Arkansas Real Estate | Deaton Group Realty

Little Rock, North Little Rock, Maumelle, Bryant, Benton, Sherwood and surrounding areas

Little Rock AR Real Estate

selling tips

My Personal House For Sale – Serious Inquiries Only

Deaton House for sale
I apparently put my house for sale the other night. As a REALTOR, I know it is difficult to find a good REALTOR, so I am having these 4 fight it out for the sale. I even negotiated zero commissions, no exclusive listing agreement, they have only 30 days to sell it, each required to buy a useless full page spread in the local paper, they each bought me a home warranty, paying all my closing costs, no showings from 8-5 each day especially weekends since that is family time, the Great Dane will also be roaming around, and each are taking me out for steak dinner when it sells. Oh yeah, they let me list it for $999,999 regardless of what it’s actually worth. Serious inquiries only.

5 Ways to Vividly & Painlessly Prove the Dangers of Overpricing

Sellers’ inclination to overprice their homes can seem as formidable and ever-present as gravity or any other law of nature. In some ways, it is the most natural thing ever – everyone wants to maximize the value of their possessions, especially when it comes to their largest assets.
But because overpricing can be so deadly to sellers’ ultimate goals, it’s our responsibility to leverage every strategy at our disposal to vividly paint the picture of how dangerous and counterproductive overpricing truly is, before they experience the pain and expense of a listing that won’t sell. Here’s how:
1. Show the list price of the lagging pending vs. the list price of the quick/solds.
When we pull comps, we often focus on the Sold properties, and their list vs. sale prices. If we can get some information from insiders about the pending comparable homes, that’s also useful – sometimes even more useful than the Solds. While many agents take a glance at the Active homes just to get a sense for the competition, when your Seller client is in danger of overpricing, it is worth scrutinizing the Actives more intensely.
You might be inclined to weed out Active comps that are clearly overpriced to stop your client from construing them as indicating the right price range for your home. I argue that we should be doing the exact opposite: look and see whether there are Active comps for your client’s home which have lagged on the market for a much longer time than the average DOM for the pending and solds in the area and seem to be significantly overpriced – maybe even falling into the same range as your client would like to list theirs. If you can find even one or two such overpriced, lagging outliers, consider showing them to your Seller as powerful examples of why they should not to list that price range.
2. Deep dive into the “slow” Sold comparables.
As you’re exploring the comps, spend some time talking your seller through another frequently overlooked subset of properties: those that sold, but sold very slowly when compared with the average number of days a home in your area stays on the market.
Often, these “slow” Solds will have been overpriced and will have sold way below asking – even below their reduced price. Pinpointing the:

  • original list price,
  • list price at the time the      home went off the market,
  • sold price and
  • number of Days on Market      (DOM)

on even a few slow Solds can paint a vivid picture of the path of an overpriced home in a seller’s mind, very efficiently.
And the opposite is true: if you can find a few examples of Sold comparables which were listed low and sold high, those two types of examples, together, make the picture even more powerful.
3. Help your seller see what buyers will see, online.
Visit your local Board or MLS’s website and get a read on how many homes in your area sell in the price range/bracket your seller wants to list at, versus how many sell in the price range you’re recommending. Say, for example, your client wants to list at $415,000 and you think the home would do better at $385,000. If there were 200 homes sold last quarter at $350,000-$400,000 and only 75 sold between $400,000-$450,000, chances are great that buyers in your area are much more likely to be conducting their online home searches in the sub-$400,000 range, statistically speaking.
You know the rest: the more buyer search results the listing falls into, the more buyers will want to view the place – and the more viewings you get, the better the chances of getting an offer.
Additionally, take the opportunity before the list price is set in stone to sit down with your seller and slip on the virtual shoes of the average buyer you’ll want to court for their home. Run online searches at several different price points – including the one the seller believes in and the one you are recommending – to see what the competition looks like online, and how the seller’s home will measure up against the other in terms of the specs buyers use to pick the homes they want to see in person (e.g., beds, baths, square feet, location).
The two-part goal, as you discuss it with your seller, should be to list the property at a price point which:
(a) falls into the broadest possible bucket of online searchers and
(b) makes every buyer who sees it in the context of the other homes in the same price bracket put your seller’s home at the top of the list of places they want to view.
4. Take the seller on a tour of competitive properties.
In some situations, the specs of the comps simply don’t make it crystal clear that a seller’s home would be overpriced. This happens most often when a property’s condition or location pale in comparison to the competition. In these instances, when you feel strongly about your pricing recommendation, consider taking your seller on a short tour of the competition – physically taking them to view competitive properties, in real life.
Show your Seller what their home will be up against, by touring them through one or two of each of the following:

