How to Come Back From an Expired Listing

home for sale

Sellers, there's nothing worse than seeing your home land on the dreaded expired list. It’s tough because, while there’s typically one main reason for this outcome, it can be difficult to pinpoint exactly what went wrong. Understanding how to move forward from this setback is key. If you’re ready to relist and get that “SOLD” sign in your front yard, this post will help you refocus your efforts and get back on track. Let’s explore the common reasons homes end up on the expired list, and how you can make a strong comeback when you're ready to relaunch the selling process.

First, you need to understand that when we list a home for sale we are doing our very best to understand what the true market value of a home is, but ultimately, it is the buyer who determines the sale price of a home. The only thing a seller can control, is whether or not they accept the offer, or are willing to counter and negotiate.

With this in mind, here are the top 4 areas to reflect on that can help you understand what went wrong:

1. How Was Your Pricing Strategy?

   
   

   Did you price the home similar to the comparable homes in your area? Remember, when we price a home we use recent comparable solds to understand where buyers are willing to spend their money. Keep an eye on the DOM (Days on market) for these homes. Lets use 30 DOM for an example. If a house in your area sold for around $850,000 in under 30 days, most likely they had a LP (list price) to SP (sold price) ratio of at least 98%. Meaning, they received nearly their entire asking price because they priced competitively, and won.

   
   

   Now lets look at what happens when you price off of active homes for sale. Many sellers think to price their homes at the same or higher than their neighbors homes that are also for sale. If your neighbors home is listed at for example, $875,000 and has been on the market for over 60 days, what is the market telling you? The higher than average DOM suggests that the market, and buyers, have rejected this homes list price. If we price at the same or higher, we will join them on the expired list.

   
   

   So what can we do with active comparables? We can use them to sell OUR listing. If we priced at $850,000 we would make the choice easy for a buyer looking in our area, not to mention by pricing this way we double the exposure online, (hello price bracketing) attracting buyers in the $800-850 bracket, as well as the $850-900 bracket. We also make our home the 'obvious choice' for buyers looking in the neighborhood.

   
   

   Pricing Strategy matters because its the buyer who determines what a home is worth. And once our DOM goes above the average in our area, buyers start to think either there is something wrong with the house, or, the sellers must be getting desperate. This is why offers are lower, the longer you sit unsold. You may not be in a rush, but the buyers perception is everything in the listing game, so while you may not see the issue, every day a house goes unsold it become a depreciating asset in the eyes of the buyers.

   
   

2. How Was Your Home Presented?

   
   

   Was your home presented in its best light? Your get one chance to make a great first impression, so what did buyers think when they walked through your home. Dirt and clutter eat your equity like nothing else, and todays buyers are looking for homes that look like the homes they see on HGTV. The more you can get your home looking like a model home the better, so if your house is feeling slightly sterile post declutter, you know your doing a good job. For home staging tips and a helpful guide click here.

   
   

   This is a good area to look back into the showing feedback your agent received. Perhaps there is a pet odor that's throwing buyers off. Maybe your colourful drapes are obscuring all the natural light in your living room or bedroom. Perhaps your bathrooms are painted a distracting colour. Sometimes a small change like paint colour and deep cleaning can make a huge difference. Remember, if you want top dollar, you need to put in the work.

   
   

3. Did You Receive Any Offers?

   
   

   If you received an offer on the home, did you counter, or did you get offended and reject the buyer right off the bat. This is such a common mistake, and while its hard not to take it personally, I urge you to look at the initial offer with an open mind. Remember, your first offer is usually your best, and sometimes a buyer just wants to see what they can get away with. You always need to counter an offer. A smart seller will never let a deal die! My advice, negotiate like you actually want to sell your house, and focus on your motivation for selling. You need to take the emotion out of the situation, and see your house as an asset.

   
   

   Something else to keep in mind, if you received a few offers and they were all in the same price range, what does that tell you? This is the buyers way of telling you what your home is actually worth.

   
   

   

   Successful negotiation between a seller and a buyer.

   
   

*Major note here, if a previous buyer had an inspection done and something major was discovered, this new discovery/defect NEEDS to be disclosed to all future buyers. My advice, get this fixed before you list again to avoid another deal falling apart. The good news, is that almost anything can be repaired, and be sure to keep all receipts for proof.

While there are many contributing factors to why a home didn't sell, the main takeaway is the list price. You need to be realistic about the current market, and make sure your list price is compelling to todays buyers.

Think of it this way: If I listed your home tomorrow for $1.00 would it sell? Of course it would! There's always a buyer out there looking, you just have to price in the correct price bracket for your neighborhood.

 An expired listing is just a temporary setback, follow these tips, and you’ll be back, ready to attract buyers like bees to honey and win the listing game like a pro!

For an entire Seller Handbook on home prep, where to focus on decorating, and a home condition matrix click HERE.

Expired Listing Guidebook: HERE: Linked at the bottom of the page!

Expired Listing Guidebook