Your Listing Expired (or the Buyer Backed Out). Now What?

Are you dealing with an expired listing? Or maybe you had a buyer, and the deal fell through?

Few things are as frustrating. You put the time, money and energy into getting the house ready, kept it clean for every showing... and here you are, back at square one months later.

If you want to sell, you probably have a good reason. Maybe the house is too big, too small or in the wrong place. Maybe you're dealing with something harder, like trouble making the mortgage payments or tenants you're tired of dealing with. Either way, here's what you can do next.

If your buyer backed out

There are a lot of reasons a deal can fall through. The house might not appraise for the purchase price, there could be title issues, the buyer's loan could fall apart, or the buyer could just get cold feet.

1) Review the purchase agreement

A purchase agreement is a legally binding contract. Go through it (with your agent or an attorney) and see whether the buyer backed out for a reason the contract allows, like an inspection or financing contingency. If they did, you may be out of luck. If they didn't, you may have some options.

2) Fight for the earnest money

If the buyer backed out without a valid reason under the contract, you may be entitled to their earnest money. Just know that in Minnesota whoever is holding it (usually the brokerage or title company) generally can't release it without both sides signing off, or a court order. Your agent or an attorney can help you through it.

3) Negotiate

If the buyer had a real reason, like a low appraisal, it might be possible to work something out, like a lower price or a later closing date.

4) Find out what went wrong

Talk with your agent and see what can be done so it doesn't happen again. Was it the price? The inspection? Something about the house that keeps scaring buyers off?

If your listing expired

List it again

You can always change things up and try again. Not all agents are the same, and a new agent might have a whole different approach. Ask around for recommendations and read reviews before you sign another listing agreement.

You might also need to change the price, get better photos, or fix the things that kept turning buyers away.

One thing to watch for. Most listing agreements have a protection period after they expire. If you sell to someone your old agent introduced to the house during that time, you may still owe them a commission. Check your agreement.

Rent it out

Maybe now isn't the right time to sell. You could rent the house out for a year or two and try again later. Check what similar houses rent for, and be honest with yourself about whether you want to be a landlord. A property manager can help, but they usually charge around 10% of the rent.

Try owner financing

There are a lot of good, responsible people who want to buy a house but can't get a bank loan right now. If you don't need all your money up front, you can offer owner financing (or a contract for deed here in Minnesota) and collect payments over time. Just make sure you understand the rules and work with an attorney.

Sell it yourself

You can try selling on your own and save the commission. You'll be handling the pricing, marketing, showings and paperwork yourself, so be ready for the work.

Wait

Sometimes it makes sense to wait until the market is better in your area. The trouble with waiting is that you keep paying to own the house, and you may be stuck in a house that doesn't fit your life anymore.

Sell it directly

This is the option a lot of people wish they'd known about before they listed.

When you sell directly to Trademark Properties, you don't have to start the whole process over:

• We buy the house as-is, so the inspection that scared off your last buyer isn't a problem.
• We pay cash, so there's no loan or appraisal to fall through.
• No commissions, and we pay the closing costs.
• You know the price and the closing date right from the beginning. You pick the date.

We're local, and our reputation depends on how we treat homeowners in our community.

Get help with your expired listing or fallen-through sale! Give us a call at Call us or fill out the form and we'll make you a fair, no-obligation cash offer.