  • homes in the price range they      want, in their neighborhood
  • homes in the price range they      want, in other parts of town which buyers will likely also be considering
  • homes in your recommended      price range, to show how their home is poised to compete well against      these properties.

Showing your Seller the competition in real life can also be a powerful segue to a conversation around property preparation. If you think your Seller’s home would be fairly priced at the range they want to target with $25,000 in improvements, show them the homes which have the improvements you suggest and are listed/selling at their desired price point . That puts the Seller in the driver’s seat on how to proceed: invest some dough, or price it more appropriately.
5. Be strategic with your past client references.
If you know a particular seller-to-be is fixated on a too-high price, be strategic with the past client references you give them. Ideally, you want to connect them with past seller clients who were similarly situated to where they are now; people who are highly likely to do two things:

  • Share relatable experiences      about their own thoughts and actions from property preparation through      close of escrow, painting a positive picture of the ultimate outcome they      had working with you; and
  • Discuss their experience      setting – and later, lowering – their home’s list price, as follows: “We      were wrong. Your name here was right. And we could have saved ourselves a      lot of stress if we’d listened to your name here from the beginning.”

Other sellers who have been in precisely the same spot as your current client have a level of credibility in vouching for your pricing skills that you can simply not ever have or get in talking about yourself. Having come out the other end of escrow with a favorable result, they can also talk to the overall legitimacy and soundness of your professional advice, and can do the heavy lifting when it comes to countering every Seller’s fear: that their agent is suggesting a lower price just to make their own job of getting the place sold easier.
As you can see, there are themes here to the categories of overpricing pitfalls you’ll want to illustrate for your seller – it poses the dangers of: making a home lag on the market; eventual, painful price cuts and excruciating lowball offers. The worst danger? Many overpriced homes simply don’t sell at all. But before they fail to sell, they suck up just as much time, energy and cash in preparation and marketing as right-priced homes, causing an above-average amount of woe, hand-wringing and sleepless nights for both agent and seller.
It might seem time-consuming, but pulling out all the stops to prove the hazards of overpricing in advance saves everyone, in the long run.

Top 10 Worst Home-Showing Offenses

When it comes to presenting a home to buyers, some sellers are clueless.  Don’t leave potential buyers with a bad impression of your home?
Oh No They Didn’t!

