I’m gonna share with you 7 of my best tips on (FSBO) converting for sale by owners into listings. I hope this article is informative for you and read this complete post.
Well, let’s just jump right in would you like to close an extra four to six homes a month?
Of course, who wouldn’t right well that’s why today we’re gonna talk about for sale by owners.
- Did you know that the National Association of Realtors?
- 7 Tips on Converting (FSBO) For Sale By Owner Into Listings
- 2. Present Value To The Seller
- 3. Phone Tips
- 4. Book A Meeting
- 5. Use A Dialer
- 6. Allow FSBO Pain
- 7. Ask For The Business
- Don’t give up
For sale by owners is still very much alive and there are still agents closing for sale by owners every single month and I’m gonna show you today how you can do the same exact thing.
Did you know that the National Association of Realtors?
Did you know that the National Association of Realtors did a study and found that 92% of the first sale by owners?
End up using a real estate agent to sell their home anyways.
Additionally, in my market in every other market that I’ve talked with agents on my team, there are about 100 for sale by owners that go on the market every single month.
If not more in some of the more populated areas.
This means that for sale by owners provide a consistent source of leads every single month and the best part of all is that they’re either free or very low cost to go after.
Another reason why for sale by owners are such a great source of leads is that they’re already motivated.
We know that they’ve got a desire to sell as long as they can get the price that they need to get.
Outside of expired listings which I rank right up there with for sale by owners, I can’t think of another lead source that helps get you in front face-to-face of sellers every single month.
Alright so with the why out of the way let’s just jump right into my :
7 Tips on Converting (FSBO) For Sale By Owner Into Listings
This is honestly one of the biggest mistakes Realtors make when working with for-sale by owners.
Most of the time a sale by the owner will not list with the realtor right away. It is a follow-up to a long-term game.
It is definitely a marathon, not a sprint when working with for sale by owners.
They’ll Build a Great Relationship
The other thing is a lot of real estate we’ll make it halfway there they’ll build a great relationship with for sale by owners whether it’s through providing value or talking to them over the phone.
The first sale by the owner will say “Hey you know what I really like you if I do decide to list I’ll give you a call”.
Don’t believe it they’re not going to call you they’re getting you off the phone it doesn’t matter if you have a great relationship or not.
You’ve got to be persistent even if they tell you that you need to be persistent.
Leads Get Easier to Speak
The other thing that I’ll say about follow-up is that the leads get easier to speak with the more times that you’ve spoken to them.
So your first call is gonna be way harder than the third call which is gonna be way harder, than the seventh call which is gonna be way harder, than the fifteenth call right?
So as you get to build a relationship with them and you’re checking in you’re providing value the calls will get easier.
Side Note: Also another little side note about calling for sale by owners.
They typically tend to have a higher answer rate than a lot of other lead sources. Just because they don’t know if it might be a buyer on the other end of the line.
So they’re more apt to pick up the phone then a lot of other lead sources.
Now that’s not to say that they all pick up the phone because trust me I’ve called many for sale by owners that don’t pick up the phone.
This is probably a telltale sign that they need an agent anyways but they do tend to have a higher answer rate.
2. Present Value To The Seller
You must have a servant mindset, this is where you throw your salesperson hat out the window and you truly just try to provide value and be helpful to that for sale by the owner.
The odds are on your side that eventually if you’ve provided enough value to the seller and you follow it up you are going to get the listing.
You Can Provide Value For FSBO
One common way that you can provide value to that for sale by owners is by giving them a market analysis.
Give them some comps that are in their area so that way they can kind of see what their home should be priced at.
Additionally, you can give them some of the legal documents they may need like the seller’s disclosure or if it’s an older home a lead-based paint disclosure.
Also when I set up a face-to-face appointment with the seller.
Contact People Around You
A lot of times I’m going to be giving them contacts like my photographer’s information or painters or anything that they may need to help get their home looking as best as possible.
Essentially what I try to do is be for sale by the owner’s agent without actually being their agent and of course giving them any kind of legal advice or anything like that since I’m not truly representing them.
But just giving them as much free advice as I can give to them without being their agent.
The reason why that is there will be a day when they do decide that they do need an agent and you are gonna be the agent that they call.
3. Phone Tips
All right number three are things not to do when you’re on the phone with the for-sale by owner.
There are three things that you should never do when you’re calling a for sale by owner.
First off this is just my opinion but I don’t believe that you should ever bait-and-switch a for sale by owner or give them BS.
Tell them that you’re looking at it for a buyer you’re working with or anything like that.
Never try to convince the seller
The other thing you should never do over the phone is try to convince the seller that their idea is crazy.
There are a whole lot of scripts out there that teach you how to try and convince the FSBO that their ideas don’t make sense.
And how yours is a much better proposal and all sources of things like that.
4. Book A Meeting
The fourth tip takes what you hear over the phone with a grain of salt.
The seller is probably getting blown up by lots of other agents they’re going to say whatever they think they can say to get you off the phone if you don’t have a buyer.
