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Winning Expired Listings

By
Services for Real Estate Pros with Arch Telecom

 

Expired properties may be one of the most competitive types of listings you can target.  They are easily identified; typically your MLS will send you a notification when a property expires, or allow you to perform a targeted query.  The challenges presented by expireds are many.

 

You have to:

  • Find the missing data, such as the owner’s phone number that has been removed from the MLS or by the previous listing agent
  • Understand and appreciate the seller’s mindset
  • Present a succinct and comprehensive marketing plan on why you are different than the previous agent

 

Find Missing Data

There are a number of ways to accomplish this.  You could use an online cross-reference directory.  If you only target expireds from time to time, this may be an attractive method because it’s free, but you can only do small batch queries.  Our company,ArchAgent, offers a missing data service that will automatically find missing phone numbers and reference the Do Not Call registry for you.  Alternatively, you can always knock on the door if you really desire that listing.

 

The Seller’s Mindset

In most cases, the seller expected to sell their home in a few weeks and six months later their home is still on the market.  The seller is frustrated and not of the mindset to accept a competitive agent’s claims of why they could sell their home… unless it is substantiated.  The primary challenge you will have to overcome is the distrust of the seller.  

 

Typically listings expire for one reason: it was over-priced.  The previous listing agent was unsuccessful in negotiating a price reduction.  However, you will not earn the trust of the seller by stating that fact.  You must appreciate their mindset; their previous agent most likely told them they could sell their home at that price, and now that it hasn’t happened they feel deceived.  You could show comparables to the seller that would substantiate that the reason their listing did not sell was price, but winning expired listings isn’t about evidence - it’s about presentation.

 

Be Succinct and Unique

When you have the attention of the Expired, you need to be prepared and be able to present your marketing plan quickly and in a manner that focuses on making you different.  At RainCamp they referred to this as the “Purple Cow.”  While the seller has already expressed the desire to list with a full service real estate agent, you still need to re-establish their motivation.  Ask them why they think their home did not sell.  Although you probably already know why, you need to listen closely to the reasons the owner believes their home did not sell.

 

What the seller says are not objections, but your opportunities to demonstrate your unique selling propositions (USP) and howthese propositions will be used to overcome the reasons your seller believes their home did not sell.  The USPs should be presented in an organized and specific marketing plan and stress whatever is new to the seller that separates you from your competition.  Some ideas would be:

  • Extreme organization with a detailed deployment of your marketing calendar
  • Advanced technologies to increase exposure:
    • Mobile Marketing to Smart Phones
    • Address-Specific Internet Site
    • Call Capture
    • Immediate Contact Of Leads

 Show your marketing calendar and demonstrate your advanced technologies; showing always wins over telling.  It makes a difference, certainly over the agent that tells the seller the same things they had heard from their previous agent.

 

Show All Comments Sort:
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Sonsie's approach is interesting.  Your blog post is spot on! 

Apr 23, 2010 01:11 AM
Arch Telecom
Arch Telecom - Austin, TX

Sonsie: to address your question of "how do you have that conversation?" I would offer this strategy from one of our clients. 

If the expired is unwilling to lower their asking price when taking the listing, he:

1. determines if he feels this listing will benefit him by generating quality buyers. 

2. If so, he negotiates a predetermined date for a price reduction by saying: "Mr. Seller, I will list your home at this price under this condition: if we do not have an offer in 30 days you agree to reduce your price to this "X". 

3. He qualifies the reduction and reduces resistance by saying: "Now I understand for you to agree to a price reduction that I must first demonstrate to you my marketing works, and to do this I will show you a list of buyers that I have generated from marketing your home and I will detail the result of each prospective buyer to you.  But if we have no offers, than we must listen to the market and reduce the price, because ultimately it is not you or I who determines the price, but the buying public". 

4. If he still gets resistance, then he will say, "Mr. Seller, if we are unwilling to lower the price after thirty days, then our other choice is to increase the value by either putting on a new roof, carpet, etc." 

Even if they choose to "increase the value" option; he says they always choose to lower the price when it comes time to make the decision; but he always puts the price reduction in the contract so he doesn't have to renegotiate it.

We hope that helps.

Apr 23, 2010 02:21 AM
Arch Telecom
Arch Telecom - Austin, TX

Terry: Since 1994 Arch Telecom has been building applications to help real estate agents grow their business.  Our services our focused on lead generation and lead conversion.  We offer a data append service that finds the missing phone numbers, owner names and scrubs the "do not call" list for any dataset i.e. MLS expired's, to make it more time efficient for agents to call expireds. 

Our blog posts are based upon our clients best use models; we didn't invent them, we post them with permission.  Because we've worked with so many agents, we believe it to be a benefit to share the knowledge with AR.

