Prospecting for Expired Listings

How’s Business? Your volume of listings typically shows how busy you were 90 days ago… How busy would you like to be 90 days from now? "The best way to predict the future is to create it." Peter Drucker

Your opinion? How do you feel about prospecting?

Fact or Myth? Sellers with expired listings are unwilling to cooperate with their listing agent. Either or both Evaluating why the home did not sell will help determine the level of cooperation you can expect from the seller.

How do you determine this? To determine the level of cooperation, you need to determine things such as: Did the previous agent do his/her job well, but failed to communicate to the expectations of the seller? Were the marketing efforts insufficient to sell the home quickly? Is the home priced fairly? If not, did the previous agent suggest dropping the price? If so, did the sellers refuse? Does the home show poorly? What other questions need to be answered?

Fact or Myth? “Prospecting expired listings is a waste of time.” Myth: Generally this is a good pool of sellers to prospect Sellers are psychologically prepared to sell You should be able to determine what not to do However, they typically require unique attention because of their past (perceived) failure

Fact or Myth? “These sellers are impossible to work with.” Myth (most of the time) Determine why the home did not sell Determine the flexibility and level of cooperation Be sensitive to their situation. Some may have an offer on another property - some may have lost out on an offer to purchase another property.

Why are they expired? Possible reasons why the sellers did not re-sign with their representative: Seller did not believe the listing agent was trying hard enough Seller refuses to lower the price of the home Seller really does not want to move and may sabotage any offers that come in Other?

Fact or Myth? “These homes are impossible to sell.” Myth: Impossible? No! Do some expired listings come with baggage? Perhaps! What are some of your “baggage” stories?

Reasons for delayed sale What are some of the common reasons for a home not selling? Price Appearance Marketing Other?

Do you really want to list this property? What questions would you ask a seller to determine if this is a home you would want to list? What did you like/dislike with your previous listing agent? Would you be open to hearing how inexpensively upgrading the home will help sell the home quicker and at a fair value?

Do you really want to list this property? What questions would you ask a seller to determine if this is a home you would want to list? Would you consider lowering the price to a fair market value determined by a comprehensive CMA? If no?

Fact or Myth? “Expired listings are easy to find.” Fact – These can be pulled from the MLS. Tip: Schedule an “appointment” for yourself to prepare for contacting expireds.

Legal and Ethical Guidelines Article 16 of NAR’s Code of Ethics REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients. (Amended 1/04) In simple terms: Wait for the expireds to expire before contacting them.

When should they be contacted? Prepare yourself the day before the listings expire Contact the sellers early on the day of expiration Follow-up Demonstrate to the seller that you are politely aggressive and this attribute is what they want in someone listing their home.

Legal and Ethical Guidelines Federal Do Not Call Rules prohibits solicitations to consumers who are listed in the do-not-call registry. Check the registry at https://telemarketing.donotcall.gov before contacting them. Fees apply.

Legal and Ethical Guidelines Federal Do Not Call Rules apply to everyone EXCEPT: People with a prior business relationship (18 months) Includes in-house listings Consumers who contact you (3 months) Consumers giving you written permission to contact them

Profile of an Expired The homeowner in all likelihood encountered some bad experiences with other real estate professionals. The homeowner had unrealistic expectations in regards to price or time on the market. There is resistance from the owner or family member to sell. Other? Discuss these bullets. For bullet number 2, The homeowner had unrealistic expectations, remind the group of the importance of setting realistic, reachable expectations. It is better to under promise and over perform.

Overcoming the hurdles Address the probable reasons for the home not selling with sensitivity to the seller’s past experience. Bad experience with the previous listing agent Embarrassed that the home did not sell (neighbors, friends, family members saw a sign in the front yard for months) Unrealistic belief of the value of the home or the expected time on the market Inability to accept the importance of making the home ready for showings Other?

Prospecting for Expired Listings Thank you for attending!