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I am often asked, “What do you say when a For Sale By Owner seller says [asks]…?” I always have an answer for every FSBO objection, but only because I have the advantage of both knowledge and skill over the FSBO seller. Here is a list of common FSBO seller objections and a quick follow-up statement for the listing agent.

They say: “I’ll save money. I won’t have to pay real estate agent commissions.”
You say: “Well, you may save a portion of the commissions; did you know that over 90% of the For Sale By Owner homes are sold by real estate agent?” (FSBO response) “So, we are really talking about saving the seller side of the commission. Is it worth saving a small percent of the sales price, knowing you will eliminate the vast majority of buyers from even looking at your home? When would you have time to discuss a plan for selling your home?”

They say: “I am going to see if I can sell it on my own.”
You say: “Good! Have you considered what type of buyers look at For Sale By Owner homes?” (FSBO response) “Agents work with qualified buyers, people that have the means to secure loans or may be cash buyers. What arrangements have you made to assure your potential lookers are qualified buyers?” (FSBO response) “That is interesting. Do you have time this evening to get together to discuss a plan for pre-qualifying buyers?”

They say: “I have an ad in the paper and I’m going to put it on Craigslist”
You say: “Wonderful. What other methods are you using to expose your home to potential lookers?” (FSBO response) Do you have time to meet this weekend so I can share a few other ideas with you?”

They say: “I have someone who is interested.”
You say: “That’s great news. Are you aware of the pre-negotiation strategies that will assist you, as the seller, to secure the best possible offer without waiting days upon days?” (FSBO response) “Would tomorrow morning work for us to review the strategies?”

They say: “My friend is an attorney, so she is going to do the paper work.”
You say: “The four big steps in getting your home sold are: exposure, responding to buyers, negotiating and the paperwork. I am just curious, how is your friend going to assist you with the other three big steps?” (FSBO response) Would you be able to meet tomorrow during the day or in the evening to discuss these three big steps?”

They say: “I can’t afford to list with a real estate agent. I need every cent of the sales price.”
You say: “I understand. How did you determine your sales price? (FSBO response) “Great! Are you very familiar with the current market facts?” (FSBO response) “Would you have time to meet Monday or Tuesday evening to review the current housing market facts? I could do an estimate of proceeds for you to help you determine your bottom line.”

They say: “I can pay $500.00 to have my home on the MLS.”
You say: “Great! The MLS is one way to expose your home to agents who are working with buyers. What plans have you made to expose your home to buyers who are not yet working with real estate agent?” (FSBO response) “Would five or seven o’clock work for us to review how we capture interested buyers?”

They say: “I don’t think real estate agent are worth their money.”
You say: “Selecting a top real estate agent is a serious and important process. How many real estate agents have you interviewed for the job of selling your home?” (FSBO response) “Why don’t we meet this evening and I can assist you in writing the key questions to ask every real estate agent you interview.”

They say: “I know my home better than any real estate agent.”
You say: “I am sure that is true. I am going to be in your neighborhood previewing homes that compare to your home. Knowing your competition can give you a huge advantage. Would you like to join me?” (seller response) “Do you have any other selling concerns I can assist you with?”

They say: “I have a friend in the business who is giving me advice.”
You say: “Great! We can make your friend a partner in the process of selling your home and not miss any valuable market time. That way you know you’re getting the best advice. Can you meet tonight?”

They say: “Will you cut your fee in half if you sell the home?”
You say: “No. Are you very familiar with how the brokerage commission splits work through the MLS system? (FSBO response) Would you have time to meet tomorrow afternoon or evening?”

They say: “What can you do that I can’t do to sell my home?”
You say: “There are several factors that go into selling a home. A seller is responsible for and in control of two of the major factors (condition and price); the location is a given, and the forth factor is the real estate agent’s responsibility (marketing). Would you have time tomorrow to discuss the four factors?”

They say: “I heard that agents will still show my home if I just have it on the MLS.”
You say: “It is true, that some may show it. What arrangements have you made for compensating agents that show your home?” (seller response) “I may have some suggestions for you on how to attract more agents. Are you available tonight to discuss a few options?”

They say: “I do not want unsupervised people in my home.”
You say: “You’re right. Security is an important issue. However, as real estate agent we take several steps to maintain the security and integrity of the home buying process. Are you available this evening to discuss the steps we take to keep homes secure?”

