If you’ve ever tried to sell a home, you’re likely familiar with the concept of an “expired listing.” But what exactly does it mean when a real estate listing expires, and why does it happen?
An expired listing refers to a situation where a homeowner had their property listed for sale with a real estate agent, but the listing agreement they signed with that agent eventually came to an end before the home was sold. Listing agreements between homeowners and their agents typically stipulate a limited time period during which the agent will actively market and try to sell the home.
Most listing agreements expire after a set number of months – commonly around 6 months, though this can vary. The expiration dates help motivate the agent to sell the home within that time frame, while also allowing the homeowner to evaluate whether they want to keep working with that agent or try a different strategy if the home doesn’t sell by then.
So why do listings expire unsold? There are a few key factors:
Overpricing
One of the most common reasons is simply pricing the home too high for the current market conditions. If a home is overpriced, buyers may not view it as a good value, leading to few offers.
Market Conditions
Housing markets can fluctuate based on factors like employment, mortgage rates, seasonal cycles, and broader economic conditions. If the market cools off, it can make some homes harder to sell within a typical listing period.
Agent Relationships
When a listing expires, there is often frustration and disappointment from the seller. A strong relationship built on trust and open communication between the agent and seller is crucial. The agent needs to address the reasons why the home didn’t sell and have an honest discussion about pricing, marketing, or other adjustments that may be needed.
Marketing Approach
An agent’s marketing strategy, including pricing, photography, online presence, open houses, and outreach can impact how much buyer interest a listing receives.
When a listing expires, it’s a chance for the homeowners to reassess with their agent. They may decide to renew with a new listing agreement (possibly at a lower price), put the home sale on hold temporarily, or hire a different agent. The home’s “days on market” counter also resets to zero once it’s relisted.
An expired listing doesn’t mean the home will never sell – but it does mean adjustments are likely needed for it to sell in a reasonable timeframe going forward. Both agents and sellers have to stay on top of market dynamics when pricing and marketing a home to reduce expirations.
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Grace Frank is a seasoned real estate professional with over 25 years of experience in listing properties, negotiating challenging situations and working with buyers. Our expertise is New Construction, Relocation, Existing Home Sales, Farm and Land Sales, Investment Listings, Investor Purchases up to $25M and Commercial Listings and Sales. For more information, contact the Grace Frank Group at (423) 355-1538 or email grace@gracefrankgroup.com.
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