Expired to Hired

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  • Hi Stacey, I really like what you have to say. Expired listings are a great source for realtors. The thing is you really have to go above and beyond when attracting these listings. I made an updated version of your post here on Easy Agent Pro: http://www.easyagentpro.com/blog/expired-listing-letter-samples-templates-and-how-to-live-large-on-expireds/ Hope you find it useful.
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Expired to Hired

  1. 1. EXPIRED TO HIRED Everything you need to know to make a lucrative living on Expired Listings 1
  2. 2. What Is An Expired Listing?  2 A listing that has been on the market for an entire contract period (usually 3-9 months) without procuring a ready, willing, and able buyer.
  3. 3. Why Do Listings Expire?    3 Price: Overpricing is the number one reason listings do not sell. Short Sale: The process of getting lender approval resulted in lost buyers. Condition: Owners did not keep property in great condition; depersonalizing it so prospects could see themselves at home.
  4. 4. Why Do Listings Expire?   4 Marketing: Advertising does not sell houses. Agents do. The seller may have worked with an agent that did not promote the property to the widest possible buyer pool. Communication: Teamwork between seller and agent is essential. If the seller was unreasonable to work with – there may have been nothing the agent could do to get the home sold.
  5. 5. Why Is This Information Important?   5 If you want to make a living selling expired listings then you will need to be well versed in: (a) convincing expired listings to sign a contract with you, and (b) getting the property sold. Once you have a track record of success selling expired listings, it will become even easier to attract more of them.
  6. 6. Can you REALLY make a living on Expired Listings? 6
  7. 7. Yes…But First Know Your Market!   7 What towns do you do business in? Make a list of all of the towns you work in. Next, search your MLS to find out how many listings expired in the last twelve months.
  8. 8. How Many Expireds?   Let us say you are in a metropolitan area with an average of 1200 expired listings per year. That would be an average of 100 listings per month. EVEN IF… 8
  9. 9. EVEN IF…    9 25% were just not interested in selling -AND25% will soon be foreclosed on YOU STILL HAVE 600 qualified sellers over a 12 month period
  10. 10. So… With a small amount of effort and consistency, is it possible for one agent to capture 2% of the Expired Business? * Even assuming that 50% of the Expired Listings are Not Saleable Listings, that is an average of 12 additional listings per year! 10
  11. 11. Could You Use An Extra 12 Deals A Year? How much $$ does that translate to? It depends on the average prices. Average Price = $200,000 x 3% = $6000 x 12 = $72000 gross per year 11
  12. 12. NOT TO MENTION: - 12 The additional buyer calls The referrals from your expired seller Your increased likelihood of listing more expired listings Potential listings from buyers looking to buy your expired!
  13. 13. So Do We Want Expired Listings? YOU BET!! 13
  14. 14. Where Do We start? First it is important to have patience! You may be lucky enough to re-list an expired listing within a week or so of starting an expired listings campaign, it may take a while for your process to mature to the point where you start getting real estate listings. 14
  15. 15. But if you make farming expired listings a mainstay of your real estate marketing efforts, you should be able to develop a steady stream of prospects within 3 - 6 months, depending on your local market conditions. 15
  16. 16. Step 1: Keep A Log 16
  17. 17. Your Log  17 The reason that the Expired Listing Log is important is that you will be sending or dropping by information on a regular basis. It is important to check your log each time so that you have a list of prospects and it is important to always make sure they have not already re-listed with someone else.
  18. 18. Step 2: Your Search  18 Set up an automatic Hotsheet for expired listings so that you can quickly pull them every morning.
  19. 19. Step 2: Your Search  19 When pulling your Hotsheet make sure to include Expired and Reactivated Listings so that you can watch for properties that have returned to the market.
  20. 20. Step 2: Your Search  20 It is best to pull this Hotsheet every morning.
  21. 21. Step 2: Your Search  21 Other than that… EVERY EXPIRED LISTING IS GAME!
