Special Report: Expired Listings

What Should You Do?
The first thing to do is take a step back and analyze the situation. Try to assess what factors lead to your home not selling. Below are the top four reasons why homes tend to languish on the market:

1. Is the Property Overpriced? Overpricing your property is usually the number one reason it did not sell. Assuming your neighborhood or area has homes with similar features (number of bedrooms and baths, lot size, etc.) on the market for a lower price, buyers will naturally buy those properties first. The price of your property should be competitively priced with these other homes. That means if you want to sell your home, price the home at or slightly below the comparables. Your real estate agent will help you establish the best price based on the competition. Again, pricing your property above comparable properties can easily cause it to languish. It will also help sell the other homes.

Another problem with pricing higher than competitive properties is the price reductions. Most homeowners will reduce the price once they realized their home is priced higher than the competition. When your real estate agent enters the price reduction in the MLS, the property is probably at or near where it should have been priced in the first place. The problem now is you missed a lot of buyers the first round that bought comparable homes for the same price you have just reduced your home to.

To overcome this situation, you are going to have to make sure your new, reduced price is extremely competitive. If your price reduction still leaves the asking price of your home higher than any comparables, your home will probably continue to languish. Your real estate agent will help you assess the competition and help you establish an asking price that will get the home sold. (As a rule of thumb, if a home hasn't sold in 30 days, a price reduction of 3% to 5% should be considered.)

2. Condition of the Property. All of the cosmetic things, such as paint, landscaping, window coverings and flooring should be in good shape. The house should be spotlessly clean inside and out! It's amazing how most buyers refuse to see "through" superficial, cosmetic shortcomings. To illustrate this point, most buyers can walk into a "perfect" home that is priced below market. However, if the house is cluttered, the carpet is worn, or the house has a strong pet odor, they move on to look at the next house. And making these cosmetic improvements costs little...mostly your time!

To get the house sold, make a small investment in:

a. Landscaping: Make sure the lawn is in good shape and the trees & shrubs are neat and trimmed. Make sure gutters are clear. If you don't have the time to do it, pay someone.

b. Exterior of home: Make sure there is no chipping paint, dirty windows, or clutter in the yard. Most importantly, remember that most buyers will notice the condition of the front door when they walk in.

c. Interior: Make sure the carpets are clean and attractive, the walls painted (if it needs it) and clean (no smudges!), the kitchen clutter-free and the windows are spotless. Also, remove excess furniture (rule of thumb is put half the furniture in storage). Excess furniture makes rooms appear much smaller. Make sure all clothes are off the floor and organized in closets. And finally, make sure the smell of the home is appealing. Vanilla scent works very well with most buyers.

3. Was Your Property Aggressively Marketed? Another primary reason for homes languishing on the market is a simple lack of exposure. In a very hot market, a listing in the Multiple Listing Service alone should generate an adequate number of buyers. However, if your market is anything less than red-hot, the amount of inventory will increase and your home needs aggressive marketing.

Most buyers work with real estate agents. A good real estate agent will make sure your property is exposed to the active real estate agents in your areas by presenting your property to many of the area offices. Also, most active real estate agents have a strong network of other agents, and they're usually on the phone or emailing the property to the other agent's buyers. Email us to request a copy of our pre-listing packet which details our 30-day marketing plan.

Fact: The Right Agent + The Right Marketing Can Make A Difference: Like any profession, there are very effective and ineffective agents. Many agents work hard and employ strong marketing techniques. Many agents have a strong network and access to buyers. Many agents simply work hard to get your home sold. However, many do not. Did your agent simple place the house in the Multiple Listing Service? Did your agent have a plan that was thoroughly explained to you?

Did she or he promote your property by mass email alerts? Did she or he use aggressive advertising, including real estate magazines, the Multiple Listing Service and heavily trafficked Internet web sites? Ask yourself; was your agent passionate about selling your property? If not, now is the time to find the agent who will get your home sold.

Summary: Expired listings can be frustrating, but it doesn't have to be that way. It's never enjoyable to have your home sitting on the market regardless of the reason. I hope this special report has helped you get a better idea of what went wrong and more importantly, shown you how you can get your property sold the next time. As your local real estate professional, I am available to answer any questions you have about properly packaging your home to get it sold. You can call me at any time for advice at 763.441.9911, and please remember that you are under no obligation or pressure of any kind. I would very much like to help you!