Your Listing Expired ... Now What?

(Author’s note: If your home is currently listed with a real estate broker, please know this advice is not intended to solicit business nor should it be considered in conjunction with any material provided by your current agent representative.  We cooperate fully with the broker community and only speak to sellers at the end of their listing agreement)

So, in spite of all your hopes and the best intentions of your real estate agent no one has decided to purchase your house during the listing period you agreed to when you placed it on the market. Your listing is now known as “expired” the real estate world.  Don’t fret, many listings expire throughout the real estate year.  

You should know right up front that the expiration of your listing is announced by the Multiple Listing Service that covers your area.  According to the REALTOR® Code of Ethics other REALTORS®  may not discuss your listing with you while you are represented by someone else (note our disclaimer above placed for just that reason). Once your listing has expired, and the MLS has announced that your listing has expired...all bets are off.  Be prepared for a foray of phone calls, visits and mailings from other agents looking to win your business.  Be patient, listen to all of their points of view and offers and then go with the one that works best for you.  

While you’re listening to those offers, listing expiration is also a great time to do some soul-searching of your own.  Ask yourself a few key questions that may make your process work better the second time around.

Do I have enough motivation?

During many listing periods sellers tend to be very motivated at the outset.  They accommodate showing requests from anyone at any time, they allow open houses even if it means changing personal schedules and they get the cereal bowls into the dishwasher before the first appointment comes along.  As time drags on, however, that motivation wanes ... and sometimes that lack of motivation sends a signal to prospective buyers, to other agents and in some cases to the agent representing you. Make sure the positive attitude you brought to day one of your first contract is still resonating now.   Also make sure you bring motivated ears to any discussion; don’t say no outright to any idea just because it sounds difficult or may not be what you had dreamed would happen.

Is the marketing mix right?

Most real estate agents in Pennsylvania and New Jersey have a ton of marketing tools available to them - but sometimes even the most well-armed professional misses on the strategy.  Think back on what worked, and what did not - and evaluate whether any of that had to do with your initial requests or suggestions.  If you think video is the answer, then push for video.  Just recognize that the best videos are ones where sellers participate ... so be willing to play along.

Was the price too ambitious?  

Your Realtor would have a marketing plan to help sell your home. Have you examined thoroughly to check whether it covers all the major areas of marketing? Would your home get sufficient listing with the current plan? Do a competitive market analysis to check the market rates of similar other properties in the market, and find out how long they have been in the market. If the Realtor makes use of the latest marketing techniques then he shouldn't have much of a problem with getting the necessary information.

If everything is alright, then what went wrong?

You may have an impeccable marketing plan, your Realtor has made excellent listings across all medias and still the house is not sold. In such cases, you may want to sit down with your Realtor and brainstorm on what went wrong. Perhaps market conditions are adverse and they just don't allow you to sell. You may need to wait till the market is right again. It may also be that something is wrong with the property. Maybe there are some major repairs/upgrades that you need to do before you sell it.

Maybe you need to change your Realtor

Once the listing has expired, then you would lose trust in your Realtor and that's when you start thinking about hiring another one. If that is the case, then you would have to interview potential real estate agents. Be prepared by asking specific questions because you don't want history to repeat itself.

Here are some sample questions to ask a Realtor:

·         Does your price make sense and fit within the current market

·         Do they have any experience selling properties in your particular area

·         What will they do to market your property

·         How much should you spend on advertising your property

·         How will they tackle negotiations with a potential buyer

Your Real Estate Career ... Could Start Here

One of the hallmarks of the 2010’s is the drive toward entrepreneurism.  People throughout the United States are foregoing normal career opportunities and taking a chance with their own business.  One great entrepreneurial opportunity is real estate, and judging by the gains in membership reported by the National Association of REALTORS® over the last 18 months, people are eager to jump on board.

So what do you need to know before starting down the path to become a REALTOR®

First of all, know that you can’t just wake up tomorrow and decide you want to sell real estate. You’ll need a license for each state where you want to do business.  In Pennsylvania, that currently means 60 hours of classroom instruction and successful completion of the state licensing exam.  In New Jersey there is a test too, but the classroom requirement is 75 hours.

To practice real estate in Pennsylvania or in New Jersey you will need to be managed by a broker.  This is the person who takes the legal responsibility for you with the state should there be any issues, and is also the person who provides the training and mentoring to help your business get up and running.  The broker is required to have additional classroom education (and must also show a track record of successful transactions) so as to ensure they are helping you grow your business in the right fashion.

Coldwell Banker Hearthside, REALTORS® is like most real estate companies in Pennsylvania and New Jersey in that we require you to join the local Association of REALTORS® and complete the ethics training necessary to call yourself a REALTOR®.  Some people do not realize the term REALTOR® has a specific meaning, and that members who do not have the REALTOR® “R” associated with them have not been provided the same guidance with regard to the Code of Ethics and may not necessarily have access to the same real estate tools.   

Why real estate business is so lucrative?

Like most entrepreneurial businesses, real estate offers the opportunity for those who work the hardest to make the most money.  While hard work is not the only driver of success, real estate is unlike many other business opportunities in that the specific knowledge is given to you by someone else (can you imagine the owner of the hardware store down the street learning the business by stopping by The Home Depot) and there is day-to-day management of your growth and success.  Of course, having a large network of friends, relatives and community contacts will benefit any successful real estate career tremendously.  

Should you join a real estate team?

In some instances, a team provides the best opportunity for a new REALTOR® to hit the ground running.  The best real estate teams in Pennsylvania and New Jersey are those that define roles carefully (one agent works with buyers, another works with sellers, perhaps one specializes in first-time home buyers) so that specialization can occur.  While being a part of a team may have an impact on your income from each transaction (think of the idea of “pooling tips” in a restaurant) it often is a great way to ensure there are always transactions in the pipeline.  Real estate teams are ideal for agents new to a community or those who may not have a large contact pool.  There are real estate rules and regulations specific to teams, so be sure if you join one the team leader is someone you trust. Coldwell Banker Hearthside, REALTORS® currently boasts the number one team in the state of Pennsylvania.

What other Resources are there?

As mentioned previously, most firms will insist you join the local Association of REALTORS®.  Doing so is not just a way for you to get the ethics education and technology tools, but it also introduces you to additional resources for your business.  Consider learning asking whether there is a YPN Network established.  While the letters still stand for “Young Professionals Network”, the group has grown to embrace members who are young in experience as well as young in years.  These networks can expose you to some of the areas best agents and can offer you tips to get your business moving in the right direction.  There are currently YPN Networks in Bucks County, the Lehigh Valley, Philadelphia, Montgomery County and the Main Line.  

Also look at online educational opportunities.  Building your business is a forever-job, so learning new techniques never ends.  For Coldwell Banker real estate professionals that means linking into Coldwell Banker University; but the training is available from independent sources as well.  

Finally, look to your broker.  They have a vested interest in making sure you succeed - take full advantage of the courses they have already built to help you along.  At Coldwell Banker Hearthside, REALTORS® that means embracing the “Agent Essentials” program designed to help real estate agents succeed and that help you transition other skills (whether they be from college, another job or just your skills in life) into a successful career.