Expired listing letter refers to a marketing tool used by realtors and real estate investors. When realtors list real estate for sale they enter into a contract with the seller. These contracts are generally in place for six months to one year. If the property is not sold when the contract expires, sellers can enter into a new contract, locate a new realtor, list the home as for sale by owner, or take the property off the market.
The expired listing letter is used by realtors and investors who are interested in listing or buying properties. Expired real estate listings are located by searching the Multiple Listings Service (MLS) database. Every property across the nation that is listed for sale through a real estate agent is presented through the MLS database.
Investors utilize expired listing letters to contact sellers directly or to negotiate the sale of a property through a realtor. When investors work with realtors they earn a profit by closing the sale. When investors work directly with sellers they can eliminate realtor commissions by waiting until the listing expires.
Investors who have not dabbled in buying expired listing properties should take time to become educated about the process. This investment niche requires investors to develop a strong marketing strategy and have the ability to close sales when real estate agents have been unable to do so.
The first step of expired listings marketing involves creating the initial contact letter. A variety of expired listing letter samples are available via the Internet. Investors must adapt their letter to accommodate the circumstances of each seller. A good way to learn how to write compelling marketing letters is to participate in online real estate investing forums or join local real estate clubs.
The second step of expired listings marketing involves creating follow-up materials. These can range from direct mail campaigns to postcard marketing, and word-of-mouth referrals to cold calling. Within marketing circles, it is believed a customer must be contacted seven times before they are receptive to buying a product or service. Therefore, investors should develop a minimum 7-step marketing plan which keeps their name at the forefront of the seller’s mind.
Once real estate listings expire, sellers are often bombarded with expired listing letters. In order to stand out from the crowd, investors must create marketing messages which pique the seller’s curiosity and make them feel the investor can be trusted and will follow through on promises made.
It can be beneficial for real estate investors to hire a marketing company or copywriter to develop expired listing marketing materials. The primary focus of letters, brochures, and post cards should be to build a relationship with sellers who need to sell their home quickly.
Investors who are capable of solving problems will earn sellers business. When developing expired listings marketing materials it is crucial to focus on needs of the seller, not the accomplishments of the business being promoted.
Entering into the niche of expired listings real estate is highly competitive. In order to be successful, investors must be committed to their clients; develop a solid marketing plan; have a strong network of real estate professionals; possess the ability to locate motivated sellers and buyers; and know how to quickly close real estate transactions.
The expired listing letter is the catalyst to developing relationships and earning business. By taking time to carefully craft marketing materials, investors can attract sellers who need their services. By following through on promises made, investors can expand their business and generate profit on each transaction they successfully close.