Toby Davis'
The Pursuit of Excellence
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FSBO SPECIAL EDITION |
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www.eMentorConnection.com
eMentor Dinner in Vancouver
Canada! I will be in Vancouver the night of July 11,
2004 and wondered if anyone would like to join me for
dinner? email toby@tobydavis.com.
Hi eMentors! Your fabulous answers to the Agent in Trouble's email are shown below. Thank you to all of you who participated and offered their talents, best wishes and training/coaching offers to our eMentor in distress. EVERYTHING you do in life matters! There is no kindness too small, no question too unimportant, no thought you want to share too common. When you share an idea or tool, you are leaving your 'footsteps' in time and even the smallest of suggestions causes a ripple in the stream of life that goes on and on into eternity, literally changing every life in it's path. Ron Kent from Atlanta, GA, part of Floyd's great Starmaker Team, has long been known for his FSBO expertise. Ron has responded with an email of great thoughts. Ron has also made the generous offer to share his FSBO letters and has given me permission to send them to anyone who wants them. So, if you want a copy of Ron Kent's FSBO letters, write me, toby@tobydavis.com, and I will forward them to you. Thank you Ron for this fabulous offer! Our feature article has been submitted by Darren Day, Vancouver Canada, "What a difference a Day makes! " Darren has generously shared his FSBO scripts and his powerful thoughts on the subject. I think Darren, also known as the FSBO King, closed more than 200 transactions last year. This young man began his business on FSBO transactions and if you were in Chicago at FloydFest and heard him speak, you would know that their FSBO market is brutal and the FSBO's are NOT nice when he calls. Thank you for writing this for us Darren! Please help me welcome www.PersonalHomeSite.com to our growing list of sponsors. I am thrilled to welcome Debra Agliano as our newest sponsor! Debra and her husband Frank are the creators of an agent web resource called www.PersonalHouseSite.com, one of the most valuable tools I have seen in a very long time! Debra is one of the original 7 founding mentors of Master-e-Mentors and has long been a supporter of eMentor Connection. We would not be a group if it had not been for her encouragement and guidance along with the support of the Massachusetts Mentors to start the first Mentor Group for my Texas Office, the Bay Area Stars from Corpus Christi Texas. You will be seeing more on Mentor Groups throughout the year as we endeavor to help all of you recommit to this powerful resource - your Mentor Groups. Thank you Debra, for all you have done for us and for your encouragement and support to all of our eMentors. Now it is our turn to give that encouragement and support back to you! I hope all of you will visit www.PersonalHouseSite.com. On a final note, I hear Bill Bissonette has made a marvelous recovery from his cancer treatment. Way to go Bill! We love you! ~ Toby and the eMentors! FSBO Dialog by Darren Day - What a Difference a "Day" Makes!
Darren has been highly successful working FSBOs. He has graciously shared his FSBO 'tools' and his scripts with us. Darren, thank you, thank you, thank you! You exemplify our philosophy "we get by giving'. What a difference a Day makes! For Sale by Owner Dialogue Hi I'm calling about your home for sale is it still available? Yes it is My name is Darren Day with the Day Team probably one of the many Realtors that have called (ha ha) How are you? Do you mind if I ask you some questions about it? If they say yes, thank them, say good bye and call next one (Their Loss). If No, Then continue. QUESTIONS QUESTIONS QUESTIONS QUESTIONS How many Bedrooms? Are they good size? How many bathrooms Are they 4 piece, 2 piece? What improvements have you done to the home? (Ask as many questions as you possibly can. The Idea here is to build rapport and get them talking and opening up to you, questions, questions questions this may take 10-20 min) What's your first name? (If you ask for their name they may be reluctant to give it to you its better to ask for their first name and when they give it to you say it lots. (Ask for their name after about the first 3 or 4 questions) After you have asked them all your questions these next questions are the key!
(Their 1st name) I'm just curious why you aren't using a Realtor? FSBO - We don't want to pay the commission Oh okay. So it's nothing against Realtors you just need the extra money? FSBO - Right So in other words, if the money were the same you would probably be using a Realtor? FSBO - Sure we probably would. (Their 1st name) let me ask you this. What if I could put as much money in your pocket as you could? Would you at least consider talking with me about it? FSBO - Yes I would, however I don't know how you can do that? Let's do this, I don't mind. Why we don't set a time that I can get together with both of you and you can show me through the home and I will give you an honest opinion of what I think I can sell it for. How does that sound? Is tomorrow or the following day better?
