Expired Listings

Despite its ups and downs, people are still making money today in the real estate market. One way to find good leads for potential sales and investment property is with expired listings. These are properties that have been taken off the market for one reason or another, but not because of a sale. The realtor may have stopped representing the property or the homeowners may have been attempting to sell on their own, with no success.

So how do you make money with expired listings? What is the difference between those and homes that are new to the market? If you understand their unique situation then you may be on the road to making money through this avenue of real estate.

Why Expired?

Usually expired listings have expired for one of two reasons - the realtor was no longer interested in working with these buyers and vice versa, or the homeowners were trying to sell the home on their own and had no success. Rarely do listings simply expire because the homeowner is no longer interested in selling! This means that there is still potential for sales with these listings.

In any case, the homeowners may be somewhat frustrated with the process and may also realize that things need to change in order for them to actually sell. Often they are simply stubborn during their first attempts at selling and refuse to lower the price, perform necessary maintenance, or do upgrades that are needed for a sale. But often expired listings are owned by those that are now ready to do what is necessary in order to garner the sale.

Motivated sellers are always preferred when it comes to real estate, and expired listings are just that. If the house has been on the market long enough for the listing to expire, then they may realize it's time to change their strategy for a quick sale.

Making Money

So how do you make money with expired listings? Of course you need to contact the homeowners and find out their situation, and then explain why you can be the one to finally garner a sale. You may need to do some extra homework and preparation for these properties; if their price is too high, you need to show them comps in the neighborhood. If the home doesn't show well, you need to have a list of things they should consider in order to improve it's appearance or condition.

And you need to do everything that you would normally do with any other listing; marketing is key to get potential buyers in the door for open houses and showings. However, since the listing was taken off the market there are those who may understand that the sellers are now more motivated and would give the home a second look.

Using expired listings for real estate sales is a potential goldmine for a realtor, and one that shouldn't be ignored. With the right attitude and approach, they may often sell even quicker than new listings on the market!