How to Get an FSBO Seller to Realize Your Value

The key to taking more FSBO listings this week is getting FSBO sellers to realize the value that you provide. If they can see all that you do for them and how amazing it is they will be knocking down your door for your services. FSBO sellers will gladly pay you because of the value that you provide to them.

Why don’t FSBO sellers list with an agent then?

The #1 reason that FSBO sellers don’t use real estate agents is because they feel that agents provide little to know value in the process. They feel that real estate agents only put a sign in the ground, a box on the front door, and list the property on the MLS.

To get FSBO sellers to realize your value you can’t tell them yourself. They must come to this conclusion by themselves to fully realize that you are different from every other real estate professional and that you provide a value unlike anyone else. They can and will realize this if you give them the opportunity to do so.

One of the most powerful ways to get FSBO sellers to realize your value is to get others to tell them for you. Third party verification or testimonials provide a great validity for you and give the FSBO seller a sense of confidence about your work.

To work each testimonial must include the following:

  • A reference to the location of the property that was sold. If possible the real address that was sold by you.
  • The testimonial should include the struggle of the FSBO seller had in trying to sell the home themselves.
  • How they came about finding you and their experience with you from start to finish.
  • A way to contact the testimonial source if at all possible is a very powerful way to make the new FSBO seller feel comfortable about the testimonial
  • A picture of the FSBO seller who is giving the testimonial should be available.
  • The testimonial should be recorded on audio or on video for maximum effect to be achieved

Having others provide the reasons for other FSBO sellers to use you is a quick way to increase the number of FSBO sellers that you have. If you don’t have past FSBO sellers but can provide the FSBO seller with other past sellers you have helped in the past this will also give them a sense of confidence in your services and demonstrate the value that you have provided to your past clients. Remember that having the FSBO realize your value without you saying the things you do yourself will automatically separate you from your competition.

FSBO Jargon – The Language of the FSBO Seller

When you decide to sell your home without a real estate agent, you enter the world of the FSBO sellers. As with any new experience, you need to understand some of the basic language.

Selling your home on your own makes a lot of sense from a financial perspective. Even though the real estate market has cooled off considerably, home prices are still pumped up compared to historical references. At 6 percent, the commission of a real estate agent can add up to a lot of money. On a $500,000 home, we are talking about a whopping $30,000, which can really eat into the equity you have built up over the years.

If you make the decision to go FSBO, you need to understand a few things. You are essentially taking the oars of the boat and doing all the rowing yourself. This means you need to understand both the concepts involved and the language used during the real estate process. Here are some tips.

FSBO – This term is short for “For Sale By Owner”. It is important to understand that it is used as a noun in the real estate industry. Simply put, you are a FSBO. Agents helping buyers will refer to you and your property by this term. Selling agents will also contact you frequently to try to convert you from a FSBO to a listing client, to wit, they want you to hire them.

FFMLS – This term refers to Flat Fee Multiple Listing Service. Many people that consider selling their home with an agent worry that they will not be able to list their property in the multiple listing service for the area. In the past, the “MLS” was a list controlled solely by agents and realtors. These days, there are ways to access it without using a real estate agent. You can pay a Flat Fee for your listing, thus the name.

CMA – This term refers to a Comparable Market Analysis. It is essentially a breakdown of homes in your neighborhood. Information includes things such as the listing prices of homes, valuations and so on. As a FSBO seller, you can obtain a CMA by just contacting a real estate agent. They use these reports as lead generators and give them out for free. Tell them you are a FSBO and they will still give you one. The eternal hope of the agent, of course, is that you will fail as a FSBO and hire them.

Obviously, there are many terms that arise in the real estate world. Most apply whether or not you are using an agent to promote your property. The above represent a couple you need to know as a FSBO.