WHEN YOUR PROPERTY EXPIRES
A property listing agreement involves a contract between a seller and a real estate agent – the term of the contract can extend from two months to a year. It can be a heavy moment for the sellers when a listing expires. It means that a property failed to sell within the time specified in the property listing agreement. Here we take a look at how to handle an expired listing.
One thing you can expect after an expired listing is many other real estate agents will be knocking on your door asking you to sign with them, and not renew with your previous agent. While the property remaining unsold could’ve been the agent’s fault, it could have also been due to things beyond the agent’s control. Market conditions is a huge one, but also it could of been your fault, you thought it should be listed higher, and went against what the market was saying in the CMA.
If you feel that the agent did his best and/or you have a good working relationship with him/her. Think about re-listing but only after you have had a long talk with them regarding why the property failed to sell. Discuss what strategies can be employed to correct the situation.
One of the reasons why your home failed to sell could be due its poor condition. Todays real estate market can be quite competitive, with sellers competing against each other even on minor things, to appeal to buyers you need an edge over the competition.
A good way to correct the situation of an expired listing is buyer feedback. We have systems in place that provide this after home showings. We also contact prospective buyers agents who had visited their property, and enquire about the possible reasons behind why the property failed to sell. This feedback can be effectively used to chart a course correction.
Sometimes a property remaining unsold need not be the fault of the agent – therefore, correcting the situation of an expired listing is not as simple as changing the agent. The solution lies in analysing all the factors that contributed to the property remaining unsold – this will help one to formulate a strategy to correct the situation going forward.
One thing that often happens is that you list higher that the very comparable home down the street, and gues what- you end up selling that one when the buyer compares!