As a Realtor you are able to get on the Multiple Listing Service (MLS) everyday and see countless homes that have "expired".
The number one reason why any home expires and does not sell is because of an improper price. Unfortunately, this is the hardest obstacle in Real Estate to overcome.
In today's challenging Real Estate market, the price that is set on your home can be more than 75% of the marketing. What do I mean by that? Simply, if you come on the market at the wrong price, the best Realtor in the country with the most sophisticated marketing will not be able to get the job done.
There is no easy way to say this. Pick the wrong price and you will be doomed to languish on the market. All the marketing and advertising will be wasted along with a lot of time.
Time, as in "time on market", is one of the most important Real Estate statistics. This is the one piece of data that every buyer asks for when viewing a home. In fact I can't ever remember a buyer not asking me "Bill how long has this home been on the market?" Every buyer wants to know this because if the home has been on the market for a long time, the buyer feels like there will be more room to negotiate. It is just human nature. Buyers also may feel there could be something wrong with the home when it has been on the market for an usually extended period of time.
The way the MLS system works in Massachusetts prevents a Realtor from re-listing a home to set the days on market back to zero. This used to be a common practice before the MLS board got smart. This change was made a few years ago in order to make market statistics actually valid and not allow a Realtor to deceive the public by manipulating market data. In order for a homes days on market to be reset to zero it now must be off the market for 91 days.
As far as negotiating, sellers are in the drivers seat when a home comes on the market.
See also Selling your home does not have to be a mystery.
This leads me to the next most important consideration. Do not pick a crappy Realtor! Picking a poor Real Estate agent and proper pricing in many cases go hand in hand.
There is a dirty little practice in Real Estate known as "buying a listing" that many Realtors employ as part of their business practice.
You see in many cases when a seller is interviewing multiple agents, a lesser skilled agent resorts to telling a seller what they want to hear in order to get the listing.
We all want to believe our homes are better than Mr. & Mrs. Jone's home that just sold down the street. This is just human nature at it's finest. A poor Realtor knows this and uses it to their advantage.
With a long term contract in hand and not much activity on your home, the Realtor starts to beat you over the head to reduce your price.
Folks the Real Estate data never lies but Real Estate agents do! Avoid falling into this trap at all costs. Being tied to this kind of agent is the pits. You may be able to drop your price but you signed a contract and will be stuck with this agent until the contract expires.
What can you do to avoid getting stick with a less than stellar Realtor? Ask smart Real Estate interview questions! One of the best pieces of information to find out about the Realtor you are thinking about hiring is their list price to sale price ratio from the original list price and their average days on market.
You should be looking for an agent that beats the averages for your area. It goes without saying that a Realtors previous track record is an important consideration.
Just like in any other good interview process, the agent you select should have an excellent resume.
Actually this is a funny subject because most Realtors have their past client list already typed up and ready to hand to you. I admit it I do too.
The thing is nobody is going to give you a list of clients that are going to say things like "Bill was awful to work with", "Bill's service sucked", "Bill never returned calls".
Remember anyone that is on the list is probably the Realtors best clients. The agent has probably asked the client if they could be included on the reference list. What you are going to hear are the finest compliments about the Realtor. I have always thought this was really hokey.
Believe it or not I don't even ask permission for the people I have on my list. I take a leap of faith that they were happy with my services. Another way around this is to ask the agent for a list of homes that they have sold and just do your own home work. If the agent asks why you want a list you should just tell them you want to see what kind of homes they have sold. Pick up the phone and call a few people. It certainly can't hurt! 
Look for A Realtor that is Internet savvy and has a social media marketing strategy. The majority of all buyers find their home online. You need an agent that knows how to make your home the center of attention online.
When looking for an internet savvy Realtor you should do a few things....Google the agents name, an address of a property they are marketing, and a very competitive term like the town, state and Real Estate as keywords.
An Internet savvy Realtor will have pages and pages of results for their name. You may also learn things that could be important about this agent.
If you Google the address of a home they are marketing you will see all the places on line where your home will be found.
