CHAPTER 5
The FSBO System
Champions keep playing until they get it right.
— BILLIE JEAN KING
FSBO Fact
FSBOs have no access to fundamental marketing services, such as the Multiple Listing Service (MLS), and they cannot list their homes there. They also have no access to other marketing avenues such as REALTOR.com, Virtual Office websites, and the Internet Data Exchange.
SOURCE: National Association of Realtors®,
Profile of Home Buyers & Sellers, 2005.
In this chapter you’ll learn how to implement systems into place that will drastically improve your means to prospect FSBOs. This is a very important chapter of this book because without a system, there is no direction.
The Tools
One very important aspect of prospecting is to be able to do it as efficiently as possible. That’s why I created the FSBO System. Now I’m going to introduce two tools to you:
1.FSBO Number Check
2.FSBO Journal
These two tools are essential for keeping track of the FSBOs that you call on a daily basis and for helping you stay on top of your business. You’ll need Microsoft Excel or a similar program to lay out the template for both the FSBO Number Check and for the FSBO Journal. You’ll also need a little patience at first if you’re not familiar with Excel.
First, I want to inform you about why I created these programs. Probably one of the most humiliating things you can do is call a FSBO twice without realizing it. Some FSBOs may run two different ads or change the language in the advertisement article and throw you off. So I came up with a very simple number check to prevent you from calling the same FSBO twice, permanently.
FSBO Number Check
The following seven steps show you how to create the FSBO Number Check. You’ll need Excel; if you don’t have it, use your office’s computer or just purchase the Excel program.
1.Open a new Microsoft Excel document.
2.In column 1, row 1, type in your first FSBO phone number in the box. Input the ten-digit phone number without spaces or hyphens, and don’t put a 1 in front of the area code.
Figure 5-1. FSBO Number Check: Sorted telephone numbers.
3.Continue to input your FSBO numbers down the first column only until you have listed them all. Your list should look something like Figure 5-1.
Figure 5-2. FSBO Number Check: Adding new numbers in bold.
Highlight the entire column of numbers and put them in ascending numerical order by clicking the “Sort Ascending” button, which looks like this: 
(This button puts things in alphabetical and numerical order.)
4.Then, as you get new FSBO phone numbers to check against your existing numbers, input them below the existing list. Make them bold. This will distinguish them from the originals, as shown in Figure 5-2.
5.Highlight the whole column again and put them in numerical order by clicking the “Sort Ascending” button again.
6.Scroll through and check to see if the bold numbers have a double above or below it. If you have a double, delete it from the list (see Figure 5-3).
7.When you’ve deleted the duplicates, put all of the remaining numbers into regular font so the chart is ready for the next time you run the number check. Of course, make sure you save the file after each use to update your new list.
If you update your phone list on a regular basis, there’s now no reason for you to be worried about accidentally calling a FSBO twice. This also saves a lot of time since you no longer need to comb through all of your newspaper clippings checking for doubles.
Figure 5-3. FSBO Number Check: Deleting the duplicates.
The FSBO Journal
Now we come to the second part of your FSBO toolkit, and the most important part: the FSBO Journal. This is a template that organizes your FSBO information in an orderly, efficient arrangement, which allows you to log specific details about every FSBO phone call you make. You can record conversation topics, home features, and name of seller or sellers; gauge FSBOs as to their potential for listing; and note precisely when to call them back. This way you’ll always be prepared when you make that second, third, or tenth call down the line.
How to Create the FSBO Journal
1.Open a new Microsoft Excel document.
Figure 5-4. FSBO Journal.
2.Organize the cells as shown in Figure 5-4. Fit five templates on a page.
3.Save the file and print out one copy to use for making additional copies. Then organize these templates on a traditional clipboard or 3-ring binder.
How to Use the FSBO Journal Template
You can organize the cells of the FSBO Journal template to your specific liking. Before calling your FSBOs, run new phone numbers against the numbers on your FSBO Number Check. Then input numbers that are unique into your FSBO Journal. Fill in the templates as best you can with the information given on the newspaper ad, signs, or other sources. When you start calling your FSBOs, use the templates to guide you through some of the questioning. If there are any blank fields, use these as a basis for asking the sellers questions, and then fill in as much important information as they will give you over the phone. Include memorable conversation topics in the “Remarks” section so you can bring them up when you make your next calls. That way, they will easily remember who you are. Always record a call-back date so you’ll know whether you’re calling them on time or if it’s still too soon. Right after speaking with sellers, mark their potential to list. You can cross off the ones that have either sold or have already listed with an agent. But DO NOT cross off anyone who says they don’t want to work with an agent. You must keep calling everyone until they list, sell, or die . . . no exceptions to the rule! You may have to keep calling some FSBOs for over a year before they list, but on the other hand there will be some sellers who list on the first call.
If you are not a good phone person, then you’ll have to learn how to be one. In Chapters 6 and 7, we’ll dive into the basics for handling the phone. I recommend investing in a how-to book for phone sales. Investments like these give great returns. With time you can gain the experience to know what to expect and be prepared for every type of phone conversation. But it takes time, drilling, and rehearsal. You can’t become a pro in one day. You must be patient and persistent.
Ranking the FSBO by Personality
When you record your FSBO information into your templates, you’ll want to have as much information at your fingertips as possible. One great way to be prepared for a follow-up call is to know what type of seller you’re calling back.
FSBOs can be categorized into four personality classes, from Class A to Class D. When first talking to a FSBO, characterize their personality according to one of these four classes and then record that class on your template in preparation for the next call. That way you’ll be ready for each personality class before you call.
