Expireds & FSBO’s are coming! Are you ready? by Brad Pearson
This is a subject near and dear to my heart! I received my license in 1992 and spent the first several weeks knocking random doors, hanging door hangers, and holding open houses, to no avail, until I met a wonderful gentleman while working on the MLS computers in the office one afternoon named Ed in his late 70’s who had been a Realtor for 30+ years. I was sharing my frustrations with him when he smiled and said “you need to work expired listings and for sale by owners”. Ed and I continued to have a long and involved conversation about these opportunities. He shared everything he knew about them and inspired me to make them my new focus. The crazy part about this story was what happened minutes later as we walked back to our desks in the bull pen. Ed worked on the far side of the office opposite of where my desk was, and while he was walking through the bullpen, he fell to the floor suddenly, and right there in the office, Ed suffered an aneurysm and passed away at the hospital that day. Needless to say, at 21 years old, this was a day I’ll never forget, and I’m so fortunate to have had the opportunity to spend that time with such a great guy. Ed had a huge impact on me in that short period since back in the early 90’s, a 21 year old kid wasn’t generally received well by the other agents in a real estate office by most of the seasoned agents, and I was no exception. There was no shortage of agents willing to tell me all the reasons I wouldn’t make it in real estate. His willingness to share what he knew and impart his wisdom to me so unselfishly helped turn my failed start around almost instantly. I credit Ed for taking me from zero listings in 2 weeks to 21 listings in the next 45 days. And, yes, my pricing was all over the place, but with that listing inventory, I was able to put 6 in escrow rapidly and close over 30 transactions my first year. I don’t share this to brag, I share this because the vast majority of my business was expired listings and for sale by owners that first year and it solidified my place in the real estate business. I will share with you now why I think Ed’s advice is still relevant and will be more and more relevant as 2014 continues!
The shift from the low inventory sellers market to a more balanced market with steadily increasing inventory has created a fairly predictable 2014. While home sellers got pulled back into the market due to the increasing prices in hopes of cashing in, inventory rose enough to slow the market leaving more and more sellers pricing their homes on the high side causing them to expire from the market. These transitional conditions are creating a market that is perfect for the real estate agents who are willing to prospect two sources that have been very scarce in previous years… Expired listings and For Sale by Owners!
In every market where inventory is increasing, and time on the market is growing, expired listings are inevitable. While home sellers hold out for higher prices, buyers seek out the most motivated sellers in hopes of getting a good deal. This forces a growing percentage of homes into expiring from the market. Some of these expired sellers will relist, some will just go off of the market, and others will attempt to sell their home themselves in hopes that cutting out the commission will allow them to price the home low enough to sell and not “lose” any money.
While sellers and buyers expectations get into alignment, we will play an integral part in helping that alignment happen!
This is why so many are calling this a “real estate agents” market rather than a “sellers or buyers” market. While there will certainly be opportunities for buyers and sellers to win in this market, the real estate agent will be a critical part of creating success for those buying or selling. Great marketing, a trusted brand, a robust advertising budget, and a skilled real estate agent will matter more than they have in years! It will take more than having a license and belonging to the MLS to list and sell a home. Faxing documents to a bank on a short sale didn’t take much skill, nor did getting a short sale seller to agree to pay a commission when they weren’t paying it. The playing field was leveled and while there was definitely stronger agents than others out there, what made them strong was very different than what will make them strong now. For some of us who have been in the business for 20+ years, it is almost hard to imagine that there are agents who have never knocked on an expired or for sale by owners door. The reality is that anyone who has been in the business between 5 and even 10 years, have likely not had to work expired listings and for sale by owners because there were very few if any of them during this period.
So, here’s where the opportunity lies! While the vast majority of real estate agents will take months or even years before they begin working expireds and for sale by owners, those who start early and hone their skills by learning the scripts, dialogues, and strategies will have very little competition and a huge opportunity to list and sell a lot of homes! But be prepared, you’ll need to use your sales skills, know your presentation, know the objection handlers, know pricing scripts and strategies, be with a firm that has a legitimate value proposition to the customer, and remain consistent and focused daily!
As always, I’m happy to sit down for a private coaching session on any subject, and I just happen to have some very solid experience with expireds and fsbo’s that I’d be happy to share! I can be reached at 714-782-2723 or email at Brad.Pearson@camoves.com.
For information on joining Coldwell Banker Residential Brokerage / Previews International, don’t hesitate to give me a call!
Posted on February 24, 2014, in Education/Coaching, Motivation, Uncategorized and tagged expired listings for sale by owners coaching training coldwell banker brad pearson north orange county anaheim hills yorba linda real estate agent realtor growth success. Bookmark the permalink. Leave a comment.