How To Find Expired Listings: A Guide For Home Buyers

Ever wondered what happens to an online listing when the house doesn’t sell? In some cases, its status on the multiple listing service (MLS) changes to “expired.” Some home buyers and sellers might think the house is a lost cause at this point, but an expired listing is just as important as any.

Real estate agents and investors alike frequently seek out expired listings because of their profit potential. Home buyers can use some of these methods to their advantage as they search for a new home.

Let’s take a look at the definition of expired real estate listings, why they’re important in real estate and how to find expired listings as a buyer.

What Are Expired Listings?

An expired listing is a house that hasn’t sold within the time period designated in the listing contract – usually 6 or 12 months.

When a seller signs a contract with a listing agent, the property is listed on the MLS or another listing website until its expiration date. If the property doesn’t sell before the expiration date, it becomes an expired listing.

Once the property is labeled as an expired listing, the seller can renew their contract with the same listing agent or sign a new contract with a different agent. Each time a listing expires, a new one must be created on the MLS.

Why Are Expired Real Estate Listings Important?

While expired listings have a single definition, they carry a different meaning based on whether you’re a buyer or seller. Next, we’ll delve into why expired MLS listings are important to buyers and sellers.

For Sellers

If a seller’s house becomes an expired listing, it may raise some concerns about why the house isn’t selling. Oftentimes, a house doesn’t sell due to overpricing, necessary renovations, mediocre real estate photography or a misguided marketing strategy. Some reasons might encourage homeowners to rethink whether they’re working with the right real estate agent. If it’s not a right fit, homeowners might feel inclined to find a real estate agent who has a more strategic vision for their home sale.

For Buyers

A house failing to sell raises similar concerns for home buyers. If it didn’t sell because it needs repairs, a buyer might choose to move on to the next available home. If real estate photos are poorly lit, cluttered or misleading, a buyer may be less likely to consider an expired listing that goes back on the MLS. On the other hand, if the home didn’t sell because it was overpriced, you may have some room for negotiations. Because of this, it’s important to ask plenty of questions and request the help of a trusted agent.

Expired listings are also important for buyers because they can provide an alternative to traditional home search methods. When looking for expired listings, there’s a chance buyers will be faced with less competition than they would with traditional listings.

How To Find Expired Listings

Real estate agents and savvy real estate investors use various methods to find expired listings that buyers can utilize. Consider some of these strategies if you want to take advantage of expired listings.

1. Check The MLS Or Rocket Homes^SM

An easy way to find expired listings is by searching for them on the MLS or another listing site like Rocket Homes. To find listings that have expired or that will expire soon, buyers can use filters to limit their search to certain dates and statuses. This method allows you to strategically choose types of houses within your area of expertise and properties in neighborhoods you’re familiar with.

2. Connect With A Real Estate Agent

If you're attempting this technique, it can be helpful to talk with a real estate agent. Real estate professionals often have deeper insight into listings and can provide context into why they’ve expired. Know that you don’t necessarily need to sign an official contract with the agent who gives you information, and you can typically talk to agents without a fee. Many agents will be happy simply to develop an initial relationship with you where they can serve as a resource.

3. Purchase Expired Listings Online

Another option is online platforms where individuals can buy expired listing leads. This is typically a much faster process than searching on the MLS or communicating with other agents. Although more expensive, the method described here saves buyers a lot of valuable time. However, it may take some time to vet the expired lead generation websites to verify the information and ensure it has the type of property details you’re looking for.

4. Request Your Area’s Public Records

Buyers can also seek out property information from their city or county’s public records. The process consists of sifting through years of public information either online or at your local city or county building. This strategy can be the most cost-effective way to get leads, but it’s also the most time-consuming. In addition, there’s no guarantee all the information you’re looking for will be available in the archives.

FAQs About Expired MLS Listings

If any of your questions about expired listings remain unanswered, refer to these frequently asked questions and their answers.

What is an expired listing versus a withdrawn listing?

The difference between a withdrawn listing and an expired listing is that a withdrawn listing is taken off the MLS before the expiration date. Although a withdrawn listing is no longer on the MLS, it’s still for sale. The listing contract is still in place with the original listing agent, and no other agents have rights to the listing. An expired listing, on the other hand, opens the door to new agents after the expiration date.

Is a canceled listing the same as an expired listing?

A canceled listing means there’s no longer an active contract between the seller of a property and the listing agent. The key difference between a canceled listing and an expired listing is that a canceled listing was terminated before its expiration date. Alternatively, an expired listing is open to new agents after the expiration date.

Why do most listings expire?

Simply put, listings expire because the house didn’t sell within the time frame specified in the listing contract. The reasons a house didn’t sell may include – but aren’t necessarily limited to – marketing issues, overpricing and structural problems.

The Bottom Line

An expired listing means something different depending on whether you’re a buyer or a seller. Buyers might approach an expired listing with caution and ask questions, or view an expired listing as an alternate way to find a new home. Sellers might consider an expired listing as an opportunity to find a real estate agent who’s more suitable or knowledgeable. Buyers should lean on the expertise of an agent to guide them as they work with expired listings.

If you’ve come across an expired listing of a house you’d like to buy, make sure you’re approved. A mortgage approval shows sellers you have the finances to back up your offer and may improve your chances of getting the house. Start the approval process with our friends at Rocket Mortgage^Ⓡ.