Your only goal for that call is to get face-to-face in front of the seller.
There is absolutely no way at least in my years of dealing with for sale by owners.
I’ve never picked up a for sale by an owner just by talking and convincing them over the phone. It’s always after I’ve met with them face to face.
Also when you get face to face with the seller there are two questions that I think are really powerful that will help you build trust and rapport with that seller.
Two Questions You Can Ask Them
The first question you can ask them is when you first saw this home what did you fall in love with and the second one is when you sell this home what are you going to miss the most?
Now the reason why these two questions are so powerful especially when you’re face-to-face in front of the seller is it starts to bring back nostalgia.
They will associate that nostalgia with you as their agent because most likely no other agents that they’ve met with or seen have asked them those two questions.
5. Use A Dialer
Now there are three dialer systems that work well for sale by owners and I’ll list them from top to bottom and I’ll rank them in the order that I would use them.
Number one is Vulcan Seven, this is the most expensive option of the bunch.
But it runs for about two hundred and fifty dollars per month. If you’re on a 12-month contract or up to about $300 a month if you’re going month-to-month with them.
Now I’d really only recommend spending this much if you’re also going to be calling expired listings which I would recommend that you do.
But Vulcan Seven can do both for sale by owners and expired.
So for the price and for as good of a system that you’re getting this is top of my list.
Next on that list is espresso agent this one’s a little less expensive it runs about a hundred and fifty-five dollars a month which is special.
But I usually see that special running pretty often and it does a lot of what Vulcan Seven does.
It’s actually owned by the same company as Vulcan Seven. It’s almost just like a light version of Vulcan 7 for a little less money if you want to look at it that way.
Then my third option would be TheRedX, All three of these systems are great systems and I don’t think you can go wrong with any of them.
In fact, just getting into the game is probably gonna do you more good than harm with any of these three.
But I would definitely recommend going to take a look at each one and see which one’s the right fit for you.
Spend the Money Yet for FSBO
Alright well, let’s just say that maybe you don’t want to spend the money yet for sale by owners.
You want to kind of dip your toes in the water so to speak to see if this is the right lead source for you.
There are also all sorts of free ways that you can get for Sale By Owner information and just hand dial them.
I’ll go ahead and list out the ones that I know of and if you know that I didn’t talk about adding them to the comments below.
So the ones that I know about are:
- Yard Signs
- Facebook Marketplace
Special Tip For Facebook Marketplace Strategy
Now the thing with the Facebook marketplace is you have to get a little different strategy there.
Sometimes you’ll see that they don’t include their phone number and they want you to just message them.
So in that case I do have a script for your message that goes out for sale by owners on the Facebook marketplace.
Basically, it’s a very simple script it just goes like this:
“Is your house still for sale at and then put the address at which point the seller is most likely going to say yes and then you just type when is a good time to call you”
This typically will get you the most responses you don’t want to put too much information out there again your goal here is just to get the phone number.
So you can get them on the phone and then use the script that I talked about earlier.
If you know of any that I didn’t list put them in the comments below.
6. Allow FSBO Pain
Sometimes as real estate agents especially when you know that you can help that person out.
You want to try and just sell sell sell to get them to use you because you know that you’re going to help them sell their home faster and for more money.
But sometimes you just have to let them go through the pain of seeing what it’s like selling it on their own.
Don’t Oversell Your Services
When you do this and you don’t oversell your services they’ll see what a pain it is to have to schedule their own showings and work with unqualified buyers.
And then if they even had a contract or an offer that was presented to them they start to realize that they’re a little over their head when it comes to understanding all of the terms and repercussions.
Or a lot of times if the seller is just not getting showings on their home which happens fairly often.
They’ll start to question their marketing and they’ll start to really understand what value it is to work with an agent at that point.
7. Ask For The Business
Now when I say that I’m not talking at the very beginning of the first phone call.
Probably not even that first face-to-face appointment that you’re having with them.
But then along the way, you can’t build too much of a friendly relationship where you don’t ever ask for the business.
Because then most likely you may never get it you’ve got to plant the seed in their mind that yes you’re going to help them you’re gonna provide value to them regardless.
But if and when they’re ready to use a realtor you’re gonna have their back.
Don’t give up
Now some other tips didn’t make it in the seven because I feel like they’re kind of cliche and they’re said all the time but they are important if one doesn’t give up.
I mean you are gonna get beat down you’re gonna get a lot of No before you get yeses.
But if you stay consistent and that’s the other tip and you just continue to make the calls build the relationships add value to these for sale by owners.
You are going to get calls back I promise you and these are listings guys listings are gold in our business.
Four to six listings per month are more like five to seven to eight deals per month.
Because you’re gonna get more listings off your signs, you’ll get buyers calling in who are unrepresented.
You can do open houses and all sorts of great things that you can do when you obtain a listing.
All right well that’s it let me know in the comments what you thought about this article if you are going to do some for sale by owner prospecting or if you’ve ever done for sale by owner prospecting.
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