CHAPTER 8

The FSBO Listing Presentation

Before everything else, getting ready is the secret of success.

—HENRY FORD

The Listing Appointment

So you finally got the listing appointment, now what? All that you have trained so hard for has now accumulated up to this final moment. You closed for the appointment over the phone, but now you must close for the listing face to face. Of all of the things you’ll need at your listing appointment, your sales skills demand the greatest focus.

When you’re sitting down with your sellers to close for the listing, use the same sales techniques in combination that you learned in the earlier chapters of this book.

What You’ll Need

•EVERYTHING!!!

•Presentation portfolio

•CMA (Comparative Market Analysis)

•Resume

•Listing agreements

•Disclosures

•Calculator

•Digital camera

•Measuring tape (preferably a laser measuring device)

•Note pad

•Business cards

•Pens

•Legal pad (for taking notes)

Confirm Your Appointment

When your FSBO finally agrees to the listing appointment make sure you are prepared. Call ahead of time and confirm that you still have the appointment. Many people are hesitant to call and confirm an appointment because they’re afraid that the seller might back out at the last minute. The important thing to note here is that if a seller does back out and you don’t know about it, you just wasted your time, gas, and effort. Here’s an effective way to confirm an appointment and ensure that the seller sticks to his or her words.

This is very assertive. Don’t ask the question, “Are we still on for today?” because if you do, you’re giving the seller an option to back out. Be assertive and tell the seller that you will be there.

Drive by the Comps

Drive by each and every comparable that is in your CMA before you enter the sellers’ home. If they know more about the comparables than you, you’re in trouble. Also, don’t just use the comparables that you want. Sellers know their neighborhood. They may not know the sales prices and details, but they do know what is or what was for sale in their area, so compile an accurate CMA.

Dress for Success

Does the way you look really matter? Absolutely! Studies show that people form a first impression the very first second they see you. There’s no room for you to change their impression within that one second. Sure, you can change their impression of you after they have gotten to know you better. But why not start with a good first impression right away.

The way you dress reflects your character. If you dress like a slob, you’ll be portrayed as a slob. If you dress like a professional, well . . . you’ll be portrayed as a professional. Dress well for listing appointments. Don’t wear a flashy suit, but wear a suit of neutral colors. If you have any awards or membership buttons, pin them on your lapel. If your intent is to provide professional service, you have to look like you mean it, wouldn’t you agree? Below are some tips on ways to keep yourself from creating a negative first impression by paying some attention to the way you dress.

The Professional Fashion

•Wear solid dark color suits. By solid, I mean no patterns or loud pin-striped suits. Solid black, blue, or brown suits are professional colors to wear to an appointment. Try to make it a two-piece suit or a blazer with coordinating dress pants. For women, suits are very popular these days, and you can follow these same guidelines. If you choose to wear a skirt, keep it neutral and professional. Avoid anything that may be flashy or revealing.

•Coordinate your suit with your shirt. Wear a long-sleeve button-front shirt that matches your outerwear. A V-neck sweater is a great professional look for winter, which can be worn over your dress shirt.

•Wear a neutral tie. There are so many tie patterns out there, yet so many of them are bad. A tie with a neutral color and a very simple pattern will suffice.

•Wear dress shoes. Many people will only look at a person’s shoes to reach an impression. Wear shoes that are up to class with your outfit.

•Have a clean-cut look. For men, keep your face clean and professional. Long hair and beards are okay, but they may cost you some listings. It’s best to keep your hair short and your facial hair to a minimum.

For women, if you wear your hair long down your back, it may be time to think about a new style. Looking professional is very important for business pictures and first impressions. Work on a look that you can keep. That way, your pictures will still look like you as time goes on.

•Go easy on the cologne/perfume. It’s good to smell nice at appointments, as long as you know your limit. Overpowering yourself with cologne or perfume will only draw attention away from your presentation and keep attention focused on your scent.

•Limit your jewelry. If you’re a jewelry person, leave the excess at home. A professional should wear only one ring. For women, keep it simple. One necklace and a pair of simple earrings is more than enough to keep your look professional.

