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There are thousands of reasons why a list may expire. Even if the agent does everything possible, the property still won’t sell due to a lack of activity in that price range or location.
In other cases, the listing agent did not properly advertise the property, or the sale was hampered by conditions within the seller’s control. However, in most cases, the reason real estate doesn’t sell is because of the price.
If your listing is underperforming in the market, what specific steps can you take to ensure it sells without expiring? Learn how to tell if it’s too much, how to get a discount, and other steps you can take to move your items.
Are your product prices too high? Strategies to lower prices
Overpricing often occurs when an agent doesn’t have enough leverage to decline a listing even though they know it won’t sell at list price. Agents willing to walk away from overpriced listings often shock sellers into telling the truth about price. You also avoid wasting time and money on properties that won’t sell.
To sell, sellers must set competitive prices
Rather than viewing the sale as an isolated property, show the seller how the property compares to other properties currently on the market.
For example, to keep things simple, let’s say there is 4 months’ worth of inventory on the market. Assume that the top 25% of these listings sell in the first month. The remaining 75 percent will be on the market next month. Therefore, to sell in a given month, your property must be in the top 25% of all properties in terms of both value and price. Otherwise, they will still be part of 75% of the list that will hit the market next month.
Constantly monitor market price fluctuations
If your item isn’t selling, check the MLS for recent sales, expired items, and price drops. Specifically, we look at the “days on market” plus the number of expired listings and price reductions. If these numbers are increasing, the price may already be falling. In this case, even if your listing goes on the market at the right price, the price may be too high.
Also check property values for listings on realtor.com (four different values offered), Zillow and Redfin.
If prices are falling, you can use all of these resources along with the CMA to help sellers understand why it’s wise to lower prices now before the market falls further .
Overcoming the “I need to get X amount of money or I won’t sell” objection
A common misconception among both sellers and agents is that the seller sets the price of the property. As the old saying goes, “Real estate is worth what someone who is willing to buy it is willing to pay for it.”
In other words, the buyer sets the price, not the seller or listing agent.
Here’s an easy way to explain this to sellers.
Assume that an investor paid $100 for one share of IBM stock. The stock is currently trading at $60 per share. If an investor claims he wants to get $100 per share, he has two options. He must either lower the price to $60, which is where the market currently trades the stock, or wait until market conditions improve.
The same goes for the real estate market. If someone paid $400,000 for a home and similar homes are currently selling for $375,000, the owner would make the same choices as the investor in the example above. You can either sell at today’s price or wait for the market to improve.
If the seller says they won’t sell unless you offer a price, ask these simple questions:
Agent: If I decide not to sell, what is the quality of the replacement product?
In many cases, the seller must sell. This question makes you think about the consequences of not selling when you really need to move.
Incorporate price reductions into your listing agreement
If you’re in a strong market with multiple offers, you can take a few days to test the market if the seller really insists.
But first I need to explain this.
Agents: Most showings occur during the first 14 to 21 days after a property is on the market. This is because during this period, there will be buyers who have not yet found a home. After the first 14-21 days, showing activity decreases as the majority of subsequent showings are for buyers who are just beginning their search.
At this point, if you want them to test the market, be sure to get the following concessions:
Agent: Okay. If you’re sure you want to test the market, here’s what you can do to tap into the first group of early buyers who are looking but haven’t found a home yet. The most effective strategy is called “10 days or 10 showings.”
If you haven’t received an offer for 10 days, or if you’ve shown 10 times and gotten no offer, whichever comes first, it’s time for a price reduction. Again, most buyers will see your property in the first two to three weeks, so by acting quickly you can take advantage of the initial surge and usually close the deal. This is the best opportunity to acquire real estate based on.
Strengthen marketing activities
To maximize your listing’s exposure, you need to make the most of both your print and digital marketing strategies. If you are not using print marketing. Adopt a social media marketing plan. It’s time to step up your strategy and start leveraging as many of these strategies as possible with videos, virtual tours, and SEO-optimized listings. Without these, you could be missing out on an entire segment of potential buyers.
Update photos and videos
Updated professional photos make a big difference. Highlight the property’s best features and consider seasonal updates if the home has been on the market for a while. If your home is vacant, virtual staging can help prospective buyers imagine the space with modern furniture and decor to make it more appealing.
With BoxBrownie.com, VirtualStaging, and ApplyDesign.io, you can touch up dark, dark photos, create a twilight view of your listing, and do virtual staging.
Market what makes your listing unique
Identify any unique or valuable features in your listing that differentiate it from other listings. Prominently showcase these selling points, including a recently upgraded kitchen, desirable location, and energy-efficient design.
Effective social media campaigns:
Targeted advertising on platforms like Facebook, Instagram, and even TikTok can help you expand your reach and connect with potential buyers. Video walkthroughs, virtual tours, and “sneak peeks” can generate engagement and drive traffic to your listing from local buyers and out-of-state buyers.
Address issues regarding property condition or access
Odors, clutter, and outdated decor are some of the biggest negative points for buyers. Sadly, sellers often underestimate the impact these factors have on sales price.
If you are not willing to address issues such as pet odor or wear and tear, make it clear that not addressing these issues could result in significant price reductions and impact the final sale price. . When budget constraints limit renovations, virtual staging allows you to showcase your home’s potential without the upfront cost.
Other ways to update the state of a property include:
Improved curb appeal
First impressions are important. Simple changes like a fresh coat of paint, manicured landscaping, and even updated lighting can change the look of your home and attract buyers who might otherwise overlook it. Work with your seller to make these simple upgrades as needed.
Managing pets and strong odors
Like it or not, you should be upfront with the seller about any pet issues or lingering odors in the property. Help them understand that removing animals, dealing with odors, and keeping spaces clean during viewings are important steps that directly impact a property’s attractiveness and perceived value. These changes will not only make display easier, but will also minimize potential objections from buyers.
Improved accessibility
Restricted access can be a major barrier to sales. Again, if pets are an issue, if the home is only available for limited viewings at certain times, or if only the listing agent can show the property, the seller may be unable to show the property. It may be time to rethink how we provide better access to. Using a lockbox increases the buyer’s exposure to the property.
Pay attention to feedback from screenings
Regular feedback from buyers and agents provides valuable information that sellers need to hear. If repeated comments highlight specific issues, address them as soon as possible to avoid losing potential for future sales.
Regular communication with customers is essential
The biggest complaint buyers have with listing agents is a lack of constant communication. As a result, we can keep our clients updated on market trends, comparable sales, and screening feedback.
While the seller’s home is on the market, you should provide as much market information about the seller’s property as possible. Consistent communication keeps sellers informed and builds trust, while making it easier to lower prices when needed.
Identify and address all obstacles to closing the deal
Week after week, if your property is off the market, update your photos and videos and double down on your marketing to make sure your property is easily viewed. But most importantly, make sure the property is priced at or slightly below market value.
Use data to support your recommendations and, if necessary, be prepared to walk away from the listing if the seller is difficult to cooperate or refuses to address market realities.
Bernice Ross, President and CEO of BrokerageUP and RealEstateCoach.com and founder of RealEstateWealthForWomen.com, is a national speaker, author, and trainer who has published more than 1,500 articles.