There should be a mix of websites, blogs, and videos. Searching for a term like "Hopkinton MA Real Estate" for example, which buyers will do by the way, will show which agents have a real strong website.
If you can get on the 1st page for this kind of search term when you are competing with the big boys like Realtor.com, Homes.com and Trulia.com you have found an agent that knows their way around the net or at the very least their web provider does.
See also Social marketing blogging short sale and the seller I never met and
Selling your home in a buyers market
Pricing your home incorrectly and picking a Realtor with poor business skills are the two most likely reasons why your home has expired. There are however, a few other reasons that can contribute to the possibility of making your sale more difficult to achieve.
Other reasons include a home that does not show well. At the very least your home should be neat and clean.
Access to your home should not be difficult. If you place a bunch of restrictions on when your home can be shown you will increase the likelihood that your home will take a lot longer to sell.
Lastly you should make sure you get out of the house when it is being shown. This is Real Estate 101. A buyer and their agent should be able to walk around the home freely and speak their thoughts without worrying about the seller lurking around the corner.
Here is a neat little video that summarizes some excellent home selling tips.
Bill, Why Your Metrowest Massachusetts Home Expired is an excellent article and very timely. I've been on listing appointments lately where the seller believes the list price I suggest is too low. We can provide the data, but unless they're ready to be realistic, homes will continue to expire and I will pass on the listing.
Debbie this is one of the most common things that occur in our business. I have actually recently started to target the "expired listing" market as part of my business plan. There are plenty of people that really want to sell but have been given poor advice and no marketing by their former Realtor.
Bill~
From my experience, the most profound reason for a listing expiring unsold is PRICE. Certainly, much of the problem is the listing Agent/REALTOR®. Often, they are not around to answer the phone and secure appointments, answer questions and just plain ole' take care of business.
Indeed, being a GOOD REALTOR® requires more than knowing the market, writing contracts, addenda, etc. It requires good and competent Internet marketing too.
Mott Marvin Kornicki // Real Estate In Miami // Associate | Broker
Aventura-The Waterways // Bal Harbour // Sunny Isles Beach • Florida
Mott - I say this all the time....All the marketing and the best in the world will not sell an overpriced home. Pricing a home properly is a skill. Taking that knowledge and convincing the seller is also another good trait amongst most really good Realtors.
Bill - excellent discussion of one of the hardest isses we and sellers must tackle. It is especially difficult in a market where prices are falling, and sellers must compete with numerous distress sales that can impact pricing negatively.
Jeff
Jeff - Distressed sales do make it much more difficult for sellers to compete. We do have some area where there are more foreclosures and short sales but for the most part we have not been hit like other parts of the county.
Hi Bill, excellent article with many good points. I enjoy reading your blog because I always come away feeling that I have learned something.
Respectfully, I see things from this perspective, (and may be of course stating the obvious).
Agents have (and always will) take an over-priced listing, because it attracts "buyers". Now maybe these potential buyers won't purchase THAT LISTING, but the listing agent now has an opportunity to make a connection with a buyer, and SELL THEM A DIFFERENT LISTING. It happens all the time.
The so called label "buying a listing", can be an investment for a listing agent. There are so many FREE internet marketing tools out there, that an agent doesn't have to promise print, (especially on properties where the Seller is not serious.)
The seller has to be motivated, and competitive in this market.
No matter what, if the buyer requires a mortgage, the property has to appraise!
This is what I communicate to Sellers.
Bill these are great points. Do you know how many 'Expired's only have 1 picture or the last comment is "Open House this Sunday (and the date is 2 months ago). It's crazy!
Shirley - Great to know you are learning. I too enjoy educating myself about different facets of Real Estate. I enjoy reading articles everyday because knowledge is power.
Ruthman Real Estate - My perspective is much different. I never take a listing to "attract buyers" I take a listing to sell THAT home. If I can not put my sign in a yard knowing that at some point I will be putting a SOLD rider in it then I will not take the listing. Having a sign in a neighborhood for months and not selling the home is very poor advertising. If I lived in that neighborhood and I was thinking about selling my home I would not be calling the unsuccessful listing agent.
