Ok, your house was on the market, now the listing has expired, unsold.

Don't panic, you are not alone in this sluggish market.  Quick real estate stats show us that in Middlesex county for the month of December 2009, there were 6141 listings on the market, 916 listings sold and 884 listings expired for a maket time of 176 days.  That means for every listing sold, just about one expired. There are things you can do to make sure your home sells the next time around.

Rethink your decision to sell.  Are the reasons you decided to list your home still valid? Sometimes if the move is that important it affects your attitude towards the selling process including the price you are listing your home at and what you will accept as an offer. 

On the other hand you may be in a situation where you have no other option than to sell due to a job change, family additions or any

other number of reasons.  If this is the case it is now time to re-commit to selling your home

Re-sign or find another Real Estate Agent. As your listing agreement approaches expiration, you will probably be contacted by other agents wanting to list your home.  Depending on the relationship you may continue to use your current real estate agent or you may decide to use another agent.  It is up to you but now is the time to decide and evaluate the situation with the knowledge you have gained.

Address the big FOUR issues. Price- Condition- Communication- Marketing Price, communication,condition and marketing are usually the four areas to revisit when re-listing your home.

1.Price, Price, Price and did I mention price?

Pricing is the most important of the four and is usually the reason for the lack of a sale.  The correct selling price is the highest price the market will bear, not how much you need out of the sale, what your neighbor Bob thinks.  The real estate market is dynamic and is constantly changing, what you paid for your home and how much you have spent on it can be irrelevant.  The interest rates, the economy the general market conditions for a given day controls how much you can get for your home.

Understand the market. Now is a good time to get the big picture of what the real estate market is doing and where it is most likely headed.  Sold history from the MLS gives a great picture of what is currently happening as well as the media, national and local conditions as well as consumer confidence.  The big danger in a down market is always being just behind the market and chasing the market down.

Market Analysis.  Your agent should provide you with a detailed analysis of what similar homes have been selling for in your area.  When reveiwing the analysis you should definitely set your homes price below what the expired listing were selling for and price your home at what similar home have been selling for and not what current homes are listed at.  Homes that are priced well get peoples attention and will have many showings.  Its a numbers game, the more people who see it the more likely you are to get top dollar.  If you sell it relatively early on in the process you create competion and people are afraid to put in low ball offers.

Overpriced?  If you already have been listed for a period of time you have some data to go on.  If you had a ton of showing with no offers or very little activity at all your are probably overpriced.  A good rule of thumb is you should have an offer in 12-15 showings. In this market you should be getting about 2 showings a week.  Remember any house in any condition will sell for the right price.  The right price is dependant on many factors.

2. Condition- Does your house stand out?

Is your home spic and span? Have you done everything with in your budget and with in reason to make your home appealing to a broad range of buyers?  Does the curb appeal of your home draw people in?  Once you draw them in are they going to want to stay?  Your home should be clean and uncluttered with all the minor repairs taken care of.  A house that allows a mover to move right in encourages a sale.

Rid your home of personal taste-  Has your decor been neutralized?  Strong colors and highly personalized furnishings and decor can make a buyer focus on the wrong thing.  They are more concerned on why you would paint that wall a bright red, or too busy looking at photos to see if they know some one.  Neutral decor will:

1. Help them focus on the features of the home.
2. Allow themselves to see them in your home without major alterations.  No one will complain about a neutralized decor and will feel comfortable moving in without making changes right away.

When it comes to repairs, remodeling or updating remember what might cost you a couple hundred dollars, will invariably cost thousands in a buyers mind.

Any hidden surprises?  Think about doing a pre-home inspection before marketing your home.  It will point out little repairs that you might want to have done.  It also can be a great marketing tool to have the report available for buyers to review.  Review the feedback seriously once your house is on the market.  One bad comment doesnt mean a cause for action, but hearing the same negative comment over and over may indicate a need to take action.

3 Communication- make sure your agent keeps you updated.

Tell it like it is.  You need an agent that will be honest and tell you like it is.  Respectfully, of course but you need to trust their opinions and tell you what is not what you want to hear.   You need an agent that will keep you informed about what is going on in the market and back it up with good data.  Unfortunatley there are a lot of agents that will let the seller dictate how it will all go down, but unfortunately to the sellers detriment.

Keep in touch A real estate agent needs to do more than take your listing than not talk to you again.  They need to keep you informed of market changes, feedback on your home, new homes that compete with your home and homes that have sold that compete with your property.  This is all important data that helps you make the decisions you need to make.

Communicate with yourself!! Be real with yourself.  Have you done everything you can to make your home appealing to buyers?   Have you made your home readily accessible for showings? Is your agent giving you good data that makes sense?

4 Marketing-- It take more than a newspaper ad to sell your home.

The role of the Agent-  The role of a real estate agent is much different today than it was 20 years ago.  The role has shifted from one of a salesperson to a marketing expert.  With the prevalence of the internet every house on the market is available at a buyers fingertips.  It is now important an agent packages your house and expose it to as many people as possible with a heavy emphasis on internet marketing.  The days of throwing it on the MLS are over.  Your real estate agent will need a carefully crafted marketing plan.

Some common statistics:

92% of all homebuyers start their search on the internet before ever contacting a real estate agent.

84% of all buyers found photographs to be the most useful tool when searching on the internet.

The days of just throwing a listing on the MLS are over.  Your home needs a presence on the internet, has your agent created a presence for your home?

Marketing your home to BUYERS.  To get your home sold you need to market your home to potential buyer's and put your home in a very positive light.  Photographs, virtual tours, the MLS and networking should be part of your agents marketing plan.

In conclusion there are 4 ain reasons your house expired on the market unsold.....

1. Problems with the real estat agent or seller or both.

• unmotivated seller so did not listen to advice
• the agent was too busy and did not give enough personalized attention
• the agent did not do their homework
• communication between both agent and seller (both agent and seller have information that is vital to the selling process)
• lack of trust between the real estate agent and seller

2. Problems with the property.

• the home needed structual updating, neutralizing of the decor or updating
• the home was not readily available and was not always in tip top showing condition
• the neighborhood or location was deficient

3. Price, Price and Price!!

• the price was not realistic for current market conditions price and/ or location

4. Marketing was ineffective.

• the real estate agent did not market the home properly and did not understand the importance of internet marketing
• the real estate agent or the seller did not present the home it the best possible light

They say the second time is the charm... Objectively review your price and work with your agent to develop a marketing strategy.  Make sure your home is in tip top showing condition to make sure it is irresistible to buyers.  When you home is buyer ready and and priced properly watch how easy it can sell.   Oh... and work with an agent that isn't afraid to tell you the truth.   

Want Results?  Call Kevin Now at 978-360-0422