Learn how to convert expired listings

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Red sign in the shape of a home with white arrow and white text: HOME FOR SALE

05/18/2016 | Author: Editorial Staff

Expired listings on your MLS can be a great source of strong leads for your business. With a bit of strategy, you can convert these leads into your own listings.

First, consider why the expired listings might have gone unsold and determine which of these listings are the best prospects.

The easiest issues to spot are flaws in marketing or presentation. Maybe with better photos and a strong marketing plan the property will be easier to sell, but you should also be prepared to sit down with the seller to get a fuller picture of why the previous listing expired.

Next, contact the seller—but only if the listing is still expired in the MLS. Otherwise, you may be found in violation of Article 16 of the Code of Ethics for interfering with an exclusive representation agreement. Presuming the listing is expired, ask the seller to describe, in his or her own words, why the home didn't sell. Pay attention for details such as how many showings there were or if offers were made but turned down. Gauge how flexible the seller might be if you think the listing could require a price reduction or more aggressive negotiation with potential buyers. If the seller thinks that nothing needs to change to sell the property, consider what options that leaves you with if you were to take the listing.

Once all these issues are covered, if you feel confident you can convert the listing, only then is it time to have them sign a new Residential Real Estate Listing Agreement, Exclusive Right to Sell form with you.

Categories: Business tips, Homeowners
Tags: generating leads, listings, business tips


Comments

Nancy Galvan on 09/18/2016

Mark, what does your Strike Package consist of?

Mark McNitt on 05/20/2016

Remember Theresa, many people are on the Do Not Call registry.  Unless you or your office has a system in place to check the numbers, I would not call.  I understand this is a fine over $10,000 per call!

THERESA AKIN on 05/20/2016

I call the seller to see if it is being renewed by their listing agent first. If I see the “EXPIRED”  status in the morning, I recheck toward the end of the day to see if it has been renewed by same agent.  Often the agent just hasn’t had a chance to change status especially if it’s under contract.  Many factors go into checking and contacting an ’” EXPIRED” listing.  If it was pending or an option period a few days before then more likely than not it is under contract.  I try to proceed with caution.  AND you have the wolves hanging around the door just waiting.

Mark McNitt on 05/19/2016

Jenna.  It depends on what you do.  Just sending letters likely will not cut it.  Try to visit the house and see if you can catch the Seller there.  Also look for them on social media to possibly send a private message.  Always double check and make sure the previous Realtors did not re-list the home.  Sometimes the home was for sale AND for lease, it might have been leased and the sale listing was just allowed to expire.  Sometimes these Sellers don’t respond for months, but keep trying.

Jenna on 05/19/2016

Mark, how often does this work for you? I recently started sending out letters and wanted to make sure I was doing it the way that was going to be most effective.

Mark McNitt on 05/18/2016

I set up auto searches for expired listings in areas I work around Houston.  I have a “strike package” ready to go in the car at all times.  If I happen to be near by, I simply knock on the door and present my marketing materials.  Also a quick letter gets mailed out asking if I can be of some assistance.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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