Expired Listings as a Lead Source for New Deals
How to re-engage expired listings and convert them into new contracts.
Austin Beveridge
Tennessee
, Goliath Teammate
Are you struggling to find new leads in a competitive real estate market? Expired listings can be a goldmine for agents looking to turn old opportunities into fresh deals. This article will guide you through how to effectively leverage expired listings to boost your business.
Quick Answer: To turn expired listings into new deals, start by researching properties that have been off the market for over 30 days. Reach out to the previous owners with a personalized message, highlighting your understanding of their situation and offering your services. Follow up consistently and provide value through market insights or tailored solutions to rekindle their interest in selling.
Why Expired Listings Are Valuable
Expired listings represent homeowners who were once motivated to sell but faced challenges that prevented a successful sale. By approaching these homeowners, you can provide solutions that may help them achieve their selling goals.
Understanding Homeowner Motivations
Homeowners may have had various reasons for listing their property, such as relocating, downsizing, or financial needs. Understanding these motivations can help you tailor your approach when reaching out.
Steps to Convert Expired Listings
1. Research Expired Listings
Start by identifying expired listings in your target area. Use online real estate platforms or local MLS databases to find properties that have been off the market for more than 30 days.
2. Analyze the Market Conditions
Before reaching out, analyze the current market conditions. Is it a seller's market or a buyer's market? Understanding this will help you present a compelling case to the homeowner.
3. Craft a Personalized Outreach Message
Your initial contact should be personal and empathetic. Acknowledge their past efforts to sell and express your understanding of their situation. Offer insights on why the property may not have sold and how you can help.
4. Follow Up Consistently
Persistence is key. If you don’t hear back after your initial outreach, follow up with additional information or market updates that may be relevant to them.
5. Provide Value
Offer something of value in your communications, such as a free market analysis or tips for preparing their home for sale. This builds trust and positions you as a helpful resource.
Realistic Examples
Consider a homeowner who listed their home at $300,000 but didn’t receive any offers. After reaching out, you discover they were unaware of recent neighborhood sales that support a higher price. By providing this information and suggesting minor updates to the home, you help them relist successfully at $320,000, leading to a quick sale.
Checklist for Approaching Expired Listings
Identify expired listings in your area.
Analyze current market conditions.
Craft a personalized outreach message.
Follow up consistently with valuable insights.
Offer free resources like market analyses.
Be empathetic and understanding in your communications.
Track your outreach efforts and responses.
Prepare to address common objections from homeowners.
Stay updated on changes in the local market.
Common Mistakes to Avoid
When working with expired listings, avoid these common pitfalls:
Not personalizing your outreach: Generic messages can come across as insincere.
Being overly aggressive: Pressure tactics can alienate potential clients.
Failing to follow up: Many deals are lost due to lack of consistent communication.
Ignoring market changes: Always stay informed about the local real estate trends.
Not listening to the homeowner's needs: Tailor your approach based on their unique situation.
FAQs
What are expired listings?
Expired listings are properties that were listed for sale but did not sell before the listing agreement expired. These homeowners may still be interested in selling, making them potential leads.
How do I find expired listings?
You can find expired listings through local MLS databases, real estate websites, or by networking with other real estate professionals who may have access to this information.
What should I say when contacting homeowners?
When contacting homeowners, express empathy for their situation, acknowledge their previous efforts to sell, and offer insights or solutions that could help them achieve their selling goals.
How often should I follow up?
Follow up at least once every few weeks. Consistent communication shows your dedication and keeps you top-of-mind for the homeowner.
Can expired listings be profitable?
Yes, expired listings can be very profitable. With the right approach and by providing value, you can turn these opportunities into successful sales.
