An expired listing is a property that got listed for sale and failed to sell. It happens when a property was listed and went through the showing process but did not close. Expired properties have a considerable potential to become sold properties because they already have a line of interested buyers.
Which Expired Listings Should You Target?
There are numerous expired listings in every market; however, not all have the same potential for success. Here are a few factors you should consider when targeting expired listings:
1. Price Point
Avoid going for expired listings with prices less than $100K because the percentage of properties not sold is extremely high below that price point. Make sure you are not chasing low probability, low-value properties down the road.
2. Prospective Buyer Profile
While targeting expired listings, be sure to check the buyer profile of each listing and make sure they match your target buyers.
When going for an expired listing, it gets recommended that you target properties in high-traffic areas. Doing this increases the potential buyers you will be working with and the likelihood of a quicker sale.
4. Condition of Home and Neighborhood
The better maintained and more popular the community, the higher the chance of selling your property within a reasonable timeframe. Factors to look for when checking include local crime statistics, home conditions, and neighborhood demographics.
5. Other Sales Activity in the Area
Are there other properties in your neighborhood that have recently sold, and what was the price point? If recent properties have gotten sold at your area’s target price point, you are on the right track.
6. Foreclosures vs. Bank-Owned Properties
Expired properties listed by banks are in better condition and offer a higher success rate. Foreclosures can be older, in poor condition, and the bank- or owner- will be ready to forgive a higher number of negotiations.
How to Purchase a List of Expired Listings in Your Area?
You can use several tools to get expired listings in your area. Some of them include:
1. Real Estate Multiple Listing Systems (MLS)
Most MLS is an online database that real estate brokers and agents use to list and advertise properties. They typically offer an expired listings search as part of their MLS subscription service.
2. Commercial Online Data Providers (CODPs)
Several companies sell commercial data for a fee, including expired listings in your area. These companies include Info Group’s First Vision, Compuware’s Clear link, and Data Point.
3. Real Estate Agents or Brokers
Agents usually have access to most of the expired listings available in their area. The only downside is that you will have to pay them a seller’s broker commission to get access to the listings.
Many social and informational web forums are full of expired listings. Use the forums to search for MLS, expired, and active listing information.
5. Newsletters and Blogs
Many real estate publications on the web will have expired listings in your area. While they cost money to subscribe, they effectively provide up-to-date information. Many also have a blog section that will provide updated information on local market conditions and helpful tips for buying and selling properties in your area.
REDX is a platform that lists expired properties owned and maintained by real estate professionals. Registered members can use the site to search for and find expired listings in their area.
7. Social Media
Many real estate brokers, agents, and other professionals will list expired listings on their social media accounts. Following can be a great way to discover expired listings in your area.
8. Local Associations
Bigger real estate communities have local organizations that deal with either commercial or residential real estate within the community. These organizations keep track of expired and active listings available in the area. They often post this information online or provide a newsletter to members.
When purchasing a list of expired listings, ensure you understand the terms of these contracts and the details of how they deliver the information to you. Additionally, once you have your list of expired listings, it is recommended that you create a competing factors worksheet for each listing to determine which properties are most likely to sell.
Send Them a Postcard
A direct mail postcard should be sent once the expired listings list has been received. This method is more recommended compared to cold calling or knocking on the sellers’ door since the postcard has a chance of catching the seller’s attention and getting them to call you. Some other benefits of sending an expired listing postcard include:
1. Easy to Follow Up
If you send a postcard to an expired listing, your name is already on it. It will make sending future mailers easier. Besides that, the postcard’s boundary lines also make it easy to follow up.
2. It Saves Time
Instead of cold calling, why not send a postcard and save yourself the trouble? It is more convenient and will save you time.
3. It is Cheaper
It is cheaper to send a postcard than to call a seller. The cost of sending a postcard is only for the postage and the envelope.
4. It Gives You More Time to get Creative
By sending a postcard, you will have more time to think of a creative way to get in touch with the sellers. Additionally, by sending a postcard, you will be able to understand what the seller actually wants.
5. It Looks Professional
Post cards look professionally designed, and this may show the seller that you are a serious buyer. Besides that, a postcard promotes your brand more since it has the company name and address.
6. It Catches the Seller’s Attention
Sending a postcard does not necessarily mean that you are willing to buy the real estate property, but it could catch the seller’s attention and interest. Sometimes by sending a postcard, you have a better chance of impressing the seller. This way, you will have more chances of getting their contact information, and they may be willing to talk to you.
To sum it up, expired listings are a great tactic to become a more effective Buyer’s agent or real estate investor. Follow the above tips and witness you and your business grow exponentially.