Residential Real EstateHow to Capture More FSBOs by Knowing Their Style
Your effectiveness with FSBOs can radically increase if you use the "DISC" method of determining the dominant behavioral style of the seller so you can adapt your approach accordingly.
People feel a higher trust level, and experience feeling understood, when they are with someone who mirrors their style and communicates to them in the way they best process information.
The DISC behavioral style research began in the 1930"s. A book that is easy reading on this subject is called, "The Platinum Rule" by Tony Allessandro. He asserts we should "do unto others as they would have us do unto them."
When working with the FSBO, if you can identify their style, you will be more effective at converting them into a listing. Most of the people who offer their homes For Sale By Owner will eventually list with a real estate agent, but their motivation and the process that they use will be different based on their behavioral style. Let"s take a look at some basic guidelines to determine the style of your prospect and how to be most effective with them.
The Dominant or "D" Style
The D style is an extrovert who accomplishes things through tasks and things. These are your classic bottom-line people who are forceful, decisive, direct, ambitious, challenging and independent. They are often argumentative and impatient and will try to intimidate others to get their way. They are risk takers and want results. Think Dr. Phil!
The most successful approach with a D FSBO is to be direct with them. Don"t waste their time, but give them reasons or information that will show them how their bottom line can be enhanced.
You should also flatter their ego and be careful not to challenge their ability to get the job done. These people will need some time to see it isn"t working their way. They will be impressed by statistics of your past success-things -- like how your average days on the market or how your list to sales prices are better than the averages in your market. They will also respond to consistent, repetitive and innovative approaches.
These people are the ones that are likely rude and brusque when you first meet them, but they are impatient, so your ability to convince them that their bottom line would be bigger if they used you, would eventually appeal to them.
Use the 2003 NAR Homebuyers and Sellers Survey that showed the average FSBO sale was $145,000 versus the average Realtor® sale was $175,000. D"s take a thick skin to work with, but will convert. So, your key to success here is not to take it personally and impress them by hanging in there. This group would respond to a quality mail campaign if it underscored the increased value they would derive from using you. Don"t waste their time with fluff.
The Influencer or "I" Style
The I style is an extrovert who accomplishes things through people and relationships. They are expressive, enthusiastic, friendly, demonstrative, and talkative. They like people and have high optimism.
They are not detail oriented, often they are impulsive and very trusting of others.
The most successful approach with an I FSBO is to become their friend. Begin with a genuine interest in their needs and what they are going to do next. Build relationship over several visits and give them time to talk with you. They will start very optimistic and become disillusioned fairly quickly because they are naturally impatient. Your ability to form a strong relationship and then be very consistent in providing help and value to them.
They would be less responsive to a mail campaign; the personal contact is very important to them.
The Steady or "S" Style
The S style is an introvert who accomplishes things through people and relationships. They are looking for someone to trust and are very non-expressive and indirect. They are methodical, systematic, reliable, steady, patient, relaxed and modest. Think Mr. Rogers!
The most successful approach with an S FSBO is to be non-threatening and take it slowly. This style tends to make up a low percentage of the FSBO market, although often an S may be a spouse of a D or an I. What the S style responds to is building trust over time. At least a weekly personal visit would be recommended, and with each visit take them something that would make it easier for them to sell. A booklet of ideas on how to "Sell Your Home Faster," or other material you may have on hand will show that you care they understand the process.
An S needs more time that other styles to process information and they are very resistant and passive-aggressive when pushed. This style is going to respond to calls and visits better than a mail campaign.
The Compliant or "C" Style
The C style is an introvert who accomplishes things through tasks. They have a high fear level and are more comfortable when there is structure and information that will ensure a positive outcome. They are analytical, contemplative, conservative, exacting, careful and deliberative.
The most successful approach with a C FSBO is to provide LOTS of information, charts, and graphs about the market and hard data about why working with a real estate agent will net them more money. While they are bottom line oriented, like the D, they will be much harder to read.
They will prefer a mail campaign, email or non-confrontive communication. Leaving them a big packet of information on a first visit and then following up by email would be their preferred method of being communicated to. They are slower to come around, but once the fear is assuaged, they will be swayed by logic.
They are methodical enough to go through and do everything! The good news is when the house doesn"t sell, it will be in great condition for you to list it! Other information, such as websites, or other research they can tap into will build your credibility and give them a feeling of comfort with you.
An important concept when effectively working with all FSBOs is to create a system to build the credibility and relationship over a several week period, as well as setting up an imbalance so that they feel they "owe" you something for all you have provided to them. It is a process, rather than a quick, one time conversion. And, don"t forget, getting the listing is only one of several ways you can enhance your income with this market.
The D"s and C"s probably comprise the biggest share of the FSBO market, since they approach things from a bottom line perspective and their initial thinking is that they will make more money by doing it themselves. You should be able to determine the style you are dealing with fairly easily on the first contact-either on the phone or in person. By adjusting your approach to their individual needs, you will have more success with all styles, instead of just connecting well with others who are the same style as you!