I would greatly appreicate to see your Expired program.  We don't sell marketing programs, just applications, i.e. call capture, fsbo data, expired data append, live operator qualifying, mobile marketing, address specific websites; smart phone apps.

I would appreciate the opportunity to talk with you, my name is Steve Cortez (800) 882-9155 ext: 112.

Steve Cortez

 

 

Apr 23, 2010 02:29 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Good points. I especially like the Advanced Technologies section.

Apr 23, 2010 02:53 AM
Mark McHugh
Clearmark Real Estate llc - Warwick, RI
Realtor Rhode Island 401-641-3842

Great stuff here. There used to be FSBO's, rartely anymore. Nowe the expired's are the way to go.

Apr 23, 2010 04:52 AM
Susan Hamblen
Exit Realty Achieve - Smithtown, NY
Making the world a happier place...one client, one

Thanks for sharing. Certainly showing a client something is better than merely telling them.

Apr 23, 2010 04:58 AM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

Most of my area is behind on technology.  I use this to my advantage all the time to try to get listing and/or work expired.

Apr 23, 2010 05:31 AM
Sonsie Conroy
I serve buyers and sellers everywhere in San Luis Obispo County - San Luis Obispo, CA
Energetic, Enthusiastic, Knowledgeable Realtor

Steve, thanks for the tips. I can adapt them for when I need to have "the conversation."

Apr 23, 2010 05:40 AM
Brian Kuhns
Coldwell Banker Roth Wehrly Graber - Fort Wayne, IN
Fort Wayne Real Estate by Brian Kuhns

Great advice although the problem I've found in my area is even if people don't like who they're currently working with they most times aren't willing to switch to another unknown Realtor...at least with the underperforming Realtor they know what they're getting

Apr 23, 2010 06:16 AM
Stephanie Arnett
Mississippi Magnolia - Starkville, MS
Forbes | Inman | BossBabe | Newsweek

Thanks for sharing!

Apr 23, 2010 07:06 AM
Stephen P. Panczak, Ph.D.
Keller Williams Coastal Partners - Palm Beach, FL
Real Estate Agent & Business Coach, (561) 254-8098

There are numerous approaches to working expired listings as everyone has stated. A winning initial inroduction followed by a strong, results-oriented marketing plan needs to be presented.

 

Apr 23, 2010 10:38 PM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Great info here !  We find in our marketplace that as soon as an expired hits, that seller will be inundated with letters.  We send a letter along with some info about us but know that the seller will also get 20 more letters as well.  So with that approach there is a 5 percent chance... is a numbers game !  We have had success in the past but not as much this year.

Apr 24, 2010 12:40 AM
Susan Jackson
America's Network Realty Group, Inc - Sandy Springs, GA

Thanks for the great information

Apr 24, 2010 01:29 AM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Great points to consider.  What does your system cost?

Apr 25, 2010 02:57 PM
Arch Telecom
Arch Telecom - Austin, TX

Damon:

We offer a suite of services for real estate agents; pricing can be viewed at www.archagent.com. 

We do have a bundle special that enables you to send us any data (such as MLS expireds or old client data) and we find the missing phone number, name and query the do not call list.  The service also sends you a daily list of homes advertised "by owner"; you get both services for $30 per month.

 

Thanks,

Steve Cortez

800-882-9155

Apr 26, 2010 08:19 AM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Hi:

I have used professional companies that shall remain nameless, both start with an R. I was disappointed in the information that they supplies. I had numbers that were no longer in service, or the party had relisted etc. When I mention that this to companies they said that their service was limited.

I have heard about a service called Mojo--which is an autodialer --that can dial 250 calls per hour. Unbelievable.

Sep 24, 2010 01:34 PM
Greg Barnhouse
Frisco, TX

@Steve,

I am getting daily FSBO/Expireds on a temporary basis. One question I have is: "why are many of the phone numbers incomplete?" Here in the Dallas-Fort Worth Metroplex, we need all ten numbers to dial a local number. Many of the phone numbers provided by Arch are the first 7 numbers and therefore not useful. Any help here would be appreciated.

 

Feb 08, 2011 06:08 AM
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Arch,

This sounds like a useful post.

You tell what we should do, but not exactly HOW we should do it.

Perhaps there are more posts coming...

Phil

Dec 27, 2011 04:42 PM
Rachell Lara Realtor
Real Brokerage/ 619.316.7445 - San Diego, CA
San Diego Real Estate Guide

Great information for my research of reaching out to expired listings.

Oct 03, 2012 10:58 PM
Pamela Mason
Fayetteville, GA

Good information.  Im currently looking at Archagent closely.  I will say they seem affordable but the true test is in the legitimacy of the leads they generate.  At $30 a month for the leads, it may be worth a try.  Ill post again with results!

Nov 21, 2014 02:44 AM