Converting For Sale By Owner (FSBO) homes in your neighborhood may be as easy as being willing to work just a little bit harder than other agents. Yes, converting FSBO to listings is not always easy, but using the tried and tested approach in this article may be the key to conversion. Before we discuss this approach, let’s try to understand why a homeowner decides to attempt a solo sale of a property in the first place.
Three Common Reasons Homeowners Choose FSBO Instead of Listing With an Agent
The common reasons homeowners try to sell their homes on their own have a lot to do with inexperience and financial motivation. By understanding the frame of mind of homeowners who attempt to sell on their own, agents can begin to create a path to converting FSBO to listings. Let’s take a look.
Reason #1:
The homeowner doesn’t believe that real estate agents add value to the transaction.
They may have had a negative past experience or they are nervous to sign up for something they don’t understand.
Reason #2:
Some homeowners may see the value of real estate agents, but they’re still not keen to sign an agent because they don’t understand how the fees associated with agent-based sales work.
Reason #3:
Homeowners are trying to save costs associated with a sale through an agent or brokerage.
Connection, Education, and Demonstration: The Three Keys to Converting FSBO to Listings
Take a look at the three keys to converting FSBO to listings:
Connection: Using FSBO Takes Away the Potential of a Relationship
Yes, real estate agents help to buy and sell homes. But they do so much more for their community than just that. By showing potential buyers and sellers how much you care for your neighborhood, you will soon become an ally. Homeowners know that we are in a volatile market, and your support is just what they need. By showing that you are a caring community member, homeowners will turn to you when they try to sell their home but can’t. Agents who are community minded are doing the following:
- Giving back to their community (library book drive, food bank drive, hustling to find PPE for the hospitals)
- Supporting local businesses (featuring them on social media platforms, partnering with them for events, shopping/eating locally only)
- Sponsoring local events (T-ball teams, fundraisers, concerts)
Education: The Risks of For Sale By Owner Transactions
Once you’ve established a connection with your community, you can begin to educate them on the risks of FSBO and the benefits of listing with an agent. An FSBO brings with it the following risks:
- Not as Much Interest: Homeowners post their homes on platforms for FSBO properties, which are not part of MLS, and do not see the type of traffic that MLS does. The direct benefit of having a qualified real estate agent pay to post a home listing on MLS is the potential to be seen by a network of thousands.
- Lower Overall Price: Homeowners often tend to overprice their homes. Doing so can prevent realtors—who have access to comparables in the neighborhood—from wanting to show the home to their clients. Listing with a real estate agent ensures unbiased property pricing that is both accurate for the neighborhood and competitive in the market, effectively reducing the amount of time the property is on the market.
- Potential Legal Trouble: Selling a home is a legal landmine – especially for owners who aren’t familiar with the process. Real estate agents know and understand all the lingo, specifically regarding potential disclosure issues.
36% of sellers attempt FSBO sales before engaging an agent.
Demonstration: Homeowners Are on Their Own When They Choose FSBO
When you have been an agent for years, you know what works and what doesn’t. You have built up an arsenal of tools to help showcase all of your available inventory. When a homeowner chooses to sell with an agent, they have these tools at their disposal:
- Video marketing
- Professional pictures (including
aerial photography) - A strong social media presence
- A wide audience of potential buyers
FSBO homes take 19 days longer to sell than homes listed with an agent.
Being an agent who is focused on their community shifts the focus from the agent to the community members – this shows that you are irresistible as both a local leader and a real estate agent.
Wondering How Giving Away Your Time Is the Best Real Estate Marketing Strategy?
Almost every real estate agent in your community chases leads and follows up in the exact same way. If you try the same approach as others, it’s going to be incredibly difficult to stand out and differentiate yourself from the pack. The way to build yourself into the most trusted real estate agent in the community is to walk the walk. Give value to local businesses and community leaders and become a recognized friend to the community – because you recognize that approach brings a unique value of its own.
