The Merriam-Webster online dictionary defines “expired” -#1. to breathe one’s last breath #2. to come to an end or #3. obsolete. …all pretty good definitions of an expired listing. In contractual terms an expired listing is the Multiple Listing Service (MLS) designation indicating the listing contract is no longer active. There’s lots of reasons why homes and condos end up on the “expired” list:
Whatever the reason when your listing shows as “expired” in MLS, both agents and buyers will be looking at the information to draw some conclusions when making a buying decision. Most agents and buyers look at:
Whether your property is a new listing or a relist- the MLS property history data provides in-depth information that influences buyer’s decision making process. Overall the number of expired listings seems to be on a downward trend with 818 expireds in August 2012 versus 694 during August 2013. If sales remain steady or increase, the number of expired listings should continue to decline. However if interest rates continue to creep up causing buyers to return to sitting on the fence- the expired count could rise during the fall and winter.
Nobody wants (agents or sellers) listings to expire – but it happens. Sellers need to ask for the data about everything that is happening in the local real estate market and make decisions based on facts not hunches or feelings.