They say: “I sold my last home myself.”
You say: “Good for you! What has to happen before you will consider interviewing a top agent who can get your home sold?” (FSBO response) “Can you meet this evening?”

They say: “I just want to try selling it myself for thirty days.”
You say: “Ok. I’m curious, if I brought you an offer that was 95% of that amount, how would you proceed?” (seller response) “If I could get you top dollar for your home in the next 30 days, would you list today?” (seller response) “Can you meet this evening to review our plan?”

On the surface, FSBO objections have a dual focus: brokerage commissions and price of the home. After extensive interviewing or conversation, the peel back process will reveal the underlying concern or the true objection. The one big objection all FSBO sellers have in common is simply: real estate agent worth (or a lack of understanding of our value.) The challenge is getting the FSBO seller to understand and accept your value. One strategy is a comparison of your efforts (marketing, exposure, response time, access, availability, follow-up, feedback, legal forms, representation, fiduciary duties and negotiations) to their efforts (an ad, Craigslist, maybe MLS, limited web exposure, a sign, a friend in the business, or whatever). Once the comparison is made it should be a simple close.

As real estate agent, you all compete against each other for listings. In the FSBO arena, your competition is extended beyond real estate agent to the actual seller. Your competition is the seller. Remember: Do not insult or belittle the seller’s efforts. They believe they can do your job and do it better. Focus your presentation on your worth, your point of difference, the true value you bring to the table. This is the only way to be a true champion in the FSBO arena.

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Coach Cheri Alguire has coached over a thousand Real Estate Agents on scripts and other skills needed to take their business to a new level of success. For more information on her real estate coaching program, check out www.ProRealEstateCoach.com or ww.FSBORealEstateLeads.com

Real Estate Data X-Change (RedX), an industry leading provider of Expird and For-Sale-by-Owner (FSBO) lead generation and management solutions, today announced the expansion of its services into Canada, with the opening of 35 areas of its low-cost FSBO service.

The RedX launched the FSBO product to meet the specific needs of the Canadian real estate professional. RedX FSBO leads service is very unique from other FSBO providers because we the FSBO leads are delivered directly into a very user friendly lead manager system, which is included with a subscription to the RedX FSBO service. The lead manager system gives the subscribers a tool for more then just prospecting FSBOs. The lead manager gives the subscribers the ability to notes, set tasks, create marketing campaigns and flag leads.

The RedX utilizes advanced web and database technologies to deliver the highest quality and quantity FSBO lead in the market. The RedX scours all local and national newspapers, real estate publications, and other public online sources to extracts the lead in its entirety.

In addition to interfacing with the lead manager, RedX FSBOs include:

• Real time FSBO lead delivery seven (7) days per week
• Customizable FSBO database search tool
• Reverse phone look ups performed on each FSBO lead
• No duplicate leads
• Free online training and scripts

“RedX FSBOs is a powerful enhancement to any real estate professional prospecting, by providing them a tool that delivers new leads every day” say Curtis Fenn, Vice President of Sales for Real Estate Data X-Change.

About Real Estate Data X-Change, Inc.
Real Estate Data X-Change, Inc is a leading software technology and leads service provider for real estate professionals throughout the US. The RedX assists real estate professionals in accomplishing their professional goals by providing them with accurate, timely and reliable data to aid them in building their business. We have designed powerful technology-based tools to help them access, manage, and utilize their real estate leads. Simply stated, the RedX’s products and services help real estate professionals sell more homes while saving both time and money.

Past clients: How well have your relationships been maintained with past clients? Do you even remember the names of clients from 1 year ago? How about from 5 years ago? It is a necessity to maintain good relationships with past clients because you never know when they are going to give you a referral or even move homes and use you again. Make sure that you stay a consistent part of their lives with various forms of contact: Birthday cards, Home anniversary cards, eNewsletters, etc. Do whatever it takes to make yourself a household names in houses that are ‘yours.’

Business Networks: It never seems like we have the time to wake up extra early and go to those networking meetings, or take out time for lunch for a business luncheon. You honestly never know when you’re going to get a new lead, and business networks are some of the few places that you will most likely get a new lead every time you visit. Why prevent yourself from getting sales when they are right there? Meet people, meet leads, get referrals and give referrals. Business networks are always thriving forms of connectivity.

