What do real estate agents who consistently list FSBOs know that you don’t? Find out by reading these 9 facts masters who prospect for-sale-by-owners understand and apply daily! This article offers you a detailed look inside the mind and business of Jason Morris, a dedicated FSBO prospector who has sold more than 2,000 homes in his career. Based on this interview, you’re about to get a decade’s experience in under 10 minutes.Download Audio
1. FSBOs Don’t Think They Need You, But They Do
The evidence is clear, FSBOs need you. According to a 2016 National Association of Realtors study, the typical FSBO home sold for $185,000 compared to $240,000 for agent-assisted home sales. That’s a $55,000 difference — even after a 6% commission, the seller would be $40,600 better off using an agent.
It’s no wonder FSBOs leave money on the table, the same NAR study further finds 18% of sellers have a hard time with “getting the price right”. Almost 1 in 5 FSBOs need help pricing their home.
In addition to “getting the price right”, the typical FSBO also doesn’t understand how to attract buyer agents who will show their property. “A FSBO owner typically has a problem that is keeping their home from selling”, Jason Morris, a FSBO prospecting expert, explains. “They believe by putting their house on the market that it’s going to solve that problem for them,” even though over 40% of FSBOS report that they do not actively market their home.
That means of the 145,800 people NAR surveyed, nearly 1 in 2 FSBOs do nothing to actively sell their own home!
When you add it all up, FSBOs need help pricing and marketing their homes, and your commission is an investment that maximizes their sale price.
2. You Must Build Your Prospecting “Muscles”
Prospecting FSBOs requires confidence and capability. Roleplaying your scripts with another agent gives you the “muscle” to handle objections with professional poise and fearless finesse. That is why roleplaying is pivotal to your FSBO prospecting.
Jason recommends, above all else, consistent daily roleplaying. Every day you prospect FSBOs is a day you should roleplay – it will nurture your strengths and identify your weaknesses so you can improve.
“You have to role play consistently,” Jason instructs. “If we get on the treadmill once a month, that’s going to really suck. But if we start getting on the treadmill five, six days a week, it’s going to be really easy and we’re going get a lot faster and stronger and be able to go further. Making calls is the same way. You have to build that muscle.”
The next step is to find and choose a roleplay partner or coach. There are many ways to find a partner. Jason’s Facebook group, Real Estate Agents That Really Work, is a popular one for FSBO prospectors, with over 21,983 members at the time this article was published.
TIP: Look for partners who are dedicated to personal growth. A dedication to personal growth translates into a dedication to consistent improvement, which translates into a reliable roleplay partner.
Once you have found a partner, you can use these simple rules for roleplaying courtesy of Greg Harrelson, Realtor and President of Century 21 Harrelson Group, whose team does 1000+ transactions a year.
Roleplaying is like practice before the game and while practice can’t ensure you win every time, without it your odds of winning diminish significantly.
3. Use The “Funnel of Calling”
A “funnel of calling” is the type and order of leads you call in a prospecting session. Every successful prospector creates their own funnel depending on what leads they prospect and their daily schedule.
“I think of my initial calls as a funnel,” explains Jason. “When I’m going through my new FSBOs, Expireds, and all that stuff, I’m dumping everybody into the top level of my funnel. Based on motivation and conversations I have with the sellers, the calls get moved into different levels.”
Jason’s system begins with the lead type he’s most comfortable and experienced with: For Sale By Owners. “I call FSBOs as soon as I get their contact information. I want to be the first person to call them and follow up with them because I don’t want to let another agent get into our conversation,” Jason explained.
To create your own “funnel of calling” consider your skill level and your goals. If you are new to prospecting, consider GeoLeads, For Rent By Owner leads, and then your sphere of influence. They will be most receptive to your calls. If you are more experienced, Expireds and FSBOs should already be at the top of your funnel.
TIP: Many experienced prospectors recommend new prospectors call the leads they enjoy working most first. You could experience the boost of energy you need before working other lead types in your Lead Stack.
4. Stick To One Script
Many agents are always on the hunt for “the one” script and end up switching scripts in search of the “next best script”. Like a professional golfer’s swing or an award-winning recipe, it’s better to develop one and stick with it.
“The key to scripts, whether you’re using mine or you’re using Mike Ferry’s or you’re using one that you found on the internet somewhere, is using the same one over and over again,” says Jason.
