Get an Edge on The Competition - Learn How to Convert FSBO Listings

What are FSBO And How Will They Help Your Real Estate Business?

A FSBO, or For Sale By Owner, is when a homeowner lists their property for sale without the help of a real estate agent. This can be a good opportunity for your real estate business, as you can reach out to these homeowners and offer your services. Some FSBOs may be open to working with an agent, while others may not be. It is important to do your research on each property and owner before reaching out, so that you can tailor your approach.

Can New Agents Get FSBO Listings?

Yes, new agents can get FSBO listings. In fact, many new agents find that working with FSBOs is a great way to get started in the business. FSBOs are usually more motivated to sell than traditional sellers, so they can be a good source of listings for new agents. Additionally, working with FSBOs can help new agents learn the ropes of the business and gain valuable experience.

Pros & Cons of Working With For Sale By Owner Leads

Pros

The great thing about working with FSBO leads is they are motivated sellers. Having their home listed means they are 100% ready to sell. This means you are not wasting any time with sellers who may be on the fence about listing. Additionally, FSBO leads are 100% free. Please do not ever pay for FSBO leads as they can be easily discovered online, for free.

Cons

When working with FSBO leads, there is a chance they suddenly get a buyer on their own. It's part of working with any lead but some agents take it hard with FSBOs as generally, the prospecting process is longer and more in-depth. Always understand that at any moment, they may no longer need an agent. Working with FSBOs can take a few weeks or even months before they are even willing to have a conversation with you. Clearly not wanting to work with an agent, you need to first build rapport then communicating value starts.

This is different than other leads as you can go straight into what service you can offer as they already know they want to work with an agent.

Where To Find FSBO Leads?

As mentioned above, please do not ever pay for FSBO leads. These can be discovered, for free, with a few clicks of a button. For sale by owner, leads can be found online, using sites like Zillow, realtor.com, redfin, etc. For the most part, I stick with Zillow as all of the other sites pull their data from Zillow. Now, a technique I don't see mentioned frequently is Facebook marketplace and Facebook groups.

Sellers are now utilizing these resources and competition from other agents is much lower. Additionally, you can reach out via messenger allowing them to see your profile.

Ideally, your profile showcases all of the other sellers you have helped and this will help boost your credibility, without having to say a word.

FSBO Listing Presentation

I recommend having a separate listing presentation when meeting with sellers who are trying the for sale by owner route. The important thing to keep in mind is that, unlike traditional listing appointments, FSBO may not be fully convinced they need to hire an agent. Taking this into consideration, there are two things you want to include within your FSBO listing packet:

• Value
• Credibility

Value

You don't know what you don't know and until someone provides you with everything you need to sell your house, you may not understand what it really takes. FBSO listing packets should do just that… Give them everything they need to sell their house.

Now, I'm sure you may be thinking this is counterintuitive. Here's the thing:

For whatever reason, they decided to list on their own. They may not like agents, trying to save money, or wanted to see what it's like. Whatever the reason, it comes down to one thing. They need to see the value we bring.

We can talk about it all day long but that fails to communicate the entirety of the sales process. Instead, we need to bring them the information and resources needed to sell their home. Here is what I recommend including:

• Marketing tools
• State Paperwork
• Vendors
• An Overview of the process
• Questions to vet buyers

Credibility

For your credibility page, there are probably 10's of ideas that come to mind you would like to include. We want to keep it short yet effective and I believe the best way to do so it by using QR codes.

You can highlight a few past sales and reviews and for everything else, add a QR code that links to the appropriate pages. Here are some ideas on what to include:

• Google My Business page so they can see all of your reviews
• Agent social media page
• Real estate agent website

How Long Until an FSBO Will Convert?

As you start working with For Sale By Owner leads, you will notice the stark differences in how soon they convert. I have had some listings convert within 12 hours of my first phone call to them. I attribute this to perfect timing and wasn't anything I necessarily said or did making them want to convert quickly.

Other times, they take 70+ days before they are ready to list. Especially during the holiday months, expect to convert 60 days after making the first contact with them.

FSBO Followup

With it taking an average of 60 days before they are ready to list, it's important you develop a follow-up campaign that will last for at least 90 days. When thinking about a follow-up campaign, it's important to find ways to bring value each time you reach out.

Asking “if they are ready to list” is pushy and there aren't many directions you can take the call if they say “no”. Bringing value will build credibility while also separating yourself from other agents.

As we discussed during the listing presentation, the majority of the value will be brought upfront. However, there are still a few ways we can bring value during the follow-up process.

Now, it's important to note that if at any time you have a prospective buyer, you follow up with the seller immediately to schedule a showing.

Followup Idea #1: Share the listing to your database

You will need to first check with your broker but if allowed, this is an amazing technique. I have used this in the past when I have sent out their home to my database of buyers. The way this works depends on your state but here is an overview:

Step 1: Get Everyone on Board

Ask for the seller's permission. If they agree, have them sign a listing agreement that ONLY stipulates you will be paid a commission if you bring a buyer.

Step 2: Send Email Blast

Take the home information and photos to create an email blast to send to your buyers. Now, if you want to go above and beyond, have professional photography taken. There is a risk they don't end up converting and you lose the money you paid the photographer. However, this is above and beyond and really highlights the services you can bring to the table.

Step 3: Share Metrics from the email

Even if you don't have a buyer, It's very important to show the engagement you received. This can be accomplished by simply taking a screenshot of your email metrics and sending it over. In return, this highlights the number of buyers you have in your database and also the marketing techniques you can bring to the table.

Followup Idea #2: Share a tool or resource with them

A simple, yet effective, way technique is to share a tool that will be useful to them. Now, during the listing presentation, the majority of these will already be shared. You can always hold one tool back to share a week later, during follow-up.

A great example would be sharing Canva. This can help them market their home with easy-to-use editing software. You could simply just share “canva” or share specific templates like:

• Flyers
• Social media posts
• Packets to put their home information on
• Photo Collage

Conclusion

Marketing to FSBO listings is one of the best ways to have your more successful year yet. To have a high conversation rate, you must understand how they are thinking to discover their problems and how to solve them. You will find conversions only increase as the more value you bring increases.