Open houses: Today, open houses aren’t just in person. That’s why you have to put extra effort into staying in contact with prospective clients that see your open houses in person and on line. Didn’t know you could have open houses online? You can create a video walk through of homes for sale and place it easily online. This makes it easier for you and for buyers to see what they want over and over again. However, that means that you have to make extra special effort to contact them via email and cards, and make sure that your follow-up system is seamless.

For Sale By Owners: We’ve heard of them, we’ve read about them, but now they’re more prevalent and necessary than ever. Are you doing everything you can to contact FSBO’s in your area? There are quick and easy ways to find FSBO’s and get them before everyone else jumps on the leads. At FSBORealEstateLeads.com you can find out how to get a hold of this “insider” information. Not only finding them early, but constantly contacting them without being overbearing is key. This means knowing their home more than they do, knowing facts, values, and when you’re going to sell it for them. Nail down the details before anyone else has gotten a chance to.

Rolodex: Ok, we don’t have rolodexes anymore…I’ve come to terms with that and I’m sure you have as well! Whatever contact management system you use, are you staying in contact with your contacts? This includes former acquaintances, social contacts, and many more leads that are sitting in your phone, on your computer, in Top Producer, etc. Get a hole of them and make sure you are “managing” your contacts continuously.

Look to these niches if you’re searching for creative lead generation methods. I’m sure you’ll find a couple of sales waiting to happen!

Real Estate, Business and Life Coach Cheri Alguire has partnered with hundreds of Real Estate Professionals and Small Business Owners to help them become more successful in business and in life. Coach Cheri specializes in Group Coaching for Small Business Owners, Working Mothers, Real Estate Agents and Managers. Learn more at www.NextLevelServices.net and www.DiSCforSmallBusiness.com.

• Trim property taxes. If a house has lost value, have it reappraised by the municipal assessor. Consider petitioning — or even suing — to get back taxes overpaid in the last few months.
• Deduct a home office. Some people avoid the home office deduction because it requires deducting depreciation, but if the property has lost value, this isn’t an issue.
• Sale-leaseback with a relative. If you’re convinced your property is due for a big price correction and you have equity in the home, then sell now. For example, if you have a $1 million home that has been appraised at $1.8 million, you can sell it and take home $500,000 of the $800,000 gain tax free — due to an exemption on profits from the sale of personal residences. Sell the property to a trusted friend or wealthy relative and then become a tenant and pay the buyer rent at market rates — a much more attractive amount than Treasury bonds are paying now. When the housing market corrects, buy the property back.
• Invest in housing futures. The Chicago Mercantile Exchange sells investment instruments that trade based on house price indexes for each of the 10 largest U.S. cities. You can sell futures, buy puts, or sell calls on this market to hedge losses in the value of your home.

Source: Forbes, Stephanie Fitch (12/10/07)
This article can be found at: http://www.realtor.org/RMODaily.nsf/pages/News2007112703?OpenDocument

BY ROBERT FREEDMAN

Watch TV game shows, and it’s hard not to wonder what goes on in the minds of contestants: Why isn’t he giving the obvious answer? Why doesn’t she take the money and run?

When the game is trying to capture FSBO business, it actually pays to spend time trying to get into the prospect’s head. FSBOs aren’t all cut from the same cloth. They have different motivations for wanting to sell without an agent. How you respond to their beliefs about the value of real estate agents and the cost of representation can have a direct impact on your bottom line.

“I make understanding why they’re going without representation a big part of how I approach them,” says John Maloof, sales associate with Century 21 Grande in Harwood Heights, Ill.

Look for clues about whether money, control, or another factor drives an owner’s desire to remain unrepresented. For example, owners who price high may just be testing the market. They may not want to sign a listing agreement because they’re not really motivated to sell. On the other hand, if the owners are pricing low to sell quickly, money is likely the concern because they don’t want to further deplete an already low price.

Money is probably less of a factor for sellers who’ve sold homes on their own before; they likely enjoy retaining control and may believe that representation isn’t necessary. And sellers who complain about the bad job the last salesperson did are probably worried less about spending money than they are about getting their money’s worth.

Once you know the why, you can tailor your marketing and listing presentation accordingly.

