An easy way to gain new clients is to check your Listing Management System for expired listings. Very few things are as frustrating as an expired listing which could be why many agents disregard it. It brings along feelings of uncertainty and hopelessness.
There are many reasons why a listed home lingers on the market for longer than expected. It could be overpriced, it could be situated in a bad location, it might be in poor condition, or it might not get the exposure it should have received when it was listed.
It is possible to improve some of these conditions and it could allow you to gain a new client.
Here are four useful tactics you can use to convert an expired listing:
#1 – Re-evaluate the price
One of the biggest reasons why a home won’t sell is due to an inflated price.
It is not always easy to convince a stubborn owner to consider dropping the asking price but there are a few tricks you can try.
For instance, ask them to lower the price by a small amount. If the house costs R1 million, suggest a price of R990 000. They might see it as losing R10 000, but you can argue that they are going to lose more if they continue paying the bond and the house is stuck on the market for the next few months.
The owner might not even be aware of how much the market in the area has changed since the house was listed.
You can do some research and offer a comparative market analysis to highlight its current state. If the owner still won’t budge, take them around the neighbourhood to see what other similar homes are selling for.
Your seller might realise that other homes have certain features that justify a higher price like remodelled kitchens and redecorated bathrooms. This might push them in the right direction.
#2 – Direct the focus away from the location
The location of a home is a factor that the homeowner can’t control.
If you suspect this is the reason why the home isn’t selling, divert the attention away from the location. Highlight features that make the home unique and other features that might make the home more desirable. There are many ways that you can spin less desirable features so try adopting a tongue-in-cheek approach.
If the house is close to a noisy road, for example, say that it has easy access to one of the main roads in the suburb.
#3 – Freshen up the condition of the house
A house might be sitting on the market because it is in poor condition.
This is a factor that is totally in the hands of the seller and usually quite simple to fix. If they have the financial means, suggest that they improve weak spots in the house. If they don’t have funds for huge renovations, they can do small things to tidy up the home.
Sweeping and mopping the floors, polishing the windows, giving the rooms a fresh coat of paint, and adding a few potplants in the yard all contribute to the aesthetic of a home.
#4 – Revamp marketing efforts
Clients might tell you that their previous agent didn’t do much marketing when the house was listed.
The agent might not have used any advertisements, signage, or property websites such as ImmoAfrica and other top portals to advertise the property. It is necessary that you prepare and present a new marketing plan and draw up a new timeline for selling the house.
Involve the owner in your marketing plans and show them what you want to do. Make sure that you use a combination of traditional and modern marketing methods so that you appeal to a large pool of buyers.
Try to keep them in the loop and update them as much as you can.
The homeowner might think that an expired listing is a lost cause but this is not always the case.
Ensure that there is open communication and listen to their wants, dislikes, fears, and hopes. Develop an action plan around their needs. Once you sell the home and they are satisfied, you have won over a new client.