EXPIRED LISTINGS

3 STEPS TO WINNING

EXPIRED LISTINGS CAN BE AN INCREDIBLE OPPORTUNITY IN TODAY’S REAL ESTATE MARKET

3 STEPS TO WINNING EXPIRED L IST INGS

The problem is most agents…

• Don’tknowhowtodifferentiatethemselvesfromall the other competitiontargeting expired listings

• Thinkexpiredprospectsarenotworthfollowingupwith

• Don’thaveaplantoconvertanexpiredlistinginto a closed sale

Theopportunityforrealestateprofessionalsliesinunderstandingthreecriticalstepsthat,iffollowed,willleadtowinningmorebusinessfromexpiredlistings.

ThiseGuideandthevideoaccompanyingaredesignedtohelpyou:

. Master the Seller’s Psychology

The opportunity for real estate professionals lies in understanding three critical steps that, if followed, will lead to winning more business from expired listings.

. Review 3 Factors That May Have Prevented the House from Selling

. Understand the Seller’s Options

Withthesethreesteps,you’llbuildtrustanddifferentiateyourselffromtherestoftheagentstryingtowintheexpiredlistingsinyourmarket.

Anyagentcancallanexpiredlistingorknockontheirdoor.Butwhatmostagentsouttheredon’tunderstandisthemindsetofthehomeownerwhosehousedidn’tsell.Knowingwhatthispersonislikelythinkingandfeelingispivotalinhelpingyougaintheirtrust,easetheirconcerns,andultimatelyturnthemintoaclient.That’spreciselywhatthiseGuidewillshowyou.1

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Understandingalittlebitabouthumanpsychologyiskeytoyoursuccesswithexpiredlistings.Let’sbeginbyidentifyingthethreedifferenthumanbehaviorpatternsyoumaynoticewheninteractingwithasellerwhoselistinghasexpired.

Rationalization

Reaction Formation

Displacement

1. Rationalization

Whenpeopledon’tgetwhattheywantorattainagoalthey’veset,rationalizationoftensetsin.Thisisanormalhumanbehaviorpatternthathelpspeopleavoiddepression.

Forexample,whenacoupleexperiencesabreakupintheirrelationship,eachmayrationalizeitbysaying,“He/she wasn’t right for me anyway.”

Using a real estate example, ifabuyer’sofferonahouseisrejected,hemightsay,“That’s okay… that house really wasn’t right for me anyway.”

Inthecaseofexpiredlistings,thehomeownerisnaturallydisappointedthattheirhousedidn’tsell.Toovercomethatdisappointment,they’llstartrationalizing that the right thing happenedanyway—that“things happen for a reason,” “I wasn’t 100% sure I wanted to sell,” or “we weren’t meant to sell now.”

2. Reaction Formation

Whenapersonfeelsacertainway(perhaps sad)butactsinadifferentway(cracks jokes), that personisdisplayingareactionformation.Peopledothistohidetheirrealfeelings,sotheydon’tappearvulnerable.

Here’saclassicexampleofareactionformationinaction.

Supposeyouhaveafriendwhosefatherpassedaway.Shewasveryclosetoherfatherandisobviouslysaddenedbyhispassing.However,shewantstobestrongforhermother,soatthefuneralshecracksjokesandtellsfunnystories.Thisisherreactionformationkickingin.Ifyoudidn’tknow

When people don’t get what they want or attain a goal they’ve set, rationalization often sets in. This is a normal human behavior pattern that helps people avoid depression.

STEP 1: MASTER THE SELLER’S PSYCHOLOGY

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her,you’dthinkshewasbeingrudeforbeingsolight-heartedatherfather’sfuneral,wheninrealityshe’susinghumortohideherrealfeelings.

We see this happen in real estate,too.Whenaseller’shomedoesn’tsellbythelistingterminationdate,theymaybeveryupsetormadontheinside,butontheoutside,theymayseemaloof,shrugitoff,andsay,“Oh well… it didn’t sell. C’est la vie!”

Anunskilledagentmayinterpretthatasasignthattheywon’tre-listbecausetheydon’tcare,wheninrealitythey’reveryupsetbytheirhomenotselling.

3. Displacement

Sometimespeopleareupset,mad,orannoyedatoneperson,buttheytakeouttheirfrustrationsonanotherperson.Thisiscalleddisplacement.

You’velikelybeenonthereceivingendofdisplacementmanytimes.Forexample,

yourspousehadabaddayatworkandcomeshomeupset.Nothinganyoneathomedoesisright.Yourspouseisdisplacingherfrustrationsaboutworkonherfamily,eventhoughthefamilyhadnothingtodowithmakingherupset.