It’s the Money

A majority of unrepresented sellers (51 percent in 2006) chooses the FSBO route to avoid paying a commission, according to NAR data. Practitioners put the number even higher—some say 80 percent or more. “It’s always about the money, no matter what they say,” says Howard Gottlieb, associate broker of Keller Williams Real Estate in Langhorne, Pa.

To identify whether money is the sellers’ primary motivating factor, ask if they’d be willing to pay a commission if a practitioner brought them a buyer, suggests Maloof.

“If you ask them this, it eventually leads to what their motivation is,” he says. Many FSBOs will respond to Maloof’s question with something like, “The reason I’m going FSBO is because I don’t want to pay a commission.” Or they might say, “I don’t mind paying the commission; it’s the bad representation the last time I used a salesperson that bothers me.”

To show sellers that they’re being penny-wise but dollar-foolish by focusing on the commission, Maloof says he relies on 2005 NAR data showing that homes sold by practitioners fetch 16 percent more than those sold by FSBOs. The 2006 data shows an even greater difference for those who start out with an agent (see “FSBOs earn less on home sale,” page 32).

“FSBOs often end up showing a home to such a small universe of buyers that they don’t realize how much more they could get if they exposed the property to all the interested buyers out there,” he says.

Showing FSBOs the higher price they could realize with representation is especially important for sellers who are upside down on their mortgage and fear that having a salesperson involved in the transaction will mean coming to the closing table with their checkbook.

“These sellers don’t think it’s worth it for them to add in the cost of a commission until you show them how much more money they can get,” says Bruce Hackel, GRI, an associate with RE/MAX South Suburban in Flossmoor, Ill.

In many cases, friends or neighbors who had a successful experience going it alone persuade sellers to go without representation. “Their neighbors say, ‘We got $10,000 more as a FSBO than the house down the street,’ so they think they should do it, too,” says Chad Dion, a sales associate with RE/MAX Preferred in South Burlington, Vt. “What the neighbors don’t realize is [their] house might have actually sold for $25,000 more with the proper representation. Many sellers just don’t put a lot of value on the market knowledge we bring to the transaction.”

Qualified practitioners know the subtle pricing adjustments based on condition, neighborhood, comparables, and other market factors that can alter a home’s appeal to buyers, says Dion.

To attract money-sensitive sellers, Dean Nikodemski, GRI, broker-owner of Carolinas Real Estate in Charlotte, N.C., offers a graduated commission rate. The rate is based on the listing price, but the scale is lower than what he typically charges a non-FSBO customer.

“Once they see how much it would cost them to pay any cooperating broker who brings them a buyer, it becomes clear they’re not paying that much more to get professional representation on the listing side,” he says.

It’s About Trust and Control

Although money matters to every seller, keeping control of the transaction is another major reason sellers go the FSBO route. According to NAR data for 2006, about one in 10 FSBOs either wants to avoid contact with salespeople or feels dissatisfaction with a practitioner who couldn’t sell a home.

“After a bad experience, they want to know what’s going on,” says Dion.

Converting these disgruntled sellers means identifying the cause of their dissatisfaction, then showing how you can give them the help they need.

Maloof recently converted an unrepresented seller whose previous listing agent had failed to sell the home. He started by demonstrating where the first agent went wrong. Using a copy of the old MLS listing, Maloof walked the sellers through the previous salesperson’s mistakes, thereby demonstrating that he could manage the listing competently.

“The listing was described as a 2-bedroom when in fact it was a 3-bedroom; it included only one photo; and the cooperating commission was very low. I had the listing right there in my hand as we talked and I asked the owners if they knew any of this, and they said no,” said Maloof.

The mistake on the number of bedrooms was particularly damaging because buyers looking for a 3-bedroom home wouldn’t even see the couple’s house in an online search.

Disgruntled owners such as this are often easier to work with than sellers who are solely motivated by a desire to stay hands-on no matter what.

“Those who want to stay hands-on are very high-maintenance clients,” says Dion. “You’ll have a very tough couple of months if you end up listing their property. I won’t even work with them at this point, but it took me 10 years to learn that.”

Nikodemski lets control-oriented FSBOs know they can ask questions of him or other professionals with whom he maintains a relationship (including an attorney and a lender) for free. Of course, if sellers decide to use any of their services, the professionals charge a fee.

