With a packed house at Family Reunion 2017, KW MAPS Coach Jackie Kravitz and principal broker Craig Reger delivered practical strategies agents could use to close more transactions with for sale by owners (FSBOs) and expired real estate listings or “expireds.”
Both groups present golden opportunities to real estate agents including the best buyer leads and consistent availability, no matter the market. Understanding how to work with each is becoming increasingly important.
How to dominate these markets
To succeed with FSBOs and expireds, agents must ask the right questions, listen effectively and display personality attributes.
Listen and Ask
Developing effective scripts and honing listening skills not only keeps prospects engaged, but also empowers the agent to respond to any objections sellers may have with confidence. Any hesitation to an objection will break the deal.
“If you know exactly what to say, you’re going to be more confident,” said Kravitz. “When you hear an objection and you hesitate, you are done. A buyer who is selling their house is looking for an agent that knows what they’re doing.”
Be aggressive, bold and enthusiastic
Motivated sellers are looking for aggressive agents when it comes to getting their homes sold. The presenters were quick to add that agents who understand the needs of their sellers are equally important.
“People do not hire people who do not understand their needs,” exclaimed Reger.
Likewise, sellers will not hire agents who lack enthusiasm.
“People make decisions when they are excited about their future. In order to get them there, you need to be enthusiastic,” Reger advised. To increase enthusiasm, an agent should try lead generating with their team and being intentional about creating an environment of positivity.
If all of this sounds like a lot of work, it is – but it is worth it.
“FSBOs and expireds are the toughest prospects you have, but once you understand how to master them, everyone else becomes easy,” Kravitz said.
Both groups come with a unique set of needs and one must approach each group differently in order to convert.
Most expireds want to sell within 24 - 48 hours, but their biggest objection will be that they do not want to sell anymore. To overcome this objection, the presenters advised to create doubt and provide hope.
“Open their minds to another possibility. They are looking for hope that their property can be sold. Tell them your success rate and make them feel good,” said Kravitz.
“Everybody has a dream,” followed Reger. “And every 3 - 6 months their house is on the market, that dream gets beat. Help the customer relive that dream and tell them how you could make it happen.”
Every FSBO has one goal – to sell their home and get the most money possible. Their biggest objection will be that they can sell the house on their own.
“Many FSBOs do not understand the value of hiring a knowledgeable professional. In order to get FSBOs to work with you, discuss why they are making a large mistake if they don’t,” Kravitz said.
Agents should begin by identifying the FSBO’s issue: Are they struggling to get exposure? Identify qualified buyers? Negotiate? From there, they can decide how to navigate the conversation.
- If the issue is negotiation, share that having a qualified agent who understands negotiation can save them thousands of dollars.
- If they keep running into window shoppers, show them you are an expert in finding them.
- If they are struggling with negotiation, give them a preview of your negotiation process.
“Whatever their issue may be, make it easy for them to say yes,” Kravitz commented. “You are not looking for a listing over the phone; you are looking to get in front of them to show them the value of hiring you.”
In closing, Reger stressed the importance of connecting with or “touching” clients 33 times.
“Putting in administrative work and updating your database isn’t glamorous, but it’s something we need to do.”
With an open mind, self-discipline and flexibility, agents will be well on their way to securing 10 listings a month.