A Path to Big Commissions - Harnessing the Power of Expired ListingsMay 13, 2023
Expired listings are a goldmine for real estate agents as they offer a wide range of opportunities for big commissions. The reason why expired listings are a rich source of leads for agents is because the property owner's willingness to sell their property has already been established. They previously took the action of actively listing their property for sale with another agent, which means that their intent to sell has already been proclaimed.
When it comes to sales, one of the first rules I learned back in 1996, and still embrace today, is to always make sure you are speaking to the M.A.N. M.A.N is an acronym that stands for Money, Authority and Need. To successfully sell something, you must be speaking with a person who has the money, authority and need to make a buying decision. Expired listings are the perfect embodiment of the M.A.N acronym.
The money to invest in listing and successfully selling the property is already implied by the fact that the property owner is an expired listing vendor. This is evidence that they were willing to invest the marketing funds required to sell their property and had already gotten over the objection of paying real estate agency commissions as a necessary part of the transaction of a successful sale.
The authority when it comes to real estate leads is always easy for us, as we all know that it is only the property owner who can grant permission to sell the property. However, what makes expired listings such a pot of gold, is that we're not having to guess or try to ascertain whether this authority figure is considering selling their property. The previous listing events confirm for us that this authority figure does indeed want to sell their property.
And then we come to the magic sauce of the ‘NEED’. The need in the transaction of an expired listing forms the double-edged sword of which your success or failure as the new listing real estate agent will fall. However, what we are 100% sure of is that there has been a very clear need expressed by this potential seller. The need to sell their property.
Another reason expired listings are worth their weight in gold is that they are primed for agents to create powerful and compelling pre-listing presentations which can be sent to the potential seller prior to the face-to-face listing presentation appointment. If you have been following me for a while, you will know that I am a big believer in sending a detailed pre-listing presentation to the potential sellers prior to the face-to-face listing presentation appointment.
The pre-listing presentation is generally in a digital format, it serves the purpose to educate and inform the potential seller on the activity within the local marketplace, it will educate and inform the potential seller on how properties that are very similar to their property successfully sold and performed in the same marketplace in the previous 6-12 month period, it will educate and inform the seller on which properties struggled to sell in the marketplace in the same period.
The pre-listing presentation will position the real estate agent as the local property market expert and will detail to the potential seller the agent's most recent testimonials and reviews. Finally, because the pre-listing presentation covers a lot of the preliminary face-to-face listing presentation content, it allows the face-to-face listing conversation between the real estate agent and the potential seller to focus on understanding and addressing the sellers’ objections to moving forward with listing the property for sale.
We all know, it is in the objection stage of any sales conversation where the nitty-gritty of the deal is hammered out and deals are struck! To learn more about the power and performance of the pre-listing presentation click the link included to today’s blog post where you will find a 7-Day Free Trial to the Get Listings Bootcamp.
In conclusion, expired listings offer a wealth of opportunities for real estate agents. They are a prime source of leads as the property owner's willingness to sell has already been established, they embody the M.A.N acronym, and they are primed for creating powerful pre-listing presentations. By understanding the need of the potential seller and addressing any objections, agents can successfully close deals and earn big commissions from expired listings. So, don't let these opportunities pass you by, start mining and fishing for expired listings today!