Working Expired Listings

Working Expired Listings

I’m not a big fan of rejection.  That’s why I don’t usually work Expired Listings.   But there is one week a year when I clear my schedule, and pick up the phone.  And this year, I can count on getting at least 3 listings to start of the month of January.

In the old economy, the one before the internet, there were only a few ways to get listings.

You could get a referral from a friend.

Or you could walk door to door (door knocking), and introduce to people in your neighborhood.

Lots of agents would make cold calls.  Telemarketing themselves to For Sale By Owners (FSBOs) Expireds, and Withdrawn Listings

Only the first one still really works today, all the others are pretty much out the door.

But one day a year, calling Expireds still works. 

Here’s Why.

99% of all Real Estate Agents don’t really have a unique plan when they get a new listing.

They do the same things that have been done for decades, under the old economy.

If you are in a Seller’s market, these things will probably work just fine (unless you have an overpriced listing). The house will sell because there are more buyers than houses.

Agents fill out their listing agreements and fill out all the boxes in a standard way.

When it comes to the expiration date, They don’t know what to put in.  Since they want the listing for as long as possible, they put down the last day of the year.

The listing agreement expires on Dec 31.

Don’t believe me?  Just check out the number of expired listings on your MLS.  There is a screen shot of our MLS at the top of this post that I took on Jan 1, 2016 at 8:00 in the morning.

Now, for a minute lets talk about the psychology of a listing from a Homeowner’s perspective.  

They have had their house on the market with an agent without a plan.  There was the initial work, of putting the house in the MLS, putting a lockbox on the front door, and sticking a sign in the front yard.  Very few agents do anything beyond that.

Maybe they hold some open houses (used mostly to get self-promotion for the agent), or put out a flyer box with some printed sheets in it.

Maybe the agent does an email blast – which generally goes right to the SPAM folder.

If it is a high-end listing perhaps they advertise in a magazine.

That’s pretty much it.

If their house didn’t sell in the first couple of weeks, it begins to languish on the market, and the listing agent doesn’t have any other strategies.  The Agent wants to hold on to the listing as long as they can, because when it does sell, if it does sell, they will get a commission check.

Plus, because of The Realtor Code of Ethics (Sec 16.4) other agents are forbidden from contacting owners of listed properties.

REALTORS® shall not solicit a listing which is currently listed exclusively with another broker. However, if the listing broker, when asked by the REALTOR®, refuses to disclose the expiration date and nature of such listing; i.e., an exclusive right to sell, an exclusive agency, open listing, or other form of contractual agreement between the listing broker and the client, the REALTOR® may contact the owner to secure such information and may discuss the terms upon which the REALTOR® might take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing.

So on one day a year, there is a surplus.  An excess of listings.

It’s like shooting fish in a barrel to get new listings.

An average agent will be able to make 100 calls and get a listing.  A good listing agent will have a much higher percentage than that.

Remember, the Seller has had their home on the market, and is most likely dis-satisfied with their Realtor.

Plus it is a new year, and their head is full of resolutions, and fresh starts.

You have better than average chances of success, but only this one day a year.

All other days you are at a disadvantage calling Expired Listings.  

You have to have a different strategy.

What else is there to do?  That’s what this website is all about.  Be sure to subscribe to get regular updates.

I believe the Real Estate industry is changing, and there is a New way.

A better way.

Join us, today.