Here are the 10 most common responses from buyer’s agents when asked about the worst mistakes they see when presenting for-sale homes to clients:
1. Leftover home owners
By far, one of the top offenses cited by buyer’s agents was home owners still lingering around when agents arrived with clients to preview the home. Awkward encounters ranged from buyers finding sellers taking a shower, asleep in the bed, to even the “stalker sellers” who liked to follow buyers and the agent all over the home to see what they thought.
2. Pets and their messes
Numerous agents also cited the not-so-friendly dog and kitty encounters as a top offense. Even pets left in a crate can pose a distraction since they might make noise the entire time others are in the house. Plus, if they seem mean, the buyer might not even step in the room.
3. Bad smells
A displeasing smell can really turn buyers off. Common offenses include cooking smells lingering around the home, such as garlic, fried bacon, or fish. Also, watch for cigarette smoke and animal smells, agents say.  Sellers get immune to the smell that their pets have embedded on their property, but anyone opening the door will smell it immediately, even if there are air fresheners trying to cover up the smell. If you have a pet, there will be an odor. Don’t send your buyers away: Paint, and clean the carpeting. Take the odor seriously and do what is needed, even if it means replacing the carpet.
4. Critters running wild
Wild animals and pests roaming around is a surefire way to send buyers running. Agents described worms crawling on the floor and bats and raccoons lounging in the attic.
5. Odd home makeovers
Do-it-yourself disasters were also prevalent, like doors opening the wrong way or unprofessional paint jobs. Also, rooms not being used for their intended purposes can confuse buyers, such as an office being used as a bedroom even though it has no closet.
6. Dirt and clutter
There were a number of offenses cited when it came to cleanliness: Dirty laundry piles, un-flushed toilets, dishes on the counter or in the sink, un-made beds, clothes scattered about, soiled carpets, dirty air conditioner filters, and overflowing trash cans.
7. Personal information left in plain sight
Sellers should be careful not to leave in plain sight important documents that may pique buyers’ curiosity. Some agents say they’ve seen personal information like bank and credit card statements, even mortgage payoff notices, left on the kitchen counter.
8. Too dark
Dark or dimly lit houses aren’t showing the home in the best light.  Be careful with CFL bulbs as by the time the bulbs light up, the buyer is gone.  Energy efficient bulbs need time to warm up before they are at their brightest, so staging professionals usually recommend agents arrive early to a showing to turn on any light fixtures with CFL bulbs at least 10 minutes prior.
9. Keys missing from lockboxes
All too often, agents arrive at a listing appointment with their client only to find there’s no key to get in.
10. Distracting photos
Watch the photos displayed on the walls too, agents warn. An agent from Kentucky, recalls showing a family a home that had life-sized, nude photos hanging, which left her clients racing for the door covering their eyes.  Another agent recalled showing a home to a client, who was staring at a painting in the master bedroom of a woman in lingerie. It was the owner of the home…and the listing agent!
October 2012 | By Melissa Dittmann Tracey

Can God sell my house?

For those who know me personally, they know I say what is on my mind, based more upon logic than emotion, and they know I am a Christian.  I write this knowing those who know me will get it, and hoping that those who don’t know me will not take this blog as offensive to our God.
As a REALTOR, I help two – three dozen families each year with the largest financial decision their family will face.  Even outside of real estate, as a Believer, I hear the comment many times that if God wants it to happen, he will make it happen.  Over my 9 years in real estate, yes, I have clients tell me that if God wants their home sold, then he will make it happen, regardless of my effort, regardless of the market, regardless of lenders, regardless of current price!
As a Believer, I completely know and trust that God can make anything happen.  Anything!  He made this Earth and all it’s resources and inhabitants, including us.  He can do all things – Period!  But God’s abililty to make something happen can’t be questioned when He doesn’t make something happen.  Make sense?  There is a difference between having the ability to do something and actually doing it.
One of God’s greatest characteristics provided to us as humans, is our free will.  We have the free will to make a decision to follow Christ or not, why would we also not have the free will to make decisions that affect real estate, and other factors of our personal lives?  The greatest gift provided to us is eternal life with Christ, yet God doesn’t make us accept Christ and follow His will.  If God will not ‘make’ everyone accept him, and follow his every desire, as a dictator would, why do we sometimes throw it out there that God will make it happen if he wants to?  What is more rewarding?  Someone following you because you make them do it, or someone who chooses, based upon their own free will, to follow you?
Maybe I am what God has sent to you.  To guide you, protect you, and to use my knowledge and expertise for the benefit of your family, based upon God’s desire?  As Believers, we have the Holy Spirit to guide us, because we can’t do it on our own.  The Holy Spirit helps us, everyday, with discerning what is the will of God.  Do you believe that God puts people and activities in our path?  Whether to benefit from that interaction, or sometimes to suffer from it!  What about the Good Samaritan?  Should the injured traveler have rejected the services provided by the Samaritan and waited for God to deliver him personally? I can see the injured traveler now, “No thanks, I don’t need your help.  Let the blood continue to flow out.  No, please don’t get me out of the wilderness and into safety.  If God wants to save me he will show up himself.”
I am always nervous when I hear another Believer make comments, and act, on the theory that they can sit back and do nothing and God will make it all happen.  God never tells us to do nothing.  It is actually the opposite.  Throughout the Bible, God’s people were directed to action!  So why then, do Christians not listen to reason, or the current market data, or the professional opinion and direction of those who are possibly put in their path based upon God’s desire to help them?
As a side note, I guess this blog is intended for Christian clients.  I would assume that if you don’t believe in God, then you aren’t making the comments about if it is to be, God will make it happen.
Without a doubt, I truly believe that God has provided me with opportunities in real estate to guide my clients according to His will.  To provide them with honest intent for the betterment of their family, based upon their situation, without the influence of selfish desires on my part.  This doesn’t mean that God can’t make your home sell regardless of price ,or condition, or the local market.  Nor, as a buyer, get the perfect house for the incredibly low ball offer you submitted.  God can do all things regardless of efforts, direction, or influence from a real estate agent, the local market or third party entities such as lenders, appraisers, and buyers.  Trust me, I have seen some homes sell that it had to be God!  There was no logical sense why that home sold!
The good news is that God listens, and there are actions we can take to help our specific real estate needs.

