Before you approach FSBOs, it’s also important to educate yourself a little more on the nature of these sellers. First of all, understand that the typical FSBO seller goes through three different phases during the process.
These phases are:
Phase #1 We’re not dealing with real estate agents whatsoever!
Phase #2: We will listen to you. We will likely pay for a buyer.
Phase #3: We’re ready to list.
These three phases are essential to knowing how you should engage with the FSBO seller. If, for example, a seller is only in phase one, it’s best NOT to be overly aggressive in your approach.
Here are a few more tips for each phase.
Phase #1 We’re not dealing with agents!
What you should do:
Follow up with valuable information.
Respect their stance and avoid aggressiveness.
Objective: At this earliest phase, be the agent who stays in contact with the seller, helps out when needed and stays informed of the situation. FSBO sellers at this phase are not willing to work with agents.
Phase #2: We will listen to you. We will likely pay for a buyer.
What you should do:
Use a consultive process.
Preview the home.
Compliment the home.
Point out benefits that would help the home sell.
Build rapport and take notes.
Get permission to follow up and give a reason.
Always offer value and leverage reciprocity.
Objective: At this phase, FSBO sellers still don’t want a listing agent; they just want to sell the home. They are likely willing to pay for a buyer’s agent. If you’ve played your cards the right way and built a relationship, they are more willing to consider your advice.
Phase #3: We’re ready to list.
What you should do:
Ask the sellers whether they are enjoying the process. Ask if they have had any offers or viewings.
Recap what you want to go over with them at a listing appointment.
Objective: Ideally, you want to schedule the listing appointment at this phase. If the sellers are visibly frustrated with the process and have not yet sold -- and they trust and have a rapport with you -- it’s time to get the listing.
