Four ways to bring more FSBOs into the fold

NEW ORLEANS – Nov. 14, 2006 -- Converting a for-sale-by-owner into a client takes more than selling yourself or your company; it takes convincing a prospect of the value the entire real estate industry can offer, trainer Darryl Davis told attendees on the last day of the National Association of Realtors® (NAR) 2006 Conference & Expo in New Orleans.

According to Davis, salespeople can convert FSBOs into a listing by explaining the value of a real estate professional and by educating them on the value a sales associate provides because of their ability to place a home in the MLS.

He also cited 2005 NAR statistics that show homeowners who use a sales associate receive an average sales price 16 percent higher than those that don’t. “Show prospects that even paying a commission, they make more,” said Davis.

He suggested these specific techniques for listing FSBOs.

• Point out to buyers that a brokerage can attract a far larger number of buyers to all its listings than a FSBO can to one home. This broadens their home’s exposure and often yields a higher sale price.

• Negotiate commission rates in less than 1 percent increments. That way, you can make a concession without losing as much money.

• Remind FSBOs that even though they could go to court and defend themselves in a lawsuit or do their own taxes instead of going to an accountant, it’s probably not smart. Then ask them if it’s a good idea to sell their largest single asset themselves. “It’s not that you can’t do it, but should you do it?” he said.

• Go into every FSBO listing presentation with the knowledge and confidence that you’re helping homeowners avoid the costly mistake of selling their home themselves.

Source: By Mariwyn Evans for Realtor® Magazine Online

© 2006 FLORIDA ASSOCIATION OF REALTORS

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