Overcoming FSBO Objections: When They Say They Sold It

 

 

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Summary

How do you handle this FSBO objection when they say they’ve already sold their home?

  1. Congratulate them. First, take it at face value and congratulate them. And then ask them a few questions (Have they signed the offer? Has the earnest money been deposited?). Never sound skeptical or make the FSBO wrong. 
  2. Offer help. Ask if they have any questions or if they need help going through the process of making sure that the transaction closes. You can offer your services for a reduced commission (1 or 2%). 
  3. Don’t buy their story. Don’t believe that they’ve actually already sold the property. They’re inexperienced with the entire process, so the deal could still fall through. 
  4. Follow up every week. Don’t worry about being annoying or pushy. Call them to simply touch base and find out how things are going and if there’s anything you can do to help.
  5. Come to the rescue. There’s a good chance that the transaction won’t close, so be ready to come to the FSBO’s rescue. Because you’ve already established credibility and trust with them, they now feel that you’re on their side and that you’re genuinely willing to help.

If you want the best training to stay ahead of the changes that are happening in the market, I’d like to invite you to join me for my FREE live webclass called, How To Win In A Changing Market. Register for free HERE 

 

Full Transcript

So, what do you do when the For Sale By Owner says, “Thank you for your call, but we already got it sold.”

Hey there, it’s your coach Kevin Ward, the founder of YesMasters Real Estate Success Training, helping you get more yeses and more successes in your business and in your life. And this was a question I had from a coaching member just recently. 

They’re calling For Sale By Owners and a lot of your markets, there are a ton of For Sale By Owners starting to come on the market. And as the market has slowed down, guess what’s happened? It’s getting harder for For Sale By Owners to sell the house themselves. But sometimes they do. 

So what do you do when you’re calling them, maybe it’s the first call, maybe it’s the second, maybe it’s the fifth call, and they’re going like, “well, thank you very much for your call, but we got it sold. We don’t need your help anymore. We don’t need your help at all. We got it.” What do you do? How do you handle that objection?

Well, one, we’re not sure if it’s an objection, or if it’s a condition. A rejection means they’re just saying it and a condition means it’s gone, sold, done. How do you know? I don’t know. So what do you do? 

 

How Do You Handle the Objection?

1.Congratulate them. Okay, well, number one is you just congratulate them. Oh, you guys got it sold. Congratulations. Good for you. Okay. So I am going to one, I’m going to accept it at face value. I’m going to believe them and go, okay, great. Congratulations. 

Now I may dig a little deeper and go like, “Awesome. So have you guys already opened escrow or have you already got the earnest money deposited with the title company?” Ask some questions just to find out what does that actually mean when a For Sale By Owner says, we sold it. That doesn’t always mean they sold it.

It doesn’t always mean it’s actually under contract or pending or in escrow. It sometimes means yeah, we showed it to a couple yesterday and we negotiated the price verbally. And they said that they’re going to do the paperwork and they’re going to bring us an offer tomorrow. And so they really haven’t sold it. They’re just like, we got it sold. 

And what they’re saying is wishful thinking, and we don’t want you messing with us. Don’t pressure us, don’t bother us, because we think we got it sold. 

But I’m just going to be congratulating and say, oh good for you guys. That’s awesome. I’m not going to be disappointed or skeptical. When you come across as disappointed, then you look desperate. When you come across as skeptical, you look like a jerk. Okay. And what’s worse is you are making the For Sale By Owner wrong.

So no matter what you’re doing, and this is just a principle of lead generation especially with For Sale By Owners, because they think they can do it themselves. Never make a For Sale By Owner wrong. Never say something in a way that makes it like you’re implying that they’re stupid, or that’s a stupid strategy. So don’t go skeptical and go like, “Oh you got it sold, really? Did you get a signed contract? Has the attorney reviewed it? You got earnest money deposited? Is it really sold?” When you do that it just makes them not want to talk to you. You create resistance. So don’t do that. 

So number one, “Hey congratulations. That’s awesome.” Ask them a few questions about, so have they signed the offer? Have you already had the earnest money deposited with the title company or opened escrow, whatever it’s called in your state? Has that already happened?

Okay, great. Well, listen. And then number two. So number one, I’m just going to congratulate them. 

2. Offer help. Number two. I’m going to offer to help. “Is there anything I can do for you? Any questions that you have or any information I can get for you right now that would be helpful?”

Now there’s two ways you can offer to help. One is just generally be helpful. Like, hey, is there anything I can do to help? Any questions you have, any information you need. 

