Leads are the name of the game in the real estate business. Each lead represents another opportunity to step up to the plate and score a home run. Expired Listings are a rich source of leads. Here's how you can capitalize upon this rich niche and profit immediately.

Why Expired Listings?

Expired Listings represent a highly visible, readily available source of leads. You don’t have to beat the bushes, spend your advertising dollars or cold call to find them. There is no prospecting required. Simply run a MLS hot sheet every morning and, voila! - instant leads.

The MLS report will also provide you with everything you need to know to best determine how to work the listing. With a few simply keystrokes, you can obtain the home seller's name, address, phone, type home, current asking price and any price reductions that have taken place. Everything you need to effectively work the listing is right there, readily available.

Plus, this home seller is already sold on the concept of using professional services to effect the sale of their property. This means you don’t have to overcome the commission hurdle or justify your fee. That's already been done. Your only job, then, is to convince this seller to re-list their property and to re-list it with you. This makes the Expired Listing a relatively easy listing to secure.

Understanding the Mindset

While the Expired Listing is relatively easy to secure, that is not to say you don’t have your work cut out for you. You do. The key to your success lies in being able to understand and empathize with the emotionalal state of the prospect.

Realize this homeowner is probably feeling embarrassed. He’s embarrassed because his home hasn’t sold. The neighbors have watched his home sit on the market forever. His family and his friends all know of his failure, and it’s embarrassing. It’s humiliating.

He believes his decision-making ability has also been called into question. After all, he made the decision to hire the real estate agent. He is also probably feeling personally rejected becaus th homeis is the place he chose to live and raise his family. He has laughed, cried, anguished and rejoiced within its walls. And the home was rejected by the marketplace. It's hard for him not to take that personally.

This homeowner might also be angry. He’s angry because his property has been rejected and he doesn’t understand why. He’s angry because he is being forced to change whatever plans he had made. And, initially, he will direct his anger towards the listing agent because he or she is directly responsible. He trusted them to come through and they didn’t.

This anger could spill over to all real estate agents. After all, as members of the MLS, you were responsible to market his home and you didn’t. In his mind, every agent in the area knew his home was for sale - including you - and you didn’t produce a buyer.

So expect this homeowner to call your profession into question. Expect the homeowner to blame everyone and everything for his home not selling -- including you. Meet the anger. Encourage him to vent. Acknowledge the pain, salve the wound, and win.

Acknowledge the pain, and salve the wound.

Chances are the primary reason the house didn’t sell was because it was overpriced for the location, condition and terms they were offering. However, any agent who approaches the expired listing in this manner will have effectively shot himself or herself in the foot and rendered themselves lame. A better approach is to pace the emotions of this seller, gain rapport, and then provide a solution.

A simple post card mailing with the headline: "Sometimes even the Best Homes don't Sell" can go far towards gaining rapport because it takes the home seller's side and gives him a way out, a justification.

Continue, by pacing the emotions, "Ever since your listing expired, your phone has been ringing off the hook. It seems like every agent and broker in town knows exactly why your home didn't sell. Yeah, right. Where were they 2 months ago? If they know so much, why didn't they know enough to bring a buyer?"

Now that you are aligned with them, take responsibility (remember, this home seller also blames you) and then provide a solution: "You're right, you know. As a real estate professional who specializes in your area, I should have been able to produce a buyer for your home. But, quite frankly, I didn't know your home was for sale! You see, in order for a home to sell once, it must be sold TWICE. First to the hundreds of real estate agents serving the area, who, in turn, once they know your home is on the market, will sell your home to their buyers. Here's how I propose we get that done..."

Another approach is to ask them why they think their home didn't sell. Then listen. What ever the reason they think their home didn’t sell should be the area you stress you can fix. Since they perceive a problem - address that specific problem and you will go far towards securing the listing.

More tips for expired listings

When you review a CMA with a potential seller, consider using the term "failed listing" versus the less descriptive "expired listing." No one likes to fail, and no one appreciates a failure. Capitalize on this negative connotation by pointing out the reasons homes fail to sell: the property is priced too high; if we can smell it--we can't sell it, etc. Then show how your marketing systems and expertise can be used to position their home for success!

When you work with buyers and find yourself having a difficult time finding a suitable home within existing inventory, check the expired listings. Find a few likely homes, and then call these Expired Listings with good news -- you might have a buyer. What a great first contact!

The next time you have a listing about to expire and you don't think you have a chance to extend the listing, give permission to another agent to solicit the listing just prior to the expiration date for a referral fee if and when the property sells. You benefit by potentially recouping your marketing costs, the new agents benefits from a lack of stiff competition, and the seller benefits by a new marketing approach.

Win-win-win.

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Published: April 14, 1999

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Robert Fore is the president and CEO for Realty Profit Systems. He is a nationally recognized marketing trainer and strategist who specializes in combining the proven principles of direct response marketing with the cost-effective, worldwide penetration of the internet. Realty Profit Systems publishes the Online Real Estate Marketing Report at http://www.hometeam2000.com and offers a free, weekly e-zine of real estate marketing tips at http://www.top10realty.com.