One of the things I do each morning is search the Multiple Listing Service to find and study each home that's listing has expired. What happened to cause disappointment?
With just the bare bones information that's given on the listing sheet, I try to figure out why the listing agent was unsuccessful in his quest to find a buyer. Sometimes it is obvious right off the bat. The home was seriously over-priced; in the photos that were given us it doesn't show well; the front of the home and the landscaping are bland; things like that.
But more often than not, it looks like the home should have brought at least one successful contract, especially when we are talking about listing periods with the same agent that have run for four, six, nine months; frequently a year or more.
There is only one primary question in any argument. "Is there a need for a change?" Every other thought and discussion is a sub-set of "Is there a need for a change?"
A debater would attempt to show that during the listing period other comparable homes were sold and closed. Then he would try to establish evidence that the reason this listing didn't sell was because it had been presented to the market in an unlike manner - that was the reason for its failure.
So I often wonder what is going on in an agent's mind when after, say, sixty days into the listing period at least one serious offer hasn't materialized, yet he continues down the same road.
Why would he think that continuing the status quo was going to bring success when it hasn't in the months prior? Why wouldn't he study how those that did sell were marketed? Could any of that be applicable and applied here?
And I often wonder what is going on in the seller's mind when 1) he gives a listing to an agent for more than four months and 2) renews it once, twice, three times thereafter. And even worse, they agree to renew it without making any significant changes.
If a home hasn't gotten sufficient activity and at least one serious offer within, say, three months, the agent's marketing program for that listing is and was bankrupt from the beginning. It's time for the listing agent and the client to part ways.
And on those occasions when it has happened to me, I have encouraged my client to find an agent with new ideas. We shake hands, agree we are great friends, and bid each other adieu.
DALLAS
214 503-8563
Sometimes it is not the agent's fault. The market in some areas is very slow. Some sellers cannot lower the price or do improvements because of a tight financial situation. Your resolution is the best road to take in any case.
Bill...around here you can't even get comparables witin the last 6 months...because nothing has sold. The houses that are selling within 3 months....are usually underpriced.
Miss Melody and Miss Joanie,
I know you're right about exceptions. But when I see that thirty homes in a price range have sold in the same zip code within the last four months or so, I figure every similar listing was in the running. Why didn't it sell?
One of the more blatant reasons is often the case: The agent never got around to entering a picture of the home in his MLS listing. Can you imagine? And parenthetically, I've never understood why it isn't an MLS rule that without a photo, the listing can't be posted.
Bill
Take heart...in our MLS you are fined if you put it up without a picture within24 hours!
That's a GREAT MLS as far as I'm concerned.
Bill
There is a house, 2 doors down from me that has been on the market for 228 days. The description in the MLS is nothing special. Nothing wrong, but it certainly doesn't grab agent nor buyer. There are additional pictures, but some are very blurry and they do not illustrate the outstanding features of the home. (I know the outstanding features, I was thinking of buying it when we moved into the area, but as we were driving down the street for one last inspection, the sign for the house we bought was literally just being planted in the ground, it was priced right, we bought it.)
There have been no price reductions in over 7 months of listings. A flyer box was not placed until about 6 weeks ago. It is a desireable neighborhood (the only two other houses to go up for sale each closed in less than 70 days).
I watch for this to show up in the expired's daily. I know what it takes to sell this neighborhood, unfortunately, for both of us, I didn't live here when it was listed.
Every two weeks, the LA & seller should be discussing activity, strategies, price, etc. At least in my opinion.
Good post Bill
Mike, I love your story and I love that it is analogous to this discussion. I find it so interesting that agents aren't so embarrassed by their marketing strategy's lack luster performance, that they continue to solicit renewals of those listings.
Like you, I look at many of these listings and think, "Good grief! Properly marketed, this home would sell quickly." But then more often than not, those sellers don't care to hear what I know, they'd rather continue down the road with the other guy, leading them to more disappointments.