It's as if someone turned off the faucet and the business just dried up. There are FSBO signs everywhere and the buyers are having a field day playing, “Let's Make a Deal With a FSBO... How low will they go?

Brokers are lamenting that among agents' current biggest headaches, FSBO issues seem to be the migraine among the dull aches. On the surface, one might think that lots of FSBOs for agents to work is akin to a free run in a candy store for kids. That is true but only when the agents are skilled at converting the FSBOs to full-term listing agreements.

Here's a little advice to the forlorn. Get great at handling FSBOs. The FSBO is here to stay and you will see more and more of them. It just makes sense. If the market is great, there are the FSBOs who think, "Why list with a Realtor®. The market is so hot, all I have to do is stand outside with a sign and I'll have a bidding war." In a slow market they think, "I have to do this on my own. The buyers are in the drivers' seats and that will cost me money. I can't pay that commission." Either way, they are out there and they are ready to sell. That's better odds than any other form of prospecting. (Remember prospecting?)

Let's simplify the FSBO challenge. It comes down to this. You need: Awareness, the right Attitude, Goals, Commitment and Understanding.

Awareness

Understand that the real estate business is not a simple business, but it is an easy one. There are basic things that you have to do on a regular basis that contribute to your success. You must vary your business and work all prospecting opportunities. You must stay in touch with past clients and generate new ones frequently. If your market is showing you the handwriting on the wall, for heaven's sake read it! Listen to every tape you can find on working FSBOs, watch videos, tie yourself to a mentor who is willing to train you. In other words, sharpen your axe often and well. Don't let the opportunities pass you just because you were too busy convincing people why FSBOs are a waste of time. Just while you are saying it's impossible, someone is out there doing it and proving you wrong!

Attitude

Now here is the proverbial dead horse ready to be beaten once again. I can just hear you saying that we've all heard over and over again that attitude is everything. If you can see it, you can achieve it. Think positive and smile. No whining, etc. No more platitudes, please.

Sorry, I have to remind you because there are many agents still living the eternal victim role. He made me do this. They are too unreasonable. I had to jump when they said how high. FSBOs are too mean and they slap me around. If one or more of these sound like something you've said in the recent past, get over it! Eleanor Roosevelt said that no one could make us feel inferior unless we first give them permission to do so. If you are allowing FSBOs to get the best of you, it's because you lack skill or your standards and boundaries are too low or non-existent. Take responsibility for doing better, institute a plan of action to correct the shortcomings, and you will see improvement.

Goals

There is a wonderful line in Alice In Wonderland when the Cheshire Cat responds to Alice's request for advice on which road to take. He asks her where she is going. She responds that she does not know. His glib reply is timeless, In that case any old road will get you there.

That's the bottom line with goals. If you have none or if they are so loosey-goosey that they change with the tides, they will not light your path. They simply have no power to move or inspire you. If you want to do better in a particular facet of working FSBOs, write what you want down, figure out what tools, training or other interventions you need to get there, then get going. Failure is not an option. Now that's a fabulous goal!

Oh, one really important thing to keep in mind. If there is another agent in your company or area who is great at working FSBOs, he/she was not born that way. Nary a person exists that said at age five, I want to be a real estate agent when I grow up. They got swept up in it like the rest of us. The difference is that they made a conscious decision to be the best at what they do, and they meant it.

Commitment

There are agents out there who think that commitment means to enter a mental hospital. I have often thought that a retirement home, especially for retired or burnt out agents, would make a fortune. It is said that real estate agents don't retire. They just get listless…

Commitment means that you do what you say that you will do. Stop promising the moon, sun and stars and then deliver mediocrity. That is cheating yourself more than anyone else. Take a stand and step up to the plate. You do not have to bat a thousand to be a success. All you have to do is to care enough about your future, take advantage of the business in your back yard and have a desire to earn a living that affords you more than enough money to just make ends meet. FSBOs can and will do that for you, but they require work. Interesting concept… agents working, hmm...

Understanding

You have to sell security to the FSBO. They must believe that you bring value to the table. They need to know that you offer more than they can get without you. You represent proven process. You bring the potential of peace of mind, safety, greater net and qualified buyers. On their own, there are no assurances. Get into their heads. Understand that it's about them and not you. Help them to come to their own conclusions rather than selling them on yours. People never argue with conclusions they come to on their own. A powerful lesson for all sales people.

The most important thing to understand is that they want to sell. You are in real estate, and you want to hook up with people who want to sell. If that does not add up to a win-win partnership, I don't know what does.

Published: July 30, 2001

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