At almost 20% of the market in most areas, FSBOs can't be ignored. Since they won't come to you, you have to go to them. Here are some tips to help you get your foot in the door and keep the owner from slamming it on your ankle!

Getting a Toehold

FSBOs tend to not want to give agents and brokers the time of day. Realizing this mind set, use it! One effective, unique first approach would be to place a 12" ruler diagonally in a 9 x 12" envelope with a cover letter with the headline: "Now that I have a foot in the door, let's talk about getting your home sold for top dollar -- fast."

If your initial contact with a FSBO is a direct solicitation for their business, you will often be greeted with an defensive barrier which makes it difficult, if not impossible, to gain a productive audience. A much more effective approach would be to present a COOPERATIVE MARKETING offer.

A COOPERATIVE MARKETING offer is a partnership arrangement whereby both parties stand to benefit. For example, you could offer the use of profession signage, a brochure box display and even possibly to hold an OPEN in their behalf.

They benefit by gain free exposure for their home. YOU benefit by additional exposure. The brochures you provide the sellers FREE - also will include your contact information. The OPEN will give you the opportunity to meet the neighbors and secure a few hot buyer leads.

A COOPERATIVE MARKETING offer is win- win for everybody.

The secret is to openly admit your "self-interest" as well as show them how they can benefit. By simply repositioning yourself from a "salesperson" to a cooperative marketing coordinator - you will go far towards gaining their trust and, ultimately, their business.

Of course they want to cut the commission!

You've got your foot in the door and have made a very dynamic, take-no-prisoners listing presentation. The sellers are impressed. Now they want to sign with you... if only you'll lower your commission rate.

What do you do?

One way to work this objection is to explain how the commission is normally split between the listing office and the office representing the buyer. Also explain that the majority of homes are listed at 6% and the buyer's agent is EXPECTING 3%. By accepting a commission rate of 5%, a selling office would only be offered 2.5%.

Now take three of your business cards and write 2.5%, 3% on another, and 3% PLUS a $500 cash bonus on the third. Place them all on the table and simply ask: "If you are a real estate agent representing a hot buyer who has been financially prequalified to purchase a home, and you had three identical homes to show this buyer, which home would you show first?"

The obvious choice is the third.

The power of this technique lies in the visual presentation as well as putting them in a position to negotiate FROM an even higher commission request... 6% PLUS a $500 bonus. You can simply "back off" asking them to offer a $500 bonus and concede to taking the listing for only 6%.

The coup de grace

Make sure to bring along a "Sold" rider and place it distinctly and purposely on the table prior to making your presentation. At this point, don't draw any particular attention to the sign or to your actions. Let the power of their unconscious minds draw the powerful conclusion that you are there for one and only one purpose... to get their home SOLD.

Then, as a trial close, consider picking up the sign and handing it to the seller. Then simply ask, "Is there any place where we can keep this in your home until we need it? Because we will need it."

That's powerful stuff.

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Published: July 20, 1999

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