Below are the 4 most common reasons why a listing contract will expire:
1. The Price
When the market is hot, homeowners attempt to set their listing price higher. They hope that a motivated buyer pay any price for a house in their desired neighborhood. The problem is that in any market, a house must be sold twice; first to the buyer and then to their bank.
Even if a buyer agrees to pay the homeowner’s asking price, the price might need to be adjusted after the bank conducts their appraisal. Remember, the bank will only give the buyer a loan based on the value determined in the appraisal.
Sellers must also keep in mind that today’s homebuyers are well-educated with access to the same sites you may have seen when you determined your price. They may have already seen many houses on Zillow, Redfin, Trulia or more and they’ve done their research on the neighborhoods they are interested in most. Homebuyers will know how your house stacks up against many others available to them in the same neighborhood.
If your house seems overpriced, it’s unlikely they will waste time considering it, much less viewing it or making an offer. This is why it’s so important to make sure that your house is priced right from the start.
2. The House Condition
In San Diego, builders are taking advantage of the lack of inventory of homes for sale by building new houses. These newly constructed homes create competition for existing homes in the market. For this reason, many homeowners are making renovations and updates to their homes to compete with the new construction in their marketplace.
If the seller can’t afford to remodel, agents will recommend that homeowners declutter their houses and get them professionally cleaned at a minimum before putting them on the market. Decluttering involves taking down excessive framed photos, posters, boxing up tchochzy shelf, and putting kitchen appliances out of sight.
Without a makeover, it will be especially important to take care of small, but visible, problems like dripping faucets, torn screens, hand prints on wall switches, and repair holes in walls. Buyers want to be able to imagine themselves living in the home instead of focusing on the current homeowner’s decor. Making sure the house is in perfect condition will make buyers fall in love with it and will ultimately help you get the right price for your house!
3. Seller’s Motivation Has Grown Cold
Sellers don’t typically hire an agent with the thought of not selling their house. However, situations change and if the motivation to sell has altered significantly they may be more reluctant to sell. This can be especially true of houses that have been on the market for a while or have been relisted multiple times.
The seller’s motivation will push them to consider all offers and help them make the right decision for their family’s future.
4. Have an Online Marketing Plan
An online marketing plan is important! According to NAR’s 2018 Profile of Home Buyers and Sellers, 95% of buyers searched online for a home last year. Selling your home today requires more than just knowing your local market. They should be familiar with Facebook, Homesnap, Instagram, Google, and Waze. Great agents understand how to get your house in front of people online.
There are houses selling every single day because they are listed at the right price, they have the right marketing plan, and they are staged for the sale. If you don’t have the money or time to wait for a retail sale with an agent, we can help! We buy houses in as-is condition so you can move quickly. We close in as few as 14 days with a cash offer.