Thinkofdisplacementasplayingoutlikethis:“The boss yells at the worker, the worker yells at their spouse, the spouse yells at the kid, the kid kicks the dog, the dog bites the cat, and the cat eats the goldfish.”

Realize that when you’re dealing with expired listings, you will sometimes be the goldfish.

Knowingthesethreehumanbehaviorpatternswillhelpyounavigatethroughthevariousre-listingscenariosyoumightfindyourselfin.We’lldivedeeper into these scenarios in thelastsectionofthiseGuide.

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STEP 2: REVIEW 3 FACTORS THAT MAY HAVE PREVENTED THE HOUSE FROM SELLINGHelpingthesellerseethethingsthatmayhavepreventedthemfromsellingthehousewillpositionyouasatrustedadvisorwho’stheretohelpvs.justgetthelisting.

Theycertainlydon’twantthelistingtoexpireagain,somakesureyouunderstandandaddressthefactorsthatcontributedtoitnotsellingthefirsttime.

Let’sgooverthethreeprimarycomponentsformakingalistingsellable.

1. Having Proper Access

Don’tallowthehomeownertosayyoucanonlyshowthehouseonTuesdaysandThursdaysbetweenthistimeandthattime.Orthatyoucan’tshowitonSaturdaysbecausethekidsarehomeallday.

Inanymarket,ifyouwantahousetosell,youhavetogivepotentialbuyersaccesstothehome.Ifaccessibilityisn’tthere,it’sgoingtocostthesellersinpriceandtime.

2. Making It Look Good

Inorderforthehousetosell,itmustlookinviting.Everyrealestateprofessionalhopeshisorhersellersuseaprofessionalstagertomakethehouselookgreat,butthatdoesn’talwayshappen.

Somepeopledon’thavethefinancesorwherewithaltobringinastager.Buttheymighthavethewherewithaltobuyacanofpaintandupdatetheroomthatneedsafreshcoat.Ortheymighthavethewherewithaltorentasteamcleanerandcleanthecarpets,eveniftheydoitthemselves.Theymayalsohavethewherewithaltoholdagaragesaleandgetallofthejunkoutofthegarage.

Suggestwhatneedstobedoneandwhy.

• PROTIP: Research shows using professional visuals and infographics makes presentations 43% more effective. Download them to your phone or tablet to have on-hand the next time you talk with a client!Go to TryKCM.com to discover KCM's latest visuals and infographics.

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3. Pricing It Compellingly

Inmostmarkets,priceisthesinglemostimportantfactor.Infact,it’ssoimportantthatpricecanoftencompensateforanyoftheothertwofactors:access or condition.Ifahouseispricedcompellingly,it’sgoingtosell.Period.

Makesureyoutakethetimetositwiththeseller,lookattheiroriginalsalespriceontheexpiredlisting,andletthemknowhowtheirpriceimpededthesale.Continuesittingwiththemthroughthepricingprocess,showingthemgraphs,charts,andanythingelsethatcanhelpthemunderstandwhatthecurrentmarketisdemanding.

ThisgoesbeyondjustdoingaCMA(currentmarketanalysis.Thisisaboutknowingwhat’shappeningwithrealestatepricesinyourmarketplace,understandingwhatfactorsareaffectingthemarket,andsharingthatinformationwithyoursellersinordertodefinetherightpriceforthelisting. • PROTIP: Use a digital or

printed KCM Sellers Guide thatfeatures a wide range of topicsrelevant to your prospects toposition yourself as a trustedadvisor and leave a lastingimpression.Go to TryKCM.com tolearn more about thecurrent Sellers Guide.

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STEP 3: UNDERSTAND THE SELLER’S 4 OPTIONS Whenyoumeetwithsomeoneafterthelistinghasexpired,youshouldn’tbetryingtoconvincethemtoselltheirhome(that’swhatsalespeopledo).

Instead,youshouldbehelpingyoursellerdiscoverwhattheiroptions are, explaining the pros andconsofeachoption,andthenlettingthemmakethedecisionthat’sbestforthemandtheirfamily.That’swhatatrustedadvisor,withtheheartofateacher,doesfortheirclients.

Whenalistingexpires,everysellerhasfouroptionstoconsider.That’swhenyou’llseethedescribedhumanbehaviorpatternscomeintoplay.

Re-listwiththeircurrentagent

Takethehouseoffthemarket

ListthehouseFor-Sale-By-Owner(FSBO)

Re-listwithanewrealestateagent(you!)

Option 1: Re-list with their current agent

Forwhateverreason,theirhousedidnotsell.Perhapsthehomeownernowrealizeshowdifficultthehousingmarketisorthatthelistingpricewastoohigh,orperhapsthey’renowacknowledgingthattheydidn’tlistentotheiragent’sadvice.

