Ever put money in a parking meter, then returned to find time had expired? You may have even found a gentle reminder from the meter attendant - your penalty for not contributing enough up front.

In real estate, an “expired” listing may carry penalties too. When homeowners first list their property for sale, they are enthused and excited. So are the agents who show the property. The home represents fresh new inventory, and the resulting enthusiasm can attract interested buyers.

Buyers, however, comparison shop. They compare each home visited, then commit to the one offering the best value for their money. Those that don't measure up remain on the market, and eventually “expire” from lack of interest.

Why do listings expire? Buyers judge other homes to represent a better value. This occurs because the home wasn't offered in mint condition, or because the price did not correspond to the local market - or both. A reasonable time was allowed for the home to attract a buyer - and it didn't.

So . . . what's the penalty for expiring? The home is no longer “fresh” inventory, plus the matter of condition or price must still be addressed. Unless changes are made, it will linger on the market without selling. Owners who offer an attractive home at a fair price from the beginning can look forward to a satisfying early sale.