FSBOs and expired listings can be some of the warmest leads you can get, but they require a little more work to convert. Thankfully, there are a few programs that can make this prospecting process a lot easier.
Access to this data and the tools to turn these prospects into clients can be precious for your business. Let’s explore why it’s worth putting in the effort to prospect these leads.
They’re Interested
Many real estate agents use Facebook ads and direct mail campaigns as their go-to lead generation strategies, but they come at a cost with a 1-3% conversion rate (if you’re lucky). So why waste your time? Expired and FSBO leads are a more reliable and affordable solution.
These homeowners already tried to sell their homes and didn’t, for one reason or another. Whether it was market conditions, over or under-pricing, or just not the right agent working with them, they’re open to talking to you and have already demonstrated that they want to sell their property.
Cold calling and email are two of the most effective ways to reach out to FSBO and expired listing leads. If you’re a cold caller, consider using an automated dialer to make it more efficient and save time. And if you’re an emailer, consider creating a targeted content campaign for these leads that provides valuable information on how to sell their homes or whether or not it makes sense to work with a realtor.
Lastly, you can also use a CRM system to find expired listings within your area quickly and easily. These programs will provide you with the data, contact information, and marketing tools to reach out to these leads systematically so that you can nurture them and convert them into clients over time.
They’re Ready
When a listing lapses, the owner has lost confidence in their original agent or wants to try something different. Either way, they will work with a new agent to sell their home. This makes working expired listings one of the most efficient and rewarding lead sources for real estate agents with the patience and persistence to work them.
Typically, a well-written script will help agents build rapport with expired leads. This can be done by explaining that the previous agent’s mistakes led to their failed sale while demonstrating that you have the knowledge and resources to ensure their property sells this time. The script should also offer a clear incentive, such as lower commission rates.
The best FSBO and expired listing scripts will provide multiple options to handle common objections from homeowners. These can include concerns about pricing, the cost of commissions, and whether or not their home is ready for the market. A compelling script can prevent agents from losing momentum with these prospects, but agents must be prepared to handle these objections before calling.
Many real estate dialer services can help agents prospect FSBOs and expire using their CRM. These tools can be configured to find, fax, and upload these leads automatically. They also run each piece of information through a series of augmentation processes to verify the homeowner, locate their phone number and filter out Do Not Call list numbers. This allows subscribers to differentiate themselves from competitors with high-quality, qualified leads.
They’re Explicit
Real estate agents can get a leg up on their competitors by prospecting expired, and FSBO leads. This lead type provides a lucrative opportunity to secure new clients looking for a trusted agent who has tried to sell their homes independently but failed to succeed.
Unlike many other seller groups, this group has explicitly stated that they are open to working with a real estate agent. Prospecting these leads requires consistent follow-up and a well-crafted script to overcome objections. It is also essential to know that FSBOs are more likely to have their phone numbers listed in public classifieds, online, and other sources, which makes them more vulnerable to receiving unsolicited sales calls. This can result in their phone number being added to complain directories and blocklists.
Luckily, many tools can help real estate agents generate a list of potential FSBOs and expired listing owners to prospect. These include geo-farming, a process where an agent uses software to find homes advertised for sale in specific neighborhoods or zip codes and then sends them out with direct mail. Alternatively, a realtor can manually search the MLS for expired and FSBO listings that have fallen off the market to prospect these homeowners. This is an intensive process. However, it can yield great results.
They’re a Good Fit
Homeowners whose listing agreements with real estate agents expire are often eager to work with an agent. They’ve been disappointed in their previous attempts to sell the property and are looking for a new solution to deliver a successful outcome.
Cold calling expired listings requires time, effort, and money, but it can yield high conversion rates for a business. It’s a good strategy for a growing real estate agency and a great way to generate leads and build a local reputation.
The challenge with prospecting FSBO and expired leads is that it can be difficult to track down contact information for homeowners who no longer have for-sale signs in their yards or a listing in the MLS. A few tools exist to help you mine these leads more effectively. Many of these services offer a CRM dialer that automatically searches your local MLS for FSBO and expired properties. They can also automate your follow-ups and provide a variety of FSBO and expired listing scripts to get you on the phone quickly with prospective clients.
An automated FSBO and expired listing prospecting service can save you time and money. The best ones use a vetting process that filters out disconnected numbers and Does Not Call lists so that you can reach the homeowners with the right message at the right time.