As you saw in our previous post, approaching FSBOs can be a good way to gain a new client. FSBOs often want to save on the commission by doing it themselves, but don’t realize how much extra time and effort it will take them to sell their own property.
Your job is to handle their objections to you taking on their property in a way that will convince them that you are worth the commission.
Here are responses to 5 common FSBO objections (Source: REALTOR Magazine):
1. If the FSBO says:
“I’m sure I’ll get a buyer in no time. I’ve had the house on the market only a week, and I’ve already had 3 people come to see it.”
“It’s great that you’ve had so much interest, but how many of those people come back a second time? One of the problems with showing a house is that you get a lot of browsers who just like to see other people’s homes.”
2. If the FSBO says:
“I can’t afford to pay a real estate commission. I need every cent I can get from the sale to put toward my new house.”
“I know it’s important to have the biggest down payment possible. But an NAR survey (the Profile of Home buyers and Sellers) found that, on average, people who sell their homes through a real estate professional receive a price that is 27% higher than people who sell their homes themselves. So even with my commission, you’ll probably come out ahead.”
3. If the FSBO says:
“What do I need you for? I can put up a sign in my yard.”
“It’s true that your sign will attract buyers, but many of them won’t be able to afford your home. When I get a call from a house sign, I can prequalify buyers. In addition, I won’t just put up a sign. I’ll actively market your listing, through the MLS and other means, to brokers who are already working with qualified buyers.”
4. If the FSBO says:
“If I list my property, it will be with my friend who’s in real estate.”
“It’s great to be loyal to your friends. But can you afford to list your property with a friend for 60 or 90 days and take the chance it won’t sell? If you’re planning to buy another home, that’s a big gamble. Our company sells homes in your area fast. (Provide the number of days on market.) Also, I’ve found that when working with friends, it’s hard to fire them if they don’t perform.”
5. If the FSBO says:
“I can do this myself.”
“Of course, you’re smart enough to do what has to be done. But why spend all the time figuring out something you may not do more than a few times in your life? Let someone who has experience do the work for you. If you decide to try to sell on your own, I’ll be glad to give you a list of all the forms you’ll need. (Quantify the number of forms to demonstrate the sheer volume of paperwork involved in selling a home.)”
If you recognize and are able to counter these common objections, you’ll be more likely to make a FSBO your client.
Open House Tips Part 1
f you are a new Florida real estate professional, make sure you complete your Post-Licensing Education before your 1st license expiration date. If you are a seasoned veteran, it’s never too early to get your Continuing Education done. Either way, Larson Educational Services has you covered with timely and market-ready information taught in professional classrooms by instructors who care about your success.
Learn more about the courses we have to offer in Fort Myers, Naples or Online at the following link – http://www.larsoned.com/realestate/ – or simply call a friendly Larson representative at (239) 344-7510.
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