On this episode of the Real Estate Marketing Show we discuss For Sale By Owners and focus on how to have a For Sale By Owners market plan.
So how to have a market plan? A set schedule, things we want to do, once we get in the door and realize that they are truly motivated and they’re not unrealistic pricewise, they just need a little bit more information.
An agent that thinks they’re good goes to the For Sale By Owners and brags about how great they are at this! That’s not the way to do it. The right way to do this is to come from a really good place; be genuine and transparent.
Certain things we do with For Sale By Owners, is to educate them, as we talked in the first part of the episode. The first time you get in their door, present yourself, tell them you saw their sign, ask them if they are the owner. Once they confirm, ask them, if we had a qualifying buyer willing to pay a net acceptable price for their home, would they accept such an offer through your firm? Typically they say ‘yes’ or ‘what does that mean?’. Explain to them that it means they get every penny out of it that they’re looking for, regardless of your paycheck. If they are truly motivated sellers they will typically let you in to discuss the opportunity.
You don’t want to lie to them telling them you already have a buyer if you don’t. Instead, tell them how well you truly know this neighborhood – more so, that you preview 2 hours of property every day! – so you need to see the house first in order to really know what’s going on in the market, to get them a buyer. So the first script along with that kind of attitude will get you in the door every time!
So what can we do to add value for a seller?
Offer them to truly help find a buyer, teaching them everything there is to actually sell this home on their own, without the tools of a real estate agent.
Why? Because honestly we want to prove to them that we are the best marketing agent, the best negotiating agent with the best market plan so if they do decide to list with an agent –which, statistically, after 30 days, almost all people list with an agent – we want them to know that they can already trust us. I would highly recommend that you do make a marketing presentation, a little booklet for example, that you can go over with them.
Day 1) The first thing that comes to mind, are contracts. ‘What if a buyer came to your home, “Mr. Smith, do you know how to sell them this house?”. “Do you know what paperwork is necessary?”. Most of them say “oh, I’ll just go to an escrow company and they’ll handle everything for me!”. The problems is, escrow companies, by law, are neutral third parties and are not allowed to give them advice and write up their contracts. “Therefore, you might want to sit down for me first for a little bit so I can show you how you can protect yourself with the contract, what you should pay for, what you shouldn’t, what is industry standard, and what is uncustomary…” And they will really appreciate it!
Meanwhile you are bonding! Do your kids go to the same school? Do you know the same people? Are you both into football? You are finding out what you have in common, earning their trust!
Day 2) We are going to talk about our disclosures. Basically it’s a huge document – 45 pages of nightmare! Let them know, “if there is anything that’s going to get you sued, it’s going to be this particular contract. If you don’t do anything, at least say it be best to pay a couple grand to a lawyer to sit down with them to go over it; plant the seed in their heads of them having to spend more unnecessary money. go over this
So then, they become interested in marketing!
By day 3 and 4) The fun stuff starts! Offer to make them a full size For Sale By Owner sign, so they look like all the other big boys on the market! Say, “We’ll make it for free because we specialize in working with good people like yourself that just need some more information.”. And that’s not all! “We are going to build it with the 800 number on it, which is a call capture system, and it helps keep away the Looki-Loo’s.” Explain, this way, everybody that they are really talking to, they know are really looking for the exact price range and similar features as their house.
And here is the really good part: it traps all the phone numbers! So, at their leisure, they can have the ability to call these people back and remind them about their house. If they don’t, you’re more than happy to do that for them! Why? Because you are in the business of selling homes!
For every time I am able to sell a home of those numbers, I will take a percent off my commission for you! And that’s a great deal! They give me 2 or 3 referrals and, after the 3rd one, I will sell their house for free! Now I am building relationships, getting referrals from them, I can then capitalize and use those other sells to market and pick up new clients. And that’s how you do it…!