As market inventory has increased in most areas, more listings are not selling and show up as expired. Conventional wisdom is this is one of the best places to prospect if you want to increase your business. Sometimes this is true, but sometimes not. Should you be spending some time in this niche?
My question for my coaching clients is to ask themselves each day "what is the highest and best use of my time?" My companion question to ask yourself, "What 3 actions could I take today that would make the most difference?" Hint: these are not usually the squeakiest to-do items, but rather the things that could have a major impact on your short and long term goals.
Often,the action that makes the biggest difference is prospecting! While I am in alignment with the concept that you'll be able to build business faster and more effortlessly with the people who know, like and respect you, I also believe most agents need to be looking outside these people if they really want more than they have now.
Expired listings offer an opportunity with a group of people that have an interest in selling. Now, you'll notice I didn't say they were motivated to sell, because, quite frankly, many of them are not. This is one of the reasons this niche takes some forethought and a great system to work.
A Shameless Plug.....To give yourself the structure & system, join the next Real Estate Expired Game™ !
When I say some are not motivated, what I mean is they are not realistic about what they think their house should sell for or what they need to do to make it saleable. When this is coupled with a lack of need to sell (being transferred or bought another house), it might just be a total waste of time.
Here are some success strategies for working with Expireds.
1. IT IS A NUMBERS GAME. I've been saying for years that it is a RELATIONSHIP GAME rather than a numbers game, and I still believe that most of the business we get is about building relationships. Expireds, however, may be in a hurry to get their house get back on the market and get sold quickly. You don't have the luxury of wooing them and building relationship over time. You must get their attention immediately and do it with credibility and differentiation so that they believe you are DIFFERENT than their previous agent. You don't want every one of these listings (Remember what I have said about life being too short to work with high maintenance people who don't respect you.... AKA jerks!). You have to be ready to get "no's", to not take it personally or let it mean anything about your worth, and to move on. You just say ,"NEXT"!!!
2. KNOW WHEN TO SAY NO. If you sense these people are either not a good fit for you personality-wise or they are not going to list where they need to, walk away. You must have standards to build a good business. Time, energy and money spent on people who aren't willing to do their part is wasted and lost forever. It is not much different than a doctor telling someone they need to stop smoking and the person not listening and then developing lung cancer. If the client won't do what it will take to get the home sold, it isn't your fault it doesn't sell. However, shame on you if you let them talk you into "trying" it when you KNOW it won't work. Set your standards and stick to them.
A Good question to ask yourself is: "Would you rather be liked or respected?"
Walk away with your integrity in tact (and they probably will call you when it expires again!)
3. Have Empathy - These people usually are disappointed, frustrated or just plain mad! Their previous agent promised to get the job done so they'd be able to move into the next chapter of their life and it was a lie! So, don't take their frustration or anger personally. Ask them, "What happened?" This is different than asking them why they didn't think their house sold-subtle but different. You'll hear clues of what they want in their next agent. Let them vent. Don't try to give your solution right away, but give them time to wind down by expressing all their frustration. This will build their perception of your communication skills!
4. Be There First - The common perception is that these people are getting inundated by agents, however, I do not usually find that to be the case. The majority of agents are relying on passive contact. If you are the 1st or 2nd agent to actively connect with them-either on the phone, or if you are scared of the DNC rules, by dropping by, you have over a 60% chance of getting the listing IF they relist. Timing counts. If they are going to re-list, they will be in a hurry to get their house back on the market. Use a service like TheRedX to find the contact information, scrubbed against the DNC list and that gives you scripts and materials to manage the contacts.
5. Wow Them! - Differentiate yourself immediately. You don't have the luxury of building relationship slowly, but you must impress them with services, knowledge and skills that the other agents are not demonstrating.
This is
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When you want to show up with your tablet computer.
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When you want to demonstrate your call capture system.
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When you give them an excel spreadsheet they can use as a scorecard when they interview other agents, listing your designations, your unique marketing tools!
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Or, how do you Wow them??????????
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Take the number of homes currently on the market (let's say 20)
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Divide by the number of homes that sold last month (Let's say 2)
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This gives you the # of months of inventory (Gives you 10)
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Now explain it this way " Mr & Mrs Seller, we have 10 months inventory on the market.
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This means only 10% of the homes are going to sell next month and 90% are not.
If this does not change their thinking and their strategy, it may be this is one to walk away from!
Most agents give up after a few7. Hang In There! contacts. The average seller will not make up their mind until they have had multiple contacts from you. But this needs to be systemized so that it is a no-brainer. Use an action plan to give you a daily list of what letter, card, call or visit needs to be made. Or use a service like TheRedX.
Consistency is important. You are demonstrating how you differentiate yourself.
The importance of following up is made clear in these statistics from the Association of Professional Salesmen and the National Sales Executive Association:
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2% of sales are made on the 1st contact
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3% of sales are made on the 2nd contact
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5% of sales are made on the 3rd contact
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10% of sales are made on the 4th contact
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80% of sales are made on the 5th-12th contact
7. And Then There is Condition. Their previous agent probably didn't take the time to coach them on presentation. Do they need to clear the clutter? Do they need to make some repairs? Take out the shag carpet? Give them the stats from www.Realtor.org on what their return will be on various repairs or upgrades. If they are moving, they need to start packing anyway.
Here is something I found interesting: bad photography is right up at the top of the list with reason's why something doesn't sell. Doesn't that amaze you? Especially given how easy it is to use a digital camera to take lots of photos and how easy it is to make a virtual tour.
www.Point2Agent.com is offers free virtual tours with their Premium accounts.
www.microsoft.com/photostory is a wonderful free program that uses your photos for a pretty cool looking tour. What other resources are you using?
You'll never list any if you don't get started. And, you'll get better the more actions you take....If you need ideas and support, don't wait, The next Real Estate Expired Game™ starts on Monday, April 30
I have also hosted a conference call that is available as a podcast here about getting listings sold that has some good tips on what it takes.
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