Most listings expire because they are priced too high for the market. Which of the following is the correct reason?

• A. overpriced for the market
• B. underpriced for the market
• C. not marketed enough
• D. poor agent representation

Answer: (A)

Pricing property above what the market will bear is the key idea here. When a listing sits at a price higher than what buyers in that area are willing to pay based on recent comps and current demand, buyer interest drops. With less interest, there are fewer showings and fewer offers, so the property lingers on the market. As days on market accumulate, the listing starts to look stale to buyers and agents, and motivation to make an offer fades. Sellers who don’t adjust downward toward market value often see the contract end and the listing expire. While other factors like marketing or representation can influence results, overpricing relative to market conditions is the most common reason listings expire.