Affiliate Broker Tennessee (TN PSI) National Practice Exam `

What can expired listings indicate to a real estate professional regarding property pricing?

1. The price was too high

2. The price at which a property won’t sell

3. The market value of homes

4. The need for renovation

The correct answer is: The price at which a property won’t sell

Expired listings can provide valuable insights into property pricing for real estate professionals. When a listing expires, it often indicates that the property was not sold within the designated listing period. This situation can suggest that the price at which the property was offered was not attractive enough to buyers, leading to the conclusion that the price was incorrect for the market conditions. The concept behind this is that if a home remains on the market for an extended period without receiving offers, it typically reflects an issue with its pricing strategy. Therefore, the expired listing serves as a data point that highlights a specific price point – one that did not entice potential buyers. Understanding expired listings helps real estate professionals refine their pricing strategies for future listings. It emphasizes the importance of aligning with current market values and buyer expectations. Hence, the notion that the price at which a property won’t sell resonates accurately with the implications of expired listings.