The Comparative Market Analysis

Never go to a listing appointment without at least a preliminary Comparative Market Analysis (CMA) prepared. When I say a preliminary CMA, this means that you haven’t seen the property, and the only information you have is what was given to you over the phone or what you received from the FSBO ad. Every CMA should include sold, active, and expired listings. What expired listings tell us is that those homes didn’t sell because they were overpriced.

Be Punctual

Arrive to your listing appointment a few minutes early. It’s always better to be early than late. Even better, arrive ten minutes early and drive around the neighborhood until your appointment is ready. In the meantime get a feel for the neighborhood or search for nearby FSBOs and find out what they’re asking. By doing this, you’ll show that you’re well prepared and in tune with the neighborhood market.

Tour the Home

One of the first things you do when you arrive at your appointment is take a tour of the seller’s home. See this as an opportunity to build rapport with the sellers.

Five Tips for Building Rapport While Touring the Home

1.Find something in common. The best way to build rapport is to find the common denominators. This could be hobbies, sports, interests, or personal tastes. While touring the home look for signs of common denominators. For example, if you like antiques and you find the seller has a considerable number of them, strike up a conversation about antiques on a personal, non-business level to help the seller unwind and become comfortable with you.

2.Show off your knowledge. Show that you know the terminology and history of specific home features. For example, if you know the name of the style that the granite counters are made of, show them that you know. If you know the history of specific features in the home, tell them. Show off your knowledge as long as you’re not telling them something that is obvious or redundant.

3.Give compliments. Tastefully compliment the seller where appropriate. When you find features of a home that you sincerely admire, give a compliment. For example, you can say, “I love how you coordinated the colors of your kitchen. It really keeps your eyes moving.” Be as unique and creative as you can be. Try to avoid boring compliments like, “This house is really nice,” or “I like your furniture.” Compliments can go a long way if you can say them like you mean them.

4.Ask questions of concern. If you have any concerns about the home, bring them up to the seller. For example, if you stumble on a room that can use some painting, ask the seller whether they plan on painting it. You can say it like this: “A fresh coat of paint would certainly make this room look sharp. Do you plan on painting it?” Addressing these questions shows that you are looking out for the seller’s interest.

5.Point out the good selling features. Look for valuable selling features in the home. You will use these to highlight the home. These can also be used for building rapport. Sellers love to hear about the positive amenities. Point out the positive features to get on a good footing with the seller prior to the listing presentation.

The Presentation Setting

When the time comes to sit down and give your presentation, remember that where you sit and how you act are critical to your presentation.

Be the Center of Attention

Suggest that you sit at the kitchen table. The kitchen has more significance for decision making than any other room in the house. More importantly, coordinate the seating arrangements of the table to your advantage. If you want to take charge, you have to be sure that the sellers can’t exchange body language under your nose. Have the sellers sit next to each other and you sit on the opposite side of the table. This keeps their focus on you and not each other. When they are able to exchange body language with one another it takes away from your control of the situation.

Body Language

Your body can communicate in volume to your seller even if you are unaware of it. Control your own body language, but also pay attention to the body language of the sellers. Here are some tips:

•Make eye contact. Eye contact is very important for controlling a conversation. Be sure to make eye contact with your prospects during your presentation.

•Smile. Smiling shows that you are comfortable and confident. Smile when you feel it’s necessary, and make sure your sellers are smiling back. If they aren’t smiling back, there may be some barriers or issues that need to be addressed. Use this as a means to probe for underlying concerns your sellers may have.

•Keep your hands free. What you do with your hands and arms must give the proper impression to your prospect. Don’t fold your arms. This is a common negative posture. Although it can mean many different things to different sellers, the point here is, don’t do it. Keep your arms open or at your side. Better yet, hold something. For example, if you hold a note pad, it can indicate that you are ready to work and that you came prepared.

•Lean in. While your sellers speak, lean forward. This will show that you are interested in what they are talking about. And when you speak, also lean forward. It gets their attention and keeps them listening to what you have to say.

•Sit still. If you find yourself fidgeting with your fingers, hands, or feet, stop. Although this can indicate that you are anxious, many people will take it as a sign of boredom. This can be very distracting to others. Even though you may not even know you are doing it, your seller may be focused on your tapping fingers and not on your presentation. Try to remain calm and comfortable and get the sellers’ undivided attention.

The Presentation

Now you are ready to make your presentation, a key element of which is your presentation portfolio.

