Caution! Step-by-step, here is the way to get expired listings. Make sure you are following these as some include very big warnings!
- Check with state laws, rules and regulations to ensure nothing decries taking post-dated listings. Check also that it is legal to contact a seller about a future listing – even though the seller is currently in a contract to sell.
- Check your listing contracts to ensure they clearly rule out any other real estate broker’s right to collect commission from a canceled or expired listing.
- Search the MLS for properties that have only a few days left before they expire.
- Contact the sellers you find with an about-to-expire listing. Ask them about their intent to sell their property after the listing expires or if the property does not sell. Disclose immediately these things:
- You must ”’tell the seller you are a licensed real estate salesperson”’ with [your broker’s name or company name].
- Tell the seller on the call, “Good afternoon, my name is [name] and I am with [your company]. I actually do not have a buyer but am wondering something else. I viewed your property and saw it is going to fall off the market soon. After that happens, I was wondering if you had considered listing your home for sale with a different agent at that time?”
- You must ”’tell the seller you are interested in listing their property”’ only after their current listing expires. Tell them you will do a better job for them. Insist you have absolutely no interest in listing this property until its listing expires.
- Ask if they would be willing to sign a listing agreement now, with a future date (the date after the expiration of their current contract). They may be more than happy to do this because you gave them advance notice. Often during the listing – if there is little traffic to the property – or if their agent does not advertise properly on their behalf – they will be excited to sign a postdated listing.
- Ensure you tell them again that you have no intent to interrupt or force them to cancel their current contract.
- Keep track and count down when the date approaches for the expired listing. Meet with the customers and sign the listing, if you have not already signed a post-dated listing while following the previous step.
- Read all warnings below.
WARNINGS! If you attempt to procure expired listings, beware the following.
- Make a calendar for when to follow up with expiring listings.
- If you try to re-list an expired listing, without contacting the seller during the listing period, you will be too late. The best time to contact them (make sure you follow laws, rules, regulations, and the NAR Code of Ethics) is during the listing, not after.
- Keep your head up. You are doing the sellers a service if their property is not getting attention from buyers. If they do not appreciate your call they will tell their listing agent about it so be prepared to deal with jealousy and good-ol’-boys attempting to pressure you from using this technique to grow your business.
- Stay clean. Getting expiring-and-expired listings is often frowned upon because it is done without regard to ethical standard. Do it right and you will be viewed well by others.