As a real estate professional looking to expand your business in 2024, you’re probably wondering whether to focus on FSBOs or expired listings. It’s a common question, and the answer isn’t one-size-fits-all. Let’s walk through everything you need to know to make the right choice for your business.
Understanding FSBOs or Expireds
Let’s start with the basics. When we talk about FSBOs (For Sale By Owner), we’re looking at homeowners who’ve decided to tackle selling their home without professional representation. These sellers are often motivated by the desire to save on commission fees, but they’re also showing initiative and commitment to selling their property.
On the other hand, expired listings represent properties that didn’t sell during their initial listing period. These homeowners have already worked with real estate agents but haven’t achieved their desired outcome. They’re often frustrated, but they’re also experienced with the selling process.
The Real Differences Between FSBOs and Expireds
When it comes to accessibility, FSBOs typically make it easier to start the conversation. They’re actively trying to sell their homes, so they’re usually more willing to talk with potential buyers or agents. They’ve posted their contact information publicly, and they’re expecting calls about their property.
Expired listings can be a bit trickier to connect with initially. You might need to do some detective work to find current contact information, and these homeowners might be screening calls after their listing expired. However, once you do connect, you’re often talking to someone who better understands the value of professional representation.
What Makes Each Lead Source Unique
Working with FSBOs is like being a teacher and a guide. These homeowners have taken the initiative to sell their homes, showing they’re motivated and engaged in the process. Your role becomes more about education and demonstrating value rather than convincing them to sell. They’re already there – they just need to understand why professional representation matters.
Expired listings, however, require a different approach. These homeowners have been through the selling process and might feel disappointed or frustrated. Your job is to show them why and how you’re different from their previous experience. It’s less about education and more about differentiation and problem-solving.
Making Your Choice: A Personal Decision
Your decision between FSBOs and expired listings should align with your natural strengths and communication style. If you excel at building relationships and enjoy educating clients about the real estate process, FSBOs might be your sweet spot. You’ll have the opportunity to showcase your expertise while helping homeowners understand the complexities of selling a home.
If you’re more comfortable with direct communication and have a talent for problem-solving, expired listings could be your path to success. These leads often require a more straightforward approach, focusing on what you’ll do differently to get their home sold.
Success Strategies for Either Path
Whichever direction you choose, consistency is key. Successful agents don’t just make a few calls when they feel like it – they develop a systematic approach to their prospecting efforts. This means setting aside dedicated time each day for outreach, following up consistently, and tracking your results.
For FSBOs, focus on building value-based relationships. Share market insights, offer professional advice, and position yourself as a resource rather than just another agent trying to get a listing. Remember, these homeowners have chosen to sell independently, so respect their decision while demonstrating how you could make the process easier and more profitable for them. For more guidance on how to convert a FSBO lead, check out our 6 step guide to converting FSBOs.Â
With expired listings, emphasize your unique approach and specific strategies for getting their home sold. Be prepared to discuss what might have gone wrong with their previous listing and, more importantly, how you’ll do things differently. These homeowners need confidence that you can succeed where others haven’t. For more information on how to convert expired, check out our video with Zak where he discusses how he was able to turn old listings into a solid prospecting strategy:
The Role of Technology in Your Success
Today’s successful agents leverage technology to maximize their effectiveness. REDX provides tools specifically designed for both FSBO and expired listing prospecting. You’ll get accurate contact information, regular updates, and quality assurance checks to ensure you’re working with the best possible data.
Moving Forward with Confidence
Remember, there’s no wrong choice between FSBOs and expired listings – it’s about finding what works best for you and your business style. Start by choosing one lead type and commit to it for at least 90 days. Give yourself time to develop your approach, refine your scripts, and build momentum.
Consider starting with a smaller, manageable goal. Maybe it’s making ten calls a day or setting two appointments per week. As you gain confidence and experience, you can scale up your efforts and potentially expand into working with both lead types.
The key is to take action. Whether you choose FSBOs or expired listings, the most successful agents are the ones who consistently reach out, follow up, and provide value to potential clients. With the right approach and tools from REDX, you can turn either lead source into a reliable stream of listings for your business.
Remember, every successful real estate agent started exactly where you are now – making the decision to take their business to the next level. Choose your path, commit to consistent action, and let REDX help you build the thriving business you deserve.
