The 6 Step Guide to Convert FSBO Leads into Listings

Many homeowners assume they’ll save time, hassle, and money by selling a home themselves instead of listing with an agent. But for real estate professionals, the evidence is clear: For-Sale-By-Owners need you. Your knowledge and expertise on pricing, marketing, and paperwork (just to name a few) goes a long way when helping FSBOs get the most out of their home sale. Keep reading to discover the scripts, strategies, and solutions that will help you prospect FSBOs effectively to turn these leads into listings.

The 6 Step Guide to Convert FSBO Leads into Listings

1. Find the Best FSBO Leads
2. Understand the Mindset of a FSBO
3. Know Why FSBOs Need an Agent
4. Communicate the Value You Provide
5. Use FSBO Scripts that Convert
6. Overcome Common FSBO Objections

What is a For Sale By Owner (FSBO) Lead?

For sale by owner (FSBO) homes are sold by the homeowner without the help of a listing agent or broker. Sellers typically choose to sell their home FSBO to avoid paying the real estate agent a commission. FSBO Leads is a skip-tracing service that provides real estate agents with contact information for FSBO properties. Top FSBO Lead providers typically include multiple phone numbers and email addresses associated with the FSBO property owner(s).

1. Find the Best FSBO Leads

A For-Sale-By-Owner is one of the hottest lead types available. These leads are homeowners who have raised their hand and said “I want to sell my home.” They are planning on completing a real estate transaction within the coming months and that’s where you come in.

These leads give agents more “now” business that give you commissions within weeks instead of months or years. When you are able to connect with homeowners who have a need, you have the most success. FSBOs need an agent who will help them price their home right and take all of the hard work off their plate.

Agents who prospect this hot lead type can expect some of the most accurate names and phone numbers. Most FSBO aggregators get their data from owner provided public information, which plays a key role in the accuracy of the data. REDX’s FSBO product takes a step further by providing additional phone numbers just in case you run into a gatekeeper (an automated phone system designed to vet callers).

2. Understand The Mindset of a FSBO

If you want to effectively prospect FSBOs you have to put yourself in their shoes. Most FSBOs hold at least one (but often more) of these beliefs:

I will make/save more money by not paying a commission
I can handle the transaction on my own
I don’t trust real estate agents

The key in approaching FSBOs is to not take these beliefs personally. A lot of FSBOs may come across as defensive or standoffish, but only because they don’t see the value in your services. As long as you try to help them understand the facts, it’ll clear up misconceptions and position you as the real estate professional.

Remember, it’s not about you – it’s about helping FSBOs achieve the best result possible. This way, they understand what you offer as an agent and get more money in their pockets without the hassle.

3. Know Why FSBOs Need an Agent

According to a recent report from the National Association of Realtors®, the typical FSBO home sold for $217,900 compared to $295,000 for agent-assisted sales. That’s a $77,100 difference! Even after a 6% commission, sellers are still able to make nearly $60,000 more when they list with an agent.

In 2020, FSBOs only accounted for 8% of the 6.46 million home sales. This shows that most sellers understand and appreciate the value of hiring an agent, even if it’s not right away. That still leaves a pool of over half a million FSBOs who need your help to get their money’s worth.

All this data makes one thing very clear: FSBOs need you. Use this information to tactfully handle FSBO objections and carefully craft your conversations during listing presentations. After showing them the facts, who wouldn’t want to hire an agent to take all the work off their plate and net them the most amount of money?

4. Communicate The Value You Provide

Think back to the common FSBO beliefs mentioned earlier; money, hassle, and trust are often at the core of FSBO assumptions (and objections) that agents hear all the time. Here are a few things that agents bring to the table that a FSBO needs to know when it comes to the process of selling a home.

Pricing it right

Properly pricing a house isn’t guesswork. Agents understand this, but FSBOs usually underestimate the level of expertise that goes into maximizing the return on their most valuable investment. Here are some key reasons why it’s best to leave pricing up to the experts:

• An underpriced listing will decrease a homeowner’s future buying power, deter skeptical buyers who might think something is wrong with the property, and undersell the home’s true value – ultimately leaving money on the table.

• An overpriced listing is the most common problem agents see with FSBOs. Overpricing can lead to price drops, which sends the wrong message to potential buyers. It also makes buyers hesitant to negotiate down an inflated price, causing them to skip over the listing entirely.

When properties are accurately and expertly priced by a real estate professional, they’re able to sell faster and for more money than most FSBOs would be able to accomplish on their own.

Experience and Education

According to this article by the Economist, homes have recently become America’s most valuable asset class. So you shouldn’t be surprised when many individuals decide to keep that asset close to their chest and sell on their own.

Homeowners should come to the conclusion that they need to sell with a real estate agent because of the immense value their asset holds. However, they need to see why your education and experience in selling real estate is their best best of a profitable and smooth transaction.

As an agent, you have sold more homes than the average homeowner. When you connect with a FSBO on the phone, don’t be shy to share your experience and success in selling homes.

Be sure to stay informed about market trends to position yourself as the market expert. This way, you can display your experience and education to the homeowner to help them understand who’s hands their valuable asset should be in.