The Presentation Portfolio

The purpose of a visual aid is to capture the attention of your audience through visual stimulation. Combining your verbal presentation with visual aids makes for a powerful listing presentation.

For good presentation materials visit an office supply store. I recommend a tent-style presentation booklet, as shown in Figure 8-1. This style of portfolio is effective because it is easy to use and also keeps the sellers from looking down at the table.

Figure 8-1. Presentation booklet.

You can also use a laptop for your presentations. A notebook computer will show that you are in tune with technology. It will also pull your prospects into the presentation, especially if you use interactive features. You can use Microsoft PowerPoint or similar programs to give your presentation a “wow” factor.

You’ll be surprised by the number of agents that don’t use a portfolio. Many feel that they are so good that they don’t need one. This couldn’t be further from the truth. Portfolios organize your offer in a manner that the prospect can understand and remember. Portfolios should not be an option, but a must-have.

Four Sections of Your Portfolio Layout

•Your Company

•You

•Your Offer

•The Investment (Benefit)

1.Your Company. The first section of your portfolio should be about your company. Have all of your office awards, if any, that your company received. Your office mission statement should also be briefly mentioned. Do not clutter the presentation with too many words. Keep it simple and concise.

2.You. The second section should be about you. Mention your accomplishments, your level of education, and your mission statement. (I will cover how to create your mission statement in Chapter 10.) In this section of your presentation, mention what homes you have sold in the area, if any, and how many homes your office has sold in that specific area. Also include what experience you have in the area such as community and volunteer work, or whether you ever resided in the area. You should have no more than three pages about yourself.

3.Your Offer. In the third section you’ll want to start with what you and your company offer the sellers in terms of marketing. Include sample newspaper ads, flyers, and brochures of listings that your office has published. It is very important to talk about what you offer over the competition. Also include a page about what you personally offer, such as holding open houses, offering personalized service, a custom name rider on your “For Sale” sign, etc.

4.The Investment. To sum up your listing presentation, you’ll need to mention the brokerage fee. Notice how I say brokerage fee and not commission. Throughout the entire presentation, the brokerage fee will be in the front of their mind. So how do you convince sellers that your brokerage fee is fair and worth every penny of what you’re asking? This is a significant task. I’ll dive into the justification tips and suggested dialogue later in this chapter.

Don’t Count Your Income Early

Enter your listing appointment without the expectations of getting the listing. If you go to a listing appointment with money on your mind you will be out of touch with what your real goal should be: to offer quality and professional service to the seller. Also keep in mind that thinking about the brokerage fee will influence your thought process, and the seller will know what’s on your mind. You’ll know when you’re operating at your highest potential when you can’t find the time to count your income.

Explain the Brokerage Fee

When you bring up the brokerage fee to the seller, be certain they know what the brokerage fee includes. Stay true to the average brokerage fee for the area of your listing. Mention that you offer the co-op broker whatever the average is for the area. For example, if you were to tell the seller that the brokerage fee would be 5 percent, also let them know that you are giving the other broker (the co-op) 2.5 percent. Point out that when many agents give lower than average quotes, they usually cut the co-op brokerage fee to compensate for their loss. This ultimately leads to fewer showings and risks the property not selling.

Leave Them with Something

Always leave something with the sellers if you have to leave without getting the listing. By “something” I mean a folder with all of your information inside, including your resume, the preliminary CMA, a list of homes you or your office sold in the area, and your business card. This will keep you on their table and in their mind. You can have custom folders printed with your information on them. This is a professional touch and says a lot about you.

Pricing the Listing

You must try your hardest to list the property at market value the very day you get the listing, not two weeks or a month later. Many sellers want to start off higher than the property is worth and then come down later. You must stress that this is a huge mistake. When you initially go into the market too high, you will miss all of the buyers that are in the price range that you ultimately will come down to. When you finally reduce the price those buyers will have already found a property or will think your listing is stale due to excessive market time accrued. Not only that, but the offers you do get will start low because they will perceive the seller as “desperate” due to the market time and price reductions.

Why Most FSBOs Are Overpriced

•FSBOs don’t have tools to accurately appraise their own home at market value.

•FSBOs, from the start, try to “test” the market at a higher price.

•Many FSBOs include the brokerage fee in the already high price.

