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Expired listings: win them with a better net, not a price cut
Most expired listings did not fail on marketing. They failed at the net: the seller would not take a price buyers would pay, because of what they would keep after commission, the loan payoff and the tax bill. The last agent asked for a price cut. You win the listing by showing a way to accept a realistic price and still keep about what they wanted. Below: why listings expire, the call, text, door and letter scripts, objection replies, and the six-step listing appointment.
Why is my house not selling? The seller's real answer
Ask a seller with an expired or stale listing why it didn't sell and you'll hear "bad marketing" or "wrong agent". Underneath, it is usually one of these:
- The price is above what buyers and appraisers support. Showings, no offers. Or offers that died at appraisal (see appraisal came in low).
- The seller is anchored to a net number, not a price. They need a certain amount to retire, pay off the loan, buy the next place, or split with siblings. The price follows the net.
- The tax bill is the hidden reason. On a rental, land, a farm, a commercial building or a home far above the exclusion, the tax at a top federal long-term capital gains rate of 20% plus the 3.8% net investment income tax (IRC §1(h) and §1411; 2026 brackets in IRS Rev. Proc. 2025-32, October 2025), plus state tax, can be the biggest cost in the deal. A seller who sees that number quietly prices high to cover it.
- Terms, not price. The seller wants income, not a lump sum, or doesn't want to carry a note.
The first one is a pricing conversation. The other three are where you win the listing the last agent lost.
Which expired listings to call first
Sort the expireds and stale listings (long days on market, still active) by gain, not by price:
- Investment and rental property owned ten years or more, especially with depreciation taken.
- Land, farm and ranch, often bought decades ago for a fraction of today's value.
- Commercial buildings and mixed use held a long time.
- Long-held homes in high-value areas, where the gain is far above the $250,000 / $500,000 home sale exclusion (IRC §121; unchanged since 1997, in effect for 2026).
- Sellers whose 1031 replacement fell through before closing. After closing is too late.
The expired listing script: phone
You: "Hi, is this Dana? This is Alex with Coastline Realty. I saw your home on Elm Street came off the market. Are you still planning to sell?"
Seller: "Maybe. We're taking a break."
You: "Makes sense. One question, then I'll let you go. If taxes and the payoff weren't in the way, would you have taken the best offer you got?"
Seller: "Probably, yeah. It just didn't leave us enough."
You: "That's the most common reason good homes expire. It usually isn't the marketing, it's the net. I work with a way for some sellers to take a realistic price and still keep about what they wanted. Can I show you the numbers on Thursday at 4, or is Saturday morning better?"
Two rules: ask about the net, not the old agent, and end with two specific times.
Text, door and letter scripts
Text (one line, no link):
"Hi Dana, Alex with Coastline Realty. Saw Elm St came off the market. If I could show you a way to net more at a price buyers will pay, would you want to see it?"
Door knock:
"Hi, I'm Alex, I work this neighborhood. I noticed your listing expired. I'm not here to tell you to cut the price. I'm here because most expireds I see had a net problem, not a price problem. If I could show you how to keep more at a price buyers will pay, would ten minutes this week be worth it?"
Letter or email (short):
Dana, your home on Elm Street came off the market. Most listings like yours don't expire because of marketing. They expire because the price buyers will pay doesn't leave the seller the net they need. There are ways to close that gap without cutting your net, and I'd like to show you the numbers for your home. Are you free Thursday at 4 or Saturday at 10? Alex, Coastline Realty, 555-0100.
Expired listing objection replies
- "We're going to wait a year." "What changes in a year? If it's the tax bill, waiting usually doesn't shrink it. If I could show you how to spread it, would you list this spring instead?"
- "We'll relist with our old agent." "Totally fair. Before you do, would it help to see the net at the price buyers actually offered? If it doesn't change anything, you've lost twenty minutes."
- "We need $1.2 million, period." "Is that the price you need, or the amount you need to keep? If you could keep about the same at a lower price, would the price still matter?"
- "Are you going to tell me to cut the price too?" "No. I'm going to show you what you keep at each price, then you decide."
- "We'll just rent it out." "Is that because you want the income, or because selling costs too much in tax? There's a way to sell and still get paid monthly, without being the buyer's lender."
- "We don't want to carry a note." "Good, you don't have to. The buyer can pay in full at closing and you can still choose to be paid over time."
The listing appointment: show the net, not the price
- Pull the history. Price changes, days on market, every offer and why it died.
- Ask the one question. "If taxes weren't in the way, would you have taken the best offer?"
- Run the net after tax. Use the seller net sheet after tax: commission, payoff, closing costs, then estimated federal and state tax. Show the net at the old list price and at the price buyers paid.
- Show the options side by side. All cash, seller financing, a structured payout, and a 1031 if they want to stay in real estate. You don't advise; you show that more than one way exists.
- Make the introduction before a contract is signed. "I can introduce you to Hans Goldstein. He compares the options with you and your CPA. Want the intro?"
- Price it where buyers are. With the net solved, the price conversation gets short.
The structured payout works like this, in one sentence for the seller: the buyer pays in full at closing, and the seller chooses to receive the money over time so the tax is spread out. Unlike seller financing, there is cash at the table for your full commission.
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What to know before you pitch it
Said once, plainly. A structured payout is fixed once it is set up: no speeding it up, borrowing against it or cashing out. The payments depend on the assignment company that owes them, usually funded by a fixed annuity from a life insurer whose name and ratings are disclosed in writing before anyone signs. It has to be arranged before closing; after the money lands, or once it sits with a 1031 qualified intermediary, it is too late. A commission is built into the payout rate. For many sellers, cash or a full 1031 still fits better, and the seller's CPA runs the real numbers.
For the seller's CPA (not for the appointment). The structured payout is an installment sale under IRC §453 reported on Form 6252; depreciation recapture is recognized in the year of sale (§453(i)); §453A interest applies above $5 million of deferred obligations. Suspended passive losses are released as gain is recognized (§469(g)(3)). There is no published IRS ruling on the specific assignment structure; the CPA reviews the documents.
Frequently asked
Why do listings expire?
Usually because the price the seller needs is above what buyers and appraisers support. Often the seller is anchored to a net number (payoff, next purchase, retirement) and, on investment property or land, to the tax bill. Marketing is rarely the real reason.
What do you say to an expired listing?
Skip the old agent and the marketing. Ask: "If taxes and the payoff weren't in the way, would you have taken the best offer you got?" Then offer to show the net at a realistic price and close with two specific appointment times.
What is a stale listing?
A listing still active but sitting well past normal days on market for its area, usually with price cuts and few showings. Treat it like an expired: the net, not the marketing, is usually the problem.
How do you win an expired listing without cutting the price?
Show the seller what they keep at each price. For sellers with large gains, a structured payout can let them accept a price buyers will pay and still keep about what they wanted, because the tax is spread over time.
Is it legal to call expired listings?
Calling is regulated: check the National Do Not Call Registry and your state rules before you dial, and honor every opt-out. Door knocks and mailed letters avoid most of those limits.
Educational only, not tax, legal or investment advice. Examples are illustrative. Have your CPA or tax attorney review your facts before you act. Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service, and a licensed insurance agent (CA Insurance License #4273294). He is not a CPA or attorney. He is paid a commission only if a structured installment sale is funded; seller financing pays him nothing. Disclosures.