Prospecting Real Estate Expired Listing Leads

INTRODUCTION

Expireds… low-hanging fruit.

As readers of this blog know, we are HUGE proponents of listings as the most profitable path to success for ambitious, goal-focused real estate agents. Remember the saying: buyers take time, but listings take skill. Of all the listing lead sources, new expired listings represent the most immediate revenue opportunity.

To that end, it’s important to remember three things as relates to homeowners with a newly expired listing:

• You can assume they are motivated because they’ve already decided to sell their home.
• They are likely not averse to working with a real estate agent.
• They have a property to sell without having an assigned agent.

Understand the Opportunity

Here are a few noteworthy statistics to keep in mind about Expireds:

• Keller Williams estimates that 15-20% of listings don’t sell.
• Over half of expireds re-list and sell with another agent.
• 90% of expireds are immediate, urgent business.
• 40% list within one month.
• 60% of expireds wait before signing with a new agent.
• Fewer than 3 in 10 expireds will re-list with their current agent.
• 35% will have their home off the market for a month or more.
• Nearly 4 in 10 will list with a new agent within 30 days.

Indeed, expired properties represent unique opportunities for real estate agents who are willing to do the prospecting work required to convert them from leads to listings.

We’ll get into strategies for prospecting Expireds below. But first, let’s take a look at the common reasons why listings expire.

HOW TO GET EXPIRED REAL ESTATE LISTINGS

Why real estate listings expire.

In a typical (i.e., balanced supply & demand market), roughly 20% of listings will expire (per Keller Williams above). There are myriad reasons for these listings to expire. Let’s review the most common ones.

• Pricing: The home was overpriced for the current market conditions and location.
• Homeowner: The seller might be uncooperative and difficult to work with. For example, they might not be flexible regarding showings.
• Marketing: Ineffective marketing by the previous agent may have resulted in poor awareness and fewer showings.
• Poor condition: If the home is in poor condition and requires a lot of work, buyers might be turned off (especially if the price is too high).
• Location, location, location: It may take longer to sell a home in an undesirable location, such as next to noisy highways or below-average schools.
• Poor curb appeal: In real estate, you rarely get a second chance to make a first impression. So, buyers may be turned off by poor landscaping, messy exterior, etc.
• Seller inflexibility: In addition to being uncooperative (see above point), the homeowner might be too rigid about the terms (price, closing dates, etc.).

More reasons for listings to expire.

In the previous section, we outlined the most common reasons for real estate listings to expire. But there are also broader economic factors that influence the real estate marketplace. Let’s look at a few:

• In a high-demand, low-inventory seller’s market, 5-10% of listings will likely expire because of over-pricing or extremely poor property condition. At the end of the day, everyone is looking for the best value possible.
• In a buyer’s market (high inventory, lower demand), the rate of expired listings can range from 30-50%. Buyers enjoy much more negotiating power and have more time to shop around for the best value, making it imperative that homes are priced to sell.
• Economic downturns, such as recessions, can dramatically impact the real estate market and drive up the rate of expired listings as consumers become hesitant to make significant financial commitments.

HOW TO GET EXPIRED LISTINGS

Proven strategies for success.

Prospecting expired listing leads requires a different approach than dealing with other prospects, especially FSBOs. To that end, the following are critical strategies to employ when figuring out how to work with expired listings:

• Focus on those critical, initial seconds to position yourself:
  • Let the homeowner know how you would do things differently (“While your home was on the market, here’s how I helped X homeowners sell their properties.”)
• Don’t lose touch with the unique opportunity of old expired listings. Many agents pass these listings up for newer properties.
• Call early and be persistent in your follow-up with expireds. Prove that you are dedicated to selling their property-they will appreciate that dedication.
• Expireds also appreciate it when you show them you remember their property. Start by providing specific  insights about their house and area
• Remember that time and price are the things they are most concerned about. As such, have your stats ready: examples of quick sales you’ve made, especially those above listing price.
• Be persistent about getting an in-person listing presentation. As we’ve said many times before, the magic starts when you are face-to-face with a prospect.
• Show the homeowner how you would be a partner and problem solver. Have examples of how you went above and beyond for other clients.
• You may run into situations where the homeowner previously listed with a friend and is possibly inclined to re-list for the same reason. Perhaps you can turn this to your favor: “I appreciate great friendships, but do you think you gave your friend the best chance to sell your home?”
• Be straightforward if the expired client asks if you’re willing to negotiate commission: “It depends on many factors, such as the condition of your home and the price we set. We can discuss that in more detail when we meet tomorrow.”
• Firmly and politely fight through the objections until you secure the listing presentation.
• Expireds are likely frustrated that they could not sell during their previous listing. This means, if you can help them achieve their goal, you are likely to get glowing references from that homeowner down the road. And who doesn’t want a glowing reference in this super-competitive industry?

HOW TO GET EXPIRED LISTINGS IN REAL ESTATE

Learn more by asking solid questions.

As an industry leader in providing expired listing leads for real estate, Espresso Agent understands that expireds play an essential role in the prospecting portfolio of all top-producing agents. Expired leads can be low-hanging fruit because these are the homeowners who are often motivated to sell their homes quickly. Our post PROSPECTING REAL ESTATE EXPIRED LISTING LEADS provides some excellent insights on how to work with homeowners who failed to sell with another agent.

