Inventory shortages, shrinking profit margins, well-informed customers, and introduction of cutting-edge lead generation technologies all have made the real estate industry more competitive over the past decade. As a result, real estate agents are seeking new ways to gain an edge over their competitors and close more real estate deals.
Reaching out to homeowners with expired FSBO listings is one of the ways using which real estate agents can achieve their sales and revenue targets. However, a For Sale by Owner (FSBO) listing is different from a conventional real estate listing in a number of ways. Knowing what make FSBO listings different can help you adopt a more effective approach and increase your chances of successfully persuading the homeowner to list their home with you.
1. Traditional Sales Pitch Are Not Likely to Work
Understanding the needs and preferences of the customer is critical to making a successful sales pitch. When trying to win an FSBO listing, you should know that they probably don’t want to work with a real estate agent which is why they tried to sell their home on their own in the first place. So, a traditional sales pitch is not likely to help you in this scenario. Instead, you need to adopt a fresh approach that focuses on the problems faced by the homeowner and their solution.
2. Keep the T&Cs of the Contract Flexible
Another way to win an FSBO listing is to offer your services at flexible terms. For example, you may add a provision in your listing agreement that the client will pay a lower fee if they remain successful in finding a buyer. This creates a win-win situation for both you and your customer.
3. Present Concrete Facts about How You Can Help Them
Data suggests that FSBO listings take 19 days longer to sell than agent-represented listings. In addition, the average selling price of agent-represented homes is $215,000 as compared to FSBO listings that sell for almost $40,000 less. You can add these statistics in your listing presentation to convince the client to list their home with you. In addition, you should add case studies that showcase how you have helped other homeowners with expired listings sell their homes faster and at good prices.
Remember that while FSBO listings constitute a great money-making opportunity for real estate agents, you cannot use the same old cookie-cutter approach to persuade homeowners to list their home with you. Instead, you need to tailor your strategy every time in order to produce a favorable outcome.
Need more help? I have written a number of books on the subject of preparing a winning listing presentation. You can find them here. I am also arranging a workshop on the subject of using online marketing to promote your real estate services. You may register for the workshop here.