Biggest Mistake Realtors Make With FSBO’s in A Seller’s Market

Summary

Here are the top 3 mistakes that most real estate agents make with FSBOs. 

You think that …

1. FSBOs don’t need you to sell their house bec you think they can sell it themselves.
2. FSBOs can do as good a job as you.
3. The only way for you to win is for the FSBO to lose. You can get the listing only after they try it themselves and fail

4 Steps To Get FSBOs To List With You

A- Approach. Consistently put yourself out there, connect with them, and get them into a conversation with you. 

B- Believe. Believe that they need you to get them a better result. If you know exactly what to do, you can sell their home for the most money and faster, with no hassle. 

C- Convince. Convince them that you can get them the most money in their pockets, even after commissions (which is what 95% of FSBOs want).

D- Deliver. You have to be able to actually deliver on your promise and get them a better result.

If you want to get more deep-dive training on how you make all this happen, then join us for our live event that’s coming up here in the next few weeks called Agent Mastery Live. Go to agentmasterylive.com to get your ticket before we sell out.

Full Transcript

Hey, there it’s Kevin Ward, the founder of YesMasters: Real Estate Success Training, helping you get more YES and more successes in your business and in your life. 

And if you would like to make more money with motivated sellers like For Sale By Owners , make sure that you click the Subscribe button, give this video a thumbs up so you can get notification of these videos when they come out.

So I’m on a coaching call this week, and we’re talking aboutFor Sale By Owners  and the agent, very frustrated, just says… And of course, calling For Sale By Owners  right now is absolutely useless. Why is that? Well, they can sell it themselves. They don’t even need an agent. And that was the agent’s story. 

Now here’s the deal that right now, my friend, is one of the biggest mistakes real estate agents are making today with For Sale By Owners  and that is the belief that because they can sell it themselves, therefore they’re not going to hire an agent. And this will kill you when it comes to getting For Sale By Owners . The key to getting For Sale By Owners  today is not by waiting for them to fail so that you can get the listing. It requires a totally different approach to winning with For Sale By Owners  today.

The 3 Mistakes Agents Make When Working with FSBOs

So here are the three mistakes. I’m going to talk about the three mistakes that agents make when it comes to working with For Sale By Owners  today. And then I’m going to talk about a four-step approach to get listings withFor Sale By Owners  to get them to hire you to sell their house so that you can help them and you get to make money. So here’s the three mistakes.

1. You feel helpless because For Sale By Owners right now can sell it themselves. 

And the reality is in most of your markets, there’s so little inventory and so many buyers For Sale By Owners  can sell a house on their own. They don’t need you to sell a house. Okay? Well, your mistake is you feel helpless because of that.

2. You think that when they do sell it themselves without you, that they can do as good a job as you can do. 

So why should they hire you? I mean, they can solve it themselves, they don’t need me. As long as you think that they can do as good a job as you, then that’s the way it’s going to be.

3. You’re still stuck in the idea that the only way to win is for the For Sale By Owner  to lose.

In other words, the only way you’re going to get a listing with a For Sale By Owner and get them to list their home with you is if they try it themselves long enough until they finally give up and fail. And this is the old attrition model of, if you want to get a for sale by owner, then when they go and they first put their house on the market there’s no reason to try to get the listing because they’re going to try it themselves. And I got to wait until they just wear themselves out and give up and go like, “Okay, whatever, I’m tired of doing this, you handle it.” And they give it to you as a realtor.

And I’m going to tell you, I love the fact that when I started real estate, so many agents took that approach like I don’t call new For Sale By Owners  because they’re not going to hire me. They’re going to wait a month or two or three so I call them after a month or two. And I’m like, I love that because when you know how to approach it, and you know what to do. I could getFor Sale By Owners  to list with me on the very first day I called. Why? Because I knew what to do to help them get a result they want and I knew how to convince them with that. But when you don’t, then you’re like, “Well, the only way that I can get a listing is if they fail.”