Contracts and Negotiations

The sale of a house may have unexpected twists and turns, but one thing is to be expected: enough paperwork to overheat a home printer 10 times over. Regardless of who homeowners sell their house with, property transactions are a complicated process. Having a real estate agent who can handle the paperwork and ensure homeowners cross their t’s and dot their i’s in the negotiation phase will relieve tremendous pressure.

While homeowners might know some basic negotiation skills, it cannot measure up to the skill it takes to negotiate the sale of a home. Once you get an appointment set to speak to a FSBO, discuss the parts of contract negotiation that will make the biggest impact on their home sale.

5. Use FSBO Scripts that Convert

Scripts are never a “one size fits all” option for effective prospecting. Some agents might prefer an aggressive approach to prospecting, while others may want to be more relaxed and inquisitive. Use these scripts as an outline for your FSBO calls and then adapt it to your own style and voice.

“The Classic” FSBO Script

Sometimes simple is better. Getting to the point without beating around the bush will set the tone of your conversation. Use this script to get information quickly and effectively, and then look for ways to provide value.

No matter the objection, it’s all about helping FSBOs understand the benefits of your real estate knowledge and expertise. REDX’s industry-leading FSBO data, coupled with this simple script, will have you converting FSBO leads in no time.

Authentic FSBO Voicemail Dialogue (for a 50% Callback Rate!)

Do you leave voicemail messages when calling FSBOs? A lot of agents don’t because their only goal is to talk to someone immediately. Power coach Darryl Davis offers an alternative solution. He uses this powerful FSBO voicemail message to get as many as 50% of prospects to call him back:

Darryl’s coaching centers around serving rather than selling which is what makes this the perfect script for difficult FSBOs. While it may not be as effective as having an immediate conversation face to face or over the phone, it will get you more conversations than if you hadn’t left a voicemail.

Brian Icenhower’s Three Qualifying Questions

Brian Icenhower, founder of TheRealEstateTrainer.com, identifies three questions you should ask your FSBOs to know if they are the right fit for your services.

By asking these questions after you have built rapport with the FSBO, you are able to understand what they expect from an agent. There is nothing worse than wasting your time on a lead that isn’t serious about working with you and this script will help you get to the point quickly.

6. Overcome Common FSBO Objections

Objection 1: I had a bad experience with a different agent

How to handle: First seek to understand what happened in their past experience with an agent. Asking questions will help you know exactly what not to do if / when you become their agent! Show empathy and address their concerns with using an agent as they come. Then respond with unique ways you can bring value and ensure they will have a much better experience with you.

Objection 2: I don’t want to pay commission

How to handle: This is probably the most common objection agents hear when speaking with FSBOs. Most homeowners go FSBO because they want to make the most amount of money on their home. What they don’t know is how you can net them the same amount of money while also taking all of the hard work off their plate. All you have to do is communicate that to them in a way that makes sense to them.

Objection 3: Will you reduce your commission?

How to handle: This objection just comes down to the homeowner not recognizing the value you bring as an agent. When responding to this objection, speak to their desire to keep as much money as possible. Keep it short and get the appointment quickly so you can tell them how you will net them the most amount of money in the transaction.

Objection 4: You are a new agent / don’t have enough experience to sell my home.

How to handle: As a new agent, it can seem hard to position yourself as the expert when you haven’t sold a lot of homes. All you need to do is use it to your advantage. When talking to homeowners, focus on what experience you do have and why they should list with you. Be sure to articulate the value you bring as someone who will work hard and give all of your attention to selling the home.

Objection 5: The market is hot so I can sell it on my own.

How to handle: A huge reason why someone decides to sell a home on their own is because of a hot seller’s market. They know it will sell so they try to save money by avoiding an agent’s commission. However, 90% of people end up listing with an agent because of their expertise. All you need to do is communicate your value so you save the FSBO the headache in the future.

Objection 6: If we did list, we would use a friend.

How to handle: When it comes to this friends and family objection, it’s important to tell the homeowner to explore their options. As you know, not all real estate agents provide the same amount of service. Be sure they know how hard you would work to sell their home for the most money and ask to interview for the job. This will help the homeowner find the best agent to sell their home and give you a chance to show your individual value and expertise.

From Leads to Listings

With how hot and motivated these leads are, prospecting to FSBOs is a no-brainer if you want quick listings. By using the strategies mentioned in this article, you will be well equipped with the tools, scripts, and objection handlers to help FSBOs understand why they need to hire you. Click here to learn more about REDX’s industry leading For Sale By Owner data, so you can get started and pack your pipeline with more listing appointments than ever before!

About REDX

REDX is an all-in-one lead data and prospecting platform that helps agents connect with qualified buyers and sellers. The platform includes seller leads, a dialer with up to three lines, social media tools, and a lead management system that simplifies first contact and follow up.

Click here to watch a demo, or call (800) 731-7339 ext. 1 to learn more about Expireds, FSBOs, GeoLeads, FRBOs, Pre Foreclosures, our Power Dialer and Social Media Tools for paid ads and content creation.