How to Address FSBO Concerns about Agent Fees and Commissions

One of the primary reasons sellers opt for going the for-sale-by-owner (FSBO) route is because plain and simple, they want to save money. As a real estate agent, you know the value of sellers having a professional by their side. If you're trying to convert FSBOs into clients, you'll need to be confident in addressing their primary concern about fees.

Here are some tips and objection handling scripts to help you best handle these concerns and demonstrate your value as a real estate agent:

Be transparent about fees and commissions

One of the best ways to begin any relationship is by being honest and transparent. Make sure to be upfront about your fees and commissions. Explain what they will be paying for and how much it will cost. By being honest and straightforward, you can build trust with potential clients.

Be ready for the objection

You should not be surprised when the question about fees comes up. Be prepared. Agents who prepare and rehearse effective objection handling scripts will find success navigating this discussion. Here are some helpful examples from agents who successfully address this concern:

"I completely understand that you're trying to save money by selling your home yourself. I don’t blame you and would try to save as much money as good as well. But the fact is that selling a home can be a complex and time-consuming process. As an experienced real estate agent, I can help you save time and reduce stress by handling all the details of the sale. And, my commission is only payable when I successfully sell your home. Let me show you how paying a professional like me will actually net you more."

"I know you may be hesitant about paying an agent's commission, but the truth is that a good real estate agent can save you money in the long run. By pricing your home right, negotiating the best deal, and handling all the paperwork, I can help you avoid costly mistakes and get the most for your home."

"I understand that you're hesitant to pay an agent's commission, but the truth is that many buyers are willing to pay more for a home that is listed with a professional agent. By listing with me, you may be able to sell your home faster and for a better price than if you tried to sell it yourself. Let me show you how I can help you achieve your goals." 

"I appreciate your concerns about fees and commissions, but the fact is that selling a home can be a complicated process. As a professional real estate agent, I have the experience and skills to navigate the process and help you sell your home successfully. And, my commission is only payable if I successfully sell your home. So, you have nothing to lose by giving me a chance."

Highlight your expertise

One of the best ways to help a FSBO home seller understand the value of paying a professional is to impress them with your local market knowledge. The best way to do this is to be prepared on your first meeting with the home seller and provide them with a comprehensive marketing plan and a complementary market analysis (CMA) which includes market trends, recent sales, and local factors that impact their home's value.

Another way to highlight your expertise is by showcasing your professional network. As an experienced real estate agent, you have a wide network of contacts and professional relationships that can be valuable in selling a home. By highlighting your connections with other agents, mortgage brokers, inspectors, and other professionals who can help facilitate the sale and ensure a smooth closing process, you can demonstrate your value and make FSBO home sellers feel more confident about working with you.

Emphasize time-saving benefits 

One of the main advantages in working with a real estate agent is their ability to handle many of the time-consuming tasks associated with selling a home, such as marketing, scheduling showings, and negotiating with potential buyers. By entrusting these tasks to an agent, FSBO home sellers can free up valuable time to focus on other priorities, such as preparing their home for sale, moving to a new location, or simply enjoying their free time. Additionally, working with an agent can help ensure that the home is priced correctly and marketed effectively, which can help attract more potential buyers and ultimately result in a faster and more successful sale. Helping FSBO home sellers understand this can help them understand that time is money and saving time is well worth paying a professional a fee.

Show your commitment to success

As shared earlier, one of the ways to demonstrate your expertise and commitment to helping the FSBO succeed is through a comprehensive marketing strategy. This strategy should be tailored specifically to the needs of the FSBO seller, taking into account their home's unique features, local market conditions, and target buyer demographic.

Converting FSBOs into clients requires patience, empathy, and effective communication. By addressing their concerns about agent fees and commissions, you can demonstrate your value as a real estate agent and win over potential clients.