When you list your home for sale, the goal is to mark the property as sold. Steps along the way might include pending sales, contingent sales, and delisting, a process in which a property is removed from the market. Here, we examine the meaning of delisting a property, the pros and cons of doing so, and recent trends around delisting.
Reasons for Delisting Your Property
“There are various reasons a seller might want to delist their home, from starting as a for sale by owner (FSBO) seller and switching over to an agent-assisted sale, to not receiving any good offers, the need to make repairs and improvements to boost the home’s appeal, or a change in a seller’s personal situation,” says Steve Nicastro, a managing editor at Clever Real Estate.
A recent study by Opendoor shows that the occurrences of delisting are on track to surpass those of recent years. The study shows that more than 22% of homes were removed from the market without selling in July 2024, compared to the average rate of 14% for the month of July in previous years. That means delistings were nearly 60% higher for this time of year than in previous years.
“Looking at homes on the MLS within Opendoor’s buy box, we found three commonalities for delisted homes: they are priced 4% higher than ones that go into contract, have 50% more nearby and similar active competition, and are in worse condition than their comps,” says Amit Arora, vice president of investments at Opendoor.
Causes for a Spike in Delistings
Delisting is a fancy term for taking your home off the market. Specifically, it refers to removing it from the MLS or multiple listing service.
“A delisting is when a home is removed from the market without selling. This can happen for several reasons; it could be a lack of interest from buyers, inflated expectations from sellers, or even a change of heart,” says Arora. “At the core, it’s often a mismatch between seller perceptions and the realities of the market.”
Sentimentality
The Opendoor study conducted on delistings this summer showed that many buyers experience a disconnect when selling because they love their homes.
“This misalignment is accentuated by another, sometimes-overlooked variable in real estate: sentimentality,” Arora says. “Many sellers are emotionally attached to their homes. It may seem obvious, but it’s much more of a consideration for sellers than some people realize. Our data confirms this. It can shape how they view property value, which we call an emotional return on investment (E-ROI), factoring sentimentality into selling decisions and financial calculus.”
Rather than adjust the price, Arora says many sellers choose to delist instead of accepting an offer that they believe undervalues their home.
High Expectations
Aside from sentimentality, Nicastro believes many homeowners expected to sell their homes at record high prices given recent trends.
“My best guess is that many home sellers initially overpriced their properties, mistakenly believing that the COVID-era market conditions were still in play,” he says. “But the market has softened in many areas nationwide due to higher mortgage rates. So, these sellers may be waiting for better market conditions or simply have decided that they no longer wish to sell.”
Regardless, Arora said Opendoor anticipates the delisting trend will continue.
Supply Exceeds Demand
“We’re coming off the heels of a strong seller’s market and many homeowners are stuck riding the wave when, in reality, the tide is starting to shift. Supply is exceeding demand. There is 30% more active inventory right now compared to the same time in 2023,” he says. “Elevated mortgage rates coupled with lower income expectations have resulted in lower demand and more buyers sitting on the sidelines. Given the rate of homes delisted typically spikes later in the year, coinciding with reduced market activity, we expect this trend will only worsen as we enter the fall and winter months.”
Keep in mind that the MLS will have different labels than “delisted,” says Christa Kenin, a Douglas Elliman real estate agent.
“Per the MLS, the technical process for delisting a property is either to place a property on ‘temporarily withheld’ or ‘withheld’ status,” she says. “Withheld status may occur because a seller has changed their mind about selling in the immediate future or for a long period of time. Temporarily withheld status means that a seller still desires to sell their home but temporarily wants to remove their property from the market. The seller is technically still under contract with their agent so other agents should steer clear.”
Pros of Delisting
Many sellers choose to delist their homes to reset and regroup. “[Delisting] is a very personal decision that allows the seller to take a step back and reassess their home sale, whether that means changing up their marketing strategy or making changes to their home that may increase its value and appeal,” Nicastro says.
Reenergized Interest
One of the ways delisting can help is to reenergize interest in your property once it’s relisted.
“The most valuable strategic advantage to delisting a property for sale is to restart the days on the market clock. Once a property has been delisted for 90 days, it can be relisted so that the days on the market clock resets, and it will present as new to the market,” says Jeremy Kamm, an agent with Coldwell Banker Warburg. “This helps get more eyes on the listing as listing searches generate results based on how recently listings are activated. The newer the listing, the closer to the top of the list it populates.”
Opportunity to Wait for Better Market Conditions
Delisting your property also gives you a chance to wait for better market conditions, which could lead to a better offer.
