Home sellers whose listings have lingered on the market will want to know that, much like a carton of milk, a listing can expire. So what does an expired listing mean for a home seller?
In a nutshell, it means that the contract you have with your listing agent includes an expiration date, which is typically three to six months from the day you signed on the dotted line.
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Once this agreement expires, your real estate agent no longer represents you. It also means your listing will officially no longer be for sale, as it will be removed from platforms like Realtor.com®. It will also be removed from the multiple listing service, also called the MLS.
Yet even if the contract has expired, there might be a clause defining a “commission protection period” during which the real estate agent will still receive a commission in the event of a sale—so make sure you check to see if that applies in your situation before moving forward.
Here’s more on what happens once a listing agreement expires, and what options sellers have moving forward.
What happens when a real estate agreement expires?
Once the real estate agreement has expired, you’ll need to make some tough decisions: Would you like to remove your house from the market or continue pursuing a sale?
If you choose to keep it on the market, the property will have to be listed again, creating a new listing on the MLS.
Another question you’ll want to answer is whether you want to stick with your current agent or look for a new one. To help suss that out, have a frank discussion with your agent about why your home hasn’t sold. What do they think went wrong? What could be done differently next time?
Explain what your expectations are, and hear the agent out.
If the agent doesn’t offer any new recommendations, like making improvements to enhance your home’s appeal to buyers, it might be time to explore other options.
As the saying goes, “Nothing changes if nothing changes.”
If you decide to find a new agent, do your homework
The moment your real estate contract expires, other agents can officially contact you. Agents might call, email, mail flyers, or even ring your doorbell to offer their services.
Make sure to interview at least a few agents and ask them questions. Explain the history of the home, what happened to cause it to expire, and how you feel about the experience.
Look for an agent who is empathetic and hears where you are coming from—and make sure they have a recent track record of getting homes sold within their target time frame.
Whether you decide to continue working with your current agent or find a new one, it’s crucial to find out what the agent’s plan is. Listen to the pro’s intel, expertise, and strategy to sell your specific property.
Here are some questions to ask:
- How will they price the home?
- How do they plan to stage or prep the home for showings?
- How will they drive more engagement to your listing through targeted ads or social media?
You want someone who is armed to the teeth with the latest and greatest in marketing your home to get homebuyers excited about making an offer.
That’s the best way to get your home seen and sold, so you’ll have no expiration worries in the future.
Published in Mansion Global.
