There are many market segments in real estate, each offering unique opportunities for growth and success. Among these, expired listings stand out as a goldmine for the real estate professionals who include them in their prospecting plans.
The reasons listings expire vary widely, from pricing issues to inadequate marketing or even the wrong timing. This article aims to explore the potential within these listings and provide you with the insights and techniques necessary to excel in prospecting expired listings.
Understanding the Value of Expired Listings
From a prospecting standpoint, expired listings are low-hanging fruits because they are owned by sellers who have already shown a desire to sell but who, for various reasons, have not yet succeeded. The ending of their listing period often leaves sellers disappointed and searching for new strategies from professionals who can help them achieve their goals –or a perfect time for you to step in.
Because they’ve already experienced failure, these sellers may be more motivated and prone to follow the advice of a Realtor™ with a plan and a track record. In other words, sellers who have not successfully sold their property provide you with an opportunity to add value and showcase your expertise.
Challenges and Misconceptions
Prospecting expired listings has its challenges. Sellers might be skeptical or frustrated due to their previous experience, leading to misconceptions about the real estate process or the value agents can bring. Overcoming these perceptions requires patience, skill, and a strategic approach to communication and service.
Strategies for Successful Expired Listings Prospecting
Identifying Motivated Sellers
The beauty of pursuing expired listings is that they are easy to identify. If you use your MLS, it’s simply a matter of setting up searches and alerts. To streamline your process, I recommend you invest in a dedicated tool such as RedX or Vulcan. Those data sources provide daily expired listing owner contact information, enabling you to identify and target your outreach effectively, allowing for targeted searches, and keeping track of potential leads.
Do not limit your expired listings prospecting to those listings that expired recently. I often recommend agents look back as far as 12 months to identify expired listings throughout the period. Then, cross-check with MLS sales or the tax assessor’s property records to verify the property has still not been sold or ownership transferred. If it has not, follow your expired listing process to pursue the listings.
Moreover, capitalizing on seasonal trends can significantly impact expired listing prospecting. Certain times of the year may see higher volumes of expired listings, presenting ripe opportunities for outreach. Creating a watchlist for these listings and implementing callback strategies and schedules will ensure that you remain top of mind for sellers when they decide to re-list.
Goal-oriented Prospecting
Using the right questions to assess the seller’s motivation during initial contacts—such as their urgency to sell or willingness to adjust the price—will guide your approach to engaging with them.
Before your daily calls to expired listing owners, research the property’s history and characteristics and the owner’s length and purpose of ownership. For example, it makes a big difference to know the owner bought the property distressed a couple of years prior and fixed it up to re-sell as a flipper versus knowing the owners have lived in the home for 30 years and are moving because one of them can no longer climb the stairs. Also, review the prior agent’s marketing: photos, videos, and other advertising to understand why the property didn’t sell.
This research is crucial to enable you to develop clear objectives for each interaction and potential solutions to solve the owner’s problem. A word of caution: never provide full-fledged solutions without meeting the owner and viewing the property. The research is for your preparation –not to be given away for free. So, whether the goal is to secure an appointment to discuss their selling strategy or to provide valuable market insights, such as evidence of a market shift, having a focused approach ensures that each contact moves you closer to a transaction.
Building Rapport and Trust
From their perspective, owners of expired listings have been disappointed by their last listing agent -even though the property not selling may have partially been their fault. It is your job to build trust on what is undoubtedly shaky ground.
Establishing yourself as a credible and reliable professional is essential in winning the trust of sellers. As always, demonstrate your expertise through market insights and tailored advice to build credibility. Go deep on how the market has changed since the property was last listed.
Be consistent in your communications and do what you say you will do to build trust further. If you said you would call again on Sunday at 10:00 am, be sure to do so. Nothing erodes trust like not doing what you said you would.
Be punctual – not only is it polite, but it speaks loudly of reliability, dependability, and respect for the seller.
Use effective communication techniques, such as active listening and empathetic responses, to further develop the relationship, gaining the seller’s trust one bit at a time and rendering them more open to your suggestions.
Use testimonials from satisfied sellers. Third-party endorsements are easier to believe than your horn-tooting.
Overcoming Objections
Handling objections and rejections with grace and professionalism is part of a professional’s skill set. Common objections from expired listing sellers can range from disillusionment with real estate agents to concerns over pricing strategies. Addressing these objections head-on, with data-backed responses and a clear demonstration of how you can offer a different outcome, can turn these challenges into opportunities for engagement. If you’ve worked with me, you know I recommend practicing objection handling scripts for expired sellers and all sellers.
Conclusion
Prospecting of expired listings is the second-best return investment on your time and energy after prospecting in your sphere. It is a mistake to overlook that activity unless your net is so full of prospects you do not need any more. If so, my hat goes off to you for doing a fabulous job. However, in 40 years of real estate sales, I have rarely met an agent who could not use another listing.
Implementing the strategies discussed here will increase your transaction volume and enhance your reputation as a skilled and reliable Realtor®. The potential for growth and success through effective expired listings prospecting is significant —embrace these strategies and watch your business grow.