Another reason Jason recommends sticking to one script is so “you don’t create an objection that’s not really there”. In other words, if you don’t sound clear, crisp, polished and professional any gaps or fumbles in conversation creates doubt and leaves spaces sellers will fill with objections.
5. Create A Predictable Schedule To Create Predictable Income
One of the biggest problems plaguing agents is their lack of daily organization. “Most agents don’t have a schedule. And they just don’t know what to do when they get to the office every day,” Jason states.
To create a schedule that keeps you on track, begin with the end in mind. Starting with your annual transaction or GCI goal can help you work backward to break down smaller goals to work towards each month, week, or day. Once written, ask yourself which tasks should be achieved first, second, third, etc. in order to meet those goals.
As a reference, here’s Jason’s current schedule:
6. Send A Pre-Listing Package
With many agents prospecting FSBOs every day, it can be challenging to stand out above the rest. To stand out and make a better impression, send a pre-listing package.
Jason explains, “99% of the agents reading this right now have nothing in writing that they can send a seller about their plan to get the house sold, or have no plan at all.”
A typical pre-listing package contains:
• Information about you
• Information about your team or brokerage
• Steps you will take to sell a home
• Information about the local market
• Testimonials from past clients
Once you have a pre-listing package, Jason recommends, “You’ve got to send it to any person you talk to about selling a house”. In a side conversation with Jason, he further explained, “Tell them on the phone you’re going to email a plan to get their house sold, then text them right after you email it to confirm that they got it. Then commit them to reading the whole thing before you come over for the listing appointment. If you do this right, when other agents call them, they will have you in their mind because you are the agent with a proven effective plan”.
Jason offers a free pre-listing package template based on his own FSBO prospecting experiences – feel free to check it out if you need more ideas.
7. Follow Up To Get FSBO Listings
80% of sales are made on the fifth to 12th contact. Most agents stop after one contact and the rest stop after three. Not following up is the cause of unsuccessful prospecting. The saying, “the money is in the follow up” is true for a reason — only chasing new leads, leads to you abandoning thousands of dollars in lost opportunity.
From the first call to the moment you are at a seller’s home for a listing presentation, there can be anywhere from 5-12 contacts. That can be a lot of contacts to make, especially when managing dozens of potential sellers. To manage all of his follow-up contacts, Jason follows this system:
8. Know The Difference Between An Objection And A Condition
Knowing the difference between an objection and condition can be the difference between setting and not getting a listing appointment. The difference between the two is easy to recognize, as is how to handle them.
An objection is a smokescreen and an excuse to get off the phone with you. A condition is a circumstance that legitimately prevents a seller from meeting with you.
When you encounter an objection, stick to your script and apply what you learned roleplaying. Conditions are treated differently. When faced with a situation an owner cannot help, you should respect that situation. Make a note of the condition and set a date to follow up.
9. Top 5 Prospecting Resources
Prospecting FSBOs is challenging. That’s why it’s important to seek out new ways to improve your skills, motivation, and tools that improve your effectiveness. Here’s a list of Jason’s top picks.
1. He uses Vortex® as his prospecting platform. In Vortex he manages his leads, follows-up with contacts, and takes notes after each of his prospecting calls.
2. He uses Google Calendar to organize his day and set listing appointments, so he never forgets or misses an appointment.
3. He recommends Tony Robbins 30-day goal setting program, Personal Power 2 to help get clarity on what you want from your life.
4. He recommends the books the “Ultimate Sales Machine” by Chet Holmes and “Grinding it Out” by Ray Kroc (founder of McDonald’s).
5. He recommends motivational speakers Les Brown and Zig Ziglar to inspire and excite him when he needs to take risks and make positive changes.
Prospecting FSBOs is rewarding, but takes discipline. The more you surround yourself with positivity, the more discipline you’ll have to reap the rewards waiting for you by prospecting FSBOs.
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REDX offers real estate professionals a complete all-in-one prospecting platform for generating listing appointments. The platform includes seller leads, a dialer, and a lead management tool that makes follow up simple. Call (800) 731-7339 option 1 to learn more about prospecting FSBOs, Expireds, FRBOs, Pre Foreclosures, GeoLeads™, and our Storm® Dialer or visit www.theredx.com.