Bill - This is a terrific post about some of the key points to consider and avoid when someone is looking to sell their home. Like you, I never take listings just to drive more phone calls to me. If I don't think it's "sellable" at the price they are willing to agree to, I walk away from it. I always find it interesting to look back and see what happened to those places. Usually, they sit for a LONG time, then get reduced well under what would have been the right asking price.
James your are right. I see the same kind of thing here in MASS as well. A few lousy photos, terribly lacking descriptions, notifications like you mention that are totally outdated are all part of what happens when you hire a poor Realtor.
Jason - I am sure you are get called back in many cases after you have given honest advice and the seller has not listened. This happens to me quite often. Sometimes it is really tough for a seller to admit they made a mistake. These kind of transactions become very satisfying because the neighbors can see that you have succeeded where others have failed. In the long run it is always best to be honest. It is a tough pill to swallow when you lose a listing because of price but in the long run you have a much better reputation.
Bill congrats on your great featured post. You sure do know your stuff not just about real estate but blogging. Look at how you use your own links in your blog. Brilliant! Thanks again, for your keen insight. Now - how about sharing your plan on working expireds?
Great post - and I wish our MLS could prevent the realtors from being able to re-start the time clock on expired listings!!!
Congrats on the feature!
I don't walk away from listings, but, I will walk away from potential sellers that are not market savvy enough to listen to what a professional has to say. If I find that there is no hope for a Seller to come around, and be serious about selling, then I do walk away.
I enjoy what I do, and am passionate about it. I like championing a property for the highest and best price. I log everything I do for every property. ... the marketing, the calls, and the number of times I presented the seller with a report on comparables and competition. I put the accountability back on the Seller for lost opportunity.
True story: The ceo of a very large company that I had worked for gave an "all call" message to the agents to "increase the listing prices" on their presentations. --- Now this was a few years back, but that is the truth.
A very good post by the way, "thought provoking". :)
Lee & Pam - Thanks for the compliment. You have a sharp eye picking up on the links:) If you call me I will share my expired letter with you:)
Emily - I am glad that the local Real Estate board made that change as there were so many Realtors that could easily manipulate the data. A level playing field with accurate data is important.
Ruthman RE - It sounds like you have a good business plan. There are many who don't communicate well and our clients need and want good communication. Thanks for the compliment:)
Very good explaination to the consumer. I will pick this up again before I go door knocking next week!
Lesley you are a brave sole. Good luck with your door knocking for expireds. I have never done this but I am sure face to face would offer a higher conversion rate than a letter.
Bill - this is one of the best, most comprehensive, thorough and RIGHT ON THE MONEY blog post I have read recently. I love every word of it...especially about having the sellers google a property they currently have listed for sale. Way to go!
Kim - Thanks I appreciate the compliments. You can learn an awful lot about an agent by using Google as a tool. Using an address for a home that a Realtor is marketing is certainly one of them. It immediately shows whether or not the agent has any kind of marketing skills online. Every agent gives their pitch about how great they are at a listing presentation. This is a great tool to use to weed out the phonies that think using just Realtor.com is great marketing.
Bill ~ Great information and explanation as to why listings expire. Pricing and choosing the right agent can help get your home sold even in the worst market scenerios, like the one most of the country is in today.
Bill, Very insightful! I love the sign that says "expired" that cracked me up. They should make one that says "overpriced" and one that says "nasty inside" Just kidding!
I would love to see what you send to expireds also. You could just print off this and send it- it is right on and very good info. for sellers!
As far as pics go, we are allowed 16 on our mls and I think it is sad when there is only one or 2 with no description (and snow in the pic in the summer, etc...!)
Last week on a CMA appointment I could see the disappointment in their faces at the price I suggested for their lake cottage. But I gave them the data to back it up. I did not get the listing. And I left them to ponder this:
Do you want to sell your home? or Do you want to list your home?