  • Do pray for your house, whether it sells or not. Pray that every person who enters through your doors will sense God and will want to know him more. Pray for God to send buyers who will be blessed by living in your house and who will serve him. Pray that God will direct you to the right place for your own new home.  “Come to my aid, O God. O Lord, make haste to help me.  You promised those who ask, would receive, those who seek, would find, those who knock, would have doors opened to them.  Hear the prayers of your church, grant my requests, and pardon my sins. Amen.”
  • Don’t succumb to superstitions or seek “luck”. These are shortcuts which attempt to manipulate God so you can control your own life. Know that God is on your side as you put him first. That’s a whole lot better than all the luck in the world.
  • Pray that God will reveal Himself, and His will, to you.  Pray that God will give you the discernment you need to make educated decisions based upon the knowledge of those supporting you.
  • Don’t be embarrased to ask God for help with your real estate needs.  God is thrilled that you asked for His help to sell your home. “May the Lord grant your heart’s desires and make all your plans succeed.” – Psalm 20:4.
  • Know that God cares for you.  1 Peter 5:7 “casting all your care upon Him, for He cares for you”, NKJV.  Matthew 11:28-30, “Come to Me, all you who labor and are heavy laden, and I will give you rest. Take My yoke upon you and learn from Me, for I am gentle and lowly in heart, and you will find rest for your souls. For My yoke is easy and My burden is light.” NKJV.  3 John 2 “Beloved, I pray that you may prosper in all things and be in health, just as your soul prospers.” NKJV

Certainly there are many factors involved in selling a house such as current market, current pricing, state of the local economy, etc.  But as far as praying for a house to be sold, quickly, at the right price is concerned, it’s all about unwavering faith, that God will provide proper discernment and direction according to His will.  What matters most is having the faith that God hears and answers our prayers according to His will, and it is possible that God’s will is that the house is to sell based upon the current market activity, buyer demand, and professional instruction of a real estate expert.
So I don’t ‘preach’ to just clients, let me direct this to those who are real estate agents.  The above holds true as well.  Your success as an agent is something God could ordain without much action from you, but that is not likely.  Success as a real estate agent depends on your desire and will, and definitely not solely on your skill.  Seek discernment and direction from God on what you need to do to be successful as a real estate agent, not only to support your personal and family needs, but to serve the needs of those you come across and represent.
I had an agent of mine tell me one time that if God wanted her to close transactions, then God would provide her with clients and deliver transactions to her, without her having to do anything.  She is no longer in the business.  Maybe that was God’s will for her to not be in real estate.  Maybe she missed some incredible opportunities desired by God because she wouldn’t put a little desire and will into her own actions.

How accurate is Zillow & Trulia?

