In a recent workshop there was mention of marketing to expired listings as a strategy. I like this idea, but have some questions about it:
1) Isn't it likely that many of the recipients will be over-priced and inflexible deals? That would of course explain why they couldn't sell it before the expiration date.
2) With properties that are over a million, are these even worth writing to? It seems these could actually be the better opportunities if they turn out to be short sales, right? And if so, shouldn't the letter be very different (i.e. more professional looking) than the typical hand-written note or YellowLetter?
My understanding is that with this strategy you want to just send out a high volume in the hopes of getting the handful of listings that happen to expire mainly because the realtor was out to lunch - is that right?
Thanks.
Replies
Thanks. I also figured out the answer to my question about high-end homes; it's much better to have a more professional letter.
Expired listings are a good source for leads, why? At some point they wanted to sell their house for some reason. The strategy is like any other, you won't hit on all, but you won't hit if you don't try. Some were overpriced and the owner will not budge, some the realtor listed wrong, some were trying to get out of trouble and couldn't sell. It doesn't matter what the price, it matters whether or not they are motivated.
Below is my opinion to atleast the first question you raised:
1) Isn't it likely that many of the recipients will be over-priced and inflexible deals? That would of course explain why they couldn't sell it before the expiration date.
It depends. There are expired listings where the sellers are inflexible and want a certain number. Then it is a matter of being creative on deal structuring and seeing if you can get them that number but the terms you want out of the deal. Then there those listings wherein the realtor either over promised and could not deliver because of being busy or not knowing the true market value for that area as he or she was an out of town realtor.
The million dollar properties question I cannot really comment on as that is not the asset class space that I work within.
Happy Investing
Ankit