Prospecting expired and canceled listings for real estate professionals provides a steady stream of new leads. These sellers are motivated (if a bit discouraged), homes have been market-tested, and are free of solicitation restrictions.
However, expired listings require unique strategies for reviving them and turning them into fruitful transactions.
Market Conditions
Expired listings can give real estate agents valuable insights about market conditions in specific areas. For example, if a property has been on the market for an extended period, it may be due to problems with its presentation or marketing. If buyers are not impressed by the appearance of a home or are turned off by a flashy paint color, it can be challenging to sell the property. Agents can help homeowners improve the marketability of their properties by recommending professional photography and staging services.
In addition, learning how to find expired listings can be a good source of leads for agents specializing in renovation and redevelopment. These properties often require substantial upgrades or repairs to compete with other homes. Agents can connect sellers with reputable contractors and developers to help them make these changes.
Cold-calling expired listing owners can be challenging, but having the correct script to capture their attention and demonstrate your value is essential.
Price
Expired listings allow real estate professionals to demonstrate their marketing and sales skills. When a property is listed for sale with a real estate agent for an agreed-upon period (such as six months) and does not sell, it is considered an expired listing.
Generally, homes that have gone unsold for long periods are overpriced. Inadequate or lackluster home staging and a poorly designed online marketing strategy can also contribute to expired listings. Often, owners switch agents or agencies after their listing expires if they are unsatisfied with their previous representation.
A good script for contacting expired listing leads can help you make a strong impression and generate more business. Consider scripts highlighting your professional experience, effective selling strategies, and local market knowledge. Giving homeowners valuable information will inspire them to relist their properties with you.
Consider starting an automated drip campaign that sends emails regularly to nurture a contact. The email content can include neighborhood and market updates, seasonal greetings, helpful tips, or case studies of homes you’ve successfully sold. Using a drip campaign to contact expired listing leads can save you hours of manual work and increase your chances of turning them into clients.
Time on Market
A common reason a listing expires is that the original real estate agent should have aggressively marketed the home during the first month. When a home is listed, it should receive as much exposure as possible to attract buyer attention and generate showings. This includes advertising online, in print, and on social media. It should also be shown to buyers during open houses and other events like broker caravans.
Another reason a home may expire is because the seller is unwilling to make necessary changes. This could include lowering the price, repairing, or even depersonalizing the property. This is one of the reasons why sellers hire agents to assist them with selling their properties. Expired listings provide an excellent opportunity for agents to help these homeowners reposition their properties and sell them quickly.
When contacting expired listing leads, it’s essential to have a script that will stand out. Using an effective script will give you the best chance of connecting with homeowners and turning them into clients.
Cold calling and direct mail are two of the most effective methods for converting expired listing leads into clients. However, testing your script and messaging before committing to any specific marketing tactics is essential.
Owner Motivation
An expired listing occurs when a property fails to sell within the allotted period. While these listings may seem like a failure, they can provide an opportunity for real estate professionals who are willing to invest time and effort into reviving them.
As with all leads, expired listing leads need to be nurtured through consistent marketing efforts. The best way to do this is through drip marketing, which regularly sends automated emails to your contacts. The key is to include valuable content in each email, such as market updates, neighborhood reports, seasonal greetings, and even case studies of sold properties.
Another great way to nurture your expired listing leads is through text messaging marketing. Just be sure you have each homeowner’s permission to send them messages and use a CRM to automate your follow-ups. This can help you avoid legal complications and keep your contact information off blacklists and online complaint directories.
Conclusion
Expired listings provide a unique chance for real estate agents to display their expertise while assisting homeowners in meeting their selling goals. However, the success of reviving an expired listing will vary by region, so it’s essential to understand your area’s local trends and market conditions. With the right approach and local knowledge, real estate agents can maximize the potential of expired listings and build a successful real estate business.
