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How to Convert a FSBO into a Client

For Sale by Owner (FSBO) properties are a great way to find real estate leads – if you can successfully convert them into clients. When an owner decides to put their home on the market as a (FSBO) property, they’re often motivated to do so because they’re uncomfortable with the idea of paying commission to an agent. As an agent, it’s up to you to convince these folks that it’s usually in their best interest to use your services. Here are some ways to get them to warm up to the idea of using an agent to help get their property sold.

Time is money

The longer a FSBO home sits on the market, the more luck you’ll have convincing the owner that using an agent is actually a great idea. When you’re on the lookout for new leads, it’s smart to start with FSBO properties that have been on the market the longest. Check your MLS listings for properties that have been sitting with no offers, or for listings that have expired. It’s important that you don’t wait too long, though, since other agents will have probably already been in contact with the seller.

Don’t be afraid to reach out

To get a feel for how urgently the owner needs to sell the property, give them a call to feel them out. Chances are, since they’re attempting to do everything themselves, they’re wary of using a commission-based agent. It’s important that you don’t come across as too pushy. Do your best to get an appointment with them in person to offer advice – don’t try to close any deals over the phone. Once you’ve gotten your foot in the door, take a look around and offer a few pointers on what the owners could be doing better. You don’t have to downright disagree with a FSBO owner to do this; instead, show them that you understand where they’re coming from while also raising questions about what could go wrong if they continue on without an agent.

Every seller has a story

Ask what they’re doing to sell the home, and most importantly, ask them when they need (or plan) to move. Once you have this information, it’ll be easier to convince them that they’d benefit from your services — just ask what they’re planning to do in the event that they don’t meet their deadline. For example, if they say that they’re selling because they’re relocating to another state, they’ll probably tell you that if they don’t sell by a certain date, they’ll be stuck with two mortgages. The key is to ask questions in a way that will get them to tell you their fears. With your help, they’ll almost talk themselves into using you as an agent. The friendlier you are, the better. It also helps to show them that you’re knowledgeable about their specific market and neighborhood. You want them to realize that you’re more qualified to sell the home than they are without ever having to come out and specifically say that.

Don’t give up

If you reach out to an owner and they’re emphatic about not needing your help, keep an eye on their property. If you notice that it’s still sitting on the market (or the listing has expired) a few weeks later, it never hurts to check in with them again. The longer a house sits on the market, the more stressful things become. If they were adamant about their FSBO status in the beginning, it’s likely they might change their minds when the offers never come. Also, keep in mind that they probably want to sell AND buy. If they are moving in the same area, offer to help them find a home. Even if they never decide to use an agent to sell, they might be ready to use your help when buying their new home.

Elite Realty is a Las Vegas real estate broker with over 20 years of experience in buying and selling homes. To learn more about becoming a successful real estate agent, or to locate an agent near you, contact us at 702.835.5255.