Last winter, an elderly couple owning and inhabiting an oceanfront condo with two bedrooms and two baths in Palm Beach, Florida, decided it was time to sell and move to a senior living facility. So they hired an agent and put the place up for sale. But with the state’s condo market depressed due to new regulations, sky-high insurance rates and burdensome special assessments, months went by with few lookers and no offers.
Funny thing, as it turned out, because they changed course and decided to stay put, relieved it hadn’t sold. The listing was deleted from MLSs and their contractual agreement with the brokerage came to an end. But that’s when the action really began. Their phone rang incessantly with agents seeking to list the condo anew, figuring they might have been unhappy with their original rep, priced the unit too high or delisted it temporarily for some other reason. For a good long while the frustrated couple let all calls go to voicemail until, thankfully, they ceased after a month or so.
So, is it proper to chase expired listings and likely annoy uninterested sellers, or a perfectly legitimate opportunity to mine new listings? RISMedia asked a variety of residential real estate pros their thoughts, and all agreed that expireds can for sure morph into new listings for them with effort and smarts. And while the Florida couple reversed course on selling altogether, many owners did and likely still do plan on selling.
Importantly, the National Association of REALTORS® notes that if someone with an expired or FSBO listing is on the “do not call list,” soliciting them over the phone for a listing creates legal liability.
“In terms of expireds, these are what many agents go after,” says Joni Usdan, an agent with Coldwell Banker in Westport, Connecticut. “There is no doubt that when something shows up as expired on the MLS, then it becomes fair game for any agent. A lot of newbies also contact listings that are not expired or canceled, but withdrawn temporarily, and are not up for grabs, but that’s a whole different story.”
Cold-calling isn’t the only way to contact expired-listing owners. Josh Jarboe, broker/owner of RE/MAX Empire Buyers in Kentucky, shares how he recently picked up a listing in his neighborhood after it expired. The day he noticed it was marked as canceled, he dropped off a handwritten note along with a small goodie bag.
“In the letter, I expressed empathy, acknowledging that their previous experience likely didn’t bring the results they were hoping for,” he says. “I never bashed the former agent, but I did include an updated Comparative Market Analysis that showed the home was listed $150k above the true market value. I told them I wished it had sold at that price, especially since I live close by and have a vested interest in keeping property values strong, but it was simply priced too high to attract serious buyers.
“I also highlighted the fact that I’ve personally sold six homes in our subdivision in the past two years, each one at or above list price, and all under contract in 48 hours or less. About a week later, the homeowners reached out. They decided to list with me, I posted their home on the market that night, and we already had showings lined up the next day. Mind you, they hadn’t had a single showing in over three months, so they were thrilled to finally see some momentum.”
Two agents with New York City’s Coldwell Banker Warburg, Rashi Malhotra and Ava Anz, told how they viewed expireds, and their strategies with them.
“Yes, I do reach out to owners of expired listings,” says Malhotra. “These owners tried to sell, but for one reason or another, their home didn’t move. Many of them are frustrated and open to a conversation if it feels right to them.
“My approach starts with understanding the home and why it didn’t sell. I review the listing and try to identify the possible gaps. Was it pricing, presentation or the approach to it? When I speak with the homeowners, I begin by asking about their experience. It’s more about gathering insight into what went wrong and understanding the seller’s pain points so we can build a better strategy moving forward.”
Similarly, Anz reaches out when she sees an opportunity to add value in a way that the last agent did not.
“Whether it’s marketing, photography or pricing, I find a way to assist in the sale of the property,” she says. “Most sellers appreciate the boldness to reach out and start building a partnership to help get their property sold for the best value. Typically, you can look into the pricing history and marketing history to see what should be done differently and compare it with comps. I call expired listings every day. I have a pipeline of future business as a result.”
Jeffrey Decatur, a broker associate with RE/MAX Capital in Upstate New York, cautions that the competition to acquire an expired listing can often be intense, as not all agents have equal scruples. He believes that trying to solicit sellers whose listings have expired is legal, but the practice of overpricing to “buy the listing” is unethical.
When Decatur was new in the business, he would sometimes overprice homes to get the listing, even though he knew it was unrealistic, because he didn’t want to lose the opportunity. He learned over time that such an approach does not actually lead to sales or commissions, and it’s better to price homes accurately from the start.
“For example, the other night I went out on a listing appointment and another agent told them $875,000,” he says. “I listed it for $599,000. The agent before me was just trying to buy the listing. They were up against me, and I called them out on it with the seller. I was like, ‘Listen, I just showed you everything that’s for sale, everything that’s sold, and you told me where you thought you ended up in that lineup.’ They said, ‘That’s exactly what you did, Jeffrey. $875,000 doesn’t make sense.’ I planted a landmine and annihilated the other agent without even saying a word.”
Decatur notes that sometimes it’s purely an owner’s fault that their house didn’t sell, overpricing it to a point where it sticks out like a sore thumb next to a handful of nearby properties on the market priced properly. Clever agents can pounce on such expireds, even going so far as to reject the original listing.
“I have walked away from listings when I’ve gone in and the people are like, yeah, my house is worth $500,000,” he says. “I was like, ‘The house next door sold for $300k.’ I’ll let somebody else list it until the seller gets beat up and aggravated enough and informed enough on what the market is doing that they come back, or I’ll reach out to them and ask how things are working out. Usually they always blame the agent.
“The seller is the one who sets the price. No amount of advertising is going to sell something that is overpriced. And just in the market we’re in today, if I come out and I tell you your house is worth $175k when it’s really worth $300k, buyers are going to bid it up to where it should be.”
Tali Berzak, a broker with Compass in New York, says buyers seeking an expired listing can be worried there’s something amiss.
“They can’t help but wonder, ‘Is there something wrong with this property that others have passed on?’ she says. “There’s a natural hesitation, a concern about potentially buying a ‘lemon’ that’s lingered on the market. However, it’s also intriguing; why is this property still available?
“We recently saw an expired listing where a previous interested buyer circled back once the price became more attractive, showing that sometimes it’s simply about the right terms. Understanding that the expiration might stem from issues like poor marketing or incorrect pricing, rather than a fundamental flaw with the home itself, can definitely ease a buyer’s initial concerns and make it worth a look.”
Martin Eisen, another broker with Compass in New York, views expired listings not as failures, but as opportunities.
“These owners, who once declared their intent to sell, often faced hurdles like incorrect pricing, a common issue where the market reality didn’t meet their expectations,” he says. “Equally crucial is presentation. In today’s market, a few photos simply won’t cut it. What excites me about expired listings is the chance to truly help; we’re not pushing sales, but solving problems for motivated individuals.
“Interestingly, about a third of these sellers are still looking for guidance, representing a tangible opportunity for agents. By offering expertise and a fresh approach, we can often reignite their selling journey.”
