Are listings getting harder to snag theses days? Have you seen an increase in For-sale-by-owners in your marketplace? National statistics indicate there's been a 40% increase in FSBO numbers in a two year period from 20% of the market to 28% presently. There are forecasts that this will continue to increase over the next five years. Why is this happening and how should you be positioning yourself to be take advantage of the trend?

The why

The impact of the Internet-empowered consumer is challenging the traditional business models in all industries, from travel agents, financial services, car buying and home buying. Changes are taking hold so quickly, many have not yet repositioned themselves or reinvented their strategies. The old success models are bringing fewer results. Agents can not afford, physically or mentally, to do more, harder, faster. Especially when are getting less and less success. Nor should they.

The agent who will find success with the Internet-empowered consumer has strategies that focus on the consumer's style and desires and buying preferences. Sure, you think you are client-driven now…..but are you really the easiest to buy from? To get information from? To deliver to the consumer what they want 24 hours a day, 7 days a week? Do you give information first and build trust or do you expect you can hold out and think they will eventually need you?

Many sellers believe that all an agent does is put a sign in the yard, run an ad and wait. Unfortunately, sometimes this is true. So the sellers figure they can do that themselves and save thousands of dollars. Or they think they are smart to at least try it, since Uncle Joe told them how easy it was when he did it! With the ability to do market research on financial options, comparable sales and the listings in our MLS systems on the Internet, this Internet-empowered consumer (IEC) feels self-confident and cocky. You really can't blame them. As an industry, we haven't always communicated well the myriad of services that we provide behind the scenes.

What should you be doing?

If you haven't redesigned business strategies for the Internet-empowered consumer, now is the time to do it. These For-sale-by-owners are only one segment of this consumer revolution. And, while that is the focus of this article, I hope you will also understand and take action on designing a strategy for the IEC buyers and menu driven options for your listing business. To ignore this would be like refusing to believe that airplanes were going to replace trains. Or as Francis Bacon said, “He that will not apply new remedies must expect new evils, for time is the greatest innovator.”

Working With IEC FSBOs

The traditional aggressive FSBO conversion strategies taught by most trainers in the 80's and 90's are dated and passé. The more manipulative you get, the more resistant they get. The shift to relationship building and value adding has been well recognized, but few agents truly understand how to use this to their best advantage. The accepted mindset of scarcity and competitiveness does not lend itself to giving first and expecting for that energy to return abundantly. Yet, the agents who are willing to take the step and risk stepping outside the old, accepted models are finding success.

Realistically, we know that selling a home is not just putting up a sign, running an ad and waiting. The value of using a REALTOR® will translate, according to an 1992 NAR study to 10% more money for the seller, not to mention the time and hassle they will have with showings, taking calls, opening their home up to unqualified strangers and their unfamiliarity with the legal process. Your negotiating skills, your ability to prequalify prospective buyers, your broad ranging marketing systems and your ability to handle the inspection and disclosure processes will almost always increase the bottom line for a seller. However, most consumers simply aren't aware of all of this and they feel empowered because they have done some research and they, mistakenly, think that information is knowledge.

Your Approach

So, how do you approach this IEC FSBO?

To begin with, your attitude is probably the most critical element in your overall success with this segment of the market. If you can approach it as game and learn each and every time, you'll hone your skills. Don't be attached to the outcome, but be focused on learning from each and every seller. Then raise your standards and implement what you learn. And have some fun, for heavens sake.

In your initial conversation, begin to build a relationship and build trust. If you begin to push to list before they are ready, you will meet resistance. Glenn Laveson of the GAP was recently quoted in Fast Company as saying, “As we enter the new millennium, one of the most important communication skills will be knowing not how to make your point but how to be a good listener.”

Ask questions about what is next for them. If your conversation reconnects them to why they are moving and their excitement about the next phase in their life, instead of focusing on the worth of their home, they will want to figure out how to move on more quickly. And you will come across as someone genuinely interested in them, not just a possible commission.

Offer services to help them. Develop a program specifically to serve their needs. Loan them signs, hold open houses for them, run an ad on your website for them.

Stay in touch regularly. Every 4-7 days, they should hear from you. You should have an automatic system that combines phone calls, email, direct mail and in person visits.

Look for other ways to be of service: Are they going to need an agent to help them buy? Could be you, if they are buying locally or a referral opportunity if they are moving away.

Offer a menu of services so they can choose what fits their needs best. “One size fits all” listings are a dinosaur of the 1900's.

Don't wait for someone else to be the first to offer an innovative program that serves these sellers. Stive to be first, best or unique. Learn how to play the game to bridge the gap between where you are and where you know you could be. Become a master player in the game of real estate.

Published: April 13, 2000

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Joeann Fossland ePRO, GRI, MCC, PMN, SRS is a dynamic, international speaker and business coach. She personally coaches a small number of extraordinary agents who want to leverage their production results and have a life they love! She was recognized as one of the 25 Most Influential Women in Real Estate in 2008 by Stephan Swanapoel. Subscribe to her free Tuesday Tips, attend Fossland's Forums, free monthly tele-seminars, and find out about classes delivered by email and personal coaching by visiting Joeann.com or email her at . You can also connect at Facebook and Twitter.