Follow These Five Tips for Successfully Prospecting for FSBO Listings
Finding new leads or prospects can sometimes be the hardest part about working as a real estate agent. One of the ways to combat this problem is to develop your own real estate agent “niche.” A niche or target market provides you direction in finding the leads who work best for your brand and what you know best. When targeting For Sale By Owner listings (FSBOs), you’re aiming for a specific clientele that is easy to find but not the easiest to get.
What is an FSBO in Real Estate?
A For Sale By Owner (FSBO) is an owner who is selling real estate (usually their home) without the representation of a broker or agent. You’ve probably seen thousands of those red dinky signs where owners will sloppily write in their cell number. Prospecting this group can be very lucrative. However, it will require a strong demonstration of your professional skills and a true understanding of the value you bring to the table.
How to Prospect an FSBO
When you decide to become an FSBO real estate agent, you’ll need to understand that the wants and needs of an FSBO come down to two main things: money and the idea that they can do it themselves. They want to save and they believe they don’t need to waste money on your services. However, as you’ll learn in this real estate agent guide for FSBO listings, the financial gain and other benefits of working with a real estate agent clearly outweigh the heavy cost of trying to sell one’s home by themself.
1) Do Your Research
The first step to finding FSBO listings is to use different traditional and digital resources. There are several ways to discover FSBOs in your area:
|Visit an FSBO Listing Website||One of the main rules to marketing is to go where your target market frequents the most.||FSBO.com, Zillow.com, Trulia.com, ForSaleByOwner.com, Dan.com|
|Take a Drive Around Town||Buckling up for a 3-hour tour of your town could provide some vital intel on FSBO homes, neighborhoods, and open houses.||Automotive Vehicle, Bicycle, Motorcycle, Skateboard|
|Check the Classifieds||While only one percent of FSBOs sell in newspapers, it is still worth taking two minutes of your day scanning the classifieds.||Local Newspaper or Magazine|
|Social Media/Ecommerce||Believe it or not, people actually try and sell their homes on social media and ecommerce websites.||Facebook Marketplace, Instagram, Craigslist, Ebay|
|MSL Web Listing||About one in every five FSBO is listed on the MLS.||MLS.com|
2) Create a Pre-Listing Marketing Package
Once you create a list of potential FSBO listings, you’ll want to eventually send an FSBO marketing package. It’s possible you may not know what to mail out when creating an FSBO marketing package. Make sure to at the very least include these items:
Your Estimated Selling Price
The majority of sellers do not know or have accurate data to correctly price their home. Providing this is the first step in informing them of something they may not correctly know.
How You Will Stage the Home
Provide simple tips to how you would stage the home, but be careful here. You do not want to give away all your secrets.
How You Would Market Their Home
Once again, you need to be careful not to throw the baby out with the bathwater. Provide the basics, like your social media following, email list numbers, and other quantitative information they will find enticing but cannot easily replicate.
Demonstrate the Value of Working with a Real Estate Agent
Show them the data of selling on their own versus selling with an agent. The savings of time and money are mind-boggling. We discuss this in more detail further down.
Find Marketing Materials from Your Brokerage
There’s a good chance your brokerage will have some sort of marketing pamphlet or package on FSBO listings. Utilize that information while personalizing for the owner.
Include Your Agent Information
This should include business cards, email, and social media accounts you operate for your business. These items provide FSBOs a way to easily contact you with any follow-up questions they may have.
Documents You Will Prepare for Them
Provide a partial checklist of forms they will need to complete. This is an opportunity to show how difficult this paperwork is and could be an opportunity to at least assist them in their sale. NAR calls this an S.O.S. package: include a sample offer contract, mortgage approval letter, inspection report, and local HUD disclosures to demonstrate just how daunting the home buying and selling process is.
3) Reach Out to the Owner
After you’ve done your research, contact the owner directly to discuss the home that he or she is selling. Do not be surprised if the owner has been contacted before. The best way to reach out is over the phone but make sure to check the National Do Not Call Registry to make sure they allow calls. Also, create a For Sale By Owner prospecting script and hit on the main talking points we’ve discussed before. If you’re looking for a good resource, check out these top scripts from REDX.
4) Demonstrate the Benefits of Hiring an Agent
The main goal of an FSBO is to save money. Plain and simple. If you can demonstrate the extensive benefits that come with working with a real estate agent, you’ll be able to better position your argument.
Utilize this information when on the phone, in your marketing materials, and whenever else you have contact with the FSBO. Also, feel free to do your own research and uncover data points that may relate specifically back to the FSBO listing you’re targeting.
5) Follow Up After the Meeting
One of the more important FSBO tips is probably the easiest to accomplish: following up. As a real estate agent, you already know to do this. That being said, sending a handwritten letter, more marketing materials, and other genuine actions will exemplify the true benefit of having an agent by their side.
FSBO Listings are a Game of Numbers
Like all real estate niche markets, starting an FSBO business and becoming an FSBO real estate agent requires hustling and bustling. We can provide all the FSBO tips you need, but in the end it comes down to your own determination in finding these listings and helping these owners in any way that you can.
Ready to Finish Your Continuing Education with The CE Shop?
The CE Shop is the one-stop shop for all your real estate education needs. Start our award-winning Continuing Education courses today and complete your renewal requirements. Have questions for our experts or your colleagues? Join our Facebook group and get connected!