Today, many of my clients, sellers and buyer, ‘refer’ to Zillow or Trulia to try and pick up some knowledge about their local real estate market.  I agree that both of these sites provide great information about the buying or selling process, but relying on these two sites for accurate, real time, data on the local real estate market is a mistake.
According to a recent study, 36% of the ‘active’ listings posted on Zillow were actually no longer available.  It was 37% for Trulia.  These properties were either already under contract, sold, expired, or withdrawn and were no longer actively for sale.  For buyers, this means you are excited about a property that is no longer available.  Ever been told you can’t have something you really want?  It sucks!  For sellers, only the atual ‘sold’ price provides a true picture of what buyers, lenders, and appraisers, are giving for the home.  Just because something was listed for $200,000, doesn’t mean it sold, or appraised, for that.
In addition, this study found that Zillow only contained 79% of the local market’s active listings anyway.  It was 81% for Trulia.  Hey buyer!  Do you want to know about all the homes available for sale that match your family’s needs, or just 80% of them?  Don’t worry about the other 20%.  I bet they weren’t that good of a value anyway. Oh yeah, seller, don’t worry about the 20% fewer buyers who know about your house.  I’m sure that won’t affect your sales price or time on market much, well maybe by 20%, but that isn’t much, right? (20% x $200,000 = $40,000 less).  Chump Change!
Because Zillow and Trulia are third party, for profit, companies and not real estate firms or agents, they can not provide all the current, real time, information concerning active and sold homes.  Only a local agent, as a member of the local Multiple Listing Service, can provide real time, accurate date concerning your local market.  And local can mean your specific neighborhood.  Each neighborhood is different in style, in demand, in age, etc and each neighborhood has a different real estate market.  Just because a home only 1 mile away sold for X dollars, doesn’t mean your home will sell for X dollars.
Buying, or selling, a home is a family’s single largest financial decision and has great influence on all aspects of the family and its members.  Before making such a huge decision, I recommend that you get ALL the information….All the CORRECT and ACCURATE information, so you can make an educated decision.  Don’t make a decision based upon speculation, or partial data.  This could cost you greatly in the form of higher days on market, and incorrect ‘most likely sales price’.
 

Do it Yourself Projects that really add up

According to a recent survey, the below projects are cost-effective improvements that provide a positive Return on Investment toward the value of your home.  These are VERY important steps to take when preparing your home for market.  Even though these are ranked in order of greatest ROI, all of these need to be conducted prior to putting your home on the market for sale.

Houses sell in Fall and Winter too!

Every year about this time, I hear the same thing, “Houses don’t sell in the Fall and Winter”, or “We want to take the house off the market until next Spring.”  Sellers seem to think that the buyers disappear during the Fall and Winter months, but this simply isn’t true.
Yes, there are less transactions during the fall and winter months, but selling a home from October – February is still a very common occurrence.  Why?  It really comes down to simple supply and demand.  I know it may be hard for some of you, but try to remember back to your high school or college basic economics class.  Supply and Demand.  A little political side note:  Our country’s economy is based on the supply and demand functionality.  If people want something, they will pay for it, and based upon the supply of inventory, the price will be determined according to the demand.  This principle has stood the test of time, and it will stand during fall and winter for the local real estate market as well.
During the fall and winter months housing inventory is typically lower, which means less competition for the seller during the fall and winter months.  But, during these same months when inventory is lower than any other time of the year, life still happens.  Life changing events continue even when the leaves are changing color, snow is falling, or you are celebrating Christmas.  What are life changing events?  New babies.  Deaths.  Divorce.  Loss of Job.  New Job.  Relocation.
All of these life changing events create demand for housing.  If the demand is there, and the supply is lower than it is possible to not only see shorter days on market, but better pricing as well.  Yep, I said it.  It is possible to sell a home at a higher price and shorter time frame during the fall and winter months.  The typical fall and winter buyer is ready to make a decision, either due to these life changing events, or to get a fresh start by or around the new year.
2011 was a classic example of this for Central Arkansas.  Throughout the Greater Little Rock area, October 2011 thru February 2012 was HOT with real estate activity.  Don’t miss this wonderful time to sell your home!
Here is some research I conducted over 2012, for West Little Rock and Maumelle, to show that the numbers may support a better selling time is during the fall and winter.  In January 2012, there was 1 buyer for every 2 active listings.  In July 2012, there was 1 buyer for every 7 listings!  Inventory, and competition, had increased greatly so there were more sellers fighting for the active buyers.
New Article just published:

