Winning Over FSBO Listings

For Sale By Owners (FSBO) listings are the perfect opportunity to create business and develop relationships. Most of the time, these sellers are just trying to get the most out of the sale of their home. They need to understand that you are the key for them to get the high-test possible price for their home.

Explain the benefits of listing with an agent.

Most of the time, the sellers just want to get the most money out of the sale of their home. It is important to present a convincing argument that working with you is beneficial to their end goal. Benefits that you want to highlight to the homeowner is that you can price their property appropriately so that it sells faster. You can show them that you have the experience to market their home in a way that will get it the exposure it needs. You can host successful open houses if they are needed. You are a pro at negotiating offers to get the homeowner the top dollar for their sale. You are there to manage all the contracts, closings, and anything else that might come up from issues that need to be fixed or other documents.

Show them the data to support why they should use you.

If the homeowner still seems hesitant about using a Realtor®, show them the data that homes with agent representation sell faster and for more than those that do not. You can also find comparable homes that have both sold as FSBO and with agent representation to show the time difference and the amount that they ended up selling. This way they can see that having an agent might be worth it.

Practice Overcoming Objections

You’re like to still have some objections from the seller. It is important to practice your responses to alleviate their doubts. Having scripts can help you feel more confident when these objections arise. Below are some examples of objections you might hear.

“I can make more money by not paying a commission.”

Most FSBOs are concerned with paying an agent’s commission, but you need to point out the statistics to prove your value. Let them know that homes that sell with agent representation typically sell more and faster than when listed as FSBO. You also have a larger pool of buyers than the seller’s sphere of personal friends, family, neighbors, and street signs. More buyers mean more potential for higher offers, and those buyers are typically pre-qualified for a mortgage.

“I can get my house on the Multiple Listing Services (MLS) without an agent.”

Explain that yes, that might be the case, but most qualified buyers are working with an agent, and they tend to steer their clients away from FSBO due to homeowners' lack of knowledge. Plus, the licensed agent is not allowed to give the seller advice and the seller can be making a mistake that puts them at a disadvantage.

“I priced my home to sell fast and can’t afford to pay a commission.”

Explain that when you price a home too low, it sets off red flags for potential buyers, because they think something is wrong with the house. And again, most qualified buyers are working with an agent, and the buyer’s agent expects to receive a commission for bringing a qualified buyer to your property.

“An agent doesn’t know about my house the way I do.”

Selling a home is an emotional transaction, and this is precisely why you need an agent that can remain neutral during the process.

“I’ll think about it if you’ll cut your commission in half.”

Explain the time, effort, and marketing you put into the homes you list. You pay for professional photography, social media target marketing, print marketing, and email blasts. Explain that cutting commissions means cutting corners on marketing. Doing this means you limit your exposure and can affect the number of potential offers you may receive.

Show them what it would be like to list themselves.

Most homeowners that list as FSBO eventually list with an agent, so be the trusted one that offers to explain what they need to do to have a successful sale alone. Go over with them the contracts they will need. How to handle inspections and negotiations. Make them realize that your expertise might be what they need in this process.