Eighty-nine percent of sellers work with a real estate agent to sell their home, according to the National Association of REALTORS®’ 2016 Profile of Home Buyers and Sellers. That should tell you what kind of opportunity there is to convert FSBOs, which made up only 8 percent of total home sales in 2016. The majority of homeowners who try to sell on their own eventually realize they don’t know how to handle a sale by themselves, and they turn to you for help.
But even though the FSBO market is ripe for conversion, real estate professionals struggle to get these potential sellers to work with them. The reason is simple: We’ve been taught to lie to these sellers from the very beginning of the relationship.
When someone is resistant to working with you and you want to change their mind, you first have to figure out what’s driving their resistance and then solve that problem in a practical manner. There’s only one reason sellers would decide to sell on their own rather than work with an agent: money! They need to make a certain amount of profit and don’t want to pay a commission, or something along those lines.
Well, the average FSBO property sells for more than 20 percent less than comparable homes that are listed by an agent, according to the NAR report. So going it alone doesn’t actually get FSBOs what they want.