Introduction
In the world of real estate, understanding the difference between "on-hold listings" and "expired listings" is crucial to building a successful strategy. While both types of listings offer opportunities, they come with their own set of nuances and approaches. Real estate agents who know how to navigate these listings effectively can significantly increase their chances of closing deals.
In this blog post, we’ll explore the key differences between on-hold and expired listings and discuss actionable strategies for leveraging both to enhance your success in the real estate market.
What Are On-Hold Listings?
An on-hold listing refers to a property that is temporarily removed from the market, but not permanently. Typically, sellers choose to take their listing off the market due to various reasons, such as personal circumstances or a need for more time to prepare the property. An on-hold listing can be reinstated at any time, making it a potentially valuable resource for agents.
Why Do Listings Go On Hold?
There are several reasons a seller might choose to put their property on hold:
Personal Reasons: Sellers may need to resolve personal issues, such as family matters, or they may no longer be ready to sell.
Repairs and Upgrades: Sellers may decide to temporarily take the listing off the market to make improvements or repairs before relisting.
Market Conditions: Some sellers may remove their listing due to unfavorable market conditions, such as economic downturns, and choose to wait until the market improves.
Seasonal Adjustments: In certain markets, listings might go on hold during the off-season (e.g., winter) and be brought back in peak seasons.
While on-hold listings may seem like a waiting game, they are still a prime target for savvy real estate agents who know how to approach sellers with a compelling offer.
What Are Expired Listings?
An expired listing occurs when a property is listed for sale but does not sell before the listing contract expires. Typically, the listing agreement between the agent and seller includes a set timeframe, after which the agent can no longer market the property unless the agreement is renewed. An expired listing can be a frustrating experience for sellers, as they may feel their property is unmarketable or the wrong agent handled the sale.
Why Do Listings Expire?
Expired listings often occur for several reasons:
Overpricing: One of the most common reasons for an expired listing is that the property was priced too high. Buyers may have bypassed it due to its unrealistic price compared to similar properties in the area.
Inadequate Marketing: If the property didn’t receive enough exposure or effective marketing, it could result in few showings and no offers.
Poor Presentation: Properties that are not staged properly or are in less-than-ideal condition may struggle to attract interest.
Agent Mismanagement: Sometimes, expired listings occur because of poor communication between the agent and the seller or a lack of strategic marketing.
An expired listing is not the end of the road—it’s simply a missed opportunity that can be salvaged with the right strategy. This is where real estate agents can step in with renewed energy and fresh tactics.
Key Differences Between On-Hold Listings and Expired Listings
Understanding the key differences between on-hold and expired listings is essential to crafting the right approach when engaging with sellers. Here's a quick comparison:
Criteria
On-Hold Listings
Expired Listings
Status
Temporarily removed from the market, can be re-listed
Listing has expired, can’t be marketed unless renewed
Seller's Intent
Seller may be waiting for a better time or making improvements
Seller may be frustrated or uncertain about their next steps
Property Condition
Usually in good condition, but possibly undergoing updates
May have issues with pricing, presentation, or marketing
Negotiation
Sellers are usually open to future discussions
Sellers may need convincing to relist or renew contract
Opportunities for Agents
Chance to build rapport and stay on the radar for when the listing returns
Opportunity to propose a fresh strategy and relist the property with new tactics
How to Leverage On-Hold Listings for Success
On-hold listings are often undervalued by agents because they seem inactive. However, there are several ways you can use them to your advantage:
1. Build Relationships for Future Business
If you spot an on-hold listing in your area, reach out to the seller with empathy and understanding. Acknowledge that you know their property is temporarily off the market but express your willingness to assist whenever they decide to relist. Staying top of mind by checking in periodically (without being pushy) can pay off when the seller is ready to return to the market.
2. Position Yourself as a Trusted Advisor
During this period, offer value by providing the seller with information that might help them during their downtime, such as market insights, home improvement tips, or pricing strategies. Positioning yourself as an expert who is there to help them make the best decisions will build trust and increase your chances of being their agent when the time is right to relist.
3. Stay Informed About Market Trends
Keep an eye on the property’s status and market changes. If the market improves or new comparable properties come on the market, you can reach out to suggest it might be a good time to relist, offering updated data and your expertise.
How to Leverage Expired Listings for Success
Expired listings are an excellent opportunity for real estate agents, but they require a bit more finesse. Here’s how to turn expired listings into successful deals:
1. Analyze the Previous Listing
Before reaching out to the seller, take the time to analyze why the listing expired. Look at pricing, marketing efforts, and the condition of the property. This will give you insights into what went wrong and how you can help turn things around.
2. Rework the Pricing Strategy
In many cases, expired listings fail because of overpricing. When contacting a seller of an expired listing, be prepared to suggest a more competitive pricing strategy. Present data-backed market comparisons and explain why your proposed price is more in line with current market conditions.
3. Offer a Fresh Marketing Plan
Sellers of expired listings are likely to be frustrated with previous agents who didn’t deliver. Offer a new marketing strategy that includes professional photography, staging advice, and a comprehensive digital marketing plan. Highlight your unique approach and show how you can generate more interest in the property.
4. Be Empathetic and Supportive
Understand that sellers with expired listings are often disappointed. Approach them with empathy and patience. Offer to walk them through the process and make the relisting as smooth as possible. By providing a listening ear and showing you care, you’ll stand out from other agents who may simply push for a quick relist.
Conclusion
Both on-hold and expired listings present real estate agents with unique opportunities to increase their business and close more deals. The key to success lies in understanding the differences between these two types of listings and tailoring your approach accordingly.
For on-hold listings, building relationships, offering valuable insights, and staying informed will ensure you’re in the right position when the listing returns to the market. For expired listings, analyzing the past listing, reworking the pricing strategy, and offering fresh marketing tactics are essential to gaining the seller’s trust and turning things around.
By effectively leveraging both on-hold and expired listings, you can increase your chances of success in the real estate industry, build a reputation as a skilled agent, and ultimately close more deals.