  22. 22. Step 3: Your First Contact The campaign that we have designed is comprised of several touches. It is a 10 touch program so that you remain in constant contact. If by the end of the 10 touch campaign you have received NO feedback, you should remove them from your campaign. 22
  23. 23. Step 3: Your First Contact If you have made contact and they are not yet ready to sell, put that expired seller into your regular database so that they will also remain part of your regular yearly marketing campaign. 23
  24. 24. Step 3: Your First Contact The reason that we have designed this program with 10 touches is because we have designed it with one person in mind. 24
  25. 25. Step 3: Your First Contact NO…NOT THE SELLER…. 25
  26. 26. Step 3: Your First Contact AN AVERAGE REAL ESTATE AGENT 26
  27. 27. Step 3: Your First Contact How Many Times will your AVERAGE real estate agent touch this expired seller? 27
  28. 28. Step 3: Your First Contact ONE (If at all) 28
  29. 29. Step 3: Your First Contact Since you are 10x better than the AVERAGE Real Estate Agent, how many times will you touch this expired seller? 29
  30. 30. Step 3: Your First Contact 10x 30
  31. 31. Step 3: Your First Contact The most important part of your Expired Campaign is Persistence and Consistency. It will take 3-6 months of both to see real gains! 31
  32. 32. BEFORE WE CONTACT: Before we make the first contact with the EXPIRED seller, what is it that we already know about him or her? 32
  33. 33. BEFORE WE CONTACT: 1. They are discouraged 2. They probably are not a fan of Real Estate Agents in general. 3. They may think all real estate agents are the same. 4. They have some understanding of the market, but may not be educated enough. 33
  34. 34. BEFORE WE CONTACT: 5. They probably do want to sell. 6. They are looking for answers as to why their property has not sold. 7. They might think they can sell it themselves and for a lower price. 8. Like many sellers, they think their house is special and they want us to keep that in mind when we talk to them. Their house is not a commodity, it is their home, their memories. 34
  35. 35. Understanding Emotional State  35 The key to your success lies in being able to understand and empathize with the emotional state of the prospect.
  36. 36. BEFORE WE CONTACT: It is important to keep all of these aspects in mind as we begin the process of campaigning to the Expired Seller. Our system is designed using a “soft” touch with good information about the market. 36
  37. 37. BEFORE WE CONTACT: By touching them 10 times with information that will help them sell their home no matter what, it will differentiate you as a true professional. This system is designed to build trust over time so that, in the end, you walk away with a signed listing contract on a home that is saleable. 37
  38. 38. Step 3: The First Contact We recommend that the first contact be made the MORNING that listing expires. That is why it is important to watch your Hotsheet every day! Most agents will mail a generic letter. You, on the other hand, are showing up in person on day one with your “item of value.” 38
  39. 39. 39 Touch #1
  40. 40. What does this show the client? 40
  41. 41. It Shows Them That…  You are a marketer! The paper towels are very different. Do they want someone who markets a little different to get buyers in their door? YUP! 41
  42. 42. It Shows Them That…  Your are a professional! You understand absorption rate and how that affects their home sale. Did their agent explain absorption rates to them? 42
  43. 43. It Shows Them That…  Your are prompt! Their listing agreement is freshly expired. While every other agent is mailing them a generic letter, you have already stopped by to leave them something! 43
  44. 44. It Shows Them That…  There is more information to come! They will now be watching out for more information… so for the next 7 days let us make sure they get plenty of info about how you run your business! 44
  45. 45. Step 4: The 2nd Contact  45 Now, you have already dropped off the paper towel package. That same day you should send your first item of mail to them (this is touch #2). They will most likely receive other correspondence from other agents on the same day. You will remain first and foremost in their thoughts since they will recognize you from the paper towels!
  46. 46. Step 4: The 2nd Contact  Since the expired seller will be receiving LOTS of mail from LOTS of agents, we want yours to have more information, more color, and come in a larger envelope. So, for touch #2, you will send them a market analysis….. 46
  47. 47. Step 4: The 2nd Contact Without the Price 47
  48. 48. Touch #2 Make sure to change the letter inside the market analysis…we do not want to share a price right now. 48
  49. 49. Why should you send a market analysis without a price rather then a generic expired letter? 49
  50. 50. Why Should You Send A Market Analysis Without Price?   It differentiates you from EVERY OTHER REAL ESTATE AGENT! It gives them INFORMATION.    50 How much did the house down the street sell for? How many houses have sold? How many houses have expired?
  51. 51. Why Should You Send A Market Analysis Without Price?   You are NOT just asking for a listing… you are PROVIDING VALUE. You are giving them information about…     51 YOU Why they should use a Realtor The importance of pricing right Tips on Selling Their Home
  52. 52. Why Send Them A Generic Letter….  52 When you can send them an entire book about the market!
  53. 53. We Recommend     53 Using a 8.5x11 envelope (or a cylinder) so you do not have to fold the book. Always handwrite the name and address on the envelope. Include a return address label. AND…….
