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Working expired listings. It's a tuff job but someone has to do it!!

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

 

Hi folks. Earlier today I was preparing my listing presentation for an appointment tomorrow morning. It reminded me of why I LOVE working expired listing.

First, if you solicit expired listings everyday you will get appointments. In fact, you'll get a bunch of them. And that's a good thing as I get to spend a lot of time researching the MLS and practicing my presentation.

And secondly, expired listings are challenging. The reason the listing has expired is almost always pricing. I don't care how good the REALTOR® was if they didn't price the property properly...it will expire. Then I get to step in.

Getting Sellers to price properly can be a big challenge. Fortunately, it's the part of my job I enjoy the must. It's a real good feeling when you can get the Seller to "see the light".

Surprisingly it's not as difficult as you would think. More times than not the Sellers are ready to listen to reason by the time I get there. After all, I'm always the second REALTOR® and sometimes the third or fourth. So they have already experienced a period of no showings.

By the time I get there they are usually a little more anxious to get their property sold and move on with their life.

The Seller, I am meeting with tomorrow morning, has already had their property on the market for 8 months. There have been no showings.

My challenge is that the property is currently listed at $182,500 and my analysis tells me it needs to be at $125,000!!! And that assumes it's in excellent condition.

So, my goal tomorrow, is to get a 30% price reduction. That's a pretty substantial reduction but is certainly achievable. They have enough equity to price right I just have to present the cold hard facts and get them to agree. It should be fun.

The sad part is that if they would have priced at around $150,000 or so, when they first placed it on the market, it would probably have already sold. By overpricing they have already cost themselves about $30,000, or 20%.

That's the reality, that as a professional, I have to get them to understand. It's a tuff job but it's why people pay me.

So folks, if you need experience with listing presentations and pricing, my advice is to start working the expired listings market. You may not be able to list them all but you will certainly get a great education. So go for it! I know I will.

I'll come back tomorrow and let you know how I did. Think I can do it? I do.

Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Agent

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Comments(39)

Kristin Small
RE/MAX Southern Shores - Myrtle Beach, SC
REALTOR -GRI, Myrtle Beach Real Estate
BB,
We are about ready to implement your letter into our business.  We had some last minute changes to make to our new marketing materials.  We'll keep you posted!  Thanks again!
Feb 04, 2008 12:11 PM
Marc Grossman
Marc It Sold! - Longwood, FL
GRI, Greater Orlando Real Estate Broker
BB,  Love expireds as well.  But Lenn is right, you're in one of the best areas to purchase for price and value.
Feb 04, 2008 12:11 PM
Dave Cheatham
INC Financial - Bartlett, IL
Thios is great information.  thanks for sharing this with us.  I know your right on.
Feb 04, 2008 01:22 PM
Gary Bolen
McCall Realty - South Lake Tahoe, CA
CRS - Lake Tahoe Real Estate Information

We think you can do. At first it's hard for one to hear that overprice actually costs more in the long run that pricing right in the first place. That's the heart and soul of our upcoming seminar. We even ask other agents to bring their clients to listen. Good pricing across the board helps all of us and the market as a whole.

The icicles are still there, and growing. Did you see the piece Jeff did about points? And we're just about to post the series that was inspired by your post about now being a good time to buy.

cheers 

Feb 04, 2008 01:37 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Pretty sound advice, BB, based on experience and the realities of the market. I know you will come back with a signed listing agreement.

Jeff 

Feb 04, 2008 02:56 PM
Fran Gatti
RE/MAX Integrity - Medford, OR
Managing Principal Broker - RE/MAX Integrity

Bryant,

I started working the expireds on your advice and used a lot of the components in your expired letter.  I have not had a listing apt. yet, but I am confident I will.

Fran

Feb 04, 2008 03:04 PM
Katrina Madewell
Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196 - Tampa, FL
Tampa FL Homes for sale | Tampa Bay - (813) 777-1196
Crazy Real Estate agents trying to 'chase the market'.    My favorite saying on Expireds is this:   If you didn't get your home sold in 1st 6 months, chances are the 2nd 6 months won't be any different, with the same agent!   (especially in THIS market!!)
Feb 04, 2008 03:44 PM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645

I got a call yesterday from a potential client who had their home listed with an agent who did little or no marketing.  The listing expired and the agent had not called them for a few months.  They only realized the listing was expired when the calls started coming in from other agents.

