Typically (but not always) Expired Listings expire due to the market rejecting the list price.
When inviting the owner(s) of an Expired Listing to use your services as their Listing Broker, once you have ruled out any other reason (except price) the Expired Listing did not sell the last time around, it's time to determine how serious they are about Selling their home. Period.
Question for the Owner(s):
How did you determine the previous list price?
Typical answers:
Our agent suggested it
I/We decided that was the right price
It reflects how much we paid for it
It reflects how much we have put into it
It reflects what we need to get in order to move to where we want to move to
Question for the Owner(s):
Here is what the current market analysis indicates it will sell for. Are you willing to list it at that price?
If yes - terrific!
If no:
Question for the Owner(s):
Are you willing to write in to the listing agreement that if the property does not sell within "x" amount of time, at the price your are insisting on, that the price will be adjusted (perhaps in several steps) until it reaches the price the current market analysis indicates it will sell for, and that once that price is reached, the "time clock" starts over (length of listing agreement), and that if you change your mind at any point during the listing agreement you will pay a cancellation fee of 1% of the list price as compensation for our time and out of pocket expenses?
No Way!!
Question for the Owner(s):
Please help me understand why you would want someone to agree to list your home, at a price that will be rejected by the market, at their expense, and for you to have to endure a similar experience to your previous attempt to sell...
Crickets.........
As a result of the discussion above, or something similar, one of two things should happen.
The owner(s) agree to price it appropriately for the market.
The owner(s) decide to list with another agent who tells them what they want to hear.
One example of Door #2 we encountered last August.
Original List Price of Expired Listing $840K.
List Price when it expired $740K.
"Must sell and close by beginning of December. Period."
Our market analysis $655K-$665K.
Back on the market with an agent "who knows our area and our price point"??!!
At $725K.
Then $700K.
Then $675K.
Then $665K.
Then under contract. In December. 
4 months wasted.
Close of Escrow date (so important) missed by 2 months.
Closed at..........drum roll.......$655K!!
The winner in all this?
The agent that "bought the listing".
Be very aware that owner(s) of Expired Listings will be very tempted to let the next agent "buy the listing" at a price they want, even if it bears no resemblance to market value...
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