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How to Earn the Trust of Expired Listings?

How to Provide Value to Expired Listings – Connect with the Homeowner/Seller.  By Sarah Vance

Disclaimer – It is no secret that when a listing expires, real estate agents know about it! Did you miss the last blog post – see the Top 3 Reasons Why Listings Expire. Understanding these three key areas of real estate listings will be monumental in your marketing and advice to homeowners that have fallen into these pitfalls.

Expired Listings is Real Estate Farming 101 and that’s because it works for agents who really follow through with their marketing plans. Therefore, you must provide something of value to the seller. Give the seller realistic goals and expectations. Do not oversell or under promise! Use your expertise to your advantage and play to your strengths. 

The seller after their listing expires will be bombarded with postcards, flyers, letters, and other similar solicitations from real estate agents in the local market. If will need to ensure that your material stands out, so it doesn’t get thrown out. Make it colorful, oversized, customized, add some swag, and if you can: hand deliver. Be creative and don’t be afraid to explore different options to see what works best in your area!

Your solicitations should be encouraging and supportive in message and tone. If you are reaching out within the week that the Listing expired, most sellers, at this time, may be frustrated with the fact that their home did not sell and may not be receptive to more real estate lingo and advertisements. Your marketing should be consistent, direct, but not aggressive. Use your experience, recent sales, and neighborhood market expertise to show that you can bring something new and fresh to the table. If the homeowner seems distrusting, then you may want to switch your marketing plan to providing consultative services. 

If the property is not re-listed and you have not received a listing appointment by week three, you should be trying to reach the seller directly by phone. The follow-up phone call should be to 1) see if the owner received your service package and 2) ask to view the property so that you can have up-to-date information for potential buyer clients. Get your foot in the door (literally)! This property preview could give you some one-on-one time with the seller and gather more information on the listing – if you come prepared you may even be able to give your Listing Presentation and Marketing Plan during the preview! Plus, if you can’t get the listing you may have a jump start on potentially being the buyer’s agent. 

Be sure that you are checking the MLS weekly or driving by the property looking for yard signs to ensure that the listing hasn’t been re-listed with another brokerage or gone For Sale By Owner (FSBO). If it has gone FSBO – your marketing tactic will change, and you will want to change up your message and tone. 

Don’t have a good marketing strategy, scripts, or Listing Presentation. REeBroker Group’s Mentoring Program provides top training, business collateral templates, and step-by-step guides to ensure you are prepared for each and every real estate transaction. 

Top 3 Reasons Listings Expire

Avoid these common pitfalls on your next listing – by Sarah Vance

One of the most frustrating situations a Seller can find themselves in is having their listing expire with no escrow or buyer prospects. 

Here Are the Top Three Reasons Why Listings EXPIRE

  1. Property Price – Was the property priced accurately according to Fair Market Value (FMV) and current comparable homes in the neighborhood? Listing agents with a success record in the same market may have an upper hand in providing insight for property price. Note regarding FMV – buyers typically work with real estate agents, therefore, if the property is overpriced the buyer’s agent is unlikely to show the property. 
  2. Property Marketing – Online exposure is key in today’s real estate market. Make sure that a) the property has an online presence and b) that the presence is alluring. Good photos can make or break if a potential buyer will come view the home. Note – rarely do people buy a home sight unseen. Agents that go above and beyond just putting the property on the MLS may have an advantage. 
  3. Curb Appeal – Condition of the home is important. You want the buyers to visualize themselves living there as soon as they step onto the property. That means they must want to walk in the front door. And then once they are in the atmosphere should make them want to stay. Therefore, the property should be decluttered, eliminated of pet odors, and cleanly decorated. Agents that have an eye for curb appeal may be the key to a seller’s success. 

You need a real estate agent that is going to take the above three reasons into consideration when putting together your home’s marketing plan. All three of these are equally important in a Listing. Make sure you are being wise when choosing the agent and brokerage who will represent you in the sale of your home.

Beware of Real Estate Scams

August 16, 2019 – Sarah Vance

Online Money Transfer Scams are Rampant in Real Estate Industry

All Buyers, Sellers, and Real Estate Professionals should be informed and capable of conveying the truths behind the scams facing real estate transactions.

Electronic Funds Transfer

Wire fraud scenarios happen seamlessly. For example, just imagine, a hacker embeds a small attachment or virus into an non-suspicious email. When the recipient of the email, agent or client, opens this email a program is automatically implemented onto their computer. Then copies of agent, client, escrow, and title email communications are received by the hacker. When the time comes for a buyer’s funds to be wired to escrow, the hacker simply must switch the escrow account number in the escrow instructions to their own account number. Following the altered escrow instructions, the buyer completes the wire transfer into the hacker’s account. At the point when the parties figure out what happened, the money is gone and becomes almost impossible to recover. Hackers are using advanced and technologically savvy methods to maneuver and deceive people. For more information on countermeasures and reducing the risk of real estate wire fraud please read here.