  54. 54. Step 5: Mail… Mail… More Mail.    54 For the next 6 days we have set up a campaign where you can touch the expired seller each and every day. Once you have set up a system for doing this, it will be EASY. Most of the materials can be printed in advance so that you can have plenty ready to mail every day.
  55. 55. Step 5: Mail… Mail… More Mail.   55 On the first day that you start campaigning to an expired have all ten touches ready to go. Give them to the administrator all at once and place notes on each item with the date it is to be mailed.
  56. 56. Step 5: Mail… Mail… More Mail.    56 Each item that will be mailed is specifically prepared to show your competence in the marketplace. The pieces are professional, colorful, and informative. This will separate you from the many agents that will be sending just one letter.
  57. 57. Step 5: Mail… Mail… More Mail.   57 You are also taking this 10 touch opportunity to inform your client about the market. After all, our first goal is to get an appointment with the client, but our second is to list a saleable property!
  58. 58. Touch #3 Mail a Marketing Plan! 58
  59. 59. Why A Marketing Plan?     59 Shows that you have a plan. Shows you taking action. You are not just asking for a listing, you are establishing your value. You are explaining (page 1) how the RE/MAX system works… YOU handle all of the calls!
  60. 60. We Recommend     60 Using a 8.5x11 envelope (or a cylinder) so you do not have to fold the book. Always handwrite the name and address on the envelope. Include a return address label. AND…….
  61. 61. Make A GREAT Label To Draw Attention! 61
  62. 62. Touch #4  62 Send Them a Sample Flyer!
  63. 63. Why Sample Flyers?     63 Shows that you have access to 1400 marketing materials. These sellers want to see more than just a listing sheet. You are not just asking for a listing, you are establishing your value. You are showing that you are a Marketing Expert.
  64. 64. We Recommend     64 Any size envelope will work with this. Always handwrite the name and address on the envelope. Include a return address label. AND…….
  65. 65. Touch #5  65 Tell them about your Charitable Initiatives
  66. 66. Why Brag About Your Charitable Initiatives?   66 Shows you care. When all else is considered equal by a seller choosing between Realtors, he/she will always choose the agent who is giving something back.
  67. 67. We Recommend     67 Any size envelope will work with this. Always handwrite the name and address on the envelope. Include a return address label. AND…….
  68. 68. Touch #6  68 Did their last agent provide community and school information?
  69. 69. Touch #6  69 Community and School Information may be obtained from the state and town websites
  70. 70. Why Talk About Community And School Profiles?    70 Demonstrates that you are not just selling a house, you are selling a community and a school system. Shows that you are diligent in providing all of the information that a buyer needs to make an informed decision. Gives the seller a reason to compare you to the other agents.
  71. 71. Why Talk About Community And School Profiles?   71 There are many places online to get detailed school reports. http://www.schoolmatters.com/
  72. 72. Touch #7  72 Remind them the importance of working with an agent from YOUR firm
  73. 73. Touch #8 (send on day 14)  73 Follow Up & Information on Financing
  74. 74. Why Send Them Information About Financing? You are not asking for a listing, you are establishing value.  You are separating yourself from other agents by showing them the importance of aligning with a good mortgage company.  74
  75. 75. Touch #9 (send on day 30)  75 Testimonials
  76. 76. About Sending Testimonials     76 Ask past sellers if you can give their name and email or phone number for a reference before you do so. An expired seller may be agonizing over whether they should re-list. This establishes a comfort zone. References that the seller could contact probably were not offered by their last agent. You are keeping the seller informed about what is selling in the marketplace.
  77. 77. Touch #10 (send on day 45)  77 Follow Up Letter
  78. 78. What Does The Follow Up Letter Do? Lets them know that you will put them in your database.  You have to decide if this client is worth pursuing now. If you have not heard from them over the past 45 days you may not want to continue the follow up.  78
  79. 79. Other Letters Or Flyers To Consider Sample Newsletter  Tax Credit Materials  Virtual Tour Example  Flyer with other expireds you sold  79
  80. 80. Sample Scripts When You Do Talk To Expired 80
  81. 81. Why Use The Super Agent Script? This script enables you to retrieve as much information as possible.  If you get an email address, make sure to send an email of a sample webcommercial.  Always try to make the appointment before you leave!  81
  82. 82. Other Great Ideas For Expireds A website geared specifically to expired buyers  A blog geared to expired buyers  Keep track of success stories and always share those with your expireds!  82
  83. 83. And The Biggest KEY!  Consistency 83 and persistence!
  84. 84. Thanks Again For Joining Us! 84

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