“Seasonality can contribute to strategic delisting. Say your home was listed for the market in the early spring, and summer is approaching when the market is traditionally softer,” Kamm says. “There may be value in delisting for 90 days and relisting after Labor Day to better position the home’s probability of a successful sale during a more active buying season.”
No Big Risks
Most agents agree there aren’t huge risks to delisting. “In general, I think that if your home has been listed for months and has received very little interest, there’s little risk in delisting it, re-evaluating your strategy, and deciding your next course of action,” Nicastro says.
You can always reduce your home’s price without delisting. If you want to avoid delisting, you can start by hedging your bets when it comes to the listing price.
“I advise clients to start with a fair asking price. When they do this, homes still sell, and there is no need to delist,” says Ann Cooper, a broker with RE/MAX of Boulder.
Cons of Delisting
If you’re wary about the downsides of delisting a property, you’re likely concerned about how potential buyers will perceive the move.
“One potential risk is that delisting and relisting your home multiple times could raise red flags to some potential buyers, who may question what is going on with your property and why it hasn’t sold yet,” Nicastro says. “These buyers may also be concerned that the seller will delist the property yet again, even if they come in with a strong offer.”
Puts the Sale on Hold
Of course, removing the property from the marketplace entirely instead of making repairs while it’s listed means you’re taking yourself out of the game completely, effectively putting the sale on hold.
“The downside is that you could miss out on potential offers, especially if your home is located in a seller’s market with limited inventory,” Nicastro says. “It also obviously means you’ll have to wait longer to close on a sale, so you’ll continue paying ongoing expenses related to owning the house.”
Makes Changes a Necessity Before Relisting
Whatever you do, avoid relisting your property without making changes.
“One of the biggest mistakes sellers can make is relisting without changing anything,” Arora says. “Perhaps the price needs to be adjusted, you need to stage it differently, or even make repairs to improve the condition to attract buyers. I always tell homeowners that the first two weeks on the market are critical. If you aren’t getting interest in that time frame, something about the listing isn’t matching buyers’ expectations.”
To ensure a better outcome when you relist, adjust your price and make upgrades.
“Best practices for relisting a property in order to ensure a successful sale are to make improvements and cosmetic changes – fresh paint job, staging, and cleaning,” says broker Sean Adu-Gyamfi of Coldwell Banker Warburg.
Should You Delist Your Property?
Choosing to delist your property might be a necessary step toward selling your home, or it could signal the end of your efforts to sell. If you’re choosing to delist for the latter reason, you shouldn’t stress too much about the implications it could have on future sales. After all, you’re choosing to remain in your home and not sell the property for now.
Consult with Your Agent
However, if you’re wondering whether to delist your property to make repairs, change agents, or devise a different sales strategy, you should consult closely with your real estate agent before making the decision.
“A realtor or broker can provide you with a comparative market analysis report (CMA) and many times, they are offered for free with no obligation to use the agent,” Nicastro says. “They can also point out specific home improvements and repairs you should make to give you the highest return on investment and increase your home’s photos and showing appeal. Making your home look much better in photos and videos ultimately leads to more showing requests, which leads to more favorable impressions of the property during showings, and then should lead to more offers.”
Consequences of Delisting
Overall, Nicastro doesn’t believe there are major consequences to delisting your property for strategic reasons.
“If you rushed into listing your property and it’s been sitting for months with no offers, went the FSBO route with no luck and want to pursue hiring a realtor, or are facing a slow seasonal period in your market, then delisting might be the smart move,” he says. “This is a clear sign that your strategy did not work and needs to be altered.”
If you’re selling your property without an agent, you can simply delist your property.
“Assuming you’re not under contract, you need to remove your listing from any online platforms, notify any potential buyers or agents, take down signs, and update records on the MLS,” Arora says. “If you’re selling with an agent, you are subject to the terms of your contract, so the first step is to contact your agent. They can then cancel the listing on the MLS, but be sure to discuss any potential financial penalties—whether that’s an agent’s early termination fee or a listing agreement cancellation clause.”
Relisting the Home
If you’re someone who listed their property too high and delisted it, Nicastro also suggests hiring an appraiser to ensure your pricing is in line with the home’s true value. Margaret Osborne, a realtor with Better Homes and Gardens Real Estate Central in West Virginia, suggests a pre-listing home inspection before putting it back on the market.
“A pre-listing home inspection is highly beneficial, as it helps identify and resolve potential issues before they become problems, instilling trust and removing any negative stigma,” she says.
