MLS Expired Listings Are a Hidden Goldmine for Wholesalers
Why expired listings hold untapped seller motivation, and how to capitalize fast.
Austin Beverigde
Tennessee
, Goliath Teammate
Are you a wholesaler struggling to find profitable real estate deals? You’re not alone. Many wholesalers overlook MLS expired listings, which can be a treasure trove of opportunities. Understanding how to leverage these listings can help you secure deals that others miss.
Quick Answer: To find gold in MLS expired listings, start by accessing your local MLS database. Look for properties that have been on the market for over 90 days without selling. Reach out to the owners with a personalized message, offering your services as a wholesaler. This approach can lead to fruitful negotiations and profitable deals.
Understanding MLS Expired Listings
MLS expired listings refer to properties that were listed for sale but didn’t sell before the listing agreement expired. These listings can be a goldmine for wholesalers because the owners are often motivated to sell, especially if they’ve already invested time and money into the property.
Why Expired Listings Are Valuable
Motivated Sellers: Owners of expired listings may be eager to sell, making them more open to negotiations.
Less Competition: Many investors overlook expired listings, giving you an edge in negotiations.
Potential for Lower Prices: Sellers may be willing to accept lower offers to finally close the deal.
Steps to Find and Utilize Expired Listings
Step 1: Access Your Local MLS
To find expired listings, you need access to your local MLS. If you’re not a licensed agent, consider partnering with one or using a real estate platform that provides expired listing data.
Step 2: Identify Expired Listings
Search for properties that have been on the market for at least 90 days and have not sold. Focus on homes that are in good condition but may have been overpriced or poorly marketed.
Step 3: Reach Out to Owners
Once you have a list of expired listings, contact the owners. Craft a personalized message explaining who you are and how you can help them sell their property quickly and efficiently.
Step 4: Negotiate and Close the Deal
Be prepared to negotiate. Many sellers are willing to consider creative solutions, such as seller financing or lease options, which can be beneficial for both parties.
Realistic Examples of Success
Before: The Overpriced Listing
A homeowner listed their property for $350,000 but received no offers after six months. Frustrated, they let the listing expire. After contacting them as a wholesaler, you negotiated a purchase price of $300,000, allowing you to flip the property for a profit.
After: The Quick Sale
Another homeowner had an expired listing at $400,000. After reaching out, you discovered they were motivated to sell quickly due to a job relocation. You offered $350,000, and they accepted, allowing you to sell the property to an investor for $375,000.
Checklist for Wholesalers
Access your local MLS database.
Search for expired listings over 90 days old.
Make a list of potential properties to contact.
Craft personalized outreach messages for each owner.
Be prepared to negotiate creatively.
Follow up with leads regularly.
Document all communications for reference.
Common Mistakes to Avoid
Ignoring Follow-Up
One common mistake is failing to follow up with owners after the initial contact. Many sellers may need time to consider your offer, so persistence can pay off.
Being Too Aggressive
Approaching sellers with high-pressure tactics can backfire. Instead, focus on building rapport and understanding their needs.
Neglecting Market Research
Don’t skip researching the local market conditions. Understanding the neighborhood and property values can help you make informed offers.
FAQs
What are MLS expired listings?
MLS expired listings are properties that were listed for sale but did not sell before the listing agreement expired. These listings can provide opportunities for wholesalers to negotiate with motivated sellers.
How do I find expired listings?
You can find expired listings by accessing your local MLS database. If you don’t have access, consider partnering with a licensed real estate agent or using online platforms that provide this data.
Why are expired listings a good opportunity for wholesalers?
Expired listings often indicate motivated sellers who are eager to close a deal. There’s typically less competition for these properties, allowing wholesalers to negotiate better prices.
What should I say when contacting owners of expired listings?
When reaching out, introduce yourself and explain how you can help them sell their property quickly. Personalize your message to address their specific situation and needs.
Can I make low offers on expired listings?
Yes, many sellers of expired listings may be open to lower offers, especially if they are motivated to sell. Just be prepared to negotiate and present your offer professionally.