Now in a buyer’s market, when there’s a ton of houses on the market and there’s not many buyers, then most For Sale By Owners  are going to fail because they’re not going to sell most of the time. So they give up and then agents will come in and get the listing. Well, we’re not in that market right now and that’s why this agent was going like, “They can sell it themselves. They don’t need me.” 

So how do I switch that? How do I flip and stop making that mistake and actually take the situation right now, when a for sale by owner doesn’t need you to sell their house and they can do it themselves. How do I still getFor Sale By Owners  to list with me?

4 Steps to Get a FSBO to Hire You

Okay. So there’s four steps. Number one is approach. I’m going to give you an ABCD here. Okay. 

A- Approach  

You have to approach them. You got to talk to them, you got to call them. You got to text them. You got to somehow knock on their door. Somehow you have to approach them and get into a conversation with them. Otherwise, your chances of them hiring you are zero. So the first thing is you gotta keep going. You gotta keep talking to them. You gotta put yourself out there and do it.

B- Believe

Number two is you have to believe. Now, what do I have to believe? You have to believe that they need you to get them a better result. They need you to get them a better result. Because the reality is, if you know what to do as a real estate agent, as a listing agent, if you know exactly how to do it, you can actually sell their home, you can sell it for more money than they can sell it for even after commissions and everything, you can net them more money in their pocket, and you can do it faster and you can take the hassle away from them.

In other words, you can do a better job for them and deliver a better result for them at the end of the day in their pocket, then they can do on their own and they don’t have to do all the work now. But you have to believe that because what this agent that was frustrated was believing is she was believing if they can sell it themselves, then they don’t need me and therefore I’m out of a job with For Sale By Owners . Okay? But what she missed was that you can do a better job for them then they can do for them. And when you do that, now, I still have an angle to go with them. 

C-Convince

And so here’s the third step…is to convince them that you can get them more money in their pocket.

Now here’s the reality. 95% of sellers, 95% of homeowners who are selling their house have a number one criteria, their number one goal in the sale of their house is to get the most money possible. In selling their house, the most important thing is I want to get as much money as possible.

 So if I know going in that 95% of the time For Sale By Owners , number one, desire, their number one goal is to get the most money in their pocket then that’s what I want to focus on. And if I believe as a real estate agent, if you believe that you’re an expense to them, that you’re going to take money out of their pocket, instead of putting more money in their pocket, then you’re not going to have the belief that you can help them get a better result. And because of that, you’re going to be weak going into For Sale By Owners . And as long as they believe that, why would they hire you? You’re an expense to me. I want the most money in my pocket.

See, very few sellers are looking for  the easiest way to do it. Now they’re looking, I want somebody to handle this that can help me get a better result, meaning more money in my pocket. So what do I do? I focus on that. So I’ve got to convince them that I can help them get more money in my pocket. 

Now that goes back to number two, you have to believe that. 

D- Deliver

And then number four is I’m going to give you number four. I’ll go ahead and give it to you is deliver. You have to be able to actually deliver that result and get them a better result. Get them more money in their pocket, even after commissions and everything, than they could do on their own. I’ll get to explaining how to do that in just a moment.

The SCRIPT to use with FSBOs

First, I want to go back to this idea of convincing, and that is now I’m having a conversation. 

I call a FSBO and they’re like, “Yeah, we’re not really going to list with an agent because you know, in this market we’re pretty confident we can sell it ourselves.” Now what most real estate agents are going to do at this point is they’re going to roll their eyes and go like, “I know, I know. And then it’s like, okay, well.” And then we just accept their story that they can sell it themselves. Now, why do we accept that story? Because they can, they can sell it themselves. Oh, what do I do? How do I fix it?

You got to help them understand if they don’t hire you to sell their house because they can sell it themselves. They hire you because you can get them more money. And so that’s the script when they go like “Well, you know, we’re really not… We’re not going to hire an agent because we are pretty confident we can sell it ourselves. It’s just in this market, anybody can.” 

Here’s your answer. “Absolutely. Look, there’s no question right now in this market with as little inventory as there is, and as many buyers as there are out there, there’s no question you can sell it yourself. You don’t need me for that. Okay.”

