Placing a property with an agent to market is not always a guarantee of a sale. The time may not be right for that particular neighborhood, or the property may be older than clients want during the term of the sales contract. A contract for a property sale can expire, but it does not mean the land or building on it will never be sold, and there can be good reasons to check these old listings.
Getting property owners to agree to a new contract could be a good way to convert old listings into a profit for a good real estate company, and it can take something as easy as a postcard to interest them.
Sales Contract Expiration
The vast majority of old listings consist of properties that never received a good offer. Their owners may have decided it was not the right time to sell, or they might have chosen to remodel instead of move. When the sales contract expiration date comes up, many clients are too discouraged to sign for another few months.
They may see potential buyers as nothing more than tourists invading their space. Others may get low offers, and they could have decided to wait until local property values went up. They could be willing to sign again, but not for a few more years.
A look at older MLS listings for an area that is up and coming could be a good place to start seeking expired listings. Many properties have been listed on MLS for years and doing a search for them could produce a list that could garner some new clients.
Older neighborhoods often see a decline as families are raised and the children move away. The houses may be kept in good repair, but the neighborhood could look tired. Many potential buyers may see the area as one where they do not want to live. This is often the reason a sales contract expires without renewal. A lack of interest in the neighborhood could be keeping buyers at bay.
There have been many times over the years where older homes are sold to young couples with a need for housing that is affordable. These couples often work hard to repair their homes, and just one couple can help begin creating revitalized areas in their neighborhood.
Looking through old listings and visiting them could uncover the fact that an old neighborhood looks new once more. Contacting owners with expired listings could result in one or more sales contracts that might be successful this time around.
A look at what has sold lately is often easy to find with today’s marketing and listing tools. Searching for comparatives in an area will show what has sold within the last few months.
A look at property records and old MLS listings could show properties that might have been previously listed. It could be a good way to locate those willing to sell by sending an expired postcard to let them know their property may be ready for new owners.
Expansion of neighborhoods is often done in steps. It can take years to sell all the properties in one small area, so new streets are not built until it is time to sell the next section of lots. This is a good reason to take another look at old listings.
The lots and homes on the new streets are generally more expensive. Purchasing in the area where a new neighborhood is planned could raise property values even if an existing home is purchased. This could be a good way to bolster sales even if the new homes and neighborhoods are too expensive for current buyers.
Many new neighborhoods also seen an expansion of commercial properties in their area. Old listings of this type can become a valuable commodity for owners looking to sell.
When the new streets begin to come to life, the residents will need more products and services. Purchasing them from a small local store is often a convenience. This is one reason to take a hard look at smaller commercial properties in a new area of housing growth.
Lots that have sold without being developed in area neighborhoods are a good target for listing. The owners might have changed their minds about selling. There could now be a good reason to contact them discreetly about listing their property as the value could have increased even without development.
Less Expensive Properties
The cost to market a property does not go down when it is less valuable. Advertising dollars are the same, so these are often properties on the expired list that are ignored. Those property values may have risen significantly over the years.
There are also investors and developers these days looking for groups of houses or commercial buildings within a small geographical area. One more look through those old listings could provide exactly what buyers are seeking in the real estate market today. Signing up property owners with potential buyers ready to look and make offers can alleviate the cost of marketing while still producing a good sale.
The purchase of multiple properties by one person or group is often a way to generate a good profit. It can help a real estate company bring in additional earnings, but it is also a good selling point when listing the number of properties sold per year. This alone could attract more buyers, and the company may find a healthy cottage industry in signing those with expired sales contracts.
Keeping a list of properties that have not sold recently could be one way to track these types of neighborhoods for future use. They may also be cached on MLS listings. Property evaluations in government databases could be one more source to locate these homes. Sending a short letter to explain the updated value of the house to developers could result in a new listing.
New Commercial Ventures
Properties that may have been rejected by buyers the first time around could be worth a second look and an offer for a new listing when new commercial ventures move into an area. Location has always been an important factor in real estate.
Properties on the edge of town might have been too far for commuting years ago. A new business in the area could make them a better deal today. Expired listings could be turned into fast sales in this scenario.
The need for housing around a new commercial venture is often an important factor, but there are other listings that could be important. Commercial property for restaurants, shops, and even services may grow in a new area. Expansion has long been a good way to heat up a real estate market, and finding old listings with owners willing to sell can be a good first step in revving up sales.
There are plenty of good reasons to comb through expired listings when showing properties to clients. Real estate agents printing out expired listings on a quarterly basis could find their search easier as properties increase in value and neighborhoods improve.
What may not have been a good sale just a year ago could be the perfect property today. Approaching property owners with a postcard or letter provides them with an opportunity to consider selling without feeling pushed to sign a contract.