Let the Fall Buying, Selling Season Begin

Daily Real Estate News |      Friday, September 28, 2012

The fall housing market isn’t known for being as robust as the spring market, but there are different motivations that tend to attract consumers during this season, experts say.”We’ve observed in seasonal household buyer patterns that there is a higher ratio of first-time buyers and childless couples in the fall,” says Walter Molony, economic issues media manager at the National Association of REALTORS®. “Families with children time their purchase based on school-year considerations, so they peak in the spring and summer.”
According to a recent Real Estate survey, based on 30,000 of broker and agents, about 20 percent of buyers are emotionally driven in the fall to purchase a house so that they can be in a new home by the holidays. Ten percent are motivated by tax benefits.
Sellers in the fall tend to be highly motivated too and face less competition with smaller inventories, says Shaun White, vice president for corporate communications for RE/MAX LLC in Denver, Colo.
“Some sellers will opt to lower their price in the fall because they’re afraid of missing the boat and being stuck trying to sell during the holidays,” says White. “Buyer traffic drops in the fall, too, so buyers may have less competition as well as better prices. You find motivated sellers and motivated buyers in the fall, especially as you get closer to the holidays.”
In some areas of the country, such as in Arizona and Florida, the prime selling season doesn’t even begin until the fall as snowbirds come in from the cooler climates looking for new homes, White says.
Source: “Homebuying: Fall Is the New Spring,” HSH.com (Sept. 26, 2012)

What it takes to sell your home!

What it takes to sell your home!
This is not rocket science these days, but it isn’t always what you see on HGTV either.  Today’s market is a “Price War” and a “Beauty Contest”, the first time we have been in both, at the same time.
Everyone thinks their home is the best in the neighborhood, but for most of us living in a developed neighborhood or subdivision, in a home built by a generic builder, your home is most like 99% of the homes in the neighborhood in terms of features (flooring style, crown molding, trimwork, etc), and probably the same exact house as yours is every 3rd houses down the street.  It is a big ‘awakening’ when I take my sellers and show them other homes for sale in their neighborhood.  Usually, the comment is “yeah, our house is just like theirs”.
In Central Arkansas for 2012, we are experiencing a high inventory of homes for sale, which has kept us in that “buyer’s market” mentality.  I say ‘mentality’ because whether your neighborhood has a stable, declining, or increasing market, the buyers today still think it is their market.
So, what does it take to sell your home?  Focus on the main areas:  Curb Appeal, Kitchen, Bathrooms & Staging/Detailing.
The goal is to eliminate any ‘negative’ thoughts from a buyer.  Yes, ‘any’!  Why, because most people ‘overestimate’ the cost of fixup by at least double the actual amount, and if they get ‘negative vibes’ from your home, they will just go to the next one.
Curb appeal is your first priority.  If it doesn’t appeal to the buyers from the outside, it will be hard to convert them with the inside.  Not impossible, but definitely a challenge.  I had buyers recently, who didn’t even want to go inside just because the outside was not appealing to them.  Good lawn, good landscaping features, clean exterior, pickup, fresh colorful flowers, fresh mulch, etc.  Most of this is easy stuff.
Once inside, buyers go ‘ga-ga’ over kitchens and bathrooms.  To have the limited buyers choose your home over the others, look into updating plumbing and lighting fixtures in these two areas, and keep them spotless.  New cabinet knobs and hinges go a long way.  What about a fresh paint job on cabinet doors, and maybe a little effect like ‘glazing’.  It seems stained cabinets are the ‘in’ trend right now for buyer preference, with granite countertops.
Finally, stage the home.  Clean it, declutter, properly place furniture to maximize space perception and flow.  You may even have to eliminate some furniture.  Put it in storage, or move it to another room that doesn’t have enough furniture.  This would be an excellent opportunity to bring in an interior design professional.  (Insert ad here – Have I mentioned that all my clients have access to a licensed Interior Designer, at no charge.)
Buyer are different these days.  They want the perfect house at a fair market value….maybe even a little discount!

