Listings expire for many reasons and when you know how to prospect them it can be a limitless source of quality leads. Thanks for asking about making money with expireds, becoming great at expireds, and the expired script. We're going to handle all of those expired-related questions. I'm going to direct you to links that are posted for you to help you digest, implement, and take action.
First I wanted to point out my top six reasons why you really should love or come to love expired listings. You hear us talk about this all the time on the podcast, why we love expireds and I talk about it in the premier weekly coaching class. Here are the top six reasons to love expireds:
1. You have less competition.
The agent that they thought would do the job just failed and oftentimes that’s somebody from their center of influence that would have been a tough competitor for you if you don't already know the seller. And that is probably the case, or it’s somebody who's been heavily marketing that neighborhood, or somebody they know from bridge club. Whatever the case, you have less competition so it's actually easier to take expired listings than to compete for them in the first place. I mean we broke into our first time upmarket by hunting expireds, which by the way, is a lot faster and more efficient than trying to market your way in, or network your way in, or schmooze your way in. So if you want to go upmarket a little better, or maybe you just really like a particular neighborhood, expireds are so much cheaper than trying to market your way in.
2. The homeowner is more coachable.
They probably have to sell and if they don't have to sell, they're probably not going to relist it. Most of them have and they are far more coachable and will respond to correcting the negative feedback that maybe they didn't want to deal with during the first go around with their first agent when they thought that their house was the best thing since sliced bread. That's why they can see that they’re overpriced by fifty grand and will be more open to any of the feedback correction. Now they know they're not going to get their price and they have kept hearing the same feedback in some cases over and over and they'll be more willing to fix it. One of our great premier clients recently took a listing that was about double her average sell price and the seller said, “I know it was overpriced. I meant overpriced because my new construction house wasn't built yet and I didn't want to be homeless. But now that it's six months later. Just tell me what to do to get rid of it.” She got a price reduction and got it sold almost right away. He corrected all the negative feedback to make it a more saleable property. So they typically are more coachable.
3. You're going to get a better price.
We talked about that a little bit in the previous point. Generally speaking you're going to get a better price. Now if you don't want to get into it just yet about pricing, you can, assuming the seller has to sell. As you build your skill you can take it. Price the way it is. Or maybe make a mini price reduction. Then after you have everything signed, staged, and ready to go and you've got a great relationship, maybe go through a week of showings to get more feedback, then you go for the price reduction. You can do it that way as you're learning. I have no problem with this, we did it that way as long as it's not grossly overpriced. Generally, you're going to get a better price either when you take the listing and often times expired will say, “Just tell me what the right price is. I want to get rid of it.” They're so frustrated and so surprised that it hasn't sold yet, they'll be more coachable about pricing. Almost always, if you look at this historically in your own MLS, you'll see that this is true.
4. Typically, relisted expireds have FAR fewer days on the market.
They almost always sell if you get a good price reduction fairly early, either at the listing or fairly early in listing. This means around two weeks when they're sold. It's pretty awesome.
5. They may also buy with you, so it might not just be one transaction.
Maybe they couldn't buy until they sold. Then they haven't even been out looking so there might be a second transaction for you that you normally wouldn’t have gotten.
6. Doing CMAs is easier on expireds.
As far as doing your CMA goes, and this is great for all agents, but especially for newer agents, or if you've just moved to a new market, pricing is much easier on expireds. Some of you live in markets that it could mean, honestly how do you even price that stuff? It's much more of a challenge when you have such a variety. It's a lot easier to price an expired listing than to go in fresh, especially on the unusual stuff like farming land and ranch property or horse property, custom high-end stuff. All of those kinds of things are harder to price. So go after they expireds because forty thousand market tested means you know what the wrong prices are.
Those are my top six reasons why you will one day, if you don't already, come to love expired listings. Our script is very particular, I want you to learn it and want you to understand it. Read it at least ten times before you use it with a real-life expired prospect.
Here's what is posted for you. You've got it the expired listing script and there's a couple of different versions so be sure you learn both of them. You have expired listing objection handlers. You have the working expireds, what is the process, and a sample expired hanger and you have four coaching calls on this. Be sure that you go through all of these links that we've posted for so that you can get started immediately in your expired success.
