Lead generation in real estate involves attracting potential buyers, sellers, or investors and converting them into clients. It’s a crucial process for growing your real estate business. Let’s explore a more tailored example of how lead generation works in the real estate industry.
The real estate industry is a very matured industry in terms of lead generation. There are various ways real estate brokers and agents generate leads, one not often spoken about is exploring expired listings
Exploring Expired Listing Opportunities in Real Estate
Expired listings represent properties that were previously for sale but did not sell within the listing agreement period. These listings can be a goldmine for real estate agents looking to find new opportunities. Most brokers or real estate agents do not know or remember to focus on these types of homeowners even though the competition for these kinds of listings is lower. The few who do find that they are able to increase their conversion rates by as much as 18% just by focusing on these types of listings.
Why You Should Explore Expired Listing as a Real Estate Agent
Expired listings are not easy—they require persistence, strong communication, and a solid value proposition. But for agents willing to put in the work, they can be one of the most profitable lead sources in real estate. So, if you are an agent who is still wondering if the rewards are worth the effort, the following reasons may be able to convince you.
Motivated Sellers
When you approach a homeowner with an expired listing, you are talking to a seller who already tried to sell their home but failed, meaning they are likely frustrated and eager to work with a new agent who can get the job done. You are not starting afresh because someone else has done all that initial work for you. Who doesn’t want it when some of the most difficult aspects of a work have been done for you? These sellers are now more likely to be open to pricing adjustments, staging advice, or marketing strategies that could help sell their home faster.
Less Competition (But Growing)
The truth is that there are many agents who, even though they know what they stand to gain from exploring expired lists, still avoid expired listings because they require proactive outreach. What that means is that you will have fewer agents to compete with for these leads compared to fresh listings or open house leads. Well, even that is becoming less true because the space is becoming more competitive, so acting quickly is key to staying ahead of the line.
Opportunity to Showcase Expertise
One other benefit of expired listings is that you can analyze why the listing expired (overpricing, poor marketing, weak negotiation, etc.) and present a data-driven plan to fix those issues. This will create a positive impression of you on the homeowner as someone who has the solution to their problem, which can put you at an advantage instantly.
Faster Conversions Than Cold Leads
If you know how difficult it can be sometimes to nurture a cold lead to become a deal, then you will appreciate the value of a warm lead. Expired listings are warmer leads than cold prospecting because the seller has already committed to selling. With the right approach (e.g., a strong script, comparative market analysis, and testimonials), you are more likely to convert them faster than traditional leads.
Potential for Dual-Side Deals
Expired listings also offer the opportunity for dual-side deals. This is another benefit that many people do not realize they can benefit from expired listings. When you help a homeowner relist their home, you also have a chance to represent the buyer in the eventual sale, thereby doubling your commission.
High ROI on Lead Generation
Expired listings can be sourced for free (through MLS data) or via paid services (like Cole Realty Resource or RedX). Compared to paid ads or Zillow leads, converting even a few expireds can provide a strong return on effort.
Rejected by Another Agent = Your Gain
The previous agent may have given up or lacked the skills to close the deal. You can step in as the “savior” with a better strategy. This can help you form a long-term relationship with the seller because you will be considered to be the person who came to save the day.
Key Strategies to Win Expired Listings
Now that we have gotten the benefits of why expired listings can be a goldmine to any real estate agent or broker, you still need to roll up your sleeves and put in the work. Here’s how you can explore and capitalize on expired listing opportunities:
1. Identify Expired Listings
The first step is to identify properties with expired listings. You can do this by:
- MLS Search: Use your local Multiple Listing Service (MLS) to search for listings that have expired. Most MLS systems allow you to filter by listing status.
- Real Estate Platforms: Websites like Zillow, Redfin, and Realtor.com often indicate when a listing has expired.
- Networking: Talk to other agents or brokers who might have insights into recently expired listings.
2. Research the Property and Owner
Before reaching out, do some research on the property and the owner:
- Property History: Look at the property’s history, including past sales, price changes, and time on the market.
- Owner Information: Gather information about the owner to understand their situation better. This can help you tailor your approach.
- Market Analysis: Understand the current market conditions and how they might have affected the listing’s expiration.
3. Prepare Your Pitch
When reaching out to owners of expired listings, it’s important to have a compelling pitch ready:
- Unique Selling Proposition: Explain what makes you different from the previous agent. Highlight your marketing strategies, network, or success stories.
- Market Knowledge: Show that you understand the local market and have a plan to price and market the property effectively.
- Highlight your marketing plan (professional photos, video tours, social media ads, etc.).
- Personal Touch: Make the conversation about the owner and their needs. Show empathy and understanding for their situation.
- Provide a CMA (show why it didn’t sell and how you’ll fix it).
4. Make Contact
Reach out to the owners of expired listings through various channels. The best strategy is to try and call as quickly as possible (within 24-48 hours of expiration—they’re hottest then) or through any of or a combination of these other channels:
- Direct Mail: Send a personalized letter introducing yourself and explaining how you can help.
- Phone Calls: A friendly phone call can be a great way to make a personal connection.
- Email: If you have the owner’s email address, send a professional and personalized email.
- Social Media: Connect with the owner on platforms like LinkedIn or Facebook, if appropriate.
5. Build Rapport and Trust
Building a relationship with the owner is key to winning the listing:
- Listen Actively: Understand their concerns and challenges with the previous listing.
- Provide Value: Offer insights or resources that can help them, such as market reports or tips on preparing their home for sale.
- Use testimonials & proof: (Show past successes with expired relists.)
- Follow-Up: Stay in touch regularly, but not too frequently. Show genuine interest in helping them.
6. Present a Plan
Once you’ve established a connection, present a clear plan for selling the property:
- Marketing Strategy: Outline your marketing plan, including online listings, open houses, and targeted advertising.
- Pricing Strategy: Provide a comparative market analysis (CMA) to suggest a competitive listing price.
- Timeline: Set a realistic timeline for selling the property, based on market conditions.
7. Close the Deal
Now that you have done all the hard work, you have identified the expired listing, done your research, engaged the seller, come up with a marketing plan, and impressed the seller, it is time for the reward. Do not be afraid to close the deal. As soon as that is done, you can kick off the onboarding process and carry the owner along with what the next steps are and what to expect. Ensure you do the following:
- Sign the Listing Agreement: Ensure all terms are clear and agreeable to both parties.
- Set Expectations: Clearly communicate what the owner can expect from you and the selling process.
Why This Approach Works
Just like other ventures in life, taking advantage of expired listings is not a work in the park, it does requires a lot of effort on your part but the rewards are enormous. However, agents who are willing to put in the work will find it to be a very good source of qualified leads. So, there is no need to hold back, you can start exploring that option starting today.
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