Four Personality Classes of a FSBO
•The Class A personalities are the sellers who are going FSBO because they don’t know any better. They are usually friendly and willing to put their trust in others. These personalities take compliments well. These FSBOs will consider listing very soon. Oftentimes these are first-time sellers.
•Class B FSBOs are the intellectual, open-minded types. They think that they will make money by selling it themselves, but they will listen to what you have to say and consider it. They want bottom-line information to make an educated decision on whether to list with you or go a different route.
•Class C sellers are the talkative ones. You can let these sellers talk until they reveal their motivations. They especially love talking about themselves and their home. These sellers are going FSBO because they “heard” it’s easy to do and that it saves them from paying a commission. It is your job to convince them otherwise.
•Class D sellers may have had a bad experience with an agent in the past, may think they can do a better job than an agent, or just don’t want to spend the money. Many are rude at first, but they can be won over. They usually have a lot of pride in self-accomplishment. These are tough sells but are still list-able. DO NOT GIVE UP ON THESE!
Class B and C personalities are ones that you’ll encounter most. It is important that you do your best in determining which personality class a FSBO falls into and mark it in your FSBO Journal. Also, don’t give up on Class D sellers. The reason for this is because every other real estate agent already has given up on them. Therefore, you’ll have very little competition with this type of seller. When they decide to list, you’ll be first in line.
If You’re an Excel Pro
If you have experience in using Microsoft Excel, you can be even more effective using your FSBO Journal. Use your computer to type in your FSBO information, remarks, call-back dates, etc. More importantly you can insert pictures of each FSBO and color-code their level of potential to list. This should make it easier for you to comb through and find the ones with the highest potential to call first. I call this more sophisticated FSBO Journal the “Journal Pro,” an example of which is shown in Figure 5-5.
Figure 5-5. Journal Pro.
Take Pictures
Taking pictures will give you a reason to visit each and every FSBO in your database. Ring the doorbell of the FSBO and introduce yourself in person. And if they’re not home, leave your FSBO Package. Take a picture of the property with your digital camera and insert the picture into your template, as shown in Figure 5-5.
Color-Code Your Potential
Instead of writing in the words that describe how much potential the lead has, just color-code it on your computer. This makes it easier to sift through. You can scroll through your Journal Pro to find the “hot” ones.
Make Use of Your Photos
Since you’ll already have a picture of the FSBOs that you’re prospecting, make use of them in other ways. You can create a professional brochure for FSBOs, showing a picture of their home. Make sure you make these brochures better than anything that they can make themselves, so that they’ll use yours over theirs. On the top corner of the page put that this home is for sale by owner. However, on the opposite corner add this sentence: “This brochure was created courtesy of (Your Name) with (Your Company) Realty,” and put your contact information underneath. Now when buyers grab these brochures, they’ll call you for information.
This brochure will give you a great reason to call the seller. Not only that, but it’s an excellent show of aggressiveness from the seller’s point of view. And if they were to hire anyone, they’ll hire someone who is already doing a great job for them, wouldn’t you agree?
Subscribing to FSBO Lead Provider Services
There are several FSBO lead provider services out there. What a FSBO lead provider does is sift through all of your local newspaper and Internet classified sections for FSBO ads. They compile them on a daily or weekly basis and send them to you through an e-mail. This can be a great time saver for you. Not only do they usually generate an abundance of leads, but the leads are from a variety of sources, which gives you some leverage against other competing agents. (For some FSBO lead provider referrals, see the resources in the Appendix.)
Is It Worth It?
You bet! The monthly investment for this type of service will range from $20 to about $80 per month at the time of this writing. The opportunity cost of this type of investment will reap you major returns. It saves you a tremendous amount of time. Better yet, convince your broker to pick up the tab. Just say that this will increase the office’s listing inventory and ultimately lead to more sales. If you don’t want to share this great secret with the other agents in your office, just include it in your monthly budget. But remember, only about 5 percent of agents prospect FSBOs. That would mean if you had 100 agents in your office, only about five would be sharing this information with you. That’s not so bad.
FSBO Leads Are Safe!
A great feature of these lead provider services is that they check their phone numbers against the Do Not Call List. You can feel safe dialing a FSBO number now that you know that there’s no possibility of getting slammed with a fine.
They also check numbers against doubles. So, if you decide to join one of these services, you won’t need to use your FSBO Number Check after all. The FSBO lead provider will do all of the number-checking work for you. This should take a load of work off your shoulders and help ease your mind about calling unique leads.
E-Mail FSBO Leads
Some of the FSBO lead provider services will e-mail you leads along with the seller’s e-mail address. This is a great resource that is rare to come by. Especially for new agents who may just be getting over the fear of the phone, these e-mail leads are gold.
Make a personal advertisement to e-mail the FSBO seller. Be sure to customize the e-mail with FSBO statistics and disadvantages about selling by owner (see Appendix B), and demonstrate your knowledge of the market in which their home is for sale. Take your time. You are not under pressure with these leads. Include a concise resume in this e-mail along with your recent achievements or sales. If they don’t e-mail or call you back, send a follow up email. Prove to them that you are aggressive.
FSBO Lead Templates
Although the leads that you’ll receive from a good FSBO lead provider will be organized in some fashion, they are not set up for you to make calls most effectively. Usually they will be sent in a format containing the basic information that you’ll need when calling. I would advise you to input all of the FSBO information from a lead provider into your FSBO Journal template. This guides your FSBO conversation and helps you with the essential questions and rankings for following up with your FSBOs.