How to Turn Expired Listings Into Profitable Deals
How to identify, approach, and close deals from expired MLS listings.
Austin Beverigde
Tennessee
, Goliath Teammate
Are you frustrated with expired listings that seem like dead ends? You’re not alone. Many real estate professionals struggle to find value in leads that have gone cold. However, with the right strategies, you can breathe new life into these listings and turn them into profitable deals.
Quick Answer
To turn expired listings into profitable deals, start by researching the reasons why the property didn’t sell. Reach out to the previous owners with a personalized message, offering insights and solutions tailored to their needs. Use updated marketing strategies, such as social media and virtual tours, to attract new buyers. Follow up consistently and be prepared to negotiate.
Understanding Expired Listings
Expired listings are properties that were on the market but didn’t sell within the listing period. They can be a goldmine for savvy real estate agents and investors. Understanding why a listing expired is crucial to reviving it.
Common Reasons Listings Expire
Overpricing: The property was listed above market value.
Poor marketing: Lack of visibility or ineffective advertising.
Condition of the property: Needed repairs or updates were not addressed.
Market conditions: Economic factors or seasonal trends affected buyer interest.
Steps to Revive Expired Listings
Step 1: Research the Property
Start by gathering information about the expired listing. Look into its history, previous pricing, and any feedback from showings. Understanding the property’s past can help you identify its potential.
Step 2: Reach Out to the Owner
Contact the previous owner with a friendly and personalized message. Acknowledge their frustration and offer constructive feedback. For example, if the property was overpriced, suggest a new competitive price based on current market analysis.
Step 3: Update Marketing Strategies
Use modern marketing techniques to attract new buyers. Consider creating virtual tours, utilizing social media platforms, and staging the property for better visual appeal. These strategies can make the listing more attractive.
Step 4: Follow Up Regularly
Consistency is key. Follow up with the homeowner regularly to keep the lines of communication open. This shows your commitment and can help build trust.
Step 5: Be Prepared to Negotiate
When you find a potential buyer, be ready to negotiate terms. Flexibility can lead to a successful sale, especially if the buyer has concerns about the property.
Realistic Examples
Consider a home that was listed for $500,000 but expired after six months. After conducting research, you discover it was overpriced. You reach out to the owner, suggest a new price of $450,000, and implement a fresh marketing strategy. Within weeks, you attract multiple interested buyers and close the sale for $460,000.
Checklist for Turning Expired Listings into Deals
Research the property's history and market conditions.
Contact the previous owner with a personalized message.
Suggest a competitive new price based on market analysis.
Update marketing strategies with modern techniques.
Follow up regularly to maintain communication.
Be prepared to negotiate with potential buyers.
Common Mistakes to Avoid
When working with expired listings, avoid these common pitfalls:
Ignoring the previous listing's feedback: Learn from past mistakes.
Being too aggressive: A pushy approach can turn off potential clients.
Failing to adapt marketing strategies: Outdated methods may not attract new buyers.
Not following up: Lack of communication can lead to lost opportunities.
FAQs
What is an expired listing?
An expired listing is a property that was on the market but did not sell within the agreed-upon listing period. This can happen for various reasons, including pricing, marketing, or market conditions.
How can I find expired listings?
Expired listings can typically be found through Multiple Listing Services (MLS), online real estate platforms, or by networking with other real estate professionals.
Is it worth pursuing expired listings?
Yes, pursuing expired listings can be worthwhile. Many homeowners are still motivated to sell, and with the right approach, you can turn these leads into successful transactions.
What should I say when contacting the owner of an expired listing?
When reaching out, express empathy for their situation, provide constructive feedback, and offer your services. Make it clear that you understand their frustrations and have solutions to help them succeed.
How long does it take to sell an expired listing?
The time it takes to sell an expired listing varies based on factors like market conditions, pricing, and marketing strategies. With effective tactics, you could see interest within weeks.
