You've probably noticed that in today's market, many homes aren't selling as quickly as they used to. This has created an increasing number of homes for sale that the real estate industry often refers to as "expired listings." When putting an "expired" home back on the market, therefore, home sellers must take into account a variety of factors in order to ensure their home sells in a timely fashion this time around, advises Lawrence Finn, Jr., CEO Owner/Broker of Coach Realtors.
"If the listing or marketing agreement you had with your real estate agent has expired and you are looking to re-list your property," says Mr. Finn, "make sure you are aware of the many critical factors that are involved in influencing the sale of your home."
According to Finn, many real estate agents will advise home sellers to simply lower the price in order to get their home sold. Price, however, is only one part of the reason why a home doesn't sell.
"While price is certainly one component in the timely sale of your home, it is certainly not the only component," says Finn. "As you re-evaluate the proper pricing strategy for your home, be sure to request an updated market analysis from your real estate agent, and make sure it details the current pricing trends for your overall marketplace."
Finn, Jr. advises that the market analysis includes:
1. Days on the market for properties in your specific price range
2. The list-to-sales price ratios for homes that have sold (the more recent the better)
3. The rate at which homes are are being sold, also known as the Absorption Rate.
4. The number of price reductions or, where applicable, the number of price increases
5. The number of homes currently active in your price point
Mr. Finn adds that when considering how to reprice your home, home sellers should be aware that a lower listing price can sometimes ultimately lead to a higher sales price due to the increased number of bids and competitive environment an attractive price generates. Finn advises that all home sellers discuss the current supply-and-demand metrics that are influencing home values in your neighborhood with any agent you're considering working with.