Escrow Fraud

Another version of real estate scam comes to agents and clients alike in the form of an escrow façade. The industry has seen an uptick in these cases where both agents and clients have been victimized by what is being coined as escrow fraud. An example of this scenario is when the listing office and brokerage may request clients to use their own, in house escrow company as part of the terms listed in the purchase agreement. The clients then deposit their earnest money deposit (EMD) into the requested escrow account. After collecting EMD on several transactions, the escrow company disappears. By the time the agent or clients realizes the scam, the money is gone to an undisclosed offshore or personal account.

Today’s real estate transactions often involve the wiring or electronic funds transfer (EFT) of money to complete a deal. We want to remind all real estate professionals that escrow, wire, and EFT fraud is still a current crisis in the industry even with growing awareness surrounding the scams. Here are some tips to ensure that you and your clients are protected from this kind of criminal activity:

  1. When possible, use alternatives such as cashier’s checks. For smaller transactions, make the payment in person by check or credit card. Always receive the receipt for your records.
  2. Obtain phone numbers and account numbers of real estate agents and escrow-holders at the beginning of the real estate transaction and use those numbers throughout the transaction.
  3. Never act on a change of wiring or EFT instructions that you receive electronically (via e-mail) or via phone call. If you (or your client) receive an instruction change about wiring or EFT of funds, call the real estate agent or escrow officer and verify new instructions before sending money.
  4. Do not send personal information (bank account numbers, credit card numbers, social security numbers, and financial details) by personal e-mail or text. Take steps to use a secure, encrypted site to send personal information, or provide this information in person.
  5. Use established, reputable escrow companies. Do your research and due diligence!

If you (or your clients) are victimized, it is crucial that you or your client contact your depository institution and the Federal Bureau of Investigations (FBI) immediately in order to have a chance at halting the criminal transfer. File a report with the FBI by calling a local FBI office or reporting online at FBI Internet Crime Complaint Center.  Their web site is: bec.ic3.gov

With the rise of Coming Soon listings on the market – Should we fall in line or fight the trend?

Let’s look at some of the Pros and Cons of these newly trending listings.

If you don’t already know what “Coming Soon” listings mean, basically, these types of listings are properties currently under a listing contract but are not available for showing or sale until a later date. They are not the same as a pocket listing which is when a property, under a signed contract with a seller, is never advertised nor entered into the multiple listing system (MLS) or the advertising is limited. Coming Soon listings can be a legitimate advertising technique, allowing sellers more time to complete repairs, pack, or otherwise prepare the property for showing or sale– however, for it to be truly legitimate these listings should be unavailable until the specified date. This is where the agents and buyers toe the line into the gray areas of what constitutes a legitimate Coming Soon listing. See the end of the article for more information.

“Pros”

  • Allows market attention and interest from the public and agents while the seller does preparations on the property.
  • Increased privacy and limited foot traffic in the seller’s home.

 “Cons”

  • MLS will backdate to the original Listing Date, so it shows the full elapsed time on the market.
  • Limited exposure. If it pulls in potential buyers prior to an active MLS listing, there will be limited exposure which means a reduction in competition.
  • Can skew real estate appraisals – since “Coming Soon” homes are not included.
  • Agents may use a home as bait for buyers without representation so that they can double end a real estate transaction.

Best Practices for legitimate Coming Soon Listings

  1. Only properties under a signed listing agreement
  2. Comply with all state licensing laws and regulations
  3. Have a compelling reason that this tactic is in the best interest of the client
  4. Have the clients’ informed consent in a thoroughly documented written agreement
  5. Restrict showings and bids equally to all potential buyers
  6. Comply with MLS rules and regulations

If your buyer clients are looking at properties that fall under the “Coming Soon” umbrella you and your clients should be on the watch for potential red flags such as: no signed contract, no permission or consent from the sellers’, no logical reason to be marketing this way such as repairs, are being actively shown to buyers, or offers are being accepted. If you see any of the following, then these are pocket listings under the guise of a coming soon listing. Not to say pocket listings are unethical or not valid if all parties being represented are fully in the know.

If your seller wants to do a “Coming Soon” listing, you will want to ensure they are made aware of all the advantages as well as possible drawbacks. Since most homeowners when putting their home on the market are expecting the most net income from their sale its best to ensure that all aspects of the marketing plan are in the best interest of the clients and that there is a logical, reasonable explanation of holding back from the public.

Another practice which may be used instead is the deferring or delaying showings until a later date. When deferring showings, you create an active MLS listing that serves in getting the word out to potential buyers, but instead of having showings on day 1 you defer anywhere from 4 to 7 days. This increases attention while also providing opportunity to all buyers in the market to see the property. Allowing more of the public to see the property increases the potential for multiple offers and a possible bidding war. By following the deferred showing market strategy, you can put out the “Coming Soon” for sale sign on the property the same day as the MLS listing is entered. This may just be the best of both worlds if your clients are truly wanting to build the extra anticipation.

Whichever way you decide to go – with the crowd or against the grain when it comes to Coming Soon, make sure you are always promoting and protecting the best interest of your client. Ensure that you discuss and disclose all pros and cons of limited marketing strategies so that you are in compliance with all state real estate laws and regulations, MLS policies, and the Code of Ethics. If you need assistance with buying or selling a Coming Soon property REeBroker Group’s mentorship program can walk you through each and every step! For more information see the website or contact the main office at (760) 722-3222 info@reebrokerca.com.