BTW your dummy art creeped me out just a little bit.
Bill, your are my hero, still! You are doing a great job of being found everywhere on the net. I may be contacting you soon for advice in my marketing here in MS. Would you have time to help? Great post. ~Pat
Terrie - Your are right on the money. There plenty of homes that sell everyday. The common denominator in most of those sales is a proper list price.
Kristi - Wow your MLS should get with the program...Sixteen is not that many. For most of the homes I am marketing I have around 30.
Tammy - There have been many times over the years when I have lost a listing on price. This in fact out ways every other reason by a mile. Of those times that I did not get the listing, I would say that at least half the time I ended up getting it at a point later in time. By this point the seller is very motivated and will listen to sound advice.
Pat - Feel free to call me anytime. I would be happy to give you any kind of Real Estate markrting advice.
Thank you for the information. The Internet presence is something that we work on as a Team and as a Company. Getting Sellers to price their homes right is also difficult, but we realize the importance of it. Sometimes, you have to walk away if a Seller is not willing to do what it takes, but typically, you can counsel them and show them the comps, etc. and they will eventually get realistic.
Susan - Having an internet presence can be a real difference maker in a Real Estate market like the one we are in. When homes are selling like hot cakes it is less important. When we are in a market where our clients need every edge they can get it is critical!! Having the right price is by far the most important consideration.
There is a fine reason why this one was featured. Now if we could just get you on the Today Show to say the same thing. I really don't know how it can still be a mystery for some of these folks. :)
Bill, like Debbie said, excellent and timely post. It is amazing to me that after all these months of dismal news, some Sellers thing that the "market trends" don't apply to them! I like your MLS's way of dealing with the expired. Here, if you withdraw it and immediately relist it, to get the lower number, you're fined. However, you can take the listing for as long as you want. A natural expiration and relist is allowed.
One of my biggest competitors in my farm area lists EVERYTHING for 30 days. Consequently all there marketing shows thier "sales" in under 30 days. Very frustrating.
Shannon - There will always be people that think their home is a castle and the next guys that is just like theirs is a shack. Don't get me going on this one. I love it when I seller tells me their home was constructed with the heavy duty nails or they just had their driveway sealcoated and they think that will bring them an extra 10K.
Connie - That is too bad about your MLS board. It sounds like they are in the dark ages. It is just a complete deception to the public when Realtors are allowed to manipulate data like that.
Boy I love this post Bill !
.... I will DEFINITELY find some way to incorporate much of this eye-opening info in a diplomatic way to my future sellers !!!
... anything we can do to get sellers & REALTORS to be more realistic will help us all in the long run !
BRAVO on another classic one my friend !
Cheers !
Sheldon
Sheldon - Thanks my friend. If it helps in anyway feel free to link to this article.
Fantastic post, Bill! In fact, your points are many of the same things I tell sellers when I'm mining expireds in the area. I've printed out your blog to use as backup. It's great to hear the same story from other Realtors, and from other parts of the country. Some things in the market are "local," others are "universal!"
Bill thank you very much. You are right on the money about some topics being local and others being universal. Think we both know this one is universal to all parts of the country.
Pricing to high in the begining more often than not leads to a lower selling price in the end.
Agents may need to do a better job of explaining this and/or clients need to really listen to what is said.
If we could just tell them don't be a dummie hire an experienced Realtor. Having an internet prescence is so important to get house out there in as many portals as the consumer could possibly find you on.
I dont think I can write this any better. All sellers who has "expired" on their listings should read about this. Thanks for airing it out.
Kathleen - You are right about that. If you come on too high you will lose all your traction, as the 1st month is the time when most homes have the largest amount of activity.
Missy - I just told them for you - LOL All you have to do now is print this out and hand it to them:)
Loreena thanks for the compliment on my article about expired listings - much appreciated!
Cecily are you trying to cause an accident on my blog?
Bill: just a little fender-bender. Nothing a hammer can't fix! I thought the idea was cute!