After their initial distrust, buyers gradually see Nikodemski as an ally rather than just another practitioner trying to get them to sign a listing agreement. Even if a particular owner remains unrepresented, the positive feelings this consultative approach creates may lead to referrals.

It’s About Already Having a Buyer

Perhaps the hardest type of FSBO to convert is the one who already has a buyer—or thinks so. In 2006, 22 percent of FSBOs successfully sold to a friend, neighbor, or family member. Another 12 percent had been contacted by an unsolicited buyer.Hard doesn’t mean impossible. Many FSBOs who think they’re all set to go learn the hard way that an expression of interest does not a transaction make.

“Nine times out of 10, their ‘friend’ doesn’t purchase the home,” says Jason L. Penrose, CRS®, GRI, an associate broker with Melcher Agency Real Estate in Phoenix. “Then these sellers are left trying to market their properties alone.”

“Sellers have an unrealistic expectation about how people behave,” agrees Hackel. “People say they’ll look at the house but don’t show up. Or they make promises and never call back.”

For this group of FSBOs, focus your presentation on the money they’re leaving on the table by not exposing the property to market forces. “If you’re selling to your neighbor, usually you’re selling too cheap,” says Maloof.

You also want to alert them to the risks of selling to someone with whom they have a relationship.

“I advise them that having me as part of the process helps limit the chances of the transaction going sour and putting them at risk of a lawsuit and a damaged relationship if their buyer is dissatisfied later,” says Penrose.

Even if the transaction seems likely to close, you can offer your expertise in handling the hundreds of details needed to get to closing. NAR’s 2006 survey found that handling paperwork was one of the two biggest concerns for unrepresented sellers.

“It can be scary for sellers working alone when their buyer is seeking 100 percent financing and wants closing costs funded from the transaction,” says Hackel. “We see that all the time, but they don’t.”

For these already-connected sellers, Penrose offers a pricing structure that’s lower than the one he typically negotiates. He also offers to work without a long-term listing agreement. “They can fire me at any time if they’re not happy,” he says. This easy exit strategy provides a comfort level for uncertain owners, he says.

Whatever their motivation for going it alone, unrepresented sellers who choose to make the switch and work with a real estate professional can win in the end with a quicker, easier transaction and a likely increase in what they realize from the sale. Your task is to find the most persuasive approach to help them to recognize your value.

4 Ways to Find FSBOs

Before you can convert them, you have to find them.

1. Look for a sign — or two. About 40 percent of FSBO sellers rely on a sign as their principal marketing tool. Drive different routes through your market area to look for FSBO signs.

2. Subscribe to a service. Services such as FSBO Hotsheet (www.fsbohotsheet.com), which combs through newspaper and magazine FSBO ads, generate daily lists of leads.

3. Generate your own lead lists. Read open house and For Sale listings in newspaper classifieds.

4. Check out FSBO Web sites. Owners.com and similar sites can help you pinpoint prospective new clients. Legal hint: Check FSBOs against the federal do-not-call list before you make a cold call. You can download five area codes for free at https://telemarketing.donotcall.gov.

FSBOs’ Main Concerns

Handling paperwork and preparing the home for sale are two of the biggest concerns for FSBOs, whether they know their buyer upfront or not. Among those who don’t know their buyer, generating interest is a top concern.

Why Go FSBO?

Saving on the commission remains the No. 1 reason sellers elect to go it alone, but that reason is declining, while knowing the buyer upfront is a growing reason.

Will They Go FSBO Again?

Recent FSBOs who knew their buyer were more likely than those who didn’t to say they’ll turn to an agent the next time they sell.

FSBOs Earn Less on Home Sale

Unrepresented sellers have a median household income that’s only about 11 percent lower than that of sellers who use an agent from the get-go, but FSBOs’ homes sell for 25 percent less.

Happy Convert: From FSBO to Client

In the then-hot Phoenix real estate market, home sellers Ron and Sherry Creer saw little need for professional representation when they decided to sell their home. They expected a steady stream of buyers from the several other houses for sale in their neighborhood, so why pay a commission? “Rather than pay an agent, we thought we’d use the money we’d save to fix up our new house,” says Sherry.

The Creers had just bought a 100-year-old house in Grand Junction, Colo., and were giving it a top-to-bottom redo. But after weeks went by with little traffic, they were grateful when Jason L. Penrose stopped by to chat and offered help with no strings attached.

