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Discount Brokers and FSBO Mills Are Easy to Beat September 13th, 2012 | Posted in Other Interests

Below is an exchange with a seminar attendee.  He is having trouble with a FSBO mill in a good market.  You know great markets are not forever, but if they were, you are still better than the discount that they give! 

Question:

Walter, I have a unique problem.  I know that’s what everyone says.  I have seen you present twice, and I purchased everything you offered.  Okay, I haven’t implemented everything, but I never had to!

My challenge is that I live in one of the best real estate markets in North America – Ottawa, Ontario in Canada.  Homes sell in an average of 30 days.

I am returning to the industry, after being mentally out of it for the last 5 years though physically working through divorce stuff.  I have not been good at keeping in touch with past clients.  My bread and butter, FSBOs, is non-existent thanks to (a local website), which is a home marketing system owned by a local REALTOR®.

He puts the listing online or the MLS for $500, a small fee as a mere posting. Meaning, he lists your home and then you are on your own. In certain pockets of the city, (a local website) may have 30% of the listing inventory.  People list and wait for buyer’s agents at 2.5% or less to sell their homes.  It’s impossible to find out who is a FSBO prior to them going to (the local website), then it’s too late.

Jeff Laprade

RE/MAX Affiliates Realty Ltd.

 

Answer:

Hello, Jeff.  Yeah, the divorce thing is rough.  Life is like the real estate business – it’s all about balance.  Why are you so worried about FSBOs when you have sphere, assisted living, OBS cards, and about 60 other ways to generate a listing better than the competition?  You are going to have to overcome the “(local website)” objection.  You are going to hear it at listing presentations, too.  In getting ready to answer it, we come up with the value to beat it. 

1.       They are paying 2.5% plus $500 for a sale.  Figure out how much less that is compared to what you charge.

2.       Now, for the little extra money — here is what they get.

A.      Hours of follow-up: everyone knows that a FSBO cannot follow up on a lead.  It makes them look desperate and evokes a lower offer.

B.       Marketing: if you follow my listing presentation, then you have about 90 additional roads to market the property.  The more marketing, the more showings; the more showings, the higher the price. 

C.      Smelling a rat: a FSBO just doesn’t have the nose to smell a bad deal.  How many problems have you kept your sellers from making or causing?

D.      I bet your list to sell ratio beats “(the local website)”

E.       I bet your days on market beats “(the local website)”

F.       I bet dotting your I’s and crossing your T’s will save money for the client.

G.      I know your team approach to closing will save them money.

H.      I know you will lessen any post-closing litigation.

I.        I know you will be able to discuss the market and it’s acceptance of the property.

J.       I know you will be able to email all agents known to have an interest in that type of property for the last 3 years.

K.       I know you could sell your buyer VIP program that produces more buyers than anyone else.

I could go on for an hour!  You get the idea.  Any one of the above could save them the money that I mentioned in point #1.  Go get them with the above value.  Mention it in all of your delivery methods: phone, social media, postcard, blog, your website, direct mail, flyers, door hangers, and go directly after them.  I could list 20% of (the local website’s) inventory, if I had access. 

However, I wonder why you are so despondent?   There are several other ways that my coaching clients generate listings.  I currently have coaching clients in Calgary and Edmonton.  We are getting rich.  Join the team!

It’s a great business to get rich in!

 

Walter Sanford has been designing and implementing real estate systems for 30 years.  One of the most successful REALTORS® and now wealthy from his systems, Sanford teaches his systems and strategies through his products, seminars, and personal coaching producing the best results in the industry.  Do what works, do what is proven.  Hire Walter Sanford.  Call our office at 800.792.5837, email walter@waltersanford.com, or chat with us online at www.waltersanford.com.

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