Expired Real Estate Listing: What Buyers & Sellers Need to Know

Expired real estate listings can be confusing and frustrating for everyone involved. For sellers, it can feel like a setback after a long and often emotional process, leaving them to wonder what went wrong. For buyers, an expired listing may seem like a unique opportunity, but it also raises a number of questions.

What does it actually mean when a listing expires? Why didn’t the home sell in the first place? And what should a buyer do if they find a home they love that’s no longer on the market? In this Redfin real estate article, we’ll explore the ins and outs of expired real estate listings from both perspectives. We’ll consider the common reasons a home might not sell, the steps sellers can take after their listing expires, and the potential advantages and disadvantages for buyers considering an offer on a home that has fallen off the market.

What is an expired real estate listing? 

An expired listing occurs when a seller’s contract with a real estate agent ends without the home being sold. This means a few things happen automatically:

• The home is taken off the market and is no longer visible on the Multiple Listing Service (MLS).
• The agent no longer represents the seller, as their agreement has officially ended.
• The sale is often viewed as unsuccessful, with the root cause typically being an issue like a high price, poor marketing, or a lack of buyer interest.

After a real estate listing expires, a seller has to decide whether they want to remove their house from the market or try again. If you choose to keep pursuing a sale, you’ll need to re-list the property. This essentially gives the home a fresh start on the MLS, resetting the “days on market” counter that buyers often pay attention to.

At this point, you also have to decide if you want to stick with your current agent or find a new one. If your home didn’t sell, you might have some leverage to negotiate a lower commission with your existing agent to relist the property. Alternatively, you can hire a new agent with a fresh strategy to get your home sold.

Is a canceled listing the same as an expired listing? 

While a canceled listing and an expired listing both mean a home is no longer for sale, they are different.

As we covered, an expired real estate listing occurs when a seller’s contract with their real estate agent ends without the home being sold. A canceled listing, on the other hand, is when the seller or agent removes the property from the market before the contract’s end date. This can happen for many reasons, such as:

• The seller decided not to sell after all.
• The seller chose to hire a new agent.
• The seller needs to make repairs before relisting the home.
• If the property is priced too high, it may not attract buyers, leading to frustration and eventual cancellation. 
• Buyer fails to meet contingencies.

If you decide to find a new agent, do your homework

If you decide to find a new agent, make sure to do your homework. You’ll likely be contacted by many agents hoping to re-list your home, so it’s important to be prepared. Take the time to interview at least a few candidates and ask them specific questions about their strategy.

Look for a Redfin real estate agent who is empathetic and takes the time to understand your previous experience. They should be able to clearly explain what went wrong with the last listing and present a detailed, fresh plan for marketing your home differently this time.

12 key questions to ask a new agent

When you’re ready to interview new real estate agents, consider asking these questions to find the best fit:

1. Experience: What’s your experience selling homes in my specific neighborhood?
2. Pricing strategy: How will you determine the right price for my home, and how will that strategy differ from the last listing?
3. Marketing plan: What is your marketing plan, and how will you make my home stand out?
4. Home preparation: What specific steps do you recommend I take to get my home ready to be shown?
5. Communication: How often and through what methods will you communicate with me about the process?
6. Professionalism: Do you work as a full-time real estate agent?
7. Contingency plan: What’s your plan if my home doesn’t sell this time around?
8. Negotiation skills: What’s your strategy for handling offers and negotiating with potential buyers?
9. Differentiators:What makes you the right agent for this job, and how do you set yourself apart from the competition?
10. References: Can I speak with past clients or read their testimonials?
11. Fees: What are your commission fees and other associated costs?
12. Home staging: How will you stage my home, and who will be responsible for the cost?This is a good point to bring up during your negotiations with an agent. Make sure to discuss all aspects of staging and put everything in writing.

Asking these questions will help you find an agent who is not only experienced but also has a clear, fresh strategy for getting your home sold. However, don’t overlook newer agents; what they may lack in experience, they often make up for with drive and a willingness to work harder to prove themselves.

Advantages and disadvantages for buyers considering an offer on an expired or off-market listing

For a buyer, finding a home that has an expired real estate listing can be a mixed bag of opportunities and risks. Understanding these can help you decide if it’s worth pursuing.

Advantages for buyers

• Less competition: The most significant advantage is that the home is no longer on the public market. This means you won’t be competing with a large pool of other buyers in a bidding war, which is common in a hot market.
• Motivated sellers: A seller with an expired listing has likely been through a frustrating and disappointing process. They’ve already committed to selling, so they may be more motivated and willing to negotiate on price and terms.
• Negotiating leverage: Because the home has been on the market for an extended period without selling, you may have more leverage to negotiate a lower price. The seller might be more receptive to a reasonable offer that gets the deal done.

Disadvantages for buyers

• Potential issues with the property: A listing often expires for a reason. Common culprits include an overinflated price, a lack of buyer interest due to poor condition, or an undesirable location. You’ll need to do your due diligence to uncover what the underlying issue was.
• Seller frustration: The seller might be jaded from their previous experience and could be difficult to work with. They may be resistant to low offers or unwilling to make necessary concessions.
• A “stale” property: Homes that have been on the market for a long time can get a reputation. Even if a buyer is interested, they might wonder what’s wrong with the house that kept it from selling, which can create a psychological barrier.

What should a buyer do if they find a home they love that’s no longer on the market? 

• Work with your Redfin agent. Your agent can look up the old listing to understand why it didn’t sell. Was it overpriced, or was the marketing poor?
• Have your agent contact the seller directly. Since the seller is no longer represented by an agent, your agent can reach out to them to see if they are still interested in selling their home.
• Make a good offer. The seller has already been through the process once. A strong, straightforward offer with a fair price can be very appealing and might be exactly what they’re waiting for.

Key takeaways: Expired real estate listings

Just like in the Boyz II Men classic “End of the Road,” when a real estate listing expires, it can feel like a painful ending for sellers. However, this isn’t necessarily a final goodbye. Instead, it’s an opportunity for both sellers and buyers to start fresh.

For sellers

For a seller, an expired listing is a chance to reevaluate your strategy. If you weren’t happy with your previous agent’s performance, it’s the perfect time to find a new one. This is a chance to do a reset, get fresh eyes on your property, and find a new agent with a clear, different plan to get your home sold.

For buyers

For a buyer, an expired listing can be a golden opportunity. The seller has already shown they’re motivated to sell, and the property is no longer competing in the open market. This gives you significant leverage to negotiate on price and terms, potentially allowing you to secure your dream home at a better value.