Handling expired listing leads is a powerful strategy for real estate agents looking to find new clients. These homeowners are already willing to sell, but their previous attempts have failed and become the main targets of new, effective agents.
However, expiring listings are more than just opportunities for new agents. It is also a key moment for the original agent to pivot the strategy and save the client’s relationship. This article covers important techniques and conversion tips for acquiring new clients and keeping clients you already have.
Expired List Lead: How to convert set folds to sales
From an agent’s perspective, an expired list is not a failure. It’s an opportunity to turn a challenging situation into success. Expired listing means that the contract with the seller has ended without sale, and the home is currently out of the market.
Instead of viewing this as a dead end, think of it as a chance to hit the reset button. “Sales Fail” provides valuable data.
Diagnose problems and create new strategies
To turn this into a victory, you first need to diagnose what went wrong.
Analyze the market: Was the real estate too expensive? Pulling recent comparable sales (COMP) over the last 180 days to understand what’s really on sale in the market. This data forms the basis for a new pricing strategy. Get honest feedback: Don’t be afraid to ask for help. Have other agents tour the house for you and provide honest feedback. The question can be anything from the quality of your MLS photo to staging your house. Follow up with buyers who have visited the house before and ask for honest opinions. In addition to marketing, consider adding a home to your MLS tour or working with other brokerage companies to host a progressive open house. Don’t forget to incorporate “old-fashioned” strategies, such as going door-to-door, or talking to neighbors where friends and family often want to move into the area. Use social media and email campaigns to reach more audiences. Discuss your rates: Since the house didn’t sell, there may be some leverage to negotiate a new rate with the seller. This can be a strong incentive for them to re-sign you.
Expired List: Winning Strategy for New Clients
According to Redfin, the current US housing market is a market for buyers, with nearly half a million sellers significantly disproportionately over buyers. This shift means that homes are spending more days in the market. This can be frustrating for sellers, but it’s a great opportunity for new agents.
“The balance of power in the US housing market has shifted to buyers, but many sellers have not yet seen or accepted the text written on the wall,” said Asad Khan, senior economist at Redfin. “Many people want their homes to be the exception and earn the highest dollar. But when sellers notice that their homes have been sitting in the market for a long time and fewer buyers coming on tours, they will notice that the market is adjusting their expectations and resetting accordingly.”
This long time in the market means that the number of expired lists is increasing. For sellers, it is an important time to reevaluate their strategy. It’s a great opportunity for agents to find new clients and demonstrate their expertise.
How to find an expired list as an agent
Finding an expired list is the first step in building a strong pipeline of new clients. This is the most effective method:
MLS and Public Records: Local Multilisting Services (MLS) is the most reliable source of expired listings. You can search for properties that have expired in the past few weeks and add them to your Customer Relationship Management (CRM) system for follow-up. Public records allow you to find lists that may not have been in MLS. This method is essentially free and requires only time and MLS access. Lead Generation Platform: If you want to save time, consider purchasing expired list leads from a dedicated platform. These services, like Redx, do the hard work for you by compiling MLS and publicly recorded data into one easy-to-use list. These platforms can provide contact information, tax details, and other important list details, allowing you to focus on outreach instead of manual data collection. Networking with other agents: Don’t underestimate the power of a professional network. Reach out to other agents who are open to swap out expired listings. You can connect by joining referral groups and local real estate groups on platforms such as email, social media, or Meetup. This is a great way to win new clients and earn referral fees.
Create a targeted prospect list
Take your time to create a target list of expired lists before you start reaching out. It’s easy to be overwhelmed, so choose it. Focus on your niche: Do you specialize in detached houses and condominiums? Which zip code was successful? At what price range do you thrive?
Focusing allows you to create manageable lists that match your expertise. If you have a history of success in a particular neighborhood, mention it on the pitch. You can also ask past clients in the field to refer you, or provide passionate testimony.
Start with the old expired list
When searching for expired listings on MLS, it is best to start the longest from the out-of-market. These sellers may have time to cool down and be more open to new conversations.
To find these lists, go to the MLS system and filter the search by “Expired” status. You can specify a date range or narrow your search by location, such as the last 30-60 days. Once you have created the list, beware of the previous agent.
Reaching out to them directly and asking them what challenges they face can be a great strategy. This allows you to quickly identify properties with unrealistic pricing expectations and other issues, narrow down your list and focus on sellers.
Questions and Listen: Scripts for Success
When you first contact with an expired list, your main goal is to listen, not sell. The seller may be irritated and wary of another agent’s pitch. Listening will help you gather the information you need to build trust and create a winning strategy.
This is the script that can be adapted to your first phone.
You: “Hello [Seller’s Name]my name is [Your Name] And I’m a real estate agent [Your Brokerage]. I’ve noticed your house [Property Address] Although I’ve been out of the market recently, I’m not urging you to give me a sales pitch. If you wait a moment, I just wanted to ask you a simple question. ”
Seller: “What?”
You: “I was just curious – when you and your last agent worked to sell your home, do you think it was the biggest challenge you faced? What do you think it was the reason why you didn’t sell?”
Then simply stop talking and listen. Let them blow away their frustration. Do not interrupt or provide a solution. The more they talk, the more you understand their situation and adjust your approach. Once they’re done, you can set up a follow-up conversation where you can thank their time and present a plan to fix the issues they have told you.
Please educate me, don’t push
When you are ready to do your research and present your plan, remember that your role is to educate the seller rather than put pressure on them. Sellers with expired lists are likely to be frustrated, and forceful sales pitches only add to stress.
Have a data-driven plan in place. You can learn about the current market both inside and outside the market, including the latest sales and roe. Considering the outside of the box, we propose unique strategies that go beyond what previous agents did. Emphasise certain successes in your neighborhood or in similar properties.
Lay out your plans clearly, explain how it will resolve the problems they face, and then have them make a decision. Simply state what you can do for them and then follow up with respect through text, phone or email. The goal is to show you that you are the solution to their problems, not another source of stress.
Conclusion: Turn an expired list into a lead
Ultimately, long-term listings can be frustrating for everyone involved, but it is also a powerful opportunity.
For sellers, this is their chance to press the reset button. You can get a fresh perspective on why your home didn’t sell and find new agents with more effective strategies. For buyers, it is a unique opportunity to negotiate a lot in a dream home with motivated sellers and fewer competition. For agents, it’s a moment of pivot. Whether you’re looking to acquire new clients or keep existing clients, an expired listing is your chance to showcase your expertise and successfully sell your setback.
Frequently asked questions for agents to consider:
When setting up real estate pricing, what do you mean to real estate professionals about expired listings?
The expired list tells real estate professionals that the previous price of the property is likely too high for the market. They show the price range the market has rejected. This is important data for setting new, competitive prices that attract buyers.
Why is an expired real estate listing important?
An expired real estate listing is important as it is an important opportunity for real estate professionals and an important moment for sellers.
For agents, an expired list is a valuable lead source. Homeowners with expired listings have already decided to sell, but previous attempts have failed. This makes them a major target for a highly ambitious and effective agent. By focusing on expired listings, agents bypass the early stages of persuading homeowners to sell, instead focusing on delivering excellent services that lead to successful transactions.
