Now that your listing has expired, you may still have the opportunity to sell your house – give it a different approach. After all, feeling sad and hopeless is normal: most home sellers are initially enthusiastic and enthusiastic when they sign their first listing agreement, hoping for quick sales at great prices.
However, don’t let waning optimism stand in the way of achieving success; you could soon be enjoying those profits by reimagining your strategy and targeting new buyers with fresh tactics!
Trying to wait for a bid that never shows is undoubtedly exasperating. No matter how long the contract term is when the listing has expired and run its course, so does the broker-seller dynamic.
Please read on to find out the ins and outs of listing agreements and what they mean for your home sale after the listing expires.
Can You Sell an Expired Listing?
The agreement becomes null and void when a real estate listing contract exceeds the expiration date. Subsequently, your property will be taken off the market and removed from Multiple Listing Service (MLS).
You have four options:
- renew your current listing agreement with your listing agent (why would you, though?)
- look for a new agent to relist (different Realtor, same problem)
- keep it off the market altogether (better than paying commissions)
- sell to a cash buyer (solution to your problems)
Types of Listing Agreements
When you enlist a real estate agent, they are contractually responsible for selling your house while you grant them legal authority. If the agent succeeds, you’ll owe a commission, typically 5-6% of the sale price, which will be split with the buyer’s agent.
When looking to list your home, you are presented with three distinct types of listing agreements:
- open listing
- exclusive agency listing
- exclusive right-to-sell.
Here’s a quick overview of the major distinguishing features of each type of listing agreement.
Exclusive Agency Listing
An exclusive agency listing is similar to an open listing but with one significant distinction – the broker represents you. Even though they represent you and your property, you still have autonomy; the right to sell it yourself without paying a commission remains yours alone.
By collaborating with a different brokerage, the broker can find a buyer. Generally, the selling and buying brokers receive part of the listing commission, meaning you must pay for both services.
Exclusive Right-to-Sell Listing
A right-to-sell listing is the go-to option, affording real estate agents exclusive rights to market and negotiates on behalf of the owner. This advantageous agreement allows brokers to collect commissions whether a buyer comes directly through another brokerage.
You are liable for the listing and selling broker fees unless you’ve made an exception in your agreement. You must pay a commission fee to sell your property independently.
Open Listing
With an open listing, you can sell your home by yourself. This exclusive agreement allows you to choose multiple real estate brokers and pay only the one that brings a buyer with an offer of your choosing. A non-obligatory deal makes it simple for sellers to get their desired results without the hassle or expense of marketing themselves.
How Long is the Average Listing Agreement
Real estate agents often sign listing agreements that last between three and six months because they need time to locate the perfect buyer for your home. This way, they have time to collect multiple listing agreements and work on them simultaneously.
Why Do Real Estate Listings Expire?
Real estate listings expire because the agent’s plan did not entice a buyer to make an offer. It could be the marketing of your home, its condition relative to other homes in your real estate market, or an inaccurate home price.
What to do If Your Listing Agreement Expires
It would be best if you took an honest accounting of why the listing agreement expired.
Stay with your agent
Although external factors beyond either party’s control may have resulted in a listing not selling, it’s prudent to always look for ways to avoid returning to the starting point when an agreement ends. To achieve this, consider renewing your list agreement with your estate agent.
Work with your agent and consider why you’re selling the home, the agent’s marketing plan, the home’s condition and price, and buyer feedback.
Agent marketing plan
Carefully review your marketing strategy with your agent to ensure you have an effective home-selling plan. Examine what was successful and unsuccessful, so you can pinpoint whether either failed in executing the plan.
To maximize the effectiveness of your listing, you will need to constantly reexamine and refine any marketing tactics you have already applied, such as virtual tours, direct mail campaigns, or lockbox installations. By taking a step back and analyzing what has been done so far, you can ensure a better outcome for yourself and potential buyers.