End-of-Summer Checklist for Home Sellers

A recent article was published by rismedia about taking care of your home by providing an “End-of-Summer Checklist for Home Sellers”

The article highlights some maintenance projects that homeowners need to check, whether their home is on the market for sale or not before Winter arrives.
This article emphasizes the resources that local real estate agents provide to our market.  We understand what directly affects the value of a home, and what steps can be taken to insure that you protect your investment.  We also have reliable vendors who can help with these projects if you are not able to complete them.
Another important highlight of this article is the value of having your home inspected by a licensed home inspector.  Even if your home isn’t on the market, a home inspection can provide valuable maintenance projects that need to be looked into.  Some of these projects could be very expensive if not corrected right away.
Again, for reliable vendors, including a home inspector, for anything to do with your home, let me know.  I can steer you in the right direction.
 

End-of-summer projects agents can suggest to their home sellers include:
1. Outdoor painting.
2. Outdoor caulking and sealing.
3. Concrete and asphalt patching.
4. Patio and deck maintenance.
5. Landscaping.
You can see the entire article at http://rismedia.com/2012-08-13/end-of-summer-checklist-for-home-sellers/

Why Did My Home Not Sell?

Many homeowners, over the past couple of years especially, have been frustrated with their home not selling in today’s market?  It’s tempting to blame marketing, your listing agent, a bad local market or other factors.  It could be any of these, or a combination.

I recently sat down with my agent team to discuss why there are so many “Expired” listings.  An expired listing is one put on the market, but it never sold during the active listing agreement timeframes.  The home was ‘rejected’ by the market’s buyers!  That sounds a little harsh, but it is reality.  Unless no homes similar to yours sold anytime during your listing period, the buyers were there, but they didn’t want your home, and instead chose another.

Central Arkansas local agents experience a 25% expiration rate!  This means that 1 out of 4 listings put on the market by agents will go to an expired status.  That is an extremely high rate.  Another staggering statistic from Central Arkansas agent force – only 50% of the homes put on the market, ever sell at all!

All agents are not created equal!

Here is some encouraging news!  My personal expiration rate is only 2%, and my sold ratio is 86%.    I even have agent team members with sold ratios pushing 100%!  Not bad!

Back to expireds.  Let’s look at this situation as a very straight-forward formula:

                                                                Supply   +   Price

Time on Market =     ___________________________

                                                 Home Quality   +   Marketing
 

Now, think back to your high school algebra (who said you would never us algebra in real life!), increasing anything on top (Supply, Price, or both) will increase Time on Market.  Increasing anything on bottom (Quality, Marketing, or both), will decrease Time on Market!

Expired_Actions

Red = FrownGreen = Happy

You, nor I, can control Supply and Demand, but we can react accordingly to it.  But the seller does control Price and Quality, and the real estate agent controls marketing (at least the good ones do – some agents still think marketing real estate is the for sale sign). 

This formula is useful for any listing, but especially an expired listing.  The expired listing  has sat on the market a long time = High days on market.  In order to lower the days on market for the expired listing from now on, it is imperative to have an (1) appropriate pricing strategy, (2) the quality of the home be in its best condition, AND (3) the marketing be at it highest level (insert my Digital Marketing Strategy here). 

As with all equations, the formula doesn’t lie, and it doesn’t get emotional.  As partners, myself and the sellers control 3 of the 4 elements in the equation above.  That is pretty good odds that together, we can lower the overall days on market needed to sell your home in the appropriate time frame.

Students, you can put down your pencils.  And pick up your phone instead!
If you, or someone you know, has experienced an expired listing in the past 3 years, please call me.  I guarantee you that we can sell your home, not just list it, by applying the strategies of the Time on Market equation.