Working with expired listing leads is a powerful strategy for real estate agents looking to find new clients. These homeowners are already motivated to sell, but their previous attempt was unsuccessful, making them a prime target for a new, effective agent.
However, expired listings are not just an opportunity for new agents; they are also a critical moment for the original agent to pivot their strategy and save the client relationship. In this article, we’ll discuss the key techniques and conversion tips to help you both win new clients and keep the ones you already have.
Expired listing leads: How to turn a setback into a sale
From an agent’s perspective, an expired listing isn’t a failure — it’s an opportunity to turn a challenging situation into a success. An expired listing simply means the contract with the seller has ended without a sale, and the home is now off the market.
Instead of seeing this as a dead end, think of it as a chance to hit the reset button. The “unsuccessful sale” provides valuable data.
Diagnosing the problem and creating a new strategy
To turn this into a win, you must first diagnose what went wrong.
- Analyze the market: Was the property overpriced? Pull recent comparable sales (comps) from the last 180 days to understand what’s truly selling in the market. This data will be the foundation of your new pricing strategy.
- Get honest feedback: Don’t be afraid to ask for help. Have other agents tour the home for you and provide honest feedback. The problem could be anything from the quality of the photos on the MLS to the home’s staging. Follow up with buyers who toured the house before and ask for their honest opinion.
- Go above and beyond with marketing: Consider adding the home to an MLS tour or working with other brokerages to host a progressive open house. Don’t forget to incorporate “old-school” strategies like going door-to-door and talking to the neighbors, who often have friends or family looking to move into the area. Utilize social media and email campaigns to reach a wider audience.
- Discuss your fees: Since the home didn’t sell, you might have some leverage to negotiate a new fee with the seller. This can be a strong incentive for them to re-sign with you.
Expired listings: A winning strategy for new clients
According to Redfin, the current U.S. housing market is a buyer’s market, with a significant imbalance of nearly 500,000 more sellers than buyers. This shift means homes are spending more days on the market, which can be frustrating for sellers but is a huge opportunity for a new agent.
“The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall,” said Redfin Senior Economist Asad Khan. “Many are still holding out hope that their home is the exception and will fetch top dollar. But as sellers see their homes sit longer on the market and notice fewer buyers coming through on tour, more of them will realize that the market has adjusted and reset their expectations accordingly.”
This longer time on the market means a growing number of expired listings. For sellers, it’s a critical time to re-evaluate their strategy. For agents, it’s a perfect chance to find new clients and demonstrate expertise.
How to find expired listings as an agent
Finding expired listings is the first step to building a strong pipeline of new clients. Here are the most effective ways to do it:
- Your MLS and public records: Your local Multiple Listing Service (MLS) is the most reliable source for expired listings. You can search for properties that have expired in the last few weeks and add them to your customer relationship management (CRM) system for follow-up. Using public records can also help you find listings that may not have been on the MLS. This method is essentially free, requiring only your time and MLS access.
- Lead generation platforms: If you want to save time, consider purchasing expired listing leads from a dedicated platform. These services, like REDX, do the hard work for you by compiling MLS and public record data into one easy-to-use list. These platforms can provide you with contact information, tax details, and other crucial listing specifics, allowing you to focus on your outreach instead of manual data collection.
- Networking with other agents: Don’t underestimate the power of your professional network. Reach out to other agents who are open to swapping expired listings. You can connect through email, social media, or by joining referral groups and local real estate groups on platforms like Meetup. This can be a great way to gain new clients and even earn referral fees.
Create a targeted prospect list
Before you start reaching out, take the time to build a targeted list of expired listings. It’s easy to get overwhelmed, so be selective. Focus on your niche: Do you specialize in single-family homes or condos? Which zip codes have you found success in? What price point do you thrive in?
By narrowing your focus, you can create a manageable list that aligns with your expertise. If you have a history of success in a particular neighborhood, be sure to mention that in your pitch. You could even ask a past client in that area to make an introduction or provide a glowing testimonial, which can significantly boost your credibility and chances of success.
Start with older expired listings
When searching the MLS for expired listings, it’s often best to start with the ones that have been off the market the longest. These sellers have likely had time to cool down and may be more open to a new conversation.
To find these listings, access your MLS system and filter your search by “expired” status. You can refine your search by specifying a date range, like the last 30 to 60 days, and by location. As you build your list, take note of the previous agent.
It can be a great strategy to reach out to them directly and ask what challenges they faced. This can help you quickly identify properties with unrealistic pricing expectations or other issues, allowing you to narrow down your list and focus on sellers you have the best chance of helping.
Ask and listen: The script for success
When you first make contact with an expired listing, your primary goal is to listen, not sell. The seller is likely frustrated and wary of another agent’s pitch. By listening, you build trust and gather the information you need to create a winning strategy.
Here is a script you can adapt for your first phone call:
You: “Hi [Seller’s Name], my name is [Your Name] and I’m a real estate agent with [Your Brokerage]. I noticed your home at [Property Address] came off the market recently, and I’m not calling to give you a sales pitch. I just wanted to ask you a quick question, if you have a minute.”
Seller: “What is it?”
You: “I was just curious — when you and your last agent were working to sell your home, what do you feel was the biggest challenge you faced? What do you think was the reason it didn’t sell?”
Then, simply stop talking and listen. Let them vent their frustrations. Don’t interrupt or offer solutions. The more they talk, the more you will understand their situation and the better you can tailor your approach. Once they’ve finished, you can thank them for their time and set up a follow-up conversation where you can present your plan to fix the issues they just told you about.
Educate, don’t push
When you’ve done your research and are ready to present your plan, remember that your role is to educate the seller, not pressure them. A seller with an expired listing is likely frustrated, and a pushy sales pitch will only add to their stress.
Come prepared with a data-driven plan. Know the current market inside and out, including what’s recently sold and for how much. Think outside the box and propose a unique strategy that goes beyond what their previous agent did. Be sure to highlight your specific successes in their neighborhood or with similar properties.
Lay out your plan clearly, explain how it will solve the problems they faced, and then let them make the decision. Simply state what you can do for them, and then follow up respectfully through a text, call, or email. The goal is to show them you are the solution to their problem, not another source of stress.
Bottom line: turning expired listings into leads
Ultimately, while an expired listing can be frustrating for everyone involved, it’s also a powerful opportunity.
- For sellers, it’s a chance to hit the reset button. You can gain a fresh perspective on why your home didn’t sell and find a new agent with a more effective strategy.
- For buyers, it’s a unique opportunity to negotiate a great deal on a dream home with a motivated seller and less competition.
- For agents, it’s a moment to pivot. Whether you’re trying to win a new client or keep an existing one, expired listings are a chance to showcase your expertise and turn a setback into a successful sale.
Frequently asked questions for agents to consider:
In pricing a property, what might expired listings tell the real estate professional?
Expired listings tell a real estate professional that the property’s previous price was likely too high for the market. They signal the price point that the market rejected, which is crucial data for setting a new, competitive price that will attract buyers.
Why are expired real estate listings important?
Expired real estate listings are important because they represent a significant opportunity for real estate professionals and a critical moment for sellers.
For agents, expired listings are a valuable lead source. Homeowners with expired listings have already decided to sell, but their previous attempt was unsuccessful. This makes them highly motivated and a prime target for a new, effective agent. By focusing on expired listings, agents can bypass the initial stage of convincing a homeowner to sell and instead focus on providing a superior service that leads to a successful transaction.