Realtors and Expired Listings

Wholesaler · Baton Rouge, LA · Member since 2008 · 471 posts · 98 votes

How do realtors feel about providing investors with expired listings? How do realtors get paid for deals made on expired listings?

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Michael K.

Investor · Milwaukee, WI · Member since 2009 · 89 posts · 44 votes

16y

Originally posted by Matt Mathews:

I teach them and show them How To Sell their own home. Then I negotiate the buy on behalf of my Investor clients. If the mortgage is clean and paid-I will talk about seller financing and/or Lease Option. If it's a short sale, I will negotiate with the asset manager on behalf of the seller in order to get a price locked in. Expired listings are only good as long as you have a motivated seller. Nine times out of ten the reason it expired in the first place was because the property was over priced by the listing agent. Now the seller needs to be educated on just where the price point is for their home. Also, to note! For every one Expired listing on the MLS, there are ten agents on the phone, hounding that seller to put their Agency sign in the yard. If you want to complete with that, then you should try and find a Buyers Only Agent!

All very true! Properties don't fail to sell because they're priced properly!

Some of my greatest successes come during the off-season with properties that expired 12+ months prior. Those owners either had entirely given up and lost all hope, installed any tenant who could fog a mirror and are paying dearly for that rent, or are eating heating bills/property taxes/etc. on an empty property. They want out and are often far more realistic in their pricing.

Mike

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Michael K.
Investor · Milwaukee, WI · Member since 2009 · 89 posts · 44 votes
16y
Originally posted by Robert Burns:
How do realtors feel about providing investors with expired listings? How do realtors get paid for deals made on expired listings?

The investor and I sign a Buyer Agency contract. This contract stipulates that if they purchase ANY of the properties I send to them, I have one of two options:

a. Work out an one-party listing with the seller and charge the seller whatever I can get OR

b. The investor pays me 2.75% of the overall purchase price.

I've never had to invoke option b, as the seller is usually pleased beyond redemption to pay a listing commission of 3.0%-4.0%. Simple math- even on the low 3.0% end, I'm still earning more than the investor paying me 2.75%!

I love working things out like this because everybody wins. The investor gets a place at a low price, the seller gets to sell at a (in one's words) "stupidly low" commission, and I earn a nice commission. I've yet to experience anybody walking away from the table unhappy.

Most investors ask me to be the first point of contact with the expired seller. They each get a hand signed letter from me explaining the situation-- apparently my brokerage name on the letthead adds credibility. FWIW, roughly 2-3 of 5 folks who receive the letters respond.

Mike
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Matt Mathews
Real Estate Consultant · yucaipa, CA · Member since 2008 · 233 posts · 109 votes
16y
I teach them and show them How To Sell their own home. Then I negotiate the buy on behalf of my Investor clients. If the mortgage is clean and paid-I will talk about seller financing and/or Lease Option. If it's a short sale, I will negotiate with the asset manager on behalf of the seller in order to get a price locked in. Expired listings are only good as long as you have a motivated seller. Nine times out of ten the reason it expired in the first place was because the property was over priced by the listing agent. Now the seller needs to be educated on just where the price point is for their home. Also, to note! For every one Expired listing on the MLS, there are ten agents on the phone, hounding that seller to put their Agency sign in the yard. If you want to complete with that, then you should try and find a Buyers Only Agent!
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Michael K.
Investor · Milwaukee, WI · Member since 2009 · 89 posts · 44 votes
16y
Originally posted by Matt Mathews:
I teach them and show them How To Sell their own home. Then I negotiate the buy on behalf of my Investor clients. If the mortgage is clean and paid-I will talk about seller financing and/or Lease Option. If it's a short sale, I will negotiate with the asset manager on behalf of the seller in order to get a price locked in. Expired listings are only good as long as you have a motivated seller. Nine times out of ten the reason it expired in the first place was because the property was over priced by the listing agent. Now the seller needs to be educated on just where the price point is for their home. Also, to note! For every one Expired listing on the MLS, there are ten agents on the phone, hounding that seller to put their Agency sign in the yard. If you want to complete with that, then you should try and find a Buyers Only Agent!

All very true! Properties don't fail to sell because they're priced properly!

Some of my greatest successes come during the off-season with properties that expired 12+ months prior. Those owners either had entirely given up and lost all hope, installed any tenant who could fog a mirror and are paying dearly for that rent, or are eating heating bills/property taxes/etc. on an empty property. They want out and are often far more realistic in their pricing.

Mike
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