A lot of agents are afraid of converting FSBOs into listing clients, so if you can master this skill, you’ll never have a shortage of leads. For sale by owners, or the nicer way to put it, (and a more accurate way to put it) would be to call them unrepresented sellers. Where do we go to get started? Let’s address a few critical mindset points. First, let's check on your mindset. Make a list of what you believe and what you've heard about FSBOs. Here are the common things that we hear. They're overpriced, they're always overpriced, and they don't cooperate. They hate agents, they eat their young, you can't make any money working with them, they cut you out of the deal, and they're not motivated. Where do those beliefs actually come from? They typically come from either a limited experience with represented sellers or from other agents. But they really come from the business of the truth; they come from the “Secret Society” and that’s the living agents. They are the ones that perpetuate these myths. They want you to think all FSBOs eat their young and you can't make any money with them, after all they’re agent haters. Most of that last statement is perpetuated by agents who love for sale by owners and represented sellers. You are about to become one of them and you must move past your hang-ups. Ask yourself, “are my beliefs true?" Nothing will even be on the table if I decide not to embrace them. Then you're going to do some for sale by owner math and some represented seller math. We'll talk about a minimum standard – let's say you call five for sale by owners a day – or twenty five per week between fresh ones and follow up. This is even without having your script learned perfectly. You should net a minimum of one listing taken and five good leads from those twenty-five contacts. This will net you another one or two listings in the future.
Let's say you've got other stuff going on and you get distracted. For example, if you're only able to make twenty five For Sale By Owner contacts for a week, maybe just two weeks for a month. That's going to result at a minimum (and this is without your script being perfect) of two listings taken per month. Let's say that one of them sells and the other one produces at least one close, will buy a lead every month. That means by contacting twenty five for sale by owners per week, only two weeks per month, you're going to net at least two transactions each month. Say your average price is $350,000. That’s being conservative since for some of you, the average price maybe double or triple that. Remember, twenty five For Sale By Owner contacts and for sale by owner unrepresented seller lead follow up calls to be taken per month. One sells, one throws off enough business that you know it's going to probably sell next month, but you're at least getting buyer sides off that. Say that gets you two more transactions per month and that the average price is $350,000. That results in a commission of ten five. And let's say you're on a sixty percent split between you and your broker. That equals sixty three hundred net commission x two deals. That's twelve six. If this is all you do and this isn’t even with you on the phone all the time doing this, or we don't even talk about visiting their open houses, twelve six x twelve months, that equals an extra hundred an extra $151,200 by making a little bit of an effort to become really great at helping people who aren't represented. That result means it is going to be worth your effort. If you decide not to pursue this, you're saying to yourself, “I don't know you just keep that hundred fifty grand extra, I don't need to learn that skill.” We're going to help you get there and we'll show you how to do it.
Where do you get for sale by owner information? We will show you the links that we've set up for you. A free source is Zillow.com. Type in the zip code you're looking for and use their dropdown filter. It requires about three steps and does it all. You just need to have a username and password to do this. Zillow is a good, free resource for finding at least some of the for sale by owners the unrepresented sellers in your area. You can change your zip code and travel around on the map and you can find what's going on. Sometimes you're going to click on a zip code and there aren't any, and you click on the zip code next to it and hit the jackpot and there's twelve of them to go after. Don't despair if the first thirty seconds you spend on this doesn't give you information you’re looking for.
You can also use forsalebyowner.com and fsbo.com. You can use your local newspaper listings of property for sale. And usually, people still do use classified ads. You can check Craigslist. If you have a little bit of money to spend on this, you can either use landvoice.com or Mojosells.com. Both are great companies that have a lot of functionality and they do both for sale by owners and expireds. When we were selling real estate in Ohio, there was a local guy that actually I forget what I think he called it the FSBO report. He used to compile all of the information from all of the different resources and fax it. The For Sale By Owner the FSBO report I think we paid $50/. You might have a local resource of your own. Some of you are going to have to look in the grocery store or you can look where all of the real estate magazines are. There are two fairly prevalent and represented seller magazines. One is called The Grapevine and the other one is called Picket Fences, depending on where you live in the country. You may or may not have that. Check that out and you may have something I've never heard of before. If you live in Lincoln, Nebraska, I might not know your local source. I've given you the standard ones, make sure you know what's going on in your local market and you might have a better free resource. When you see a sign, stop at the home brochure, jot down the phone number and make the commitment that you're not going to just keep driving past.
How do you get going with for sale by owners, and not just going with them, but become absolutely fantastically excellent at it? You can make a minimum, very conservatively of $150,000 more just from this spoke. I have posted for you the For Sale By Owner prospecting script. That's a PDF I have posted for you the for sale by owner mindset notes. You can check what's going on in your head. Do this especially if you know it might be the first one that you call. You know I mean my clients to do this. I hardly ever have what you guys fear, for example that they're going to hang up on me etc. You know my most common reaction is when you are going on about this. Honest to God, here's what I hear. “You're not going to believe how nice those for sale for owners are! You're not going to believe the conversation I had, they invited me and they showed me everything and I got a follow up visit!” So don't be shocked if you can't create results. I have also posted for you, Ten For Sale By Owner follow up rules. That's actually a coaching call and we have the PDF of the very same ten rules. We've also got the For Sale By Owner Script in which there are objection handlers to get you going. Don't overthink it. Do use the script. Practice it. The best way to practice it is with real represented sellers and I tell people that freak themselves out about this type of prospecting, let's say you're on the phone and you have no idea what to say next. (This shouldn't happen if you have the script in front of you.) Let's just say you have a mini panic attack just act like you got disconnected. You can hang up too. Don't be too attached to the outcome if you're new at this. If you've dabbled in for sale by owners in the past, make the commitment that you are now going to monetize them and stop fooling around. It's a fantastic source. How many of you complain that you can't get phone numbers? Guess what? For sale by owners advertise their phone numbers and it's almost always their cell phone. Why wouldn't you take advantage of that easy resource? Go after it. I've given you some sources for finding them and some coaching calls and the script. I have removed all of your potential excuses. It's time for you to take action. Go forth and conquer.