Selling a home is not easy, but it isn’t rocket science either. Unfortunately, some real estate agents and their sellers certainly make it look like it is rocket science at times!
Every day homes expire and new ones are listed. There are many reasons why your home did not sell. Just because a home isn’t selling right away, doesn’t mean it has to become another victim of the expired list!
Let’s analyze the reasons your home did not sell.
Was the home Overpriced?
The number one reason a home doesn’t sell and expires is it is priced too high, period. “Price them high, watch them lie” is a commonly used slogan within the real estate industry.
The price a home is listed at does a large portion of the marketing of a home. In fact, if a home is overpriced, the best real estate agent with the most extensive marketing plan will not be able to sell the home! Buyers are more educated than 10-15 years ago; primarily because of the internet. There is an abundance of information available to buyers for them to easily compare properties and instantly recognize an overpriced home.
If a home sits on the market for 3-4 weeks without a contract a change in price needs to be made.
Who was the Real Estate Agent Selling the Home?
Another huge reason homes don’t sell and expire, probably the second largest reason is the real estate agent selling their home was not the correct real estate agent for the job. In every community, worldwide, there are hundreds or even thousands of real estate agents. Some good real estate agents, lots of terrible real estate agents, and a few great real estate agents. It is extremely important that when selling a home, the seller selects the “right” real estate agent to sell their home. There are many things that every seller should consider when selecting the real estate agent who will sell their home. When a home expires and a seller is reflecting on their real estate agent, they need to ask themselves, did we interview multiple real estate agents? In most cases, it is important that sellers interview more than one real estate agent. There are many great real estate questions that sellers need to ask to ensure they hire the correct agent for the job!
Another thing that needs to be considered when a seller reflects on who was selling their home that has now expired is the strength of their marketing. Was the real estate agent internet savvy? Did the real estate agent utilize social media? These are only a couple of the questions that a seller whose home expired should ask themselves. With over 90% of buyers beginning their home search online, it is extremely critical that a seller’s home is able to be found online, whether it’s via a blog, Facebook page, Twitter Account, Google Plus Account, or other online websites.
For example, if a homeowner is looking to sell their home in San Diego, CA, it is pretty important that any potential buyer searching for “San Diego, CA Real Estate” is able to find the sellers home. A great way to find out the level of a real estate agents strength when it comes to online presence and social media is to simply do a search. A Google search of the real estate agents name should not only provide results of the agent’s social media accounts, if they have them, but also their blog or personal website. Other generic searches, such as “Real estate agents using social media in San Diego, CA,” can also provide some quality information and a good idea of who is utilizing these extremely important websites!
What is the Competition?
The level of competition is another possible reason why a home expires. The more homes that are for sale that are comparable, the lesser the chance that these similar homes will be shown and/or sold. If the level of competition is high, a home must have something that sways potential buyers to select that home. Pricing a home correctly from the beginning is even more important to a seller who will face a strong level of competition, and is just one way a home is able to be sold before their neighbors!
Do levels of competition change throughout the year? Absolutely! Depending on the time of year, the number of homes for sale varies from community to community. Competition when selling a home cannot be avoided but certainly can be reduced, so a seller whose home expired should know what the competition level is and also ways to reduce it! Did the agent shared a “market absorption” report with the seller? This is another way to determine the level of competition within a given area at any given time!
What was the feedback (if any)? Some things can be corrected, such as odors and minor updates, so they do not become the reason a home expired and didn’t sell!
What was the Feedback?
When a home is listed for sale, feedback from potential buyers is very important. Many sellers don’t even know what type of feedback to expect from showings because they never receive any! Many real estate agents will put a sign up in front of a home and hope that is sells, also known as a post and pray Realtor. Without feedback, things that possibly could be corrected, aren’t!
What about if feedback was being provided during the previous listing period. Were there items that could have been corrected to make a home more salable? Often times homeowners rush getting their home on the market and don’t property get it “market ready.” There are often times small and inexpensive things that a seller can do before listing their home to make it more desirable!
What about the items that may have been overlooked prior to listing a home? Foul odors can be a huge reason why a home doesn’t sell. Whether it is a strong pet odor, smoke odor, or just a reoccurring odor that potential buyers continue to give as feedback, foul odors absolutely can kill a home sale!
Preparing a home for showings can be the difference between a home selling or expiring! Negative feedback can be avoided before a potential buyer walks through a home, with the correct preparation. Real estate agents to often will neglect to educate their sellers on several ways they can prepare their homes for showings!
What are the Next Steps?
Now that a sellers home expired in the MLS, what are the next steps? The first thing is to reevaluate the possible reasons why their home didn’t sell and expired. Was it overpriced? In many cases, sellers don’t believe there home is overpriced when in reality, it is. Ask for other opinions on price from other top real estate agents in the area. Are these top real estate agents recommending a price less than what your home was last listed for? If so, price could have been the primary reason for an expired listing.
A common trend for expired listings is to be re-listed by the same real estate agent. Doesn’t this seem foolish??? If a real estate agent did not sell the home during the first period, what are the chances they will sell it during the next? At the very least, before re-listing with the same real estate agent, interview, interview, interview! If a seller neglects to interview, it is very possible their home will end up on the dreaded expired list again!
Unfortunately, there are sellers who just listed their home for sale who will end up on the expired list. The above mention reasons are just a handful of reasons why a home expires.