How to Dominate Expired Listings
This is the highest-impact method of obtaining listings in real estate. There is not a better, easier, less expensive way to get listings. The first six months that I was in real estate, I went around in circles chasing every unqualified buyer and seller in my market. Consequently I earned a whopping $275 during that first six months.
The good news is that during the second six months I closed 24 transactions; the second year, 75 transactions; and then I leveled off at just over 200 transactions per year. I have only one assistant. I would not have been able to do that if I had not discovered the expired “gold mine.”
These tips are from my expired listing system, which I believe is the most effective system in the real estate business—not only for me, but also for agents all over the United States. The first thing I want to do is address the most common myths about expireds. I have heard agents make these comments:
• They all list with the same agent.
• There is something wrong with the house, or it would have sold.
• They are all mean people.
• Mail doesn’t work because it will already be listed by the time they get the mail.
Here is what I have found to be true with these four myths:
One—They all list with the same agent—Through my experiences, I have found that about 50 percent of expireds will go back with the same agent for a number of reasons or they are under contract or the house has actually sold and the paper work hasn’t hit the computer yet. I have always said that the “previous agent” is our biggest competition. However, I suggest focusing on the 50 percent of expired sellers who do want a change.
Two—There is something wrong with the house, or it would have sold—There are certain mysteries in life, and this is definitely one of them. I have sold so many houses that had expired and had nothing wrong with them that it’s unreal.
I will admit there are certainly problems with some of the houses that expire. But don’t forget that you can sell any house if it is priced right.
Three—They are all mean people—A better description can be given: they are all disappointed. These are people who had a dream, or goal, that has been shattered, in many cases. And, of course, the Realtor gets full blame. Sometimes that is correct, but sometimes it’s not.
Early in my career I used to call them, and what I found was that the first day was when they were the least receptive to having a conversation. The system that has proven to be very successful is the system that I developed about two years ago. I will explain the details shortly.
Four—Mail doesn’t work because it will already be listed by the time they get the mail—This is probably the biggest myth of them all. Based on my experiences, these sellers want a break from the selling process. I personally have listed the vast majority of them from my consistent follow-up. I very rarely listed a house within the first couple of days after it expired. I have always found that we, not the seller, feel the biggest sense of urgency to get the house back on the market.
Remember this phrase: “The fortune is in the follow-up.”
After testing every scenario.
• Calling them the day it expires
• Calling them a day or two after
• Bringing the package to the house during the day (a waste of time)
• Bringing the package in the evening (great contact if you want to work after hours)
• What I found that works best is mail an initial package. It’s important to look at the big picture here. Set yourself up for success. If you set a system in place that you wont be able to do every day no matter what then you could be setting yourself up to fail.
That’s why it is so important to use systems that you can delegate to a part time non-licensed assistant. It will give you the consistency.
The most effective and cost effective method of following-up with expired sellers
I use the great little 4 1/4 x 5 1/2 post card and here is why:
• They have to see message on the way to the garbage can
• They Will see every message. Its almost impossible not to see the message its like when I say don’t think of the color blue.
• They get results.
• They are easy to use as a follow-up mechanism
• They are less expensive to mail.
Here is how to work expireds:
1. The day they expire send them a letter that will convince them that you are different. And they don’t care if you’re number one or have a fancy brochure.
2. Then send them a compelling postcard that backs up your initial letter
3. Send at least seven postcards, one every Monday, Wednesday, and Friday.
4. Then mail them a postcard every 21 days.
I will end with this …
Here are some of the benefits to working expireds:
• The sellers are very identifiable, so we don’t have to spend a lot of time, money, and effort locating them; all we have to do is go into the MLS and there they are. There is actually a new service that is available, called the RedX, which has just about automated the entire process.
• About 50 percent of them will be your target.
• When you use my system consistently, the sellers will call you.
• When they call you first, they are nice.
• You don’t have any objections to overcome.
• You will be surprised at the number of sellers who will do what you say, because they really want to sell.
• There will be a steady stream of income if you work at it daily.
When you come to realize the effectiveness of marketing to expireds, you will be excited about having adopted this method of marketing … as you watch your business grow through this simple target.
I hope you benefit from this letter and decide to add the information in it to the marketing part of your business plan.