However, these may also be homeowners who are frustrated or even angry because their homes did not sell. As such, your questions need to be focused on uncovering crucial information about their previous experience. Here are a few examples:

Open-Ended Questions.

• Can you share your experience during the previous listing period?\
• What aspects of the previous listing do you feel were successful, and where do you think there could be improvements?

Feedback Questions:

• Did you receive any specific feedback from potential buyers during the previous listing?
• Were there any common concerns or objections that prospective buyers raised?

Market Perception:

• How do you feel the market has changed since your property was last listed?
• Are you aware of any shifts in buyer preferences or market trends that might affect your property? 

Pricing Strategy:

• What were your thoughts on the initial listing price, and do you think it accurately reflected the market value?
• Have you considered any adjustments to the pricing strategy based on recent market developments?

Motivation and Timeline:

• Has anything changed in your personal or financial situation that might impact your motivation to sell?
• Do you have a specific timeline or deadline for selling your property?

Marketing Approach:

• How satisfied were you with the marketing efforts during the previous listing?
• Are there any specific marketing channels or strategies you want to explore now?

Property Presentation:

• Have there been any changes or updates to the property since the last listing that potential buyers should be aware of?
• Is there anything about the property that you feel could be highlighted differently to attract more interest?

Agent-Client Communication:

• What communication style and frequency do you prefer with your real estate agent?
• Is there anything specific you would like to see in terms of updates and reports during the selling process?

Competitive Analysis:

• Have you had a chance to review the current competition in the market, and how do you see your property standing out?
• Are there specific features or amenities you believe differentiate your property from others?

Future Plans:

• How does selling your property align with your future plans?
• Have there been any changes in your goals or expectations since the previous listing?

These are a few questions that can foster a constructive dialogue with expired listing leads. It’s essential to approach the conversation with a positive and solution-oriented mindset.

Check out our blog post DISSECTING REAL ESTATE PROSPECTING SCRIPTS for more Expired listing questions and FSBO questions, along with other tips on using scripts.

EXPIRED LISTING INFORMATION PACKET

It’s time to close the deal.

By following the strategies and asking the questions above, you will, hopefully, get invited to preview the property. If that’s the case, you’ll want to bring an information packet reinforcing your expertise and value proposition.

As you put your information packet together, consider some of the elements that would be of interest to your prospective client:

• Assessment: Acknowledge the seller’s frustration, but be careful not to be negative about the previous agent’s performance. Provide an overview of your observations about the property and what you believe would be most attractive to buyers.
• Your story: Briefly list the notable transactions you’ve closed in the recent past. Perhaps you’ve sold a home that has similar characteristics to those of your prospect’s home. It might help to have a photo of that other transaction to support your narrative.
• Pricing: Discuss your philosophy with regard to pricing. Have a point of view on the previous pricing strategy and how you would handle pricing moving forward.
• Marketing: In today’s complex marketing environment, a yard sign alone won’t cut it. Walk the homeowner through your approach to marketing and provide examples of what you’ve done to sell other homes.
• Customer Engagement: One of the biggest complaints about real estate agents is poor communication. Be clear with the homeowner as to how you will stay in touch during the entire sales process.  Then, be sure to stick to what you’ve promised.
• Extras: What will you do to go the extra mile for the homeowner? Would you hire a professional stager? Would you provide professional photography to bring the home to life? Would you pay for a pre-inspection to give the homeowner comfort in knowing what might come up during the sales process?
• Testimonials: share what other clients have to say about your performance.

One critical point we’d like to add here: whether you use some or all of the points listed above, make sure that your information packet (and subsequent presentation) is visually engaging. Don’t present page after page of words. People remember images far more than they remember words. Use engaging images and color to bring your presentation to life. Perhaps you should spend a few extra dollars to hire a graphic designer to create a template that you can use for all of your packets moving forward.  Or, if you want to save money, an online “gig” site such as FIVERR is an efficient way to create interesting visuals for your presentation.

IT ALL STARTS WITH GREAT EXPIRED LISTING LEADS

The Espresso Agent Difference.

Whether you’ve been in the business for years or are relatively new, you are probably aware that expired listing properties are a significant revenue opportunity. That’s why you’ll want to put Espresso Agent’s industry-leading Expired Listing Leads to work for you:

• Premium contact information, such as cell phone numbers and verified email addresses.
• Comprehensive CRM software to keep you organized and on-task with your follow-up.
• World-class dialer that allows you to make significantly more calls than by manually dialing.
• The best and most responsive customer service team in the industry.
• TODAY’S BREW brings you interviews with some of the top-producing agents in the industry who share their tips for listing success.

Working with Expired listings can transform your business. Let ESPRESSO AGENT show you how!

Doug Spak

Doug Spak joined Espresso Agent as a Content Marketing Specialist in 2016. Doug brings nearly four decades of experience as a copywriter, blogger, and screenwriter to his role with Espresso. Since joining our team, Doug has actively updated website content, published more than 300 blogs, and created countless social media posts.