There are hundreds of strategies to convert FSBO leads floating around the internet.
And don’t get us wrong, a lot of them are great.
However, one thing we see time and time again is that the focus is just on the initial phone call. There’s an expectation that a successful FSBO script will convert your lead after one conversation.
In reality, it takes an average of five touchpoints in order to turn an FSBO lead into a client.
In today’s post, we’re sharing our comprehensive strategy on how to reach out to, nurture, and convert FSBO leads, from start to finish.
Your first phone call is your opportunity to initiate the relationship. Ideally, you'll already have done some background research on the FSBO lead, as well as prepared and practiced your script (if you don't have a go-to FSBO script, check out our free FSBO scripts).
During this first phone call, focus your communication on building a relationship with the FSBO lead and providing value. While it’s tempting to try to jump straight to the sale, remember to focus their needs, and not yours. Focus on what you can do for them, not what they can do for you, and everything will fall into place.
Take the time to listen to their experience, understand why they decided to sell their home for sale by owner, and find where they could use help in the process. Remember that each FSBO lead is at a different stage in the process of selling their home, and will have encountered different problems or successes.
From your first conversation, you should understand what problems your FSBO lead is facing. Pay attention to these struggles, as they are likely problems that you as a real estate agent can solve. Use these creative solutions to common seller pain points to demonstrate the value you offer as a real estate agent:
For many FSBO leads, the biggest value that you can provide them with is potential buyers. Mention that you have buyers who might be interested in the home, and use this as a way to set up a second meeting.
Most FSBO leads are extremely busy and find it challenging to plan and execute open houses. Offer to run an open house for their listing, and pay to promote the open house on social media.
Not only does this help you develop a relationship with the FSBO lead, but you also get the buyer leads, and even opportunities to meet the neighbors (who also might want to sell). Of course, for any paid promotion, you'll want to ensure that the seller is very qualified with a high chance of converting.
Ask the seller if you can feature the home in a video to share with your network of eager buyers and sellers. This is a great opportunity for you to set up a second meeting with the seller, and show them the benefits of working with you.
Most FSBO leads are not marketing experts, so on your initial call, you'll likely learn that they aren't investing in the right marketing tactics. If this is the case, offer to review their current ad/marketing materials. Compare Zillow/Facebook ad views to those of neighboring properties. Give feedback on the photos that they've chosen, and make suggestions on the language they're using to describe and market the home.
Many FSBO leads don’t realize that they’ve over or underpriced the property, which could be either deterring buyers or causing them to miss out on financing for their next home. Offer to do a free Comparative Market Analysis, where you present market-related information in a helpful, and non-salesy manner to the seller. The goal should be strictly to provide valuable information.
When writing and practicing your script, make sure that you’ve prepared a response for any of these situations.
Pro Tip: Follow your FSBO script, but make sure the conversation flows naturally! You want to focus on presenting a genuine interest in the property and the FSBO seller’s needs. Think of this as the beginning of a new relationship. You want to start off on the right foot, avoid being too salesy, and schedule a second date.
The vast majority of FSBO leads will not immediately list with you on the first call. But this doesn't mean that they won't convert!
In fact, “90% of all home sellers who try to sell their homes by themselves end up listing their homes with a real estate agent anyway.”
The challenge that you’ll run into with FSBO leads is that they have already made the decision not to work with a realtor. It takes patience and perseverance to demonstrate to them the value of choosing your business.
To do this, it's essential to find a way to continue the conversation. As we mentioned above, the best way to achieve this is by providing something of value. There are a few easy steps you can take to make sure that you are consistently providing value to any FSBO lead that enters your funnel (with minimal effort!)
Send a weekly email with helpful information for FSBO leads. This will help you stay top-of-mind, and ensure that you are seen as a valuable resource. When they run into any issues (as they most likely will), you will be the first agent that they reach out to.
Pro tip: To save time, prepare a drip-email campaign of 7-8 emails where you can drop all of your FSBO leads. Make a goal to add one email per month so that you don’t run out of emails!
They already have your phone number, so why not provide your Facebook as a way to keep in touch before or after your scheduled meeting with your FSBO lead? Once you're connected, they'll receive all of your updates, even if they don't end up working with you. This way you'll be able to maintain the relationship in the long term. They will also be able to scroll through all of your recent posts that show off your market knowledge. What better way to prove that you're the area expert?
Even if they don’t end up working with you, adding all of your FSBO leads to your sales funnel is a huge gain on your end. Chances are, a few months down the road they’ll have a friend or family member who needs to sell their home, and you’ll be the first agent they think of.
No one wants to be "sold to". As an FSBO seller, your prospect has likely already heard from multiple real estate agents trying to sell them. Show how you're different. Always focus on what you can do for them, rather than what they can do for you. At the same time, don't be afraid to ask for their business- most FSBO leads are actually looking for a real estate agent!
While it's important to provide value, make sure you're not wasting your time. Properly qualify your FSBO leads and make sure you don't spend too much time with clients who have low motivation. This will lower your profitability. Give them 1/2 hour to 1 hour of your time, and tell them that you have another appointment. People like busy people!
Many FSBO leads are unwilling to pay a commission and can be hesitant to accept advice. This makes it difficult to convince them to work with you. You will need to be consistent with your follow-up. Remember: the fact that they usually have a timeline in mind. and lack marketing experience and negotiation skills give agents a ton of leverage when converting FSBO leads -it just takes persistence!