Penrose, CRS®, GRI, an associate broker with Melcher Agency Real Estate in Phoenix, went with the classic approach to converting FSBOs: He cultivated the Creers’ trust by providing useful information and then was ready to help when they realized they couldn’t do it alone.

“I never felt he was pushing us. He was very honest and open, and he gave us information we could use,” says Sherry. “After we talked to him a few times, we decided to list with him.”

In the end, the Creers consider the commission they paid Penrose money well spent. Not only did he find a buyer, but “he got us out of a big jam,” says Sherry. “There was a last-minute snag with the financing, and the whole deal was about to collapse. But Jason was able to clear it up really quickly so we could sell the house.”

Unconverted FSBO: The Market Was Too Good

Before Benjamin Kende put his home on the market during the sizzling hot seller’s market in suburban Chicago, he listened to a listing presentation from a friend who was a real estate practitioner. But, among other factors, the lure of saving the commission money was too strong, and he opted to sell his house on his own.

“If the market wasn’t as good or if I wasn’t as proud of my home as I was, I might have gone with an agent,” Kende says. The fact that the couple was in no hurry to sell also made going FSBO more inviting.

To generate buyers, Kende and his wife sent a letter to their wide network of friends and neighbors, advertised in the newspapers, and hosted an open house. Within a week, the Kendes had four offers. The eventual buyer was a neighbor who had been to many get-togethers at their house over the years.

“We had a lot of parties,” says Kende. “People knew what our house looked like.”

Despite his success at going it alone, Kende says he has no illusions about the unique nature of the seller’s market at the time. That’s why he might rely on a professional next time. Should he seek representation in the future, one marketing tactic he’ll want his agent to try is a letter-writing campaign similar to the one he and his wife used. “It’s the one thing we did that we don’t find many agents doing, and it helped generate buyers,” he says.

© Copyright, 2007, by the NATIONAL ASSOCIATION OF REAL ESTATE AGENTS®

This article was published on: 04/01/2007

Read the article at: http://www.realtor.org/rmomag.NSF/pages/feature1apr07?OpenDocument

Here is a gloomy scenario from every real estate agent’s war chest. You just gave your best listing presentation and the homeowner responded like this: “I think I’ll try to sell it on my own first.” Even worse, a few days later you follow up and the homeowner says, “It was incredible. I stepped out in the yard, sign in hand, and two buyers drove up. I sold my home right there. Never even got the sign planted.”

If you have been in real estate for any length of time at all, something similar has happened to you. It has happened to your colleagues and competitors as well. Sometimes it feels as if you are at war against an unseen enemy—the mysterious “For Sale By Owner.” But even though this is a tough market segment to engage, you can stage a successful FSBO campaign if you are willing to change your tactics a bit.

First, break free from the bad habit of calling sellers “fizbo” when they choose to go it alone. Think of them as sellers who are representing themselves. Several years ago, the National Association of Real Estate Agents adopted the term “Un-represented Sellers” to fight the unintentional branding of that market segment. Do the same now in your own business.

Second, homeowners are not your enemy. They are your customers and clients. So, if you would like to get more listings from this ready-to-sell list of homeowners, stop fighting them and use this two-phase system instead:

Phase 1: Triage Your Prospects
Triage literally means to sort into 3 groups. The term arose during the Napoleonic wars, when swamped medical staff would sort the wounded into the following categories: (1) badly injured with little hope of recovery, (2) lightly injured and (3) badly injured with hope of recovery.
In triaging un-represented sellers, the categories are not nearly so glum. You have the Type I sellers who don’t need help or want help, the Type II sellers who don’t need help yet and the Type III sellers who need help now and are ready to list if they find the right agent.

Remember, Type I and Type II will not list with you. By definition, they have already made this determination. Stay in contact with them, but never pressure them. Type I can be a source of referrals if you treat them right. Type II may eventually turn into Type III and, if they do, you want to be the agent they call.

Phase 2: Show, Don’t Tell
According to the most recent National Association of Real Estate Agents Profile of Home Buyers and Sellers, the Type III seller needs to know two things about you: Are you reputable and are you trustworthy? Don’t tell them. Show them. Every other real estate agent in town is calling with the same old song and dance—“I can sell your home quicker than you can for more money than you can because I’m the best.” Your prospects have heard this a hundred times. If you are ready for a different approach, try this 5-step process based on the concept of “showing” rather than “telling.”