They have had no word from the other agent.  The agent never even came back for their sign.  Of course pricing was an issue.  Let's see how good my skills are when I see them later this week.  The bad thing for them is they have been riding the price down.  They are in an area that has had declining values, not as bad as what you described, but enough to make them feel it and it drained most or all of their meager equity.

Feb 04, 2008 08:56 PM
Dan Forbes
Bradenton, FL
BB,  Good luck with the listing appointment.  You can do it!  I do hope they are open to the truth.
Feb 04, 2008 09:46 PM
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

Broker Bryant- Poinciana is indeed a unique market. One which you clearly dominate...explains why I work in St. Cloud  LOL   But the truth is... it presents a terrific opportunity for our neighbors to the north to capitalize on the reduced prices for winter homes at reasonable prices.     

Feb 04, 2008 09:47 PM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

BB,

I started sending them out again last week...I have a list of even more to get out...sometimes you hope the addresses are still good...our MLS doesn't always have the right information and I have seen some expired that weren't updated correctly. I always believe its good to be the third Realtor(R) instead of the first...they sellers might finally realize the truth.

Feb 04, 2008 10:25 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
Keep hammering away at this, you and Katerina may get me yet!
Feb 04, 2008 11:10 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital
Bryant, there is nothing less fun that chasing a downward market.  Maybe gum surgery.
Feb 05, 2008 07:14 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Well hello everyone. I did meet with these folks this morning and it went very well. They are currently listed with another REALTOR(R) until the end of the month but once that expires I will be their new broker. They completely understood the true value of their property once I went over every thing with them. It turns out it is actually just their winter home so we may not place it on the market until they go back to PA at the end of April.

They were very nice folks and we hit it off instantly. They were thrilled to hear the truth about the market. As usual they already knew they are currently overpriced. They own the property free and clear so pricing it to sell will not be a problem.

They want to sell it because they want to spend the winters traveling in their motor home and have no mare need for the property. They live on a 150 acre farm in PA that has been in their family for 5 generations!!!!! Very interesting folks. I truly enjoyed hearing about the 16 grand kids and 17 great grand kids!!

Their farm is for growing hay. This couple, who are in their 70s, and 2 of their children do all the work themselves.  This 70 year old lady has been driving the hay baler her entire life and still does. What a great life they have. I'm sooooooo jealous!!!

We did talk about real estate a little:) Their life was way too interesting for me to spend much time on real estate. They trust me so I'll just take care of those details myself.

Feb 05, 2008 09:40 AM
Scott Cowan
RE/MAX Professionals - Olympia, WA

BB- Thanks for posting about expireds! I think that there are many of us here who benefit from your wisdom on the topic. I have created a group here on Active Rain "Expired Listings for Fun and Profit" If you would consider posting your blog posts on expired in our group as well I am would be very grateful. The group can be found here

By no means do I know much of anything regarding expireds. I just saw that there is great interest in the topic and I could not find another group on the subject. Hopefully we will get a good turn out and everyone can learn from one another.

Best wishes,

Scott   

Feb 05, 2008 09:46 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
Those figures are very sadly amazing.  It has to be hard to give the bad news, but you're right.  It's not kind to tell them otherwise.
Feb 05, 2008 04:22 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I just took an expired listing yesterday and you are right, they were ready to stop the bleeding and listen to reason, because of this, they lowered the price on the home by $90,000!

Feb 05, 2008 04:40 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
Bryant- Well, you already know that We LOVE expireds! We take pride in being the 2nd or 3rd agent, :) Our market is SO ripe with expireds, like fruit on a tree, we get to choose the ones we want to go for. Nestor only chooses the ones that are in great condition and that he thinks will sell based on his research, the area, etc. We have 62 listings now and 42 of them are from expireds. Katerina
Feb 05, 2008 06:00 PM
Gary Bolen
McCall Realty - South Lake Tahoe, CA
CRS - Lake Tahoe Real Estate Information

Went just like we thought it would. Excellent work, as usual.

Did you talk to them about Bertha? 

best 

Feb 06, 2008 05:10 AM
Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate
I heard a good quote the other day -- It's good to be the first love, the second wife and the third Realtor. Makes sense to me!
Feb 07, 2008 09:31 AM