Expired listings are a common issue in the real estate industry. Due to poor marketing, an ineffective agent, or a lack of buyer interest, a listing can expire and be removed from the market.
However, as a skilled real estate agent, you can capitalize on expired listings. By leveraging your marketing skills and experience, you can succeed where others have failed.
By following up on expired listings and applying your expertise, you can transform these opportunities into profitable deals and help homeowners achieve their sale goals.
So, what exactly is an expired listing, and how can you turn it into a lucrative opportunity?
Keep reading to learn more!
What are Expired Listings?
Expired real estate listings are properties that weren’t sold within a specified timeframe and had to be removed from the market.
Numerous agents struggle to sell certain properties before the listing expires due to various reasons, resulting in a surplus of these expired listings that other agents can try to sell.
Real Estate Contracts Expire After an Agreed-Upon Period
Each listing contract within a multiple listing service (MLS) specifies a set duration for the property to be available on the real estate market.
Typically, homes are sold within this timeframe as anticipated. However, when properties remain unsold past their expiration dates, they are removed from the market and classified as expired listings.
Even top-tier real estate agents affiliated with the National Association of Realtors (NAR) encounter listings that expire due to various factors.
Why are Expired Listings Important?
Expired MLS listings serve as a valuable resource for real estate agents, primarily due to their impact on sellers’ perspectives. Sellers whose listings expire often come to terms with the need to adjust their pricing or expectations to facilitate a sale.
Moreover, they are typically motivated to sell promptly and are thus open to negotiations and compromises.
Because of this shift in seller mindset, expired listings are often easier for realtors to manage. Many agents find that sellers with expired listings quickly convert into clients, sometimes during the initial phone conversation, and are eager to engage with a new agent.
Thanks to their newfound flexibility, sellers are generally receptive to the adjustments recommended by realtors, making the process of selling the property smoother and faster.
What Causes Expired Real Estate Listings?
Numerous factors can contribute to a property failing to sell before the agreed-upon expiration date in the listing agreement. Whether it’s an inflated asking price, ineffective marketing strategies, or unfavorable market conditions, there are instances where an agent struggles to secure the right buyer within the allocated time.
Here are some prevalent reasons for listings expiring.
Homes are Overpriced
Sellers typically aim to maximize their home’s selling price, but this aspiration isn’t always feasible.
Even when advised by their real estate agents, sellers may adamantly maintain an excessively high price, convinced that a buyer will eventually meet their desired amount. However, in reality, such lofty prices often deter potential buyers, leading to the property remaining unsold within the expected timeframe.
A Property Spends Too Long On the Market
As a property lingers on the market without finding a buyer, it creates a negative perception among potential buyers. The common belief is that a desirable property should attract offers swiftly.
Yet, when a house remains unsold for an extended period, it suggests there might be aspects deterring potential buyers, prompting them to look elsewhere.
The Realtor Doesn’t Know What They’re Doing
While you might excel as a realtor with a deep understanding of the real estate landscape, not all agents meet the same standards.
Occasionally, a seller’s selection of an inadequate agent can result in mismanagement, lackluster marketing efforts, and an extended period of the property languishing on the market without finding a buyer.
Price Reductions
Another warning sign for potential homebuyers arises when a property undergoes repeated price reductions. These continual adjustments may raise concerns among clients, indicating potential issues with the home and suggesting that the seller is becoming overly eager to offload the property.
Effectively managing pricing without alienating potential buyers requires the expertise of a seasoned realtor.
A Sloppy Marketing Strategy
Whether you’re selling a high-end property or a simple pair of shoes, effective marketing is crucial for sales success.
If your home isn’t promoted through appropriate channels or presented effectively by your realtor, selling becomes challenging. Many excellent homes end up with expired listings because of marketing mishaps.
Low-Quality Photography
Nobody desires to purchase a house that doesn’t shine in photographs. If the listing photos fail to showcase the property’s appeal, it’s improbable that any offers will come forth.
Are You Allowed to Call Expired Listings?
Realtors frequently inquire about the permissibility of contacting homeowners regarding expired listings, as these properties are no longer actively listed or contracted with a multiple listing service.
Indeed, not only are realtors permitted to reach out to homeowners about expired real estate listings, but this practice is also actively encouraged. It presents an excellent opportunity to swiftly convert leads into clients.
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