How to Get Expired Listings

Finding Expired Listings

Search the MLS for listings that are about to expire. Check the MLS hot sheet every morning, and build a contact list of listings that are about to expire. Make sure you don't contact the seller until the day after the listing has expired. Use a script when you make the first phone call to the seller. You also can use an expired listing system, such as Vulcan 7 or REDX. These systems have autodialers that send scripted messages to sellers with expired listings automatically.

Focus on older expired listings. The older the listing, the easier it will potentially be for you to convert the seller. If you're just starting out as an agent, these listings may be a better bet for you. With an older listing, the seller is more likely to have equity built up in the home, meaning they will turn a healthy profit if the home sells.

Look for listings with poor marketing. Poor marketing may indicate either poor quality representation or a bad working relationship between the agent and the seller. Either of those scenarios presents an opportunity for you to pick up the expired listing. Look for photos on the original listing. If there are no photos, or only one photo of the exterior, the house is unlikely to sell. Buyers want to see the inside. Interior photos that aren't staged with furniture, or use poor light and awkward angles, may indicate inexperience or a lack of effort on the part of the original listing agent.

Target listings with a history of price reductions. You'll have your best chances of picking up an expired listing if the seller is unhappy with their current agent. A listing with a history of price reductions shows flexibility on the part of the seller. Multiple price reductions are an indication that the seller doesn't have unrealistic expectations, or isn't too emotionally tied to the property. Either of those can make a property difficult for any agent to sell.

Identify unique or custom features. If a home has features that are particularly unique, or elements of custom design, it can be more difficult to sell. If these listings are expiring, it's likely because the marketing didn't showcase those features effectively. If a house has unique features, it can help you brainstorm creative ways to market the property. Sharing some of these ideas with the seller can help you land the listing.

Sending an Expired Listings Letter

Draft a general expired listings letter. Your expired listings letter is a way to introduce yourself to the seller. You want to send this letter the day after the listing expires if possible, so it's good to have a general draft on hand. You can download templates online, or borrow ideas from other agents' expired listings letters. Your general draft should include information or statements that will be applicable to any expired listing you might try to get. Review it periodically to make sure everything stays up to date.

Personalize the letter for each listing. Sellers can smell a cookie-cutter form letter a mile away. Include details about the property so the seller feels as though the letter was just for them. This also gives you the opportunity to tease some of the ideas you have. For example, suppose you've found an expired listing that has a unique water feature in the backyard. You might say "From looking at your old listing, it's clear that the water feature in the backyard was not used to its full potential. I have some ideas that I look forward to sharing with you."

Include the value added by your company. There's a reason you started working for the realty company you did. Pass this information on to the seller to show them what your company can offer that perhaps their old agent did not. For example, if your company has more extensive advertising and direct marketing efforts, this means your company is going to be at the top of people's minds when they think about real estate in the area. You can use that familiarity to sell a home more quickly.

Design your letter to stand out from the crowd. The seller likely will get several of these letters from interested agents in the days immediately after their listing expires. If you're targeting an older expired listing, they may have already been contacted dozens of times. Use quality paper and eye-catching graphics. You might also consider including a small token, such as a gift card to a local café or movie theater. Getting a hold of expired listings letters sent by other agents in your area can give you some ideas for how to make your letter stand out.

Follow up. Be prepared to contact the seller several times if you want to pick up an expired listing. Particularly if they've had a bad experience, sellers will be skeptical of your offer and may require some persuading. Many agents will give up if they don't receive a positive response to their first letter. Being persistent (without harassing the seller) may get you the listing where others fail, because the seller may realize that you will bring the same persistence when selling their home. You may end up contacting the seller half a dozen times or more, but don't be pushy about it. For example, you might send a follow-up postcard that simply says "If you're still looking for an agent for your home, I'm willing to talk to you!"

Listen to the seller. If the seller gets in contact with you as a result of your expired listings letter, ask them lots of questions. You want to find out directly from them what the problem was with the previous agent. Don't use this opportunity to bad-mouth the other agent. Focus on what you can do to resolve the problem, not what the other agent did wrong. Simply say something like "I understand how that could be frustrating. If this were my listing, I would do things a bit differently." Then explain what you would do. If you listen carefully to their answers, they will essentially tell you how to craft a listing presentation that will hook them. If you know what they believe went wrong, you can show them how you would do it differently.

Creating a Listing Presentation

Meet with the seller in person. You'll find it difficult to win over a seller with an expired listing through letters and phone calls. After you've talked to them once on the phone, schedule a face-to-face meeting when you can discuss the listing. Most sellers will have a hard time refusing your offer if you're standing right in front of them. You can use this to your advantage by creating an inspiring and persuasive listing presentation. Focus on what you can do for them, and the approach you'll take to sell their particular property.

Discuss your sales history. Your past sales give the seller some idea of what to expect if you list their home. If you have a history of selling other expired listings, that can be good information to highlight if you were able to sell them relatively quickly. If you've sold homes in the same neighborhood as the seller, point these out. It shows that you're familiar with that area and have a track record there. This can be important if the particular neighborhood is less desirable and generally harder to sell. Quotes from past clients who were happy with your services can support your sales history. For each listing presentation, try to use quotes from at least one past client who shared something in common with the seller, for example, the type of property or length of time on the market.

Address the needs of the seller. When you talked to the seller, they told you the problems they had with their previous agent. Use that information to your advantage during your listing presentation to show the seller how responsive you are. For example, suppose the seller indicated that they initially became frustrated because their old agent would never return their calls. You might note in your listing presentation that you call every client at least once a week to update them on the progress and answer any questions, and that you return all phone calls within 24 hours. Don't oversell yourself by making promises you know you won't keep just to get the listing. If you tell the seller you'll do something during the presentation, make sure you're equipped to deliver on it.

Describe your marketing strategy. The house didn't sell before. The seller wants to know what you would do differently to draw attention to the house that it wasn't attracting with the previous listing. Mention any problems you noticed in the other listing, but don't spend too much time on them. Focus instead on the fact that homes with representation often sell faster and for more money. If you have data and personal experiences from your own work, use this to substantiate your points. Otherwise, focus on how you intend to save the seller money and make the selling process easier. For example, suppose the listing had five poor-quality images of the interior of the house, some at odd angles only showing a wall or a corner. Tell them you would stage the home and use a professional photographer. You could back this up with statistics (if you have them) that show homes sell faster when they have certain kinds of images.

Include any unique strategies for the property. If the house has any unique features, such as custom or historic design, it may require an equally unique and creative strategy to find the right buyer. Share with the seller anything specific you have in mind for their property. If you're basing the strategy on something that worked before, compare the two properties and explain how you believe that strategy would work for this house. Point out ways the previous listing didn't highlight the home's features to its best advantage, and explain what you would do differently.

Offer to act as a dual agent. If dual agency is legal in your state, you may be able to land a listing by offering a lower commission if you also find the buyer. This makes your offer more appealing to the seller, since they are paying a lower commission, but allows you to compensate since you will take in 2 commissions. Dual agency is not legal in all states. Make sure the practice is legal in your state before you offer it. Sellers and buyers typically come across multiple warnings regarding dual agents during the home buying process. Be prepared to talk to both parties openly and honestly about how you plan to represent both parties' interests responsibly and ethically.

Ask the seller directly for the listing. Close your presentation with a brief summary of your goals for the listing, and ask them if you can take control of the listing today. Come armed with an agreement they can sign immediately. Use your standard listing contract, but customize it to include any of the specific promises you made to that seller during the listing presentation. Go through the contract with the seller before they sign it and make sure they understand it.