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.

Is a Golf Course Community Right for You?

Philadelphia and its suburbs are well-known as a bastion of top-tier golf.  Merion Golf Club in Delaware County recently hosted the U.S. Open, Aronomik in Chester County is regarded as one of the nation’s best, and Saucon Valley has earned a stellar reputation after years as the private club of Bethlehem Steel execs.  When you combine public, private and community courses there are more than 150 options in and around the city of Philadelphia.  So is living on the course your idea of a real estate hole-in-one? There are pros and cons to this type of situation.

Why golf communities are so attractive?

First and foremost, money.  Studies have proven that homes in a golf community often sell at a 40% premium to similar homes in more traditional communities.  If you are purchasing in a new community you may see a return on investment greater than other opportunities.  Of course ROI is always speculative and you should do additional research before making your move.  Additionally, golf course communities often offer walking-distance amenities such as clubhouse and swimming pool.  Be prepared, however, these services are often not included in traditional community fees and may require you to join a separate entity.  Finally, and perhaps most obvious, golf course communities provide an easy outlet for golf enthusiasts to get onto the course frequently.  Depending on the club and your relationship, you may be able to play the hole outside your back door whenever you want!

What things should one consider regarding golf communities?

As mentioned before, many golf course communities don’t offer residents anything more than a traditional residential community would.  You may not have golf privileges, the clubhouse may be for members only and the waiting lists at some clubs may last longer than you desire.  Additionally the dues and fees may end up making the ROI on any real estate investment less-than-desirable.

Additionally, you must consider that in most golf course communities the price you pay for having the fairway out the back door is that you have others using your backyard throughout the day.  If the course opens to members at 6:00, and your bedroom sits outside the second tee be prepared for a 6:15 wake-up call from a less-than-perfect golfer verbally encouraging his or her golf ball to go straight.  

Finally, there is property damage that can come from living in an area where golf balls are flying through the air.  There are many differences of opinion on who is responsible for damage done by errant golf shots (if you are in Pennsylvania or New Jersey we advise you to speak with an attorney to get a detailed answer) but whomever is eventually responsible financially, you are still the one with a broken window that needs to be repaired.  While most clubs and housing are built to minimize this possibility, golfers continue to amaze each other with their ability to hit the ball in places you never expected.

Join Forces with Your Agent to Sell Your Home Faster

Selling your home can be as collaborative as you want. More than ever, sellers want to assist the agent in marketing their home with additional photos (such as spring time garden pictures with listings in the fall and winter) and even starring in videos featuring their property. Many agents will ask you to review and collaborate on the property description, brochures and the over-arching theme of the marketing. Keep in mind that we have follow certain advertising rules and comply with the Fair Housing Act.

Photos Rank High

Photos can make or break your listing. Buyers are looking at the price, a tiny bit of descriptive information and a thumbnail photo on a page of similar listings. Your listing has to stand out. Year after year, surveys tell us that the photos are the most important piece in marketing your home. Some agents have made photography part of their package - meaning they have the equipment and the know-how to take great photos. Others will hire a photographer to get the job done. Either way, the end result has to be great photos.

Copy Matters

Make sure you share all of the details about your home with your agent. They will measure your rooms, gather all of the necessary details needed to load the listing and write up the listing description. The description should be reviewed and speak up - use this opportunity to make sure you are showcasing the best features of your home.

House vs. Home

You might be selling your house, but the buyer is looking for a home. You are not "selling the house". You are selling the promise of a lifestyle and memories made there. Your prospective buyer should envision himself as living there with his family. Rather than the house, it is the idea of living in a home that should be projected. 

Why Certain Houses Are Not Selling

Why is my house not selling? Typically, it is for one of the following 3 reasons.

1. Price

Price is the most common reason that houses do not sell. Buyers are doing their homework - they know market and they have seen the homes listed. They might love your house, but they are not going to overpay. Other agents also know the market and they have seen and know the inventory well. They will dismiss an overpriced listing when searching for homes for their buyers and will not encourage their buyers to even consider your home. Last but certainly not least, an overpriced house will not appraise. You will be hard-pressed to find a buyer that is willing to pay more than the number on an appraisal. Appraisers use the MLS in determining their values just like an agent would, so we should all come up with roughly the same price point when doing a comparative market analysis.  

2. Condition 

Staging your home is very important. Go through your home and appraise critically. Look at the defects and repair all those leaky taps, change shower heads and replace the cracked tiles. If you want top dollar - make staging a priority and fix the place up a bit. Minor renovations and repairs can go a long way. Remove clutter and clean clean clean!

3. Location

A house on a busy street may sell for less than the exact same house around the corner (and off the busy road). Over the years, you have become immune to the noise; you may not even find it a problem. But a buyer coming to look at the house for the first time will be struck by all those noise. You may need to take location into account when setting or negotiating the price of your home.

Seems simple, right? 

Selling your home is hard - it's emotional, time consuming, life-altering and well, not always fun. If you are serious about selling your home, talk with an agent who will show you the numbers. They can take you to see the competition, show you what has sold, and help you understand the price range where your home will sell.

What Does it Really Cost to Buy a Home?

An Idea of the Cost

When you do the calculations on the initial costs, the recurring costs and the net proceeds, you will see that buying a home is certainly advantageous. In addition to your deposit(s) and money down, you will pay fees to your mortgage company, title insurance, prorated taxes/water/sewer, recording charges and other fees. You will be required to secure homeowners insurance (paid in full) and have your declaration page in hand as required by your mortgage company. Depending on your mortgage program, you can expect to pay roughly 5 to 8% of the sale price in closing costs.

Remember, there are some fabulous advantages to owning a home that go way beyond being the master of your own domain ...

• Tax Deductibility You can deduct the cost of your mortgage loan interest from your state and federal income taxes. Since interest generally will account for most of your payment during the first half of your mortgage, the savings can be significant. Some of your costs at the time of closing (including prepaid mortgage interest) can be taken as deductions on that year's income tax return, and points paid up front at the time of closing represent additional mortgage interest and may be taken as a deduction.
• Tax Deductibility of Property Taxes You can deduct all of the property taxes you pay.
• Appreciation Potential Real estate is considered a good long-term investment because it usually appreciates in value. The effects of borrowing potential can increase as the value of the home appreciates.
• Capital Gains Exclusion When it's time to sell your home the amount of capital gains you have to pay is reduced. A homeowner can exclude up to $500,000 per couple if married and filing jointly, or $250,000 if single or filing separately for homes that have been the taxpayer's principal residence for the previous two years.
• Capital Gain Treatment Congress allows preferential tax treatment on gains from capital assets held for more than one year. This would be important for a homeowner who has gains in excess of the allowable exclusion.

Know your monthly nut

Before meeting with a loan officer, work with your real estate agent to determine your monthly nut. How much can you comfortably afford to pay for a mortgage and all of the costs that go into monthly homeownership each month? Your Realtor(r) can give you an estimate of your monthly mortgage payment at a few different price points and in a few different areas to assist you in narrowing things down.

If you are not ready to reach out to an agent yet, do some homework on your own. Access market data for 400+ areas here: www.cbhearthside.com/marketdata. Click on "click here to find market data on a specific area or zip code" in the middle of the page to get started. Here is a peek of what you will get:

Bottom line: What does it really cost to buy a home? It depends. Some of it is up to you! Your agent and loan officer will make sure you are aware of all the fees to purchase.

Do some research, talk to a Realtor(r) and have a little faith! You can totally do this ... if your financial situation does not allow it at this time, your agent and loan officer can give you some great information and guidance to put you on a path to homeownership.