Keeping In Tune With The Market: Inside the Mind of a FSBO Seller

How can you, as an agent, convince a For Sale By Owner seller to work with you? It starts by jumping inside the mind of a FSBO seller.

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Welcome back to another episode of “Keeping In Tune With The Market.” Today, we’re going to get inside the mind of a homeowner who wants to list their home as For Sale By Owner (FSBO).

Would you like to get a listing this month? Sure, the market is tight and there’s not very much inventory, so what is the best way for you to get a new listing where you could help a homeowner sell their house?

Many agents shy away from FSBO listings because they think that when they go to those homeowners, they’ll get their heads bitten off. That’s actually not the case. By getting inside the head of a FSBO seller, we can understand that they might be a little less scary than you think.

Why would a person consider selling their home on their own instead of turning it over to a Realtor?

The first reason is to save on commission. A lot of them are just confident that they could sell on their own because, perhaps, they’ve sold cars or homes before. They might not know a good agent, or they might have had a bad experience with one. Many FSBO sellers feel as though they have a bottom line to reach and that they can’t afford to pay an agent. In that case, we have to show the owner how we can make them even more money than they could get on their own.

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Many agents shy away from FSBO listings because they think that when they go to those homeowners, they’ll get their heads bitten off.

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They might also think that if they can’t sell it on their own, then they can just turn it over to an agent. They might give it a few weeks to a couple months to try to sell on their own. In this case, find out what their motivation is. How soon do they need to move? Where are they going. Get an idea of how long they want to try it on their own.

Lastly, they feel like they want to get a particular bottom line. You will really be helpful to them if you can put them in touch with a mortgage broker or a financial expert so they can see how much money they really need from the sale of their house.

FSBO sellers aren’t as scary as you think. If you try to get on the other side of the able, get into their heads, and think about what their thought processes are, it might be a little easier for you to approach them.

If you’d like more information about working with FSBO sellers, I have a couple of trainers who have great plans. Just reach out to me, and I’ll be glad to send you that information. If you’d like to set up a strategy meeting to plan out your business for this year, we can set that up over coffee. I’d love to speak with you.

What Real Estate Career Path Is Right for You?

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What kind of agent are you? (click here to find out!)

If you're considering a career in real estate, you're probably wondering whether you should become a listing agent or a buyer's agent. The answer to that question is complicated; it depends on your personality type and the opportunities available to you.

Listing agents have to be responsible for locating homeowners who are thinking about selling by prospecting FSBOs, expireds, sending postcards, and doing advertising. After this is done, listing agents then need to prepare a CMA, do all the paperwork, and get the seller to agree to list with them through a listing presentation. Then, the agent has to spend 3-6 months helping that homeowner through the process - holding their hand, giving them advice, helping them with advertising and promotion, and then negotiating the sale through closing.

A buyer's agent, on the other hand, may also need to prospect listings by doing door knocks or cold calls. They will often get leads from the broker or their sphere of influence. Once they have a buyer, they meet with that buyer, do research on properties for that buyer, do showings, and follow up. Then, it's the buyer's agent's duty to write up a contract, negotiate the contract, go through all the inspections, and ensure there is a smooth closing.

Generally speaking, the personality traits of a listing agent are:
- They are a 'take charge' person
- They are empathetic, but decisive and knowledgeable
- Make homeowners feel comfortable by being confident

Traits of a buyer's agent are:
- A people person
- A very good listener
- Adaptable and flexible

Which one is right for you? It depends on your personality! If you're interested in further reading, check out this incredible write up by Bernice Ross. In it, she summarizes Mike Ferry's thoughts on the differences between buyer's agents and listing specialists.

If you would like to further explore what type of agent you want to be, don't hesitate to reach out to us! We want to help you get your career off to a quick start!