Therefore,theymaywanttogivetheagentasecondchance.That’saperfectlyokaythingtodo.Ifthat’stheirdecision,asperthecodeofethics,youneedtowishthemwellandwalkaway.

Theonlyquestiontoaskbeforeyouleaveis,“How long did you extend your contract for?”

Whenalistingisabouttoexpire,sometimesanagentmightaskthesellerforanextraweeksoheorshecanfollowupwithoneparticularbuyerwhoexpressedinterestinthehouse.Chancesarethatweek-longlistingwon’tgetplacedintheMLS(MultipleListingService),soyouwouldn’tknowthenewcontractterminationdate.

Ifthesellersaysthatthere-listingcontractisformorethanafewdays,thenitwillbeontheMLSandyoucanlookforthenewexpirationdatesometimeinthefuture.

When a listing expires, every seller has four options to consider.

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Option 2: Take the house off the market

Whenthesellersays,“I’m taking the home off the market – it’s no longer for sale,” realize that rationalization has likely set in.

There’snodoubtthatifsomeoneputstheirhouseonthemarketandthehousedoesn’tsell,they’regoingtobeupset.Intheirmind,nooneinthemarketplacethoughtthehousewasworthyofthesalesprice.

Fromahumanbehaviorstandpoint,theydon’twanttogetdepressed,sotheygointoa rationalization mindset and say,“Well, we didn’t really want to sell the house anyway. This idea of making a move right now probably doesn’t make sense.”

Don’tallowthesellertorationalizetheirdreamsaway.Instead,it’stimeforyoutorekindletheirdreams.Askthemthissimplequestion:“What made you originally put your home up for sale?”

Ifthatreasonmadesenseafewmonthsagowhentheyoriginallylistedthehouse,chancesareitstillmakessensenow.So,rekindlethatdream.Don’tletthemthrowawaywhattheirfamilyshouldbeaccomplishingandwhatgoalstheyshouldbeattaining.

Justbecausethehousedidn’tsellduringthelastlistingcontractdoesn’tmeanthehousewillneversellorthatitshouldn’tbesold.So,makesureyouuncovertheoriginalgoalandthenrekindleitfortheseller.Theydeservetoattaintheirgoals.

Don’t allow the seller to rationalize their dreams away. Instead, it’s time for you to rekindle their dreams.

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Option 3: List the house For-Sale-By-Owner (FSBO)

WhensomeonesaystheywanttoForSaleByOwner,andyoupushthemnotto,youmayfindyourselftherecipientofdisplacement.You’regoingtotakethewraththattheoriginalrealestateprofessionalwholistedthehouseshouldprobablybetaking.Thesellermightexplaintoyou,atlength,everythingtheotheragentdidn’tdothatthesellerthinksshouldhavebeendone.

Then the seller might explain to you,indepth,whattheotheragentdidthatannoyedthemoraggravatedthem.That’sokay.Letthemvent.Ifnothingelse,you’llknowwhatthesellerdeemsimportantandwhatheorsheexpectsfromarealestateprofessional.

Thiswillgiveyougreatcontentforyourlistingpresentationwhenyousitdownwiththeseller.

Nowbeprepared;thesellermight displace in one other way.Theymighttellyouthatallagentsarenotworthanythingbecausetheiroriginalagentdidn’taccomplishthegoalofsellingthehouse.

Theymightpaintallrealestateprofessionalswiththesamebrush.

Ifthathappens,thebestthingtosayis,“Have you ever gotten a bad haircut before?”Ofcourse,thesellerwillsay,“Yes.” Then yousay,“Okay… so what did you do? Did you stop getting your hair cut or did you simply change hair stylists?”Thesellerwillsay,“I changed hair stylists.”

Explainthatthereisgoodandbadineveryprofession—goodandbadhairstylists,agents,teachers,lawyers,doctors,policeofficers,etc.Justbecausethereisgoodandbadineverylineofworkdoesn’tmeanyoudon’tcallonothersfortheproductsandservicesyouneed.Youstillgetyourhaircut,seeadoctor,talktoalawyer,sendyourkidstoschool,etc.

Youmightthensay,

“Obviously, in your opinion, the last real estate professional you dealt with didn’t accomplish what you wanted. But you shouldn’t paint us all with the same brush. Let’s go ahead and change hair stylists. Let me sit down with you and show you the differences between the previous real estate agent and me.”

• PROTIP: KCM Membershave access to a FSBOcategory with the mostup-to-date research onFor Sale by Owner. Theseresources will help you usedata to explain the advantagesof using an agent.

