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February 27, 2007

'Dean' Jerry Rossi Draws Outline for FSBO Success

Why Sellers Sell 'By Owner' And Why That’s OK?

A. The Numbers

     1. Percentage of sellers who sell by owner

     2. Choices they have in a techno market
          a. The Web
          b. FSBO Listing Services
          c. Low fee assist companies
          d. Friends
          e. Schemes and Deals

     3. How they are contacted by the Real Estate Community.  Number of agents that
          a. Call
          b. Write
          c. Visit

B. Agent Contact Philosophy

     1. Calling and Writing don’t work

     2. Door-to-Door, Face-to-Face is the only solution.

C. The Visit

Before you ever go to the door of an FSBO, determine why you are there:

    1. To get an impression
    2. To make an impression
    3. To preview the property

D. Non-Verbal and Verbal Procedures

     1. Non-Verbal
         
          a. Relaxed
          b. Open
          c. Non-aggressive Stance

    2. Verbal

Objections, Stalls, and Dialogue

“Hi, I see you have your house for sale." 

[Point to the sign, they sometimes forget how you know their house is for sale.]

"I’m in the same business as you, selling real estate, and I would like to preview your property. "

[They will always say, “We don’t want to list.”]

"I understand.  I’m sure you can sell it yourself.  All I want is to look at your house for future comparison.  Could you show me your property?” 

[Pause -– they will say, “Why do you want to see my house?  We don’t want to list.”] 

“I’m not here to list your house.  I’m only here to preview your house for future reference.  May I see your house?  I’ll only take a minute.”

Most of the time they will let you in.  Here are some exceptions and how to handle them:

It’s not convenient right now.”

Counter: “Fine, what time would be better for you?  Three o’clock or four?”

“You’ll have to wait until my spouse is home.”

Counter: This is great, it shows their insecurity, and it’s the very reason they should list with you.  “Fine, what time will they be home?  I’ll see if my schedule allows for my return then.”

“I don’t let strangers in my home.”

Counter: Excellent, now they really need you.  “Let me give you a list of my references; maybe you know some of them.  I’ll ask them to introduce me to you.”

“Is this a trick?”

Counter: “No, as a full-time real estate professional, that would not be very good for my spotless reputation, would it?  You see as a residential specialist; it’s necessary that I know everything I can about the market.  Most agents fear the rejection by For Sale By Owners, therefore never learn about their houses and have a void in their market knowledge.  I, on the other hand, think that it’s okay for you to sell your house by owner.  Therefore, I can’t be rejected.”  This is an embedded, subliminal command and very effective.  “Once I see your house, I add it to my market knowledge and become of higher value to those who choose to hire me to manage the sale of their property.”

What To Say When You Are In The Home?

“Thank you.  Do you have any printed material on your offering?” If yes, ask for a copy.  If no, tell them of its usefulness.  Now, lead out on tour, careful not to get too far from them.  Don’t go in all the rooms, don’t go outside, don’t go in the garage.  Don’t ooze with compliments.  If they begin to oversell on something, ask them if it’s written down.  If yes, ask for a copy.  If no, tell them it would be helpful for sale. 

Tour their house at the same pace that you use on an office tour and return to the point of entry.  Pause and say, “I’m sure you can sell it.” 

They will always say the same thing, “What do you think of my price?” 

You always answer, “I don’t know.”  Pause.  “However, I could do a Right Price Analysis that would take one to two hours of my time, which I would gladly do for you at a no cost obligation, providing at some point you would be interested in hiring me to manage the marketing and sale of your property.”  [“We don’t want to list!” they’ll say.]  “Fine, I’m sure you can sell it yourself.  Thank you for allowing me to preview your property.  Here is my card, call me if there is anything I can do.”  And you’re done; you’ve made an impression, got an impression, and previewed the property.

E. Follow-Up

     1. Persistence is key

     2. Must have a scheduled plan
 

           a. Immediately send a thank you note using a digital photo of their house.

           b. Return to the house the day they receive this note:  “Hi, did you get my note?  I thought the photo turned out good, so I wanted to drop a few copies of the note card by for you to  use as thanks for letting me see the property.”  When you make the note for them, make two extra sheets, two to a page.  You used one, which leaves five for them, and a big win.  “Have you had any offers?  I’m sure you will soon.  Thanks, and good luck.”  You leave.
           
           c. Stop by two or three days later and say: “Hi, have you had any offers?”  They usually tell some story about someone who is interested but, “Is you seeing more agents or more buyers?”  They always say, ‘agents’.  “If I could show you a way to set the agents aside and have more time with buyers, would you be interested?”  Of course, they would.  “Here is a stack (10 or 12) of my business cards.  When an agent comes to the door, tell them that I have all the correct information on your house and ask that they call me.” It’s at this point that you may get them, ‘What’s in it for you’ look.  If you do, tell them that not all buyers who look at their house want, need, desire, or can afford their property.  And you were hoping that they feel comfortable enough with you to give them your card.  Some of my best buyers have been referred by FSBO’s.

           d. Stay in touch with them at least once every six to seven days and play the odds.

           e. Never give up until they list or sell.

           f. Seven Reasons FSBO’s should consider using third-party representation:
 
                   a. Safety
                   b. Security
                   c. Buyer Contact
                   d. Skilled 3rd Party Negotiator
                   e. Current Market Awareness
                   f. Competent Timely Advice
                   g. Detail Transaction Coordinator
 
(Rossi, Certified e-PRO Trainer, ROSSI Speaks, Inc. Edutainer, Humorist, Coach, & Bon Vivant, and author of Dog Eat Dog & Vice Versa: 9 Secrets to Put the Bite Into Your Marketing.) http://www.rossispeaks.com/

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