Now the other way you can offer to help is you may want to actually put yourself in there and go like, hey, well, would you like some help in actually getting this property through escrow and through the process and actually making sure it gets closed? Because I can actually do that. I do that for a very much reduced rate. I’d be happy to help. And you can offer to do it for 1 or 2% and basically I’m going to handle all the transaction coordination, making sure the buyers get their loan approved, the appraisal is done, inspections done, all the stuff that needs to happen.

When For Sale By Owners do it, you got an amateur seller and an amateur buyer, which means neither one of them really knows what they’re doing. They don’t do this every month. They don’t do it every year. They do it once every decade. So they don’t know. So you can offer to help them with an offer of service for a reduced compensation commission. Or you can just be helpful. Totally up to you how you want to do that? Okay.

3. Don’t buy their story. Number three. And this is the most important thing. When I do this, yay, congratulations. Good for you. Hope it goes well. Can I help with anything? No, we’re good. Okay, cool. Here’s number three. Don’t buy their story. Don’t believe them. I’m not saying they’re lying, but I’m saying when they tell you they’ve got it sold, having it sold does not always mean the same thing. 

One, it may not even mean they have it under contract and it may be the verbal thing. Or here’s the other thing is, things happen. Okay. Things happen. And especially when a For Sale By Owner who does not know what they’re doing, relatively speaking, compared to a professional agent, and a buyer who does not know what they’re doing compared to having a professional buyer’s agent representing them, deals fall apart. 

Now we are in a market right now as I’m recording this, where in the United States over June and July about 15% of all real estate transactions fell out. They fell apart. 15%. That’s more than double what it is on a normal market.

So what happens is people are getting scared. Market’s getting slower. Interest rates up. Consumer confidence is down. People are worried. So homes are sitting on the market longer. So people are like, they’re getting scared. Sellers are getting nervous. Buyers are getting nervous about what’s happening. 

More deals are falling apart. More buyers are saying, ah, we changed our mind. More sellers are going, ah, I don’t know. Maybe we better hold off. And because of that, deals fall through. Well, even in a situation where you have two agents and buyer and seller and that deal falls apart, imagine what happens when you got nobody really representing to help pull this thing together. And you got a For Sale By Owner and a buyer who does not know what to do and deals fall apart.

They don’t even know about the appraisal or they forget about it or they put it off or the buyer really isn’t qualified, but they’re trying to make it work and trying to make it work. And so the seller, they’re all excited. They’re making plans. They’re doing everything as if it’s sold and it’s not. So whereas 15% of all transactions right now across the border are falling apart, it is in many cases upwards of 50% chance that the For Sale By Owner’s deal is not going to close. 

So what’s going to happen? It’s going to fall apart. Well, what’s going to happen then? Well, they’ve started making plans, mentally and emotionally they’re prepared for it to sell and close. And they’re like, oh no, we’re starting over. Oh, we’re starting over at scratch. Okay. We got to get some help. We got to do something different. So number three is don’t buy their story.

4. Follow up every week. Number four then is follow up every week. Every week. Yep, just follow up. Just say, hey, wanted to touch base, see how it’s going. I know you guys got the property sold last week. Got the contract on it and just want to touch base, see how everything’s going. How things are coming with the appraisal or inspections, I’m just touching base and just finding out how things are going and is there anything I can do to help? 

Okay. Basically all you’re doing is being there for them. I’m just here for you. If you have any questions, need any help, need anything, I’m here for you. And all I’m doing is I am building credibility and trust. Not pushing them. I’m not trying to wish them bad luck. I’m just here. You need me, I’m here for you. Okay.

5. Come to the rescue. Because that leads to number five and that is, be ready to come to the rescue. Because like I said, there is a pretty good chance, upwards of 50% chance in a lot of cases that that transaction is not going to close. The For Sale By Owner is now ready to be done, ready to sell, ready to move on, and that is when you have the opportunity and the door opens for them to say, okay, come on, we’ll talk to you. And there, my friend, is your opportunity. 

So when you go in, you go in on their side, you’d be for them, not against them, you’d be helpful, you’d be present and you’d be ready. So when that happens, “Hey look, I know it’s frustrating. If I could help you get the property sold and net you the money you need to make this happen, would you at least be willing to talk to me about it now?” Okay.

So what objections are you running into right now in your business? Put those in the comments below. That’ll help me know what videos to shoot next. If you have any questions, also post them in the comments below, give the video a thumb up if you like it. If you’re here for the first time, make sure you subscribe to the channel and I’ll see you on the next video. Always expect YES.

If you want the best training to stay ahead of the changes that are happening in the market, I’d like to invite you to join me for my FREE live webclass called, How To Win In A Changing Market. Register for free HERE 

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