Any success in expired MLS listings?

Question

Hello BP.  I got a list of expired MLS listings.  Has any investors have any success in reaching out and working a deal with these sellers?  Thanks.

Chris Eaker · Answer

@Chris Taualii

I've thought about this strategy as well. It could be good. The one thing I'd be careful of is most agent listing contracts have a clause in there that says if the property sells within a certain amount of time after the listing is expired or canceled, then the agent is still entitled to a commission. One way around this is to do a sandwich lease option and then exercise the option after that time period has expired. Good luck!

Wayne Brooks · Answer

Listing agreements have a clause that if a buyer who was exposed to the property during the listing, buys within so many days, a commission is owed.....not for any sale whatsoever.

Chris Eaker · Answer

I imagine that is in there to keep sellers from pulling it off the market to sell to someone and bypass the agent.

Aaron Vergason · Answer

@Chris Taualii we put in a new kitchen and hold it as a rental.

Chris Taualii · Answer

Nice to know the agreements clause @Wayne Brooks.  Thanks for the tip.

Chris Taualii · Answer

Thanks for the tip @Aaron Vergason.  I will definitely keep that in mind, and that's why I love about our industry.  There's always a way to help people out.  So what did you end up doing with the house?

Aaron Vergason · Answer

I don't do marketing regularly to find deals, but I do like to look here when I'm ready to find a good buy hold.

One time I knocked on a door of an expired listing in a great neighborhood. It was awkward and maybe unsafe. Some people on here probably wouldn't want to spend the time like I did, but it was worth it to me.

The owner was Russian and didn't speak much English. That's why the house never sold. She didn't understand how she had to pay a 6% commission to an agent. I hired an interpreter from Craigslist and he helped me negotiate. I figured out that all she wanted was a specific amount of money, not pay for title, survey, abstract update or anything. So I covered it all. She got the amount of money she wanted and I got a solid house at 60% of the houses value.

Chris Taualii · Answer

Hey @Chris Eaker how far are you from Manchester, TN?  Or would you know any investors there?  Thanks.

Chris Taualii · Answer

Very interesting

@Chris Eaker.  Thanks for the tip

Any success in expired MLS listings?

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