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Option 4: Re-list with a new real estate agent (you!)

This last option is the most critical one that that most agentsaren’tfullypreparedfor.Whenyoucontacttheseller,therearefivethingsyouneedtodotogetthemtolistwithyou.

1. Build Instant Rapport

2. Identify the Seller’s Needs

3. Explain Your Company’sValue

4. Communicate YourPersonal Value

5. Develop Trust

Build Instant Rapport- Sellers arenotgoingtotrustyouuntiltheylikeyou.Togetthemtolikeyou,youmustmakesuretheyunderstandthatyoucareaboutthem.So,makesuretheirfirstimpressionofyouisapositiveone.Smile,showgenuineinterest in them and their needs,andlookprofessional.Thosefirstfewmomentsofyourmeeting,beforetheactualpresentationbegins,willsetthestageforrapportbuilding.

Identify the Seller’s Needs– Youneedtoprovetothesellerthatyou’retheretomakesurethey’reokay.Howcanyoudothat?There’sonequestionyoucanasktogettotheheartofwhattheyarelookingfor:“Mr. and Mrs. Seller, what do you hope to get out of the sale of your house?”Goinwithablankpieceofpaperandrecordtheirneedsalongwithyouranswersto those needs, and then list the resourcesyouhavetodeliverwhattheywant.

Explain Your Company’s Value– Tohelpexplainyourcompany’svalue,thinkofthepotentialanswersabovefromtheseller’sperspective.Yourcompany’svaluepropositionshouldexplainwhatuniquebenefitsitdeliverstothesellerandWHYtheyshouldchooseyourfirmoveranother.

Communicate Your Personal Value–Onceyou’vesuccessfullyarticulatedthebenefitsofyourcompany,younowneedtoshowthemwhytheyshouldworkwithyouoveranotheragent.Makesurethesellerisawareofanydesignations,classesandservices(likeKeepingCurrentMatters)yousubscribetothathelpyoustayabreastofmarketconditions.Thegoalistogiveyoursellertheinformationtheyneedtomakethebestdecisionpossiblefortheirfamily.

Develop Trust– When a listing expires,whatthesellerneedsmorethananythingisanexpertwhocanselltheirhouse.Anexpertspeakswithconfidence,that’showyoubuildtrust.Thebestwayyoucanbuildtrustistofollowwhatfinancialguru,DaveRamsey,says“When getting help with money, whether its insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Finally,don’tbecaughtoffguardiftheysay,“Yes, I’m ready to list with you right now.” The sellerwantsthehousesold.Theyobviouslywanttouseanagentbecausetheydidsothefirsttime.Theymighthavejustinvestigatedwhoisthebestrealestate agent or the best real

• FURTHERREADING:Go deeper on each of these withour FREE eGuide download: 5Elements of the Perfect ListingPresentation. VisitKeepingCurrentMatters.com/PLP

estatecompanyinthemarket.Iftheydecidedthatitwasyou,theymighthavebeenjustabouttocallyou.Ithappens,andwhenitdoes,bereadyforit.

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POSITION YOURSELF AS THE MARKET EXPERTExpiredlistingsofferawealthofopportunity.Yousimplyneedtoknowhowtotapintothem.Herearethekeystoputtingtheseideasintopractice:

• Knowthethreehumanbehaviorsthataffectanexpiredseller• Becomethetrustedadvisorthathelpsthemdeterminewhytheirhomedidn’tsell• Learntocommunicateyourandyourcompany’svalue

ByusingthethreestepsoutlinedinthiseGuide,younowhaveaplantoconverteveryexpiredlistingintoaclosedsale.

AllofthestrategiesandtacticslaidoutinthiseGuiderequireresourcestodevelop.AtKeepingCurrentMatters,wecreatecontentandtoolsspecificallytopositionyouasatrustedadvisortoyourclients.

Ourresourcesallowyoutoprovidefresh,relevantcontentthat’sprofessionallydesignedandpersonallybrandedtoyou–including:

•Professionalvisualsandinfographics • Seasonalbuyer&sellerguides•Personalizedblogpostsandvideos • MonthlyMarketreports•Andmorefeaturingthelatest,trustedresearchonthenationalrealestatemarket

You can start a free no risk 14-day free trial today at TryKCM.com

Ultimately,whenyouarefocusedonwhatsellersarethinkingandfeeling,whenyouarepreparedfor anyobjectiontheycanthrowatyou,andwhenyouensureyouhaveasellablelisting—asopposedtojustanotherlisting—you’llfindthatgoingafterexpiredlistingscanbringyoutremendousprofiteachyear. So,gooutandwintheexpiredlistingsinyourmarket!It’sdefinitelywithinyourreach.

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