Ease Your FSBO Fears Once and For All

Updated March 31, 2021

We all know that the real estate industry is an overly saturated one. In fact, the Association of Real Estate License Law Officials (ARELLO) estimates that there are close to 2 million active real estate licenses within the United States. So, what’s a new agent to do? Set themselves apart from the competition by finding a niche market. And targeting FSBOs provides the perfect opportunity to differentiate yourself from other local agents.

What is a FSBO?

A FSBO (pronounced Fizzbow) is a situation where a homeowner sells their own property without agent representation. “FSBO” is also used to refer to the property itself.

The main reason sellers go at it alone is that they don’t want to pay a commission to an agent. However, they may not know what an agent truly brings to the table, assuming instead that the only thing a real estate agent does is stick a sign in the yard and put the listing on the internet.

Despite seller reluctance, FSBOs make for great leads because you know these prospects actually have properties to sell immediately.

FSBO Talking Points 

Persuading a prospect to turn their backs on selling their house themselves and list with you can oftentimes be an agent’s biggest challenge. However, leveraging these talking points can help you capture the listing, and move forward with marketing their house to quickly move it off the market.

  • The median selling price of a FSBO was $217,900. The median selling price of a home sold with an agent is $242,300 (NAR).
  • Sellers are looking to save money when they go without an agent, but when they use one, their houses sell for more money—over 11% more. This increase easily pays for the agent’s commission.
  • 59% of FSBOs are owned by sellers who know the buyer, but these sellers can still benefit from using a real estate agent. As an agent, you can capture these FSBO transactions by offering to take a reduced commission and handle all of the contract and administration work (NAR).

Different Lead Sources

Many assume that there are limited resources available for finding FSBOs. However, this can’t be further from the truth. Reputable websites like Zillow, Trulia, Craigslist, ForSaleByOwner.com, and MLS.com can all help you find local FSBOs. If you’ve exhausted your internet searching, rely on more traditional methods like perusing local neighborhoods for yard signs. More than likely there are more FSBOs on the market than you would assume.

How to Work FSBO Leads  

As an agent, you should be working 50 FSBO leads at any given time. The two best ways to work leads are over the phone and face-to-face door knocking.

Phone Strategy

  • Call every lead at least 9 times.
  • Call FSBOs on Mondays, and ask them what kind of traffic they got at their property over the weekend. Place emphasis on this pain point. Chances are they had little to no traffic, and this gives you the opportunity to talk about your open house process.
  • Lead the conversation by asking if they’d be willing to pay a partial commission if you brought them a buyer.

Face-to-Face Strategy

  • Drive to the FSBOs home.
  • Introduce yourself, and explain the reason for your visit.
  • Leave a high-quality takeaway (like your American Lifestyle magazine).

The Takeaway

At the end of the day, FSBOs provide you with a tremendous opportunity to not only set yourself apart from the competition, but to turn leads into prosperous clients.

­­­Still find yourself afraid of leveraging FSBOs? Get into the Halloween spirit by giving our parody video “FSBOs of the Dead” a watch to eliminate your fears!

Seeing is believing!
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Written by admin