Here’s the reality…For Sale By Owners do not hire me to sell a house because they can’t sell it themselves. The reason they hire me is because I can help you get more money in your pocket. 

Now, let me ask you a question: is selling yourself the most important thing to you, or is getting the most money in your pocket the most important thing to you? If you could get more money in your pocket in the sale of this home would that matter to you? Well, yeah but how are we going to do that? Talk to me. Yeah, but you charge commission.

Absolutely. But I’m talking about helping you get more money in your pocket after commissions and everything. If I could help you get more money in your pocket at the end of the day after commissions, everything, than you can do by doing it on your own, would you at least be willing to have a conversation with me about that? Well, yeah I don’t know how you’re going to do that. Well, we’ll talk about that when we get together. So I could come out tomorrow afternoon at 2:15, or would 4:15 be better?

Now, here’s the reality. You’re going to get the appointment. You may not get it the first conversation, you may not get it the second or third, you may get it in fourth, fifth. But the key is having the approach, having the belief and then going in and realizing I have to convince them that I can get them a better result than they can get doing it on their own. 

In this market, I can’t wait for them to figure that out because they’re going to sell it themselves. But the problem with that is they’re probably going to sell it for less money, because they’re going to have one buyer come along or one or two buyers come along. One of them gives an offer better than the other one. They’re going to negotiate the offer they liked the best, and they’re going to get their deal. And it’s probably not going to be a bad deal, but it’s not the best deal. If you know what to do, you could get them more.

Which leads now to our fourth step of what to do to overcome this mistake of letting them do it themselves. And here it is, deliver. I can deliver them a better result. 

Now I’m just going to let you know this is advanced training  that I train with my coaching members. I’ll be training this in detail at Agent Mastery Live, which is our live event that’s coming up here in the next few weeks. Go to agentmasterylive.com to get your ticket if you want to learn in detail how you make this happen. But here’s what you do: you can help them sell the house and get more money in their pocket than they can doing it on their own.

Now here’s the short answer of how do I do this? Well, number one For Sale By Owners , however, they market their property Zillow, forsalebyowner.com. They put it on a website, put a sign in the yard, put it on Craigslist, whatever they do, okay, whatever they do to get buyers in there they don’t know how to get the best buyers in there at the right time to get multiple offers to get people fighting over their house. And they tend to operate by getting one buyer at a time, negotiating one offer at a time. And they don’t know how to protect themselves in negotiating that offer so that once it goes into contract and then they come in and they do an inspection, and then they come in and want to negotiate repairs and all of a sudden that seller’s equity is getting whittled away by a buyer that understands how to play the game. But they’ve only got one deal on the table, so they don’t know how to do that.

So here’s what you’re able to do, when you know how to do it you’re able to maximize the demand of how to expose the property and position the property in the market to get all the qualified buyers in that house lining up all at the same time to get multiple offers. And then how do you take all those multiple offers and negotiate them to get the best terms and price for that For Sale By Owner. And when you know how to do that, when you know how to maximize demand, how to get that sense of FOMO of buyers, the fear of missing out and know how to position in the market to do that and to get multiple offers. And then you know how to leverage those multiple offers to get your client, your seller, the highest price and the best terms so they don’t get beat up on contingencies or on inspections after the fact, then you, my friend, you, as a professional real estate agent can get them more money on the front end and more money in their pocket on the backend.

Now, the way we do that in YesMasters is I train our real estate agents on a revolutionary process called a home selling system. And it is an exclusive home selling system that you can take to sellers and you put that into play and it will help them get more money on their house when you know how to execute it, it will help you get them more money in their pocket and you get paid and they still get more money in their pocket because you can deliver that much better result and can sell it not only more than they could sell it for themselves, you can actually sell it for more than agents.

Now, if you want to learn exactly how to do that, if you already know how to do that, congratulations. But if you want to learn how to handle these kinds of objections, how to connect with sellers, For Sale By Owners , expireds, and how to deliver the kind of result that can help you overcome those objections, come join me at Agent Mastery Live, go to agentmasterylive.com. We’ll put the link here on the page, click on it, and register. I’ll see you at Agent Mastery Live.