Expired listings marketing offers real estate investors the opportunity to help homeowners sell their home once their realtor contract expires.
By utilizing expired realty lists, investors and real estate agents can locate homeowners eager to sell. In order to achieve success, realty professionals must first develop a strategic marketing plan.
Before jumping into expired listings marketing it is important to understand the mindset of potential clients.
An expired real estate listing occurs when realtors are unable to sell the property. The majority of homeowners are upset and anxious that their property has been on the market for six months or longer without attracting qualified buyers.
Anyone trying to sell a house in today’s market is painfully aware that times are hard. However, those who desperately need to sell their property need results, not excuses. Therefore, it is crucial to create real estate marketing materials which focus on the sellers needs and offer strategies that will place a solid sign in front of their home.
Most real estate agents check the multiple listings service (MLS) database on a daily basis to locate new and expired listings. When agents locate a hot property they quickly send out an expired listing letter to acquire the listing. Investors may end up competing against dozens of realtors, so it is imperative that their marketing materials stand out from the rest.
The biggest mistake any marketer can make is to create marketing materials that toot their own horn.
While it is important to showcase previous successes, the primary focus should always be directed on homeowners’ needs. Investors who address client needs, wants and fears can connect with their audience on an emotional level.
People need to feel that someone understands them and can help solve their problems. While it can be impressive that you sold a $10 million dollar property, homeowners whose real estate contract has expired want to know exactly how you plan to sell their home.
At present, real estate is a buyer’s market. Most homeowners are struggling to sell their home at its appraised value. Sellers are competing against an abundance of reduced cost foreclosure, bank owned and short sale properties. Since buyers can purchase real estate well below market value they are rarely willing to offer the full asking price for houses in perfect condition.
Expired real estate listings are generally the result of sellers refusing to reduce their asking price.
In order to help sellers obtain top dollar, investors should become familiar with creative financing options that can attract a new group of buyers. These include 1031 exchanges, subject to, lease-to-own and seller carry back mortgages.
The last thing property owners want to hear is that their asking price is too high. Many homeowners have already witnessed property values drop by 20-percent or more. Suggesting they reduce the price only adds insult to injury. Instead, suggest they engage in creative financing and explain how each strategy can help them attract buyers who cannot otherwise qualify to buy a house.
Real estate professionals should develop a variety of expired listings marketing materials.
Each piece should build upon the last. For instance, investors would send an initial contact letter to introduce their company and available services. Two days later, they would send an expired listings postcard inviting sellers to contact them for a complimentary consultation. A few days later, investors send a marketing brochure which addresses their home selling problems. Next, investors contact sellers by phone and use an expired listings marketing script.
Many real estate investors use the services of marketing professionals to help them develop appropriate expired listings marketing materials. Another option is to purchase real estate marketing kits that include premade templates and scripts.
Realtors and investors who specialize in expired listings marketing must be able to deliver on their promises.
Make certain you understand the market and have a solid network in place to help you close the deal. Expired listings can be a profitable niche for those who take time to become educated about available options and develop strong marketing materials.