Presentation on theme: "Debunking Myths About FSBOs"— Presentation transcript:
1 Debunking Myths About FSBOs Shawn Lynam Rockstar Interview with Bob Cenk
2 FSBOs Believe In Myths!! I'll net more money I'll reduce the amount of traffic through my homeI’ll sell faster, since I'll have control over the processI can handle the paperwork requirementsI can show my home and highlight its great featuresSo before we go through the HOW to get FSBO’s it’s important for us to understand the WHY”s FSBO’s have for not working with an agent and going at it alone:The skill lies in convincing FSBOs that THEIR rationale for wanting to sell their own homes is also built on MYTHS!!I'll net more money (the reality is, you'll probably end up selling the home for less than what we could sell it for)I'll reduce the amount of traffic through my home (the reality is, without a screening system (like pre-approved buyers) everybody will come through your home (including the tire-kickers)I will sell my home faster, since I'll have control over the process (the reality is, only 9% of homes sold in 2012 were sold as a FSBO)I can handle the paperwork requirements (the reality is, according to NAR's 2012 profile data, "Understanding and performing paperwork" was the #1 task cited by FSBOs as the most difficult to handle)I can show my home and highlight its great features better than any agent can (the reality is, Buyers don't like the owners in the house while they are viewing it -- they want to have private conversations)
3 Are These Myths, Or Reality? FSBOs won't pay Buyer CommissionFSBOs won't consider using an AgentFSBOs are difficult to convert into ListingsFSBOs are really Savvy Businesspeople who know exactly what they're doingWe also need to work on the Why’s agents don’t work with FSBO’sAnd as agents we can’t buy Buy Into These Myths!!FSBOs won't pay Buyer Commission They will as long as you show them the value of working with you!FSBOs won't consider using an Agent Their first choice was NOT to use an agent but statistically over 80% of them end up using an agentFSBOs are difficult to convert into Listings Only difficult if you don’t understand their viewpoint and where they are coming from, get to know them and therefore Understand them.FSBOs are really Savvy Businesspeople who know exactly what they're doing Unless they have done it many, many times their experience of selling their own home is very limited, they can be and are often times savvy business people but that doesn’t make them good at selling their own home!
4 Reality Most agents steer clear of FSBOs Their wants and needs are not well-understoodFSBOs hate the initial barrage of phone callsThey learn to expect poor follow-upUnless they agree to list, FSBOs are ignoredFew agents show FSBO properties to their buyersFSBOs can be a lot of workMost FSBOs sign with agents out of desperation, not desirePlease write this down, it’s the 4 SW’sSome Will – Some Won’t – So What – Someone’s Waiting!The reality is that most agents steer clear of FSBO’s because they have no plan of action and/or system to follow.They just haven’t taken the time to really understand FSBO’s and get into the mindset of a FSBOOnce you understand them you can start to develop and deliver solutions for their needsWhat they really get are a bunch of agents calling them asking them if they can list their home because they are so much better, they sold so many homes and on and onThe FSBO knows that all they need to do is ignore the agent because they know that they will not follow upAnd if they don’t agree to list with the agent they know for certain that the agent will NEVER follow up with them!They also know that few agents will ever show their property to their prospective buyers so why work with the agent in the first place, they are just greedy!Agents don’t follow up with FSBO’s because they can be a lot of work, especially if they don’t have a system to followThe biggest reality and the one we need to focus on today is that most FSBO’s sign with agents and that’s usually out of desperation, not desire.
5 Develop a relationship with them Before they get frustrated! It's Simple…Develop a relationship with them Before they get frustrated!It really is simple…I would develop a relationship with the FSBO before they got frustrated! If I knew that it was inevitable for them to get frustrated and that 80 to 90% of them would hire an agent then why not work further up stream. The worst time to go after something is when there is desperation, I wanted to go after them prior to desperation, frustration and so forth
6 FSBO Program Process Flow Identify FSBOs and Select TargetsCapture Contact InformationCall the FSBO to Schedule an Appointment to View the Home OR Drop a Brochure Box Off at the HomePresent the Brochure Box and/or the Marketing Tool KitStart the Buyer-in-Waiting ProgramInstall a Yard Sign and Assign a Property ID NumberActivate the Hotline and Check it WeeklySo let’s go through my Process flow for FSBO’s
8 I Sold CC’s Home In 5 Weeks! (Once he had enough of trying to do it on his own!!!) Sale Price $ 265,000 Upfront Fees $ 995 Additional Commission $ 345 Commission $ 7,950 Total Commission $ 9,290Look at this commission, amazing right??Now he's a reformed FSBO, and my kids have a really nice trampoline!!!
9 I Started Teaching My Friends… “This stacks the odds in Your favor! This is a Very easy process. NO HARD SELLING!”Shawn and his team went from 2-3 Listings a month to 15 Listings a month!
11 Get Started Now Pick your target area and price range Identify FSBOs using one or more sourcesMarket to your targetGo for the relationship, not the listingGive them something they want, for freeBring your buyersStay in touch regularlyBe ready with your offer when they are ready to list
12 Making It Work Set specific goals Start small and work up from there Keep your investment modest until you gain momentumBe persistentContinue to learn and share ideasCopy as much of my FSBO Program as you want
13 Special Bonuses!The FSBO Club Facebook Group Free FSBO eBook Free 30-Minute Coaching Session to Discuss FSBO Strategy with Bob