•Some sellers are not in a hurry to sell and are willing to stay on the market for an extremely long period of time without selling.

When you think about it, FSBOs don’t have access to the tools to accurately price and market their property themselves. And most sellers choose to sell FSBO because they want to save on the brokerage fee. At the same time, they build that into the price of the home. But not all FSBOs are overpriced.

Dealing with Overpriced FSBOs

It seems that FSBOs not only want to save on the commission but they also end up overpricing the property. When negotiating the listing price with the sellers, it seems many will try to keep an already high price to absorb the commission they must pay. This brings us to a common dilemma: If they don’t believe the problem, they won’t believe the solution. It is your job to educate and inform the sellers, but it is the seller’s job to pick an agent whom they trust to give them the best advice on pricing the property.

Sometimes the FSBOs still stick to their price even after you’ve hammered and drilled the facts and statistics of how they benefit by pricing it at the market value. When this happens you have two choices:

1.You can take the listing but get the sellers to agree that they will reduce the price at a predetermined date—say, after one month—if the buyer turnout is lackluster. If the sellers don’t reduce the price now nor agree to the predetermined price reduction, then you have to make a decision. If you feel that the seller may come down in price eventually, then you can give a shot at listing it, as long as you have the time to sit on an overpriced turkey.

2.Your second option is to refer the listing to another agent and let them waste their time. Then you can try to be the rebound agent after the property doesn’t sell with the other agent. Work it out with that agent so that when the property doesn’t sell they refer you to get the rebound. In this situation, odds are that as the second or third agent you will have a better chance at selling the listing. Once the seller realizes that it’s not the agent’s fault and comes to terms with reality, you should be able to lower the price.

My advice is to take the listing with the understanding that you’ll reduce the price at a predetermined date. Here’s what you do: When you’re sitting down with your seller at the listing presentation, pull out a price change form and pre-date it for the date on which you both agree to reduce the price. Have the seller initial the paperwork right there. Now you’ll have a shot to market the property at market value if the property doesn’t sell by that predetermined date.

When to Take Overpriced Listings

If you take the overpriced listing, you might just sell it if the right buyer comes along with more money to spend. For example, you might find a buyer who has an elderly parent living in the neighborhood, and who is willing to pay a premium for that location. Not only that, but there’s a good chance that you’ll get good buyer leads from your sign calls in front of the listing. If you don’t have many listings or none at all, even an overpriced listing gives you the ammunition to list other properties and work with buyer leads.

Simply having some listings in your inventory can give you an upper hand at listing appointments, especially when you mention that you are selling a home in the seller’s area. Not to mention, holding open houses can open new doors that you didn’t otherwise have access to. Many sellers find it hard to list with an agent who doesn’t have any listings in their inventory. So if you don’t have anything going for you, take the overpriced listing and use it as leverage for acquiring more listings.

LIST, LIST, LIST!!!

Listings are the name of the game. You can build a listing inventory that sells itself. Why work with a buyer here and a buyer there when you can be selling multiple listings at once and increase your sales dramatically. I’m not saying that you shouldn’t work with buyers. If you have serious buyers that need a home, by all means, find them a home. What I am saying is that if you look at the big picture, you can leverage your time by focusing on listings, sell more properties by focusing on listings, and multiply your business exponentially by focusing on listings. You can’t do that by focusing on buyers. There is more money to be made listing homes than selling homes, so just make sure you know where you want to put most of your effort in order to maximize your returns.

Track Your Progress

Keep yourself on track with your goals. Follow your progress with a chart that graphs your listings over the months. Here’s what you do. Organize a chart for the year. On the bottom of the chart (X-axis) label the twelve months ahead. On the left side of the chart (Y-axis) have the quantity of listings for the months (see a sample chart in Figure 8-2).

Figure 8-2. Tracking your goals.

At the beginning of each month, draw a line for your projected listing goal for the month (black line). At the end of the month, add a line showing your actual listings (gray line). As the months go by you will be able to see how your actual number of listings stack up against your goals. This will give you a track record for your month-by-month production and, over time, your year-by-year production, compared with your goals.

If you want to go a step further, add two lines to the chart to track your monthly closings and your advertising budget. Put the dollar amounts on the left side (Y-axis) to keep a record of your budget. This will help you monitor your expenses and sales over the months.