5 Common Reasons Listings Expire: Avoiding Pitfalls as a Seller

While expired listings can be a strategic way to generate new leads, no agent wants their listing to expire. Not selling a listing before your contract with a seller expires can affect your relationship with your client, impact your professional reputation, and perhaps keep you from getting more referrals down the road.

In this article, we’ll look at some of the most common reasons listings expire, plus ways to avoid those pitfalls as a listing agent.

1. Overpricing

Overpricing is one of the most common reasons listings expire. Some sellers are emotionally attached to their home and attribute more value to it than is warranted. Other sellers may have a profit goal in mind and be unwilling to bring down the price as a result.

Whatever the underlying cause, overpricing can be dangerous to a home’s sale. If buyers see a home priced too high, they will likely scroll past it in favor of more affordable properties.

Solution: Run Comparables

If you’re dealing with a seller with unrealistic pricing expectations, consider walking them through the pitfalls of overpricing, such as deterring buyers and not being able to sell the home.

By running comparables, you can give a seller realistic pricing ranges. Try explaining to them why similar homes sold for certain prices, and then give them a precise listing price based on their home’s specific features and location.

2. Insufficient Marketing

Some listings expire because agents didn’t market the property effectively. Agents may take on too many clients at once and run out of time in their schedule to spend on marketing. Or they may zero in too much on one marketing technique instead of using a wide range of tactics.

Solution: Make a Strategic Marketing Plan

As an agent, it’s a good idea to stay updated on the latest and most effective marketing tools, technology, and techniques. Try mixing and matching various marketing strategies to ensure your listing gets as much exposure as possible.

Here are a few tactics to consider:

• Promote the listing on social media with professional video walk-throughs, high-quality photos, and engaging descriptions.
• Highlight the home’s most unique and desirable features.
• Host an open house and allow people to attend virtually.
• Set up a physical for-sale sign and pass flyers around to neighbors.
• Pay for advertising on online listing sites.
• Add 3-D tours and floorplans to your listing.
• Promote the property in your agent newsletter.
• Optimize your listing for search engines.
• Partner with other agents or local influencers to promote your listing.
• For luxury properties, host a broker’s open house.

3. Ignoring Buyer Demographics

If you don’t take buyer demographics into account, your marketing is in danger of missing the mark—and attracting fewer buyers as a result. It also means it will be harder for your listing to compete with others that are properly tailored to the majority of buyers.

Solution: Target Younger Buyers

Research shows that Millennials are now the largest buyer demographic, and Gen Z is rapidly growing in the buyer pool, too. That means it’s critical to tailor your marketing to younger audiences.

Consider the methods below for marketing to Millennial and Gen Z buyers:

• Highlight eco-friendly features, such as energy-efficient windows, solar panels, or sustainable building materials.
• Use a minimalist approach and modern decor to stage the home.
• Market the property on social media.
• Emphasize flexible rooms and work-from-home spaces.
• Showcase the neighborhood’s walkability or local amenities.

4. Lack of Curb Appeal

Sometimes, listings fail simply because the property doesn’t look nice. Poor curb appeal can discourage buyers from touring the home, an essential step before making an offer. It can also lead buyers to believe the property is worth less than the asking price.

Solution: Make Some Strategic Enhancements

Walk through the property, advising the seller on which changes to make. For example, a fresh coat of paint, a beautiful bed of flowers with fresh mulch, and a tidy yard can do wonders to attract more buyers.

5. Poor Property Condition

Sometimes a property’s problems go beyond what paint and a screwdriver can fix. If you notice a major issue is deterring interested buyers, it may be time to have an honest talk with the seller.

Solution: Discuss Renovations With the Seller

Some renovations may allow the seller to make even more money on the home. However, sometimes a project’s cost is greater than the value it would add. Discuss with the seller whether renovations—such as a new roof, plumbing repairs, or a replaced water heater—would be essential to the sale.

How to Find Expired Real Estate Listings to Turn Around

To better understand why some properties don’t sell fast enough, consider researching failed listings in your area. Did you know you can easily find expired listings on PropStream? Simply search your local area and select the “Failed Listings” Lead List.

Once you select a particular expired listing, click the “Comparables and Nearby Listings” tab to see similar properties nearby that have sold recently. This can give you a better idea of where the seller went wrong.