Expired listings are viable leads, but be wary

Expired listings are viable leads, but be wary

09 July 2012 by Staff Reporter 1 comments

Steven Cross

Almost a quarter of principals target 'expired listings' from rival agents, according to new data.

According to a recent Real Estate Business straw poll, 24.1 per cent of respondents claimed they specifically targeted expired listings, or those listings that agents had failed to sell within their respective contract period.

Almost half - or 45.3 per cent - said that while they were a good source of income, they didn't set out to target expired listings. Just over 25 per cent said they rarely sold expired listing properties.

Simon Freemantle, director at PRDnationwide Wagga Wagga, in regional NSW, said it’s more important to keep your existing clients than to poach others.

“If you do your job right in the first place, then you won’t have the problem of other agents marketing towards your expired listings, because you won’t have any,” Mr Freemantle said.

According to RP Data, Wagga Wagga has an average time on market of around 119 days, slightly above the national average of 97 days.

“If you focus on getting the price right, you won’t have any problems getting a sale," Mr Freemantle added. "The only reason these expired listings exist is if the vendor refuses to lower their asking price."

“So we won’t aim to get an expired listing because generally the vendor won’t budge on price, and we’ll end up with the same problem as the agent who tried before us.”

Mike Dobbin, CEO of Magain Real Estate in SA, said while expired listings are welcome, he relies on more traditional methods.

“Expired listings are a good source of business for us, but we don’t go out and target them,” he told Real Estate Business.

“To be honest, now that we have made a name for ourselves, people are coming to us first more often now. We don’t go chasing them.

“We rely on more referral-based business, and because of our market presence and awareness we see people coming to us right off the bat.”

Steven Cross

Almost a quarter of principals target 'expired listings' from rival agents, according to new data.

According to a recent Real Estate Business straw poll, 24.1 per cent of respondents claimed they specifically targeted expired listings, or those listings that agents had failed to sell within their respective contract period.

Almost half - or 45.3 per cent - said that while they were a good source of income, they didn't set out to target expired listings. Just over 25 per cent said they rarely sold expired listing properties.

Simon Freemantle, director at PRDnationwide Wagga Wagga, in regional NSW, said it’s more important to keep your existing clients than to poach others.

“If you do your job right in the first place, then you won’t have the problem of other agents marketing towards your expired listings, because you won’t have any,” Mr Freemantle said.

According to RP Data, Wagga Wagga has an average time on market of around 119 days, slightly above the national average of 97 days.

“If you focus on getting the price right, you won’t have any problems getting a sale," Mr Freemantle added. "The only reason these expired listings exist is if the vendor refuses to lower their asking price."

“So we won’t aim to get an expired listing because generally the vendor won’t budge on price, and we’ll end up with the same problem as the agent who tried before us.”

Mike Dobbin, CEO of Magain Real Estate in SA, said while expired listings are welcome, he relies on more traditional methods.

“Expired listings are a good source of business for us, but we don’t go out and target them,” he told Real Estate Business.

“To be honest, now that we have made a name for ourselves, people are coming to us first more often now. We don’t go chasing them.

“We rely on more referral-based business, and because of our market presence and awareness we see people coming to us right off the bat.”

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