With inventory levels at historic lows, even agents who usually avoid FSBO’s and expired listings are reaching out to these sellers. Unlike most of the population, they’ve indicated that they want to sell, making them prime listing candidates.
If you’re one of those agents, do be careful with your criticisms.
Owners of expired listings naturally want to know what went wrong.
But of course, you won’t know what did go wrong until you’ve spoken with them and/or done some research. So when prospecting to them, outline the steps to a successful sale and the things that can go wrong along the way. Then let THEM form their own conclusions.
If the agent’s behavior or their lack of marketing was the cause of an expired 
listing, they'll see it. If their own behavior was the cause, they should see that as well, once you've shown them the correct way to go about selling a home.
Offer to sit down with them and go over what could have gone wrong and what did go wrong as they see it. The last thing you want to do is tell the homeowner that it’s all their fault for choosing an inferior agent! They’re already thinking that and probably blaming themselves for their poor choice. So speak with care. Don’t rub salt in the wound.
If you’re prospecting to these homeowners by mail or email, do give them an overview, but then send multiple messages with more detailed information about the right way to do things.
You don’t have to write all those expired listing letters yourself…
Instead, visit my Expired Listing Letters Page to order your own set of ten letters, plus a special report and a sellers checklist. If you like, before you order, you can click the link on that page to read a sample.
If the homeowners seem genuinely interested in listing with you, present them with a market analysis without ever mentioning the price that didn't work. Instead, show them why you recommend the price you've stated.
And then – unless you’re leaving their home with a signed listing in hand – do remember to take the market analysis away with you. You don’t want it shown to other agents who may also be interviewing for that listing.
As for prospecting to those who are trying to sell by owner…
When talking with a FSBO seller you might be tempted to point out just how foolish they're being. You might also be tempted to tell them their price is way out of line.
And you know what? If you do, all you're going to do is anger and alienate them. Even if they decide to sign a listing, it probably won't be with you.
What should you do instead? Give them facts.
Give them information about things they must know and things they must do.
For instance: Give them warnings about not opening the door to anyone who hasn't made an appointment. Give them other warnings about being careful how they answer a buyer's questions, because when the buyer knows their motivation, their negotiating power is lost.
Don’t be too helpful, however. Don’t offer a market analysis until/unless they indicate that they're ready to list. And, as with the expired listings, don’t leave it behind unless that listing has been signed.
As you know, there are many things they should be considering. And that’s why my original set of ten FSBO Prospecting Letters has grown from 10 letters to 12 letters, plus a “hot market” version of two of those letters, plus special reports.
Why so many? Because the information in each letter builds upon the information in the previous letter – and each letter drives home the fact that selling FSBO safely and successfully is a LOT of work. Also – there are plenty of letters because it takes some people quite a while to change their minds about selling without an agent. You want to be top of mind with them on the day they make that decision.
You can see a screenshot of the letter titles and click to view a sample letter when you visit my FSBO Letters page at https://www.copybymarte.com/for-sale-by-owner-prospecting-letters/.
One more thing…
Even if the listing you’re after is not an expired listing or a FSBO, do temper your criticism.
I recall a friend telling me about selling her house on Mercer Island. The first agent came in and told her everything that was wrong with the house. The second agent told her everything that was right with the house.
Guess which one got the listing and sold the house.
The bottom line: Be careful what you say – either in person or in a prospecting letter.
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