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Expired Listing - A New Way of Thinking

Written by Posted On Thursday, 25 February 2016 15:13
Expired Listing - A New Way of Thinking

 

Six months into marketing your home, the listing has now expired and no offer.  To my way of thinking, location, location, location has given way to price, price, price.  Times have changed along with the economy, consumer’s financial status, and the reality of how and what consumers learn about real estate, and their changing view and attitude about it.

 

Why is price the key factor for buyers?  It’s about their personal economics, their personal needs, and their future life plan.  When buyers enter the real estate market they already know (or should know) what their budget is to purchase a home and the costs of living associated with it.  Everything else factors into price, that is, location, condition, features, and the needs of the buyer.  How sellers think about pricing their home to sell needs to change.  Pricing has nothing to do with what a seller wants to net out of the sale.  Perceived added value due to over-improving or customizing the home can be a costly error and may detract value.  Over-leveraging the home does not bode well in most segments of the market.

 

Today's strategy and mindset should be to price the home to attract buyers and not fixate on what the seller thinks he can get from a sale.  Comparable sales (sold) show what a buyer was willing to pay.  Every day I see these words with active listings:  price reduced, new price, price improvement, lower price, just reduced, reduced again for quick sale, or major price reduction.  This is a clear indication that there is still confusion about what establishes proper pricing.  Whether this confusion lies with the real estate agent or the seller, the fact remains that buyers will look at price first and determine what they are willing to pay based on comparable sales, property location, market trends, condition, features, neighborhood and their own personal needs.  Incorrect pricing causes lost time and money to sellers as well as a delay in achieving a timely sale, affecting needs and plans. 

So, your home didn’t sell during the listing period.  Ask yourself these questions and consider your answers carefully:

1)     Did you receive any offers?

2)     Did you have many showings?

3)     What feedback did you get after the showings?  Did you even get feedback?

4)     What changes did you make to put your home in a better position to secure a buyer?

While Florida’s market continues to appreciate overall, a home sale is between one seller, one buyer, one home and how it fits in the scheme of homes in that market.  In other words, if homes in your market segment are of similar age but they have had improvements that meet buyer expectations and your home has not, or for other reasons does not compare well, do not expect to reap a similar price.  All the marketing available will not bring a buyer with an offer if the asking price is not realistic relative to the home and your market. 

Other possible reasons why your listing did not attract buyers or an offer:

1)     Property location – high traffic, or remoteness

2)     Property condition – cleanliness, maintenance, landscaping, pride of ownership

3)     Interior obsolescence  - aging appliances and systems, poor floor plan

4)     Smells- smoking or pet odors

5)     Unprofessional marketing material – poorly written descriptions and photos

6)     Unreasonable expectations 

Most of these items can be changed or improved and they justify pricing accordingly.  Since most people have good reasons for wanting to sell, change your way of thinking when selling your home.  Be prepared to look at your home as something you are leaving and make it appealing to buyers who are searching for a home and who have a different perspective.  Don’t let misinformation, lack of information, or unrealistic expectations stand in the way of attracting buyers and an offer and you moving forward with your life plan.

 

 

 

 

 
 

 
 

 

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Theresa Brown

I have been a real estate consultant since 1996 and my emphasis has always been to educate my clients to make the best decision for their needs. I have earned the designations: Seniors Real Estate Specialist, Graduate REALTOR® Institute, Short Sale and Foreclosure Resource and Accredited Buyer Representative.

I am also a Florida Licensed Real Estate Instructor and I share my knowledge and experience with other agents by teaching various classes in the actual practice of real estate. I have also taught the National Association of REALTORS® Code of Ethics class and subscribe to its principles.  

Working with buyers and sellers at all price points and different markets over the years has given me a wealth of knowledge and experience. I am proud to offer single agency representation where my client's needs come above all else rather than just facilitating a transaction.  

I have a strong work ethic and pride myself on being honest and professional, and I am about substance and not show.  Whether you are a first-time home buyer or seller, or have real estate experience, I welcome the opportunity to work with you or someone you know.  Thank you.

 

 

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