Marketing of expired listings is a strategy that all real estate investors should implement. Expired listings occur when contracts between sellers and real estate agents expire. By reviewing expired real estate listings, investors can quickly find owners willing to sell their property. To fully capitalize on the list, investors must first develop a strategic marketing plan.

The first step in developing expired listing marketing is understanding the psychology of home sellers. Expired real estate listings occur when real estate agents are unable to attract qualified buyers during the term of the contract. Sellers are often stressed and anxious when their property has been listed for months without attracting a buyer.

Most people realize that selling a home in today’s embedded market is challenging at best. However, when homeowners need to sell their real estate to avoid foreclosure or relocate to another state, they need results, not excuses. Investors must be able to develop marketing strategies that will place a “Sold” sign in front of the seller’s property.

One consideration for investors is that real estate agents frequently check the Multiple Listing Database (MLS) to locate expired listings. When agents locate a hot property, they quickly send an expired listing letter or contact the seller by phone in an effort to obtain a new real estate contract. Investors often end up competing against multiple real estate agents. Therefore, it is essential to develop marketing materials that stand out above those presented by the competition.

Homeowners need the assurance that their business will deliver results. Many investors make the mistake of focusing marketing materials on past successes and tend to honk their own horn. While it is important to highlight success stories, your marketing materials should focus primarily on addressing the needs of salespeople. By addressing concerns and fears, real estate investors can connect with potential clients on a personal level.

Sellers need to know that your business understands their distress and offers solutions to solve their home sales problem. While it may be impressive that your organization has sold dozens of expired homes, distraught sellers want to know exactly how you plan to sell your home when your realtor failed to get the job done.

Marketing materials for expired listings should also address how you plan to compete in a buyer’s market. Sellers today compete with a multitude of low-cost, bank-owned, short-sale foreclosed homes. Buyers can easily buy real estate below market value and rarely offer the full asking price for homes, even if they are in perfect condition.

Real estate listings often expire because sellers refuse to lower the sales price. Investors should address creative financing options in expired listing marketing brochures and describe how these strategies can help sellers get the best price for their property. Creative financing options can include lease-to-own, seller carry-over financing, 1031 exchanges, and subject to transactions.

When developing expired listing marketing campaigns, it’s important to create a variety of pieces that build on the above. For example, investors would create an initial contact letter that introduces their company and summarizes the services available. A few days later, an expired listing postcard will be sent offering a complementary consultation. The next piece of follow-up marketing could be a brochure that addresses common selling problems in a buyer’s market. The campaign could conclude with a phone call using an expired listing marketing script.

Investors who are not experts in developing marketing campaigns should enlist the help of a marketing firm that specializes in real estate. Another option is to invest in real estate marketing kits that include pre-made scripts and templates.

Before entering the field of expired listings, investors should develop plans to ensure that they can deliver on the promises outlined in marketing materials. Take the time to educate yourself on the process and develop a network of real estate professionals who can help close the deal. Overdue real estate listings can be a profitable investment niche for those who take the time to learn the options available and develop robust marketing materials and follow-up plans.