Fridays—just before the sellers come on the weekend—are great days to offer FSBOs free service packages or advice. Sunday—after a discouraging weekend with no offers—is a good time to call or drop and try to get the listing. The schedule below is a good, basis solicitation model; adapt as you go along and determine what works best. Week One Two mailings: Send two different items from your service package—such as a copy of a real estate purchase contract or a lead-paint disclosure brochure. Be sure that each item bears a sticker with “Compliments of …” and your name and contact information. Attach a personal note to each form offering to provide more information on how the FSBO can use the form in the transaction. Other techniques for making initial contact: ________________________________________ ________________________________________ Week Two Phone call: Use this call to solicit information on why the owners are selling, how long they have been trying to sell, and what success they have had. Offer your free service package. Mail service package: Again include a note offering more information. Be careful that the wording of your note does not imply that the FSBO is not bright enough to understand the information. If the FSBO doesn’t agree to receive the package, go back to the activities of Week One, sending other material, such as information on mortgages, staging a home, or home inspections. Then, move on to Week Two again. Other techniques for expanding the relationship: _______________________________________ ________________________________________ Week Three Phone call: Follow up to ensure that FSBOs have received your service package. Use this opportunity to ask if you can come over and see the house so that you can keep your buyer clients informed of everything available in the neighborhood. If FSBOs say they cannot pay you a commission even if you produce a buyer, ask if they would be willing to share the names of buyers who saw their home or came to an open house but were not interested. Other techniques for making it official: ____________________________________ ________________________________________ Week Four Listing presentation: If the mood is right, present a prepared listing agreement during your visit for signature. As an alternative, you could set up a full-scale listing presentation, but by then the FSBOs' discouragement may have gone away. If you aren’t able to get a signed listing, leave the door open by offering advice and telling FSBOs that if they change their mind and want to list, to please call you first. Other strategies for getting the listing signed: ________________________________________ ________________________________________ Week Five and Beyond Continue contact: A mixture of phone calls and weekly or biweekly visits are essential to staying in touch. If the FSBOs have agreed to pay a coop commission, call the FSBOs to update them on your buyer's feedback. Putting FSBOs on your regular newsletter or e-mail contact list is also helpful in keeping your name in front of them. Monitor mood and act when you see a shift. You need direct contact to monitor when a FSBO might be ready to list, so try to call or drop by weekly. Other indicators of discouragement might be not advertising or holding open houses. In extreme cases, a FSBO might take the home off the market. Other advice on maintaining long-term contact with FSBOs: ______________________________ ______________________________ Component 5: Activity 1, Responding to FSBO Objections > |