WHAT HAPPENS IF MY LISTING EXPIRES?
Updated: Nov 10, 2021
By Ali Kaya
When having preliminary talks with your listing agent, you will most likely start to discuss the duration of the listing agreement. In order words, how long your home will be listed for with that agent. If for whatever reason your home doesn't sell by the deadline of the agreement, it will simply expire. This means that the listing agreement is now void and any and all responsibilities of the agreement are released from all parties involved.
So to answer your question of "what happens if my listing expires?" the simple answer is nothing. You have freedom of choice of how you want to proceed moving forward. Do you want to re list with the same agent? Do you want to work with someone else? Or maybe you just don't want to re list again. Your options require some thought before taking action and it's important to think about your personal situation. You will also undoubtedly have the question, "why didn't my home sell"?
Let's talk more in depth on why a home may expire and what to do afterwards.
Here are a list of possible reasons why a listing may expire:
The Home's Location
The Home's Appearance
Let's talk about each reason a bit more in detail.
This is simply overpricing the home. Now in strong markets, listing your home for a bit higher is something you can get away with. The problem however starts when sellers cross the acceptable line for overpricing. If the market dictates your home is worth $2,000,000 and you're thinking of listing for $2,500,000, then I urge you to rethink your plan moving forward. In strong seller markets like the one we are currently in, the market will overprice your home for you. The elevated price of your home will become the new normal, so it doesn't seem like such a drastic rise even though it may very well be. The challenge is when you cross the line and begin to become a tad greedy. We all want your home to sell for top dollar; the seller gets paid more and even the agents get paid more. However if we overprice the home in such a manner that you turn off buyers, you're doing a disservice to yourself. I see this a lot with agents that may be a bit desperate for business, saying yes to everything just so they can get the listing. Remember, the agent you work with has a direct correlation on if the home sells or not, so please choose wisely. It's not my job to list your home, it's my job to sell it. Follow the market and price your home right.
The type of market we are in currently can very well play a role on your selling ability. If you're in a strong seller's market and your home expires, check the price or your agent. However if we're in a strong buyer's market, there may just be little to no demand for your home. At the end of the day, your home is an asset and is governed by the market. If you have a $10,000,000 luxury home in West Vancouver but the luxury market is soft, then you'll have a hard time selling your home or getting top dollar. It's important to know which type of market we are in so that you and your agent can come up with the best price and game plan moving forward to ensure you get the results you're looking for!
As I said, the agent you work with most times has a direct correlation on the home's ability to sell or not. With any profession, not everybody is the same as everyone else. There are unfortunately agents that don't have the necessary experience, or marketing plan or work ethic it takes to sell your home. Look for a Realtor that values results, honesty, open communication and that has the experience and the work ethic necessary to sell your home. I've sold tons of previously expired listings and sometimes the marketing that I saw from the previous agent is disappointing. Be sure to choose your Realtor wisely and check out my other articles for questions to ask them when interviewing and tips to make your process easier as a seller!
Your Home's Location
You hear the common saying in real estate; "location, location, location". It's true, people want to be in desirable areas and will often compete. Since Vancouver real estate is globally recognized, you'll get interest from buyers pretty much anywhere you go. But in a slower market, where there isn't enough demand for the supply, buyer's may not want the home that's a bit out of town or in a riskier neighbourhood. To retract back to the market paragraph, it's important to recognize the market you're in and game plan accordingly. If your home isn't in a great location, acting accordingly with your agent can really have an effect towards your goals.
Your Home's Appearance
Once again, if the market is a tad slower; you're going to want to do everything in your power to give yourself an advantage. If your home is in bad condition or very old, you'll want to entice buyers in a different form. Most times this comes via price reductions. However, there are other ways as well. The way your home looks plays a HUGE factor in the buyer's mind when envisioning themselves in the home. If there's competition on the market, the last thing buyers want is the home in terrible condition or with bad curb appeal. Sometimes when listing a home in such condition, the seller or their agent give no attention on getting buyers through the door. If there are competitive homes in the same price range in much better condition, how will you ever compete? This ties back into choosing the right Realtor and price. An experienced Realtor will be able to help make the process much smoother as we've dealt with homes that may need a bit of TLC (tender loving care).
To tie this all up, do everything in your power to give yourself the best chance at selling your home. Choose the right Realtor, clean up the home, make sure you price it right, etc. If you're home is expiring in a strong seller's market like I see at this moment; it's either the price or your agent 90% of the time. If the market is slower, price your home right and be more patient and you'll get the results you want. Sellers have asked me this question many times in the past, "when do I know if it's the agent"? Trust me you'll know, if there is very little supply and tons of demand, and you're priced right but still expire; something needs to be examined.
As I've mentioned, I've sold a ton of homes that expired previously with other agents and sometimes having a fresh approach is what your home needs. With an experienced agent that knows how to sell, a strong market and a fair price, you'll get success no matter what. Don't give up just because you expire, it happens a lot in real estate! If you're serious about selling, then re list! Whether the same agent or not is a decision you'll make, but I always believe when listing your home, a little patience goes a long way!
I sincerely hope your enjoyed this article and received some value and insight. Your home expiring can be a bit disappointing but there's no need to have your excitement and expectations lowered. Do everything in your power to make your listing a successful one, including choosing the right agent. As stated above, we've sold a ton of expired homes and have given our sellers the results they expected in the beginning. If you're thinking about selling anywhere in the Lower Mainland or have recently expired, please don't hesitate to reach out. We can grab a coffee together and go through what we can improve on moving forward to get the most for your home! Thank you very much for reading this article, I look forward to speaking with you soon. Have a wonderful rest of your day!
By Ali Kaya