Know the Difference Between Expired Listings and Withdrawn Listings
When a listing expires, that can potentially be good news for you as a realtor in the Manhattan or Brooklyn areas. Expired listings offer a pool of potential new clients for you to reach out to. If you obtain even a small percentage of these listings as clients, it could drastically increase your annual revenue and sales. However, you do need to know the difference between a listing that’s expired and one that’s only withdrawn. Here are some insights.
1. The contract
A contract is the legal binding document between an agent and a seller, giving a real estate agent the authority to list a property on the MLS. The MLS or Multiple Listing Service is a database that all realtors have access to that allows them to advertise homes for sale. If a buyer’s agent is on the MLS, they will be able to see all your active listings that you’ve posted on the MLS.
The contract between you and your clients is for a set amount of time (sometimes 6 months, or a year). During this time, only you have the authority and legal right to try to sell their home. They cannot go list with another agency or agent during this specified time.
2. A withdrawn listing
If a listing is considered withdrawn, it means it is still under contract with the listing agent, but it is no longer on the MLS. The contract is still valid, however, and the sellers cannot go look for another agent or company to represent them. The clock is still running on the original contract and the time that it specified.
Why do sellers choose to withdraw their listing? For a number of reasons but oftentimes because of something going on in the family or repairs that have come up and need addressing. It’s a way to pause trying to sell to take care of anything that is coming up in the seller’s life but still keep the listing active. Once they have finished attending to whatever came up, the listing can go back up on the MLS with the current agent until the time the contract expires.
3. An expired listing
In contrast, an expired listing is a listing that has run the course of the original contract without selling. Once it passes that marker, the seller can decide if they wish to re-list with their current agent or shop around and try to find another agency or realtor.
No matter which direction they go in, the listing has to be recreated for the MLS, and a new contract drawn up. Listings cannot just be renewed.
Also, as a note, if the property is in the midst of a sale when it expires, it is good practice for the seller to go through with that sale and contract rather than trying to get out of paying the fees to their realtor.
4. What this means for you
If you’re a real estate professional in Manhattan or Brooklyn looking for ways to grow your business, try prospecting to expired listings. It’s a great place to start gaining new clientele, as some of the sellers might be disappointed or frustrated with their old agent and be interested in looking for a new one.
*ExpLiMO provides high quality leads on a daily basis and offers a unique opportunity for Manhattan and Brooklyn real estate agents to prospect for expired listing leads and grow their business exponentially