Where & How to Get Leads Part #2
A great source for seller leads is to target for sale by owner (FSBO) or expired listings. It’s reported that only 3% of owners sell their home on their own within the desired time, and just 18% received their desired sales price. When a listing expires, 37% will relist with a new agent within 30 days and another 35% will relist within 90 days. The beauty of FSBO’s and expired leads are that you’re reaching sellers who are ready to sell and you will already know the price and condition of the home, which means you can react to the owner’s concerns and issues on why it didn’t sell.
Most owners who are trying to sell their property on their own will put an ad in the paper or list it on websites such as; forsalebyowner.com, homelister.com, fsbo.com, owners.com, 4salebyowner.com, and even Zillow.com lists homes for sale by owner. Expired listings can easily be pulled from the MLS when the listing expires or cancels, but you have to work for them to actually become expired leads. If you farm a specific area, driving the streets to locate any for sale by owner signs is another way to get leads for free. Your local title rep can provide access to their system to look up addresses and obtain names and mailing addresses for the owners of the FSBO and expired leads. To access email addresses or phone numbers, you’ll have to purchase a subscription like the companies below who can provide that information.
Agents who want to get the most listings from FSBO and expired leads can utilize an online company to prospect. REDX finds FSBO leads by scouring hundreds of newspapers and websites along with obtaining contact information. They offer expired leads with accurate landline and cell numbers for new and past expired listings, auto dialing with the Storm Dialer that connects you with leads who are ready to talk and will leave voicemails for those who are not available, GeoLeads that target a specific area, pre-foreclosure leads that target owners who may have to sell their home, and even for rent leads on homes that have not rented yet. They have scripts, easy-to-use interface, and follow-up tools with reminders to keep the leads active. They claim to offer fresh leads every day and provide the lead 12 to 24 hours before any other service. At theredx.com, subscriptions start at $39.99 a month that includes two areas.
Like REDX, Land Voice provides FSBO, expired, and pre-foreclosure leads plus Neighborhood Search and Call Capture, which are similar to GeoLeads and Storm Dialer. Something different they provide are old expired leads, which are properties that expired 90+ days ago. Their plans start as low as $40 per month for FSBO leads for two counties or a combined plan starting at $79 a month that include FSBO and expired leads plus the lead management tools at landvoice.com. Vulcan7 is another company that provide FSBO and expired leads, neighborhood searches, and direct dialers. Something different they offer are the ability to utilize video emails to send directly to your clients and probate leads by county, which are collected each month at the courthouse and include property, executor, and attorney on record information. Check out Vulcan7.com for pricing.
Whether you find FSBO and expired leads on your own or through a company, the most important thing is to respond to all leads as quickly as possible, to have a plan or script when you contact them, and have a follow-up system. Cold calling is the best way to contact a lead and some real estate agents believe that reaching out right away can yield the best rewards, while others say that waiting until the listing has ripened has a greater outcome. If you manage to be the first person to call on a FSBO lead, you will get the opportunity to be the first one to pitch them on the same basic information that every other agent will provide. However, the lead may be reluctant to listen when they first list their home as a for sale by owner or if their home just expired. Before you contact the owner, here are some questions to answer.
- What was the last list price and were there any price reductions?
- Is the price accurate to local market sales?
- How long was the home on the market?
- Are the photos professional or amateur and did they offer drone photos or video tours?
- Was there enough information in their description?
- How and where was the home presented online?
You’ll find that homeowners have similar objections and concerns, and using a script allows you to have formulated answers rather than speaking off the cuff. There’ll be times that you go off script, but having an outline of what you’ll present and say can offer the best of your expertise. It’s reported that the best time to call is usually after working hours on a Monday because h omeowners will often have poorly attended open houses or showings the previous weekend, and if there are no offers, they may be ready to chat, however what time works best for you and a time that you will stick to is the best time.
Other ways to reach expired listings are to drop off packets to the home the day the listing expired if you are comfortable with doing that during COVID. The packet can include a market update, how you advertise and market your listings, a letter personal to the homeowner, and maybe a giveaway or two. Make sure the community the property is located in allows soliciting and leave on or by the front door, and not the mailbox. If cold calling is not your strongest skill then try reaching out to pre-foreclosures, old expired listings, or probates where you can utilize direct mailing that still has a 43% response rate or email marketing that has an average of 27.16% open rate and a 3% click-through rate.
Following up on all leads is the secret to more listings. Once you’ve contacted your lead, don’t wait for the phone to ring, add the lead to your email marketing list to keep them current on what you’re doing to sell your other listings so when you call again, you’re in a better position for the owner to listen. Be sure to watch their listing and note changes to price or local sales so that your follow-up conversations can reflect your knowledge. For FSBO’s, share a blog post or stats about why working with an agent is beneficial to the seller, and ask if they’d be interested in learning more.
FSBO and expired leads are some of the warmest leads you can work and in order to nurture them effectively, you need a detailed contact list as well as the right strategy. That includes researching the listing, cold calling, using scripts, contacting them through direct mail and email, and following up. Prospecting is a numbers game and the more sellers you reach, the more listings you’ll get. Leads are the lifeblood of the real-estate industry and no matter where and how you get them, here are some things you must have to get started, and to keep going.
·Set goals and work backwards by how many listings you want to achieve so you’ll know how many appointments you need to determine how many calls or contacts you’ll have to make.
·Schedule specific times and days that you’ll devote to just prospecting.
·Practice is key to getting better and feeling more comfortable when cold calling.
·Create a follow-up system and be consistent.
·Stay committed to your goals and never give up.
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