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!
Red = Green =
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.