Walt Dowdy
2,512 listings expired this past year!
That is right! 2,512 listings failed to sell during the duration of the listing agreement. This number doesn’t reflect the brave homeowners who struck out in an attempt to go For Sale By Owner outside of the MLS.
Expired Listings Statistics
2007: 2,512 // 2006: 1,690 // 2005: 679
(Stats are from listings for New Hanover County, Brunswick County, Pender County.)
Why are so many homes failing to sell?
Gary Keller, co-founder of Keller Williams Realty, recently shared at the Keller Williams Mega Agent Camp the “Tale of Two Markets.”
There are always two markets in every real estate market – homes that are priced well and sell quickly and homes that are overpriced and linger on the market.
Keller went on to say that in a seller’s market, 80% of the homes on the market sell within 6 months. In a buyer’s market, only around 20% of the homes sell within that same timeframe.
On the Market
In a buyer’s market, it is not enough to just put your home on the market. With less buyers in the market place, your home must be strategically positioned to be where the market is moving.
Price and condition become critical factors in a shifting market. If a buyer can get a nicer home for less, that buyer is going to ignore a home that is overpriced. Many sellers got the idea this year and finally agreed to adjust their list price.
Some waited too long all to find the PRICE REDUCTION WAS IN VAIN!
Chasing the Market
Sellers who wait too long to adjust the price can find themselves chasing the market. Chasing the market is common when real estate sales trends take a downward turn.
In a shifting market, market share is shrinking. With less buyers buying, being “in the market” and not just “on the market” is critical.
When sellers list their home in a market that is in a state of flux, a CMA can be out of date in 3 weeks. Not staying on top of market trends can result in a delayed reaction to the market. This delayed reaction (ex. Lowering the listing price after you have had the biggest wave of showings) encourages buyers to sit and wait to see what you will do next. Thus, the tug of war is born and sellers sit on their price and buyers sit on the side line. There is a better way.
In the Market
When your home is in the market, you stop buyers dead in their tracks. To be “In the Market” means to be in the top 20% of homes that are getting the most showings and the most offers.
Homes still sale in the first two weeks of being on the market in a buyer’s market. Their secret? They positioned their home in the market where the buyers are.
Avoiding The 2512 Club
If you need to sell your home, it doesn’t make financial sense to join the 2512 Club. There is a market that is moving where homes are going under contract everyday! Make sure your home is “In th Market”!
To learn more about getting your home “In the Market” so that it sells for top dollar fast, Contact Me Today.
Related Posts:
UPDATE: This post (2512 Failed Attempts to Sell a Home) was recently featured on Realtor.com as well: “Keeping Sellers on the Right Track“
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Filed under: For Sellers, Understanding Real Estate Markets | Tagged: expired listings, For Investors, For Sellers, Gary Keller, Keller Williams Realty, Selling real estate, Wilmington NC, Wilmington NC real estate
[...] 2,512 Failed Attempts to Sell a Home [...]
[...] to get their home sold and move on with their lives. They will either need to decide to meet the market where it is or wait until the market meets their price and [...]
[...] Now to take full advantage of what I am talking about here, you need an agent who studies the market regularly to keep you updated. Don’t be left behind if the market shifts. Having an agent who understands how a local real estate market operates and is tracking market indicators like the current pending ratio, the market’s absorption rate, and inventory levels is vital to keeping your home competively positioned in today’s market place. Otherwise you may find yourself chasing the market. [...]