As the slide shows, we’ve seen pending contracts fall nearly every month going back to January of 2022. This speaks to less demand.
So, in the current real estate market environment, we find ourselves with higher supply (active listings) and lower demand (pending contracts). This leads to the realization that the number of expired listings will continue to escalate in 2023.
Expired listings have long been a consistent and opportunistic source of listings for professional agents. These homeowners let everyone know they would like to sell by listing with an agent, but for some reason, the sale of the home did not happen.
This is where great agents come in. Top-producing agents develop plans of action to earn the opportunity to relist the home. They show the homeowner why their home did not sell, and the actions needed to get it sold. This involves a combination of pricing and marketing that leads to a successful sale of the home.
The best position for a listing agent to be in is to be the second listing agent. Typically, the seller is more open to professional advice and guidance since the previous agent either was unable to present the facts in a way the seller was ready to hear, or they simply were not professional enough to know what advice to provide the homeowner to get the home sold.
Either way, a well-thought-out marketing and pricing plan is usually better received by a homeowner who still owns their home after being on the market for an extended period.
Childers went on to say there are four options for a homeowner when their listing expires:
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Relist with their current agent.
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Take the house off the market.
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List the house For Sale by Owner.
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List their home with another agent.
The most likely outcome is that the home will be listed with another agent. This is where the opportunity for agents continues to expand as more listings expire. The best thing an agent can do now is to prepare a professional expired listing program that is aimed at adding…