Searching for FSBOs and expired listings? 7 strategies to get an advantage
Real estate agents have long generated business by courting homeowners who are trying to sell their homes on their own or who have previously failed to sell their properties.
However, due to inventory shortages and the rise of lead-generation technology and real estate coaching, competition for these prospects has become fiercer in recent years.
1. If the seller finds the buyer, offer to charge a lower fee.
Listing agents may be able to sway an FSBO or expired listing by offering to include a provision in their listing agreement stating that the seller will pay a lower rate if the seller finds a buyer.
2. Display data that demonstrates the benefits of representation (if they exist)
While agent-listed properties may not always outperform FSBOs in all markets, studies show that agent-listed properties outperform FSBOs in at least one of the metrics.
3. Provide a listing option with limited services.
Some FSBOs may cringe at the prospect of paying a typical 5 or 6 percent commission. They might, however, be open to a limited-service discount option. Offering a discount option could imply charging a small flat fee for bare-bones support or charging a higher — but still relatively low — commission for more substantial assistance.
4. Scripts should be learned and practiced.
"Agents who excel with FSBOs and expired listings make a point to role-play, practice, and have good scripts that can overcome the objections of the homeowners that they come into contact with," according to a recent Keller Williams Realty report outlining the best lead generation practices.
The Facebook group Lead Gen Scripts and Objections is one resource for learning scripts, finding practice partners, and crowdsourcing responses to objections from FSBOs and expired listings.
5. Don't come across as a robot — or as sleazy.
Many customers may react negatively to well-researched sales voodoo. Tagtmeier-Schmidt said she stands out from the many other agents who solicit FSBOs and expired listings by avoiding the sales pitch and instead asking homeowners to share their stories.
6. Utilize specialized lead-generation software.
Using systems designed specifically for locating and wooing FSBOs and expired listings, agents can streamline the process of locating and wooing such prospects. Among the most popular of these tools are Vulcan 7 and REDX.
Both provide FSBO and expired listing phone numbers, as well as autodialers for dialing multiple numbers at once.
7. Pound the pavement
Prospecting by phone can be difficult. Agents who are able to pitch potential clients in person may have a better chance.
"Highly skilled and prepared agents will experience higher conversion rates when going door-to-door on FSBO and expired listings," according to the Keller Williams Realty report.
ExpLiMO provides high-quality leads daily and offers a unique opportunity for Manhattan and Brooklyn real estate agents to prospect for expired listing leads and grow their business exponentially.