In which situation is a listing most likely to terminate due to listing agreement expiration?

In which situation is a listing most likely to terminate due to listing agreement expiration?

• A. A market with high inventory and low demand
• B. A market with low inventory and high demand
• C. A market with stable inventory and stable demand
• D. A market with fluctuating inventory and prices

Answer: (A)

In a real estate market characterized by high inventory and low demand, properties often stay on the market for extended periods without selling. This situation can lead to a listing agreement expiring because the seller may become dissatisfied with the lack of activity and choose not to renew. The extended selling period typically frustrates sellers, who may decide to take their property off the market or change agents in hopes of a better outcome. In contrast, scenarios involving low inventory and high demand tend to result in quicker sales, making it less likely for a listing agreement to expire without a transaction. A stable inventory and stable demand situation also support ongoing interest in properties, while fluctuating inventory and prices can create uncertainty but might still allow for successful sales within a valid listing period. Thus, the combination of high inventory and low demand directly correlates to the likelihood of terminations due to expiration.

In a real estate market characterized by high inventory and low demand, properties often stay on the market for extended periods without selling. This situation can lead to a listing agreement expiring because the seller may become dissatisfied with the lack of activity and choose not to renew. The extended selling period typically frustrates sellers, who may decide to take their property off the market or change agents in hopes of a better outcome.

In contrast, scenarios involving low inventory and high demand tend to result in quicker sales, making it less likely for a listing agreement to expire without a transaction. A stable inventory and stable demand situation also support ongoing interest in properties, while fluctuating inventory and prices can create uncertainty but might still allow for successful sales within a valid listing period. Thus, the combination of high inventory and low demand directly correlates to the likelihood of terminations due to expiration.