I talked about on a previous call the disability, a For Sale By Owner income. You know adding that spoke really it's the same with expireds so let's just say that you make twenty five expireds for follow up contact. You only can do it every other week, or you do twelve per week, four weeks of the month. I'm talking about very late contact here between new ones and follow ups and that you take two listings per month, and that your average sale price is $350,000. Let's say you have a 60% split with your broker if you do all the math. You just do this, you don't even spend all day doing this. This is just one spoke you're working on that's has the potential, with a three fifty average price, a sixty percent split, and only taking to a single month off of that, the minimum that you will make in that scenario is another $150,000 this year. So to not do it, as I said when we're talking about coaching on demand call on the unrepresented sellers, knowing the math, some of you can double or triple that math based on your average price or the fact that you have a better split than that.
So here's the thing if you blow this off. You are really saying to the marketplace, maybe to your family, and to yourself, “Oh no, I don't need to list those. I don't the extra 250 grand. I can't think of a thing to do about that. I don't know where I would spend that.” Don't be like that. Just embrace this. It's so much easier than you think once you get going on it.
I tell you as I did on anything else or I talk about scripts or any kind of reticence to phone prospecting or call reluctance, here's the thing. If you get stuck, (which if you practice a script even a few times you're not going to get stuck) just hang up the phone and act like you got disconnected. Call back if you want to, once you get your marbles back in your head. It’s totally fine so move on. Next lead you can hang up. You just hit that end button on your phone or unplug your headset. It's fine. We're all learning and your job is to earn while you learn. Remember you don't have to be 110% super spectacular awesome on the script to earn while you learn. We certainly weren't when we got going on this. And I tell you a lot of those when we were just beginning, we didn't know what in the world we were doing. Our first expired, semi-formal presentation consisted of hunting down expireds that were in our general marketplace that we knew. We would look specifically for expireds that had terrible descriptions in the MLS or terrible pictures or no pictures back when you were allowed to get away with that or were actually allowed to just enter the description. My favorite one that I found, all it said was “on the bus line.” That's your advertising of this property. That was so easy to get by showing the seller that. Well it said, your previous agent only said - on the bus line. No picture. So as a buyer's agent it doesn't really make me dying to go show this when I have other options, does it? Really you just need a fresh approach, a different approach, an updated approach, better marketing, better home brochure. That was our whole presentation and we would take listings by doing that. I'm not recommending that you do that, although that is one method of cherry picking your expireds. If you go to the obvious mistakes pictures that highlight the power tower in the backyard or were taken across the street on a busy road or have a railroad in the back yard and that's the main picture, stupidity like that still goes on. I remember one when we were looking for homes. I think we were moving from Nevada to Texas. I saw a listing with all these great pictures and then they showed the finished lower level and it looked like a hoarder's house down there. There was a massive amount of clutter and there's an old guy in his wheelchair in there, probably the owner. First of all, that’s kind of against the Privacy Act probably. And secondly, is that really the picture you want on the Internet to highlight this listing? So you guys as you did see this going on this and as you do it regularly, you're going to find anomalies where you know that's going to be easy to sell.
The other thing that you can do is look for things like newer construction, maybe spec homes for builders. What you do there is you don't put in any area codes. Make a super broad search to find what's out there. All you do is say you're built. Let's say go back to 2014 to present. You're going to capture any expiring new construction. Maybe it expired because it was a patch of dirt in the MLS for two years and it just never got built and now you drive by and it's a beautiful home that nobody's marketing, that kind of thing. You'll hone your expired skills as you get going on this.
I've given you several examples of how it's a really useful to dip your toes into this by cherry picking a little bit and then once you have a few expired victories you'll be addicted to this when you find yourself making well more than 150 grand as a result of your efforts.
Remember to follow up on your expired contacts. Some of them are exhausted by the process and they just need a break. When they say they need a break assume they're being honest and that's all there is to it. I ask them when they would like you to follow up at that time. Typically they're not putting a star on their calendar of what they told you the date was for follow up. So continue your hot pursuit until they tell you they're not ever going to sell it. They're going to listen somebody else or come on over. Those are your only options. Don't give up.
There are lots of coaching calls so listen to scripts, read and practice. You've got all kinds of really great material here and it will be my pleasure to answer any questions as you get going. The main thing is not to convince yourself that you have to be great at it. Don't do a whole bunch of elaborate research. That's another mistake I see people making. You find the expired list and spend all of your time researching and trying to figure out what the story is. Who cares? What you care are about is if they still have to sell, then you can go research it and have the conversation. Where do you get your expired information? Get it from Mojosells.com or landvoice.com. Some of you have a variety as to how hard or easy it is to get phone numbers, it depends on your analysts in your area and your customs. But for sure, Mojosells and landvoice are great resources for that. Then remember if you don't want to spend the money on that, you can get your report out of your MLS. You can pop by with a supreme listing package. No excuses. If you have any questions about this take them to our weekly call. I will see you then
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