What to Expect
After all of this, you may get nothing. However, as you get better at identifying the Type III sellers and as you get better at listening and at demonstrating rather than telling, you will find that you are representing more and more of the formerly un-represented sellers. Some of those sellers who do not list with you will send you referrals. Sometimes they will come back to you later to sell another house, or for help buying or investing. You cannot predict what the outcome will be; the only thing you have control over are your own thoughts and actions.

If you do this right, you will find that contacting un-represented sellers can be an effective source of listings and sales. It might even get to be fun. Better yet, in this kind of campaign, everybody wins.

Joe Cooke is an author, speaker and entrepreneur with over 25 years of experience in marketing, management and real estate. In 2005, he helped launch a national campaign to replace FSBO with the term “un-represented seller. Visit www.joecooke.info for more information.

You can radically increase your productiveness by adjusting to their personality style and using a unique marketing approach. If you can identify their behavioral style, you will effectively convert them into a listing. The DiSC Profile Assessments can be a very effective tool in relating to prospective clients because once you know how various personalities work, you can learn how to adjust yourself to meet their needs.

DiSC Profiles are non-judgmental self-assessments and consist, in part, of a questionnaire which results in the identification of the preferred behavioral patterns and tendencies of the individual completing the questionnaire within four specific dimensions and fifteen patterns of behavior. DiSC is an acronym for the four primary dimensions of behavior which are as follows:

• Dominance: Direct and Decisive
• influence: Optimistic and Outgoing
• Steadiness: Sympathetic and Cooperative
• Conscientiousness: Concerned and Compliant

Once you have learned what your own DiSC behavioral profile is, it makes it easier for you to notice what other people’s DiSC behavioral profiles are. Then, you can learn to adjust yourself to meet the goals you have set for yourself and your business.

Many times, certain traits can hinder our communication skills with people with different traits. With your DiSC behavioral profile, you will learn how to transform how you communicate with people that are different from you in order to get the results you desire. Adjusting your sale for your various prospects is the mark of a great Real Estate Agent and will undoubtedly increase your number of sales and clients.

Real Estate, Business and Life Coach Cheri Alguire has partnered with hundreds of Real Estate Professionals and Small Business Owners to help them become more successful in business and in life. Coach Cheri specializes in Group Coaching for Small Business Owners, Working Mothers, Real Estate Agents and Managers. Learn more at www.NextLevelServices.net and www.DiSCforSmallBusiness.com.

The answer most likely lies in the agent’s persistence. Persistence doesn’t mean that you actually harass the client. On the contrary, persistence, and persistent follow-up that leads to positive results is a completely methodical approach.

So how do you go about being persistent and following up regularly without harassing the owner? The first step must be initiating personal contact. Don’t just slide a lot of printed flyers under the door and don’t use generic mailing. You cannot sit back and hope that they will see your ad or banner and call you. You must make the first move, so either stop by, or better yet, call them and ask for a convenient time for you to stop by.

In the mean time, drop off a prepared packet of information at their doorstep about how you offer to sell their property. Include all possible information and a brochure. As an added incentive, offer to help them find their future property. You can also give them a reference to a Real Estate Agent in the area where they are moving to. This will be seen as a way of simplifying things for them. Let them feel that your input and expertise can help them find their next home, without the added commission that any professional adviser would have charged. This makes the whole process easier and motivates them to maintain a relationship with you for a longer time by listing with you.

Be consistent. Consistency is a virtue in this field, if you wish to stand out among the hundreds of agents who are calling the owner. The effort will keep reminding them of your interest. Consistent contact is essential. You could even call weekly, for eight weeks. Create an Action Plan in Top Producer to keep these leads from being forgotten about and falling through the cracks.

Remember that the key to a good FSBO plan is consistent contact. You have to show the potential listing client how you operate with your regular communication and quality material. If you can maintain that quality of contact over a period of time, a listing is basically guaranteed.

Real Estate, Business and Life Coach Cheri Alguire has partnered with hundreds of Real Estate Professionals and Small Business Owners to help them become more successful in business and in life. Coach Cheri specializes in Group Coaching for Small Business Owners, Working Mothers, Real Estate Agents and Managers. Learn more at www.NextLevelServices.net.

