Real estate investors can leverage expired listings to find properties that need renovation or redevelopment and can be turned into rental properties. Expired listing prospecting requires the right tools to make it effective.
The key is timing. It is important to contact the property owner right before their listing expires. Send a letter with a free market report and your marketing plan to sell the property.
They Are Motivated
Real estate expired listings represent a real estate goldmine because they are often motivated sellers. Owners may have a variety of reasons for why their homes didn’t sell – they might be moving, looking to retire, or changing careers. They also spend time and money preparing their property for the market, so they are usually frustrated when it doesn’t sell. This means they are more likely to listen to offers from buyers and are willing to negotiate.
Furthermore, expired listings can be a great way for agents to test their cold-calling skills. Many agents need help getting through to homeowners on the phone, so this is a great opportunity to practice and build their skills. In addition, many of these owners are familiar with working with real estate agents. This allows agents to effectively demonstrate their expertise and professionalism, which can be very appealing.
Additionally, owners of expired listings often receive many calls after their listing expires. This can be overwhelming, so agents must consistently reach out with expired listing leads. They can build rapport and increase their chances of selling their home by contacting them regularly.
They Are a Great Deal
Expired listings can be a great source of deals for real estate investors. Many of these properties are in good shape and can be sold cheaply. In addition, expired listings are an excellent source of lead generation. When you find a potential lead, it is important to act fast. Otherwise, the lead may lose interest or find someone else to do business with.
Moreover, expired listing leads often have a high conversion rate. When you follow the right strategy, it is not uncommon for 1 in 20 contacts to become a client. This makes them a valuable part of your business model.
Another advantage of expired listings is that they have been market tested. This means that the owners of these properties know what they want and what they are willing to pay for their property. This can make negotiating with them easier and getting the deal you want.
In addition, expired listings can be a great resource for renovation and redevelopment projects. If the home has been on the market for a long time, it may need major repairs or renovations. This can be an opportunity for you to find a buyer for the property and help them with their project.
If you are a real estate agent, consider making expired listings a priority this year. You can use various marketing strategies to reach these homeowners, including direct mail and online advertising.
They Are a Source of Leads
Expired listings are an excellent source of real estate leads for agents. They are often inexpensive to acquire and require significantly less time to convert than other lead types, such as FSBO sellers or new construction leads. As a result, agents can often close deals on expired listings faster and more efficiently.
However, turning a prospect into a client isn’t easy. Most real estate agents struggle with cold calling and finding the right pitch to persuade a seller that they’re the best fit to sell their home. This is why being patient and following up on expired listing leads is so important.
One of the best ways to connect with an expired listing lead is to send a personalized letter with a phone call to set up a meeting to discuss their sales options. This allows you to build a natural rapport and show your expertise without being overbearing or pushy.
They Are a Great Opportunity
Expired listings are great opportunities for investors because they usually have a motivated seller and can be sold relatively quickly. However, it is important to remember that expired listings are just like any other listing and should be marketed in the same manner as other properties. This means that you should be aggressive but not overbearing. In addition, you should be able to demonstrate your experience and expertise in real estate. This is especially important during the marketing presentation, including details of effective marketing strategies and previous sales results.
Additionally, expired listings can provide valuable insight into the market. For example, suppose a property has been on the market for an extended period. In that case, it may indicate that the owner is willing to negotiate a lower price for the property. This can be a great opportunity for buyers looking to avoid bidding wars and save money.
Expired listings can also be a great source of leads for real estate agents. Unlike many other marketing methods, expired listings are typically cheaper and can be targeted to specific areas or even individual homeowners. Additionally, expired listings can be a great way for new agents to get their names out in the market and build relationships with potential clients. Lastly, expired listings can be a great opportunity to test different marketing techniques and learn the most effective ones.