Are you looking to convert more For Sale By Owners into listings in your market?
Regardless of the market, one of the best listing opportunities are still the For Sale by Owner, or FSBO (pronounced Fizz-Bo by most Realtors). There are several reasons why FSBO’s are still and have been one of the best listing opportunities for realtors and they are:
- They have already “raised their hand” that they want to sell.
- Most are already willing to work with agents who have buyers, so getting in touch and creating a relationship is fairly easy.
- There are usually plenty of them to prospect and they have their phone numbers and emails readily available.
So why aren’t more agents listing For Sale By Owners in their market?
While the reasons vary, most agents don’t convert FSBO listings due to several reasons. Do any of these apply to you?
- Since FSBOs are called on by many agents early on, they may get a frustrated individual on the phone and it makes them feel bad, that “All FSBOs are just MEAN!”
- They don’t have a system to keep in touch over time, so they fail to follow up and then some other agent invariably gets a sign in the yard.
- They don’t have anything of value to offer when they follow up with the For Sale by Owner so each call feels like they are bothering them.
These are just several of the main reasons why most agents give up on FSBOs and why you can use this information to your advantage.
A few stats on For Sale By Owners that you need to know.
- 94% of for sale by owners do not sell on their own.
- of those that do sell, they sell on average 11% less than if they would have been represented professionally.
- The biggest obstacle that FSBOs face is getting the property priced right
- The second biggest obstacle is understanding and executing the paperwork.
So what can I do to convert more For Sale By Owners into more listings?
- Truly come from contribution and don’t be like every other agent who is just going in for the listing. If you approach FSBOs with a real regard to help them, they will remember that when they decide to explore a professional listing.
- Be sure to have information, or items of value, available to help a FSBO in their sale. The stats are still valid, and most will not sell due to lack of exposure and marketing, but they will remember the agent who actually tried to help them sell.
- Actually follow up when you said you would. If you told them you would call every week to check in on them and they said it was okay, THEN DO IT! Sure week one, 15 agents are calling. By week two that number is in half. Week three there are maybe you and one other agent calling. By week 4 it is you and only you.
Converting for sale by owners into listings in your market and in Kansas City does not have to be a stressful and painful experience. Keeps several of these lead generation tips handy and you will be increasing your listing inventory like clockwork.
If you want to take this conversation even deeper and discuss the specifics of your action plan and what items of value you leave with your FSBO prospects, just contact me for a private and confidential consultation. Worst case scenario is that you leave with some great information that will help you grow your business.