Condition
If you want to make sure that your home stands out on the market, be sure to take a look at what other comparable homes are offering. You may find that some repairs or staging is necessary for your house to have maximum curb appeal. Investing time and effort into these areas will ensure that potential buyers see how attractive and valuable your property can be.
Price
A comparable asking price is necessary for those hoping to speed up the home-selling process. Your agent should have found the right price through a comparative market analysis (CMA); it’s a service you pay for.
Buyers starting their search online are well aware of the value of your home. However, an appraisal must be done if a buyer takes out a mortgage to purchase it. If this comes back lower than the sale price you’ve set, chances are they will only receive approval for what’s necessary to buy your house.
Buyer feedback
Take the time to thoroughly assess what buyer feedback is being said about your home. A consistent buyer response will give you an idea of their perspectives and concerns. If their critiques are reasonable, consider how best to address these issues to meet those expectations. Your agent should have gathered this information when your property first went on the market, so ensure those details are noticed.
Find a new real estate agent
If you have the drive and patience to begin the home selling process again, it’s up to you. Though, if your current agent did not make an effort in how they handle your listing that inspired trust in you, it might be wise to look for a new one before putting your house back on the market.
Before signing a listing agreement, conduct thorough research and read reviews from past clients. When your listing expires, you might be inundated with telephone calls from agents trying to earn your trust. Be mindful in selecting someone trustworthy who can help guide the sale of your home smoothly and quickly.
Skip the hassle, and find a cash buyer
Once your home’s listing expires, you must go through the whole long real estate process again. That means you’ll spend even more on repairs and renovations to address buyer feedback. You’ll probably want to find another real estate agent, which will cost you time. Even after paying more money and spending more time, your house is still not guaranteed to sell.
Instead of languishing in real estate limbo, it might be better to find a cash buyer. Typically, a cash buyer or real estate investor will gather some information about your home, do a walkthrough (physical or virtual), and make a fair cash offer for your home. In some cases, they’ll even pay your closing costs.
Can You Sell Privately After a Listing Expires?
Even if your listing has expired, selling your house is still an option. Nevertheless, if you don’t plan to continue with the same realtor, you must wait at least 90 days before proceeding with another agent.
When selling a home, it’s essential to consider the listing protection period that often accompanies agreements. This will typically dictate the commission you pay your previous broker for a successful sale. If you plan for cash buyers, waiting out this time frame before jumping into any deals is wise.
Real estate listing agreements include a protective clause for the agent from any potential harm by the seller. If you decide to end the contract or sell soon after it expires, you would be subject to pay a commission fee designated in this safety clause – known as the tail period.
On average, agreements within the safety clause provide 90 days of listing protection. However, some brokers and agents give less coverage for a shorter duration.
Why selling to a cash buyer might be your best option
Going through the home selling process once more and examining a new listing agreement can be wearying and disheartening. Fortunately, you can offer your property to a cash buyer, removing all that trouble.
Cash buyers are your best bet if you’re looking for a fast and easy sale. Unlike traditional buyers who want to move in quickly, cash buyers can wait until the tail period has expired. And if significant damages caused your listing to expire, don’t worry- with a cash offer, you still have hope of selling since these types of purchasers buy houses as is.
When you sell, no closing costs or commissions will come out of your pocket; thus, you can expect to net more money from the sale.
Selling your home to a cash buyer is surprisingly simple. Get started by submitting an inquiry on the investor’s website or contacting them directly via phone. After that, they may be by for a property inspection to offer you the most accurate bid possible.
Conclusion
If you want to resell your home after a listing terminates, come prepared with plenty of patience. Most listings involve protection clauses or specified time frames that obligate the homeowner to pay their previous real estate agent’s commission if they choose another individual for the job.
Cash offers are the way to go if you need a quick and sure sale for your home! Forget about waiting on retail buyers – get an offer today. We Buy Houses For Cash won’t keep you waiting for the tail period to conclude.
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