Exceptional post Bill! I have a similar post and agents tend to focus on market and their service differentiation in order to secure the listing, and the hard reality is, price and condition sell a home. I can spend almost 0 marketing dollars (I don't, I do a showcase listing on realtor.com, podcast in iTunes, etc.) but the simple fact is that if a home is priced to sell (whatever the market says) and the condition meets the buyers needs (assuming their is a modicum of demand), it will sell.
In fact, here is a fact that most agents simply don't get: finding a way to actually improve the condition (kitchen renovation, cosmetic makeovers of baths, major staging) etc., can go a long way to separating a home from it's competition in a high-inventory market versus simply reducing the price. We've done this successfully for sellers and have multiple offers when other homes are languishing on the market.
Do not pick a crappy Realtor. That pretty much says it all, Bill :)
Attention home sellers in Hopkinton, MA: Bill is NOT a crappy Realtor...he's one of the best you'll ever meet and you should call him right now.
wow, this is a fantastic blog and congrats on featured!
what you said about choosing the correct agent couldn't be more perfect~
check your messages!
Chris you are on the money with your comment. The homes that take the biggest punishment in the market are the ones that are in less than stellar condition. Sometimes a small invstment can go a long way to making a home sell quicker and for more money.
Lisa - Thanks:) It is true how many times have you seen people make such poor choices? There are times when I know the seller has not interviewed anyone but the person they chose. The agent in many cases just lists the home for whatever the seller want to price it at.
Jennifer - Thanks - I appreciate the compliment!
Great post as always Bill, always a pleasure to stop by and learn something new or reinforce current practices. Cheers!
thanks excellent post
These are a lot of great suggestions to potential sellers, especially those who have expired. The video was great. Where did it come from?
Bill...don't you EVER get tired of being right?? This is brilliant...and SO TRUE!! Keep it coming, Bill! This is the message that 'they' need to hear. ~GBU~
Bill, you are absolutely right! When the sellers in Metrowest Massachusetts have Bill Gassett sell their house it doesn't expire, it sells.
If a seller wants to price their home at a level I know will be unrealistic, I say 'Fine. We'll do it your way. But let's sign a year or 18-month listing contract."
That gets their attention. Time costs money, money costs time.
Thanks everyone for all your thoughts and comments on my expired homes article.
I see this all the time in my appraisal practice. When preparing an appraisal report the lender ask that the number of days the comparable sale was on the market be included in the appraisal. If the home was on the market for an excessive number of days the lender wants to know why. Days on market is irrelevant to the appraisal (unless the property was on the market for only one day before it sold which could indicate it sold below market value). If you were to list a $200,000 home in this market for $10 in would sell in 5 minutes. Listing a property close to its market value is the best way to go in this market. And a seller should have an independent appraisal done on the property prior to listing. Its a great tool to rebuff low ball offers.
Bill - You absolutely nailed it with this post. It amazes me how in this market there are still so many sellers who have unrealistic expectations of how much their home is worth and even when they expire blame their agent instead of looking at the cold hard facts of what comparable homes have sold for. This post should be a wake up call to any seller whose listing has expired.
Bill, This post and the Video AND the pictures were absolutely terrific! I'm glad it got a feature, it was certainly worthy of it! I do hope people will listen to all your advice. I could not for some reason get into this post yesterday to comment.........although I tried! I was glad today I got in!
Bill, I have some of the absolute most fun while being interviewed. I like testing my ability to use my thought process and explain in detail the workings of RE! I enjoy getting the client to understand that there is a method to my madness and there is no guarantee but if it can be done they should hire me...unless...they won't adjust the price.
Then I usually get them their second time around! LOL, great post!
Later in the rain~Deb
Hi Bill,
This is an excellent post on expired listings! I agree many of the mls listings that expire are because of pricing issues. But isn't it funny how you can see why a home didn't sell just from that information. Like I say list to sit or list to sell! :)
Bill - These are important consideration for sellers. Pricing the property competitively from the get go is a must in this type of market.
