Selling a home is a detailed process, but it isn’t rocket science either. Sometimes real estate agents and their sellers try to simplify it too much and miss the important steps.
Every day new homes are listed for sale. However, many of the finest homes are not sold and ‘expire’ after being on the market for months and longer. There’s a number of reasons this happens. It’s extremely important for a seller to analyse these and work out why.
This article has appeared in E Bubble Life Magazine October 2019. You can read the Magazine Here.
Here are some common reasons including the next steps to take.
Was the home Overpriced?
The number one reason a home doesn’t sell… it’s overpriced, period.
Being ‘Bullish’, ‘Ambitious’ with price or ‘Giving a high price a shot’ is another way of saying ‘Price it high, watch it die’.
When a home comes on the market, it is critically important to price it correctly!
The price a home is listed for is central to the marketing. In fact, if it is overpriced, the best real estate agent with the most extensive marketing plan is less likely to sell the home!
High prices are achieved in a competitive buyer environment not by overpricing.
The buyers entering the marketplace on a daily basis are far more educated than 10-15 years ago. The primary reason is the internet. There is so much information available to purchasers now. They often know when a property is overpriced compared to others. Buyers simply won’t waste their time viewing these properties.
This is regardless of how great the photos look.
Are the first 2, 3 or 4 weeks a home is newly listed the most important?
If a home is not getting offers within the first 2-4 weeks of being listed, it’s evident the price or something affecting price, is wrong and a reduction needs to be made.
Who was the Real Estate Agent Selling the Home?
Another huge reason homes don’t sell and expire is probably the second largest reason. The real estate agent or company selling their home was not the right one 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 when selling a home, the seller selects the ‘right’ real estate agent to 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 to interview more than one.
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What sort of Marketing took place?
A lack of Social Media and Online Presence by a Real Estate Agent could be a major reason a home didn’t sell and expired!
The strength of marketing needs to be considered.
- Was the real estate agent internet savvy?
- Did the real estate agent utilize social media?
- Did they utilize a website only featuring their property which was for sale?
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 a seller’s home is able to be found online, whether it’s via a Blog, Facebook page, links or other online websites.
What other forms of Marketing were used? There are likely many more that you are not even aware of? Many agents do not even know about some of these either.
What is the Competition of Other Similar Houses?
The level of competition is another possible reason why a home expires.
The more homes that are for sale that are comparable feature-wise and possibly more price appealing, means the lesser the chance the overpriced one sells.
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 neighbours!
Otherwise, it’s making the others appear at better value.
Do levels of competition change throughout the year?
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!
- Ask how many homes are on the market?
- What is the average time in days on market?
- Enquire how many homes that were advertised in a month or a quarter actually got sold?
What was the Feedback?
When a home is listed for sale, feedback from potential buyers is very important.
- Did the agent actually follow up with these buyers?
- Did they have a way of staying in touch to give updates or notify them of changes?
- Did they ask questions?
- Was there any feedback or constructive advice?
- What was the feedback?
Some things can easily be corrected, such as odours and minor updates. If they are not rectified however, they can become the reason a home didn’t sell!
Many sellers don’t even know what type of feedback to expect from showings, because they never receive any!
Some traditional real estate agents still rely on putting a sign up in front of a home and then pray it sells.
What Preparation was done?
Often-times homeowners rush getting their home on the market and don’t properly get it ‘market ready.’
There are small and inexpensive things a seller can do before listing their home to make it more desirable!
What about the things which may have been overlooked prior to listing a home?
Odours can be a huge reason why a home doesn’t sell. Whether it is a lingering pet odour, smoke, mould or something else that potential buyers continue to give as feedback. These must be corrected!
What was the feedback being provided during the previous listing period about any of these?
Were there items that could have been corrected to make a home more saleable?
Preparing and styling 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 sometimes neglect to educate their sellers on several ways they can prepare their homes for showings in a push to get it on the market faster!
Preparing a home for sale is like laying a solid foundation to build on.
What are the Next Steps?
Now that a sellers’ home has expired, what are the next steps?
The first thing is to re-evaluate the possible reasons why their home didn’t sell and is now expired.
There are 15 Factors Which Can Influence a Sale!
Was it overpriced? In many cases, sellers don’t believe their home is overpriced when in reality, it is.
Ask for other opinions on price from other top real estate agents in the area. Ask for sales evidence! 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. Be wary of some just telling you the price is okay, to ‘buy’ your listing, then starting working you down on price later anyway.
A common trend for expired listings is to be re-listed by the same real estate agent. Doesn’t this seem a bit 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!
Many homes remain unsold for well over a standard 3 month listing period. Some have been on-market for well over 12 months.
Unfortunately, there are sellers who recently listed their home for sale who will end up on the expired list. The above-mentioned reasons can help them avoid the same frustration of not selling.
So, is it Too Late for Your Home to be Sold? NO!
Has your home recently become expired?
Are you unsure why your home expired and want to know the 15 Factors Which Influence a Sale?
We’d love the opportunity to chat and talk about why your home didn’t sell and how we’ll get it sold.
Contact us today on 08 83961100 or Click Expired Listing
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Regards Eriks & Team Plaza Real Estate