When you ask this question: "Why you aren't using a Realtor?" and they don't admit that it's the commission, they could say statements like, FSBO - "We just wanted to try it ourselves" "We know how to sell" we thought it would be fun etc etc etc. DON'T BUY IT!!! It is always the commission. Say the Following: So it has nothing to do with the commission? FSBO - Well sure it does Then just continue with your close: Oh okay, So it's nothing against Realtors you just need the extra money am I hearing you right? Etc, Etc, Etc During your questioning period your FSBO could say statements like: Why are you asking these questions? Do you have a buyer for it? Gee I don't know? I haven't seen your house yet, let's get together. Thanks Floyd! Or I'll be honest with you I am shopping for a listing. I want your business! Statistically it tough to sell your own home and most sellers end up hiring a Realtor within 30 Days. I am being proactive, I'm going after the business, and not waiting for the phone to ring, after all if I am working this hard just to get the listing what do you think I'll do when I actually get it! I don't blame you for trying to sell on your own If I were in your shoes I would probably do the same thing, lets face it Real-Estate fees aren't exactly peanuts (Cushion it technique - Thanks Floyd!) However the bottom line is what you will net in your pocket, what I am suggesting is Add the commission onto your bottom line price and maybe a little more for wiggle room. With the tools my company and I Have to offer, I believe we can get the job done and net you the same if not more in your pocket with us doing all the work. Now obviously I don't know If I can help you until I see your home, so we should get together, I assure you this, If I cant get you what you need I wont take the job, I like to say I would rather turn you down than let you down! (Thanks Steven and Floyd) What do you say? What Day would work the best? ___________ or _____________?
Point 1 Statistically 95% of the homes for sale are listed with Real Estate companies and about 5% are private sellers like yourself. Let's play Real Estate for a minute. Say you're a buyer and are relocating to a new town or need to buy a home right away. You can hire a Realtor to do all the work, use their knowledge, expertise and negotiating skills and select from 95% on the homes for sale and it doesn't cost you a penny, or you can do all the work yourself and choose from the 5 % that are selling privately. What would you do if you were buying?
What the main reason a Seller would sell their home on their own? Save the commission Right? What in it for the buyer when they can hire a Realtor to do all the work, show them the majority of the homes for sale and it DOES NOT COST THE A PENNY! What would you do if you were buying? What would be the only reason a buyer would shop the 5% of homes for sale privately? To save the commission, Right? You can't save it twice. So the buyers you are left with expect to get at least the commission off your price or more and if you do that you may as well hired a Realtor in the first place. Also selling privately you get all the looky loos, Price grinders, no urgency buyer, weirdo's etc, etc, etc.
Have you heard the phrase the law of supply and demand? If you have more demand for Something what does that do to the price? It goes up, right. It works the same for Real Estate. If you list your home with me, all our Realtors and the Realtors in the area will try to sell your home, my marketing and advertising will produce more demand and most often a higher price. Truths about FSBO's They are hard on your ego and can be verbally tough, hang in there cushion it, cushion it, cushion it, make sense after all most Realtors didn't get that far and you may impress them. (If you are an emotional wreck It's probably not a great time to call FSBOS) Get in the Door honestly! Don't say you have a buyer, say you're shopping for a listing and then give them reasons why they need your services. I find that on average ½ of the FSBOS are priced very well and the other ½ are in la la land. Remember this' "if you don't have the listing you can't get the price reduced!" Also, in a hot market it's hard to get inventory so even overpriced listing sell! I believe that when you list homes, Price them right when you can, and if you can't, take the listing anyway I find that calling FSBOS a couple of weeks after their first ad tend to be more responsive, they tire from the process, but don't let that stop you from calling them right away. It's a numbers game. My success with FSBO's is that I keep them on the phone talking on the initial call, but the key is, I am making sense, when I get through with them they are wondering to themselves why are we doing this. Lets call back this Realtor, if he can get us the same money in our pocket with them doing all the work, what do we have to lose. I may not get the appointment that Day, however some do call back, or ask you to call them back and when that happens, you will probably get the listing! Congratulations! I believe FSBOS are one of you best sources of business. If you don't have a huge advertising budget all you need is a telephone and a phone number. FSBOs aare the way to go because they want to sell; you just have to convince them that you are the one to do it!
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