I so wish our MLS could adopt the same procedure, so many pull and re-list properties just to start the clock over. Such a practice is deceptive however the buyers still ask and you have to present the true history so what's the point.
Love the video, a great way to deliver the message to the seller especially if there is a lot of clutter.
I think this is a great post to pass onto my clients. Maybe then they'll believe that I'm just not trying to beat them up on their pricing. Perhaps they'll be motivated to price the home to sell-not just sit there and eventually expire. Thanks
Debe - I also enjoy the interview process very much. This is where I get to really shine and show the seller how I can make their home stand out where it needs to - ONLINE!
Jennifer - The Greater Boston MLS is really progressive. I was glad they made this change as it brings honesty and balance to the table. Agents are no longer able to deceive the public.
Erika - Pricing is the key. Overprice and you are doomed. You can say it over and over again to you are blue in the face. Honesty is always the best policy.
I do like to show Sellers the comparable expireds that didn't sell. This seems to get them thinking more realistically. TOUGH LOVE!!! They don't all go for it, of course,...it's harder for some to let go of their mispreceonceptions. This is so well organized and written. Thank you!
Bill, I tried to comment the other evening but there was a glitch or something (maybe user error!). This is probably one of the best posts you've written. It's all so true! Why waste time and money and not be able to get your home sold.
You would definitely be the go-to REALTOR in the Metrowest area for me!
I Just love your posts.
Thanks,
Cindy
Super fantastic post. With so many expired listings coming up in today's market, we can't get enough of this information out there. Pricing is KEY. I just love the photo with the house heads. That is perfect. You have your finger on it so well, you should almost put together an expired kit now and sell it to agents.
Thanks again everyone for all your terrific comments about this expired homes article.
Bill, I wished I had brought you on one of my most recent listing appointments. I couldn't have said it better myself. Seems that some sellers STILL don't get it!
Bill - this is a great article and an excellent reminder for sellers on how to prep your home for sale.
Lori - There are some home sellers that will never listen to good advice. You can't worry yourself with those people. Theya always learn after it has cost them thousands of dollars.
Sharon - Thanks I really appreciate your compliments on my expired article.
Bill--You must stay up nights writing this stuff...very cute idea with the don't be a dummy comment! Got my attention. :)
Teri - I just have a passion for Real Estate thats all:) I enjoy helping my clients make the best decisions for them. Making sure that I give great advice about a proper price and giving my clients terrific market exposure are the keys to a successful sale!
Bill...absolutely great post. Really liked the video, too. The post and video have great some tips.
Rebecca - I am glad you liked my expired homes article. The video is simple yet covers a multitude of very easy steps to help sell your home.
Great post! I find that there are still Realtors out there who don't get it and they take overpriced listings because the seller "had to get that price" or that's what the seller "needed" to make the move to their next home.
Those listings are destined to be "Sign Swingers" and poor advertising for not only themselves but their company.
Thanks for all the great tips in the post too!
Thanks Becky. There are plenty of agents that lack the ability to price a home properly or they just cave with a sellers request to list higher.
What seems to work best for me is simply to tell my potential sellers that "I'm not here to tell you what your house is worth, I'm here to tell you what it takes to get it sold" - and, the price of the house is determined by the market - not by the seller or what he hopes to net from the sale.
I must admit though, that educating the seller is not an easy job!
Lora - You are right market value is never determined by what a seller wants or needs. It is determined by what the market is willing to pay. Looking at comparable market data is always the basis for that. Unfortunately many sellers look at their homes through rose colored glasses.
Bill - I couldn't have put it better myself! ;-)
Thanks for commenting on my article about expired homes Zilkia.
Great points Bill. What we are doing is showing sellers and buyers what has sold in the past 90 days as comps. We are finding is that homes sold before the 90 days are not a true reflection of where our market is now. In our area we were at 14 months of inventory in Dec. 2008 and as of January 2009 we are at 21 months.
Patty it sounds like your area is similar to mine. A home that sold 4 months ago that was put back on the market today will not sell for the same price unfortunately.