Your effectiveness as an agent with a FSBO can be radically boosted with judicious use of the DiSC method for figuring out the behavioral style of the seller. This enables you to adapt your approach according to the displayed behavior.

Everyone automatically feels higher trust levels and a feeling of being understood when faced with someone who adjusts to their behavioral style and communicates with them in a way that they can best process the information. When working with a FSBO, you can identify their style or behavioral type and you will always be effective at converting the approach into a listing. Most of the people offering their homes For Sale By Owner eventually do list with real estate agents or agencies, but the motivation and the process that they go through to arrive at that point will be different, based on their behavioral style. These are some basic guidelines that can be used to determine the style of the prospective seller and figure out the most effective way of dealing with him.

The Dominant or D Style person is an extrovert who is forceful and decisive, ambitious, direct, challenging and independent, accomplishing things through tasks. These are classic bottom-line oriented people, often argumentative and impatient, intimidating others to get their own way. You need to give them numbers showing your average days in the market or how your list to sales prices are better than competition. They respond well to consistent and innovative approaches, so think out of the box and don’t forget to follow up.

The Influencer or I Style person is an extrovert, enthusiastic, talkative, friendly, expressive, demonstrative, a people’s person and an optimist, accomplishing things through people and relationships. They are not detail oriented and are impulsive and very trusting. Become their friend. Show genuine interest in their needs and build a relationship over several visits. They start optimistically and become disillusioned quickly, being naturally impatient and do not respond to mail campaigning. Personal contact is very important.

The Steady or S Style person is an introvert, accomplishing things through people and relationships, looking for someone to trust, non-expressive and indirect, methodical and systematic, reliable, patient, steady and modest. The most successful approach is to be non-threatening, building trust over time. They need more time to process information and can be resistant and passive-aggressive if pushed. They respond to calls and visits rather than a mail campaign.

The Conscientious or C Style person is analytical and needs details to make their decisions. This style is expressed as patience, passiveness, loyalty, serenity, and predictability. They are the type to follow all of the rules and stick to the numbers to make their decisions. They weigh out all of the pros and cons before jumping into anything. Approach the C Style with numbers, data, history, charts, etc. in order to give them all of the information they need to make their decision. They need time to process everything and analyze all of the details, so don’t be surprised if they seem a bit critical at times. Keep communication open and allow them to ask questions, and update them on market trends or community news that might affect their home.

For more information on DiSC behavioral assessments, go to www.DiSCforSmallBusiness.com.

Real Estate, Business and Life Coach Cheri Alguire has partnered with hundreds of Real Estate Professionals and Small Business Owners to help them become more successful in business and in life. Coach Cheri specializes in Group Coaching for Small Business Owners, Working Mothers, Real Estate Agents and Managers. Learn more at www.NextLevelServices.net.

You are worth your commission. Real Estate Agents sell homes for more, according to the National Association of Real Estate Agents research, by as much as 27%.

You are a legal expert and know all the contracts, forms and disclosure statements inside out. If they decide to do it solo, chances are they are likely to miss something in the fine print.

You are a professional like a doctor or a lawyer and you are worth the commission you charge because you’re an expert. Ask them if they would choose to defend themselves in a court of law, without retaining a lawyer. Would they want to perform surgery on themselves? If the answer to those questions is ‘no’, they should not be trying to sell their home on their own either. It’s a job best left to the experts.

You are familiar with the market. You know the market very well and can therefore price their home competitively. Explain the importance of getting the pricing right the first time and the danger in terms of wasted time and expired listings, of over-pricing their property.

You are an expert on financing. From your experience and knowledge, you know how to pre-qualify and qualify for loans and you can point prospects in the right direction. Unless they are lenders by trade, they have almost no real expertise with financing and the process of actually acquiring it.

You are the specialist, the one who can handle all kinds of criticism, answer objections and demands in an objective and professional manner. These talents are essential if you hope to convince a buyer that the house is indeed a dream home.

Remember who you are and all of the experience you have had.

Reassure the FSBO that you are dedicated to them.

Real Estate, Business and Life Coach Cheri Alguire has partnered with hundreds of Real Estate Professionals and Small Business Owners to help them become more successful in business and in life. Coach Cheri specializes in Group Coaching for Small Business Owners, Working Mothers, Real Estate Agents and Managers. Learn more at www.NextLevelServices.net