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There are thousands of reasons listings expire. An agent may do everything possible, and the property still doesn’t sell due to lack of activity in that price range or location.
Other times, the listing agent didn’t market the property adequately, or conditions under the seller’s control prevented the sale. However, in most cases, the reason properties fail to sell is the price.
When your listing is languishing on the market, what specific steps can you take to ensure your listing gets sold rather than expiring? Below, we’ll walk through how to tell if your listing is overpriced, how to get a price reduction, and other steps you can take to help move your listing.
Is your listing overpriced? Strategies for obtaining a price reduction
Overpricing often results when the agent is not strong enough to walk away from a listing, even when they know it won’t sell at the list price. Agents who are willing to walk away from an overpriced listing often shock the seller into getting real about their price. They also avoid wasting their time and money on a property that won’t sell.
To sell, sellers must be competitively priced
Instead of looking at their sale as isolated property, show your sellers how their property stacks up against the other properties currently on the market.
For example, and for simplicity’s sake, let’s say that you have four months of inventory in your market. Assume that the top 25 percent of those listings will sell in the first month. The other 75 percent will still be on the market next month. Consequently, to sell in any given month, the listing must be in the top 25 percent of all properties in terms of both value and price. Otherwise, they will still be in the 75 percent of the listings that will still be on the market next month.
Constantly monitor the market for price changes
When your listing isn’t selling, check your MLS for recent sales, expired listings and price reductions. Specifically, research “days on market” plus the number of expired listings and price reductions. If these numbers are increasing, prices may already be headed down. If this is the case, even if your listing came on the market at the right price, it may now be too high.
Also, check the property values for your listing on realtor.com (it provides four different values), Zillow and Redfin.
If prices are decreasing, you can use all these resources along with your CMA to help the seller understand why it’s smart to reduce their price now before the market declines any further.
Overcome the objection ‘We need to get X amount, or we’re not selling’
A common misconception among both sellers and agents is that they determine the price of a property. As the old adage says, “A property is worth what a ready and willing buyer is willing to pay.”
In other words, the buyers determine the price — not the sellers or the listing agents.
Here’s a simple way to explain this to the seller.
Assume an investor paid $100 for a share of IBM stock. Today, that stock is trading at $60 a share. If the investor insists on getting $100 a share, he has two choices. He can either reduce his price to $60, a share where the market is currently trading, or he will have to wait until the market conditions improve.
The same is true for the real estate market. If someone paid $400,000 for their home, and today, similar homes are selling for $375,000, the owner has the same choice as the investor in the example above: Sell at today’s prices or wait for the market to improve
If the sellers say they’re not going to sell unless they get their price, then ask this simple question:
Agent: If you decide not to sell, what are the quality of your alternatives?
In many cases, the seller does have to sell. This question makes them consider the consequences of not selling when they really do need to move.
Build price reductions into your listing agreement
If you’re in a strong market where there are multiple offers, your seller can take a few days to test the market if they really insist.
However, you should explain this to them first:
Agent: The bulk of your showings will take place during the first 14-21 days that your property is on the market. The reason is that buyers who haven’t yet been able to find a home show up during this time. After the first 14-21 days, showing activity drops off because the bulk of these later showings will be to buyers who are just beginning their search.
At this point, if you’re willing to let them test the market, make sure you obtain the following concession:
Agent: OK, if you are certain you want to test the market, let’s do the following so we can take advantage of that first batch of early buyers who have been searching but have yet to find a house. The strategy that works best is called “10 days or 10 showings.”
If we have not received an offer in 10 days or if we have had 10 showings and no offers, whichever comes first, it’s time for a price reduction. Again, because most buyers will see your listing during the first 2-3 weeks, acting quickly allows you to take advantage of that initial surge, which is usually your best opportunity to get property under contract.
Boost your marketing efforts
To get the maximum amount of exposure for your listing, you must fully capitalize on both print and digital marketing strategies. If you’re not utilizing print marketing; employing a social media marketing plan; using video, virtual tours, and SEO-optimized listings, it’s time to up your game and start utilizing as many of these strategies as possible. Without them, you’re probably missing an entire segment of potential buyers.
Update your photos and videos
Updated, professional photos can make a big difference. Highlight the property’s best features, and consider a seasonal update if the home has been on the market for a while. For vacant homes, virtual staging allows potential buyers to envision the space with modern furnishings and decor, to make it feel more inviting.
BoxBrownie.com, VirtualStaging, and ApplyDesign.io can quickly help correct dark and dreary photos, create twilight views of your listing, and do virtual staging.
Market what makes your listing unique
Identify unique or valuable features in your listing that differentiate it from others. Whether it’s a recently upgraded kitchen, a desirable location or an energy-efficient design, showcase these selling points prominently.
Effective social media campaigns:
Targeted ads on platforms such as Facebook, Instagram and even TikTok can expand your reach and help connect with potential buyers. Video walkthroughs, virtual tours and “sneak peeks” create engagement and can drive traffic to your listing from local buyers and those relocating from out of state.
Address any issues with the property’s condition or accessibility
Odors, clutter and outdated decor are some of the biggest turnoffs for buyers. Sadly, sellers often underestimate how much these factors impact their sale price.
If they’re unwilling to address issues like pet odors or wear and tear, be clear about how failure to address these issues can result in a major price reduction, which will impact how much they will net from their final sale. If budget constraints limit their ability to renovate, virtual staging can present the home’s potential without the upfront cost.
Other ways to update the property’s condition include:
Improve the curb appeal
First impressions matter. Simple changes like a fresh coat of paint, well-maintained landscaping or even updated lighting can transform the home’s exterior and attract buyers who might otherwise overlook it. Work with sellers to make these easy upgrades if needed.
Managing pets and strong odors
Like it or not, you must be upfront with your sellers about pet issues or lingering smells in the property. Make sure they understand that removing animals during showings, addressing odors, and keeping spaces clean are essential steps that directly impact their property’s appeal and perceived value. These changes not only make showings easier but also minimize potential objections from buyers.
Increase Accessibility
Restricted access can be a significant barrier to selling. Again, if pets are an issue, the home is only available for limited showings during specific times, or only the listing agent can show it, it’s probably time to have the seller reconsider how they can provide better access to their listing. Using a lockbox can increase buyer exposure to the property.
Pay attention to feedback from showings
Regular feedback from buyers and agents can provide you with valuable information your seller needs to hear. If recurring comments highlight specific issues, address them as quickly as possible to avoid losing future potential sales.
Regular communication with your clients is essential
The No. 1 complaint buyers have about their listing agents is that they don’t stay in touch. Consequently, keep your clients updated on market trends, comparable sales and feedback from showings.
While your sellers’ home is on the market, you should be providing them with as much market intelligence about their listing as possible. Consistent communication keeps your sellers informed and builds trust while simultaneously making it easier to obtain price reductions if necessary.
Identify and address all obstacles to close the deal
When your listing is languishing on the market week after week, update your photos and video, double down on your marketing, make sure that the property is easy to show, but most importantly, make sure it’s priced at or a little below market value.
Use data to support your recommendations, and if necessary, be prepared to walk away from listings if the seller is difficult to work with or refuses to address the realities of the market.
Bernice Ross, president and CEO of BrokerageUP and RealEstateCoach.com, and the founder of RealEstateWealthForWomen.com is a national speaker, author and trainer with over 1,500 published articles.
