Property Delisting – Time for a Closer Look?
Property listing and delisting are two faces of the same real estate coin, as both relate to the MLS database. To be fair, delisting a property is not a regular occurrence and you can be forgiven for not knowing much about it.
However, if you are a property owner and are looking at selling it, it will be helpful to know what your options are. Let us take it one step at a time.
Table of Content
The All-important MLS
Going a little deeper into the nomenclature, MLS (Multiple Listing Service) listings are a key component of Canadian real estate. A comprehensive and reliable database of real estate properties in the country that are available for sale, lease, or rent, MLS listings are managed by local real estate boards and associations.
The most well-known in Canada are the Toronto Regional Real Estate Board (TRREB), the British Columbia Real Estate Association (BCREA) and the Canadian Real Estate Association (CREA).
Information Repository
The MLS is thus an informative marketing system for real estate – it is in the best interests of the industry that this system is kept as detailed and up-to-date as possible. Market trends, price history, and neighbourhood statistics – the Canadian MLS is the source of all these and more.
The database includes detailed descriptions of properties, including location, size, price, features, and amenities. Details are regularly updated by licensed professionals, ensuring greater accuracy and reliability. For a fee, real estate professionals can access a range of properties across different regions, and there are various search options available for users.
Additionally, individual investors can access the system, albeit through platforms and apps.
Listing on MLS
When you wish to sell or rent your property, you “list” it on the MLS.
This means that a detailed description of your property, along with images, selling price, features, etc., will be created on the database. This is usually done by a licensed real estate agent. And that’s it, your property listing is live!
Generally speaking, a property listing stays live until it is sold or delisted.
Delisting Your Property
Delisting is the removal of a property from the active con the market.
There are several reasons why this occurs, and this article will discuss them. However, remember that choosing to delist your home has its implications. Understand the why, how, and what-ifs of delisting your Canadian home, so that you are prepared if it ever becomes a possibility.
Having said that, delisting has become more common in recent times, as the Canadian real estate market becomes more challenging for sellers.
Why Consider Delisting
Like we mentioned, there are multiple reasons why a homeowner might choose to delist their property. The most common scenarios are:
Unsatisfactory Bid Offers
If you have not received an offer that meets your expectations, delisting may be an option.
Delisting allows you time to assess and rework your pricing strategy. You can relist the property when the market conditions are more favourable.
Shift in Market Conditions
The real estate market is in flux, and some regions fluctuate more than others.
If your home is in a location whose local market conditions have shifted, it may be an uphill challenge to sell your property at the listed price. Again, delisting can give you the chance to wait out the market turmoils and relist later.
Personal Circumstances
Major life events, such as job changes, family emergencies, or financial downturns, can sometimes push you into delisting. Here, putting the sale of your property on a hiatus gives you the breathing space to focus on your personal matters without added pressure.
Renovations or Improvements
Sometimes, you may decide to make improvements to your property – whether to increase the value or to address an issue. Here again, delisting allows you to complete the work without constraints, and then relist the property when it’s in optimal condition.
The Delisting Process
Like other processes, each province or territory has a system in place for delisting a property. However, some steps are universal across the country.
Talk to Your Real Estate Agent
You must communicate openly and honestly with your agent – explain why you wish to delist your home. As a professional expert, your agent can guide you through the process, while giving you advice on how to face any potential consequences.
Another reason that you need to keep your agent up-to-date with your decision is the listing agreement that you signed with your agent. Carefully review the agreement, especially the terms and conditions of the listing.
This agreement will include any fees or penalties that you may have to bear when delisting the property.
Formal Withdrawal
Once you’ve decided to delist, your property listing needs to be formally withdrawn from the MLS and any other real estate platforms where it was displayed.
Your agent should assist you with this process to ensure that there are no mistakes.
Inform Prospective Buyers
To avoid potential misunderstandings or legal issues, communicate your decision to any active buyers or offers on the table. There should be no ambiguity about the change.
Potential Consequences of Delisting
Okay, now that you know the why and how of delisting, let’s look at the drawbacks of doing so.
Often, some buyers may perceive a delisted property as problematic or undesirable. The common feeling of “no smoke without fire” can create a negative perception, making it more challenging to relist the property and attract new buyers.
Delisting does not mean only financial costs, it can also come with opportunity costs. For instance, a hitch in your shifting or your plans to accept a new job elsewhere. Carefully consider these potential impacts before you decide to delist.
Last but not least, there may be financial implications or penalties associated with delisting your property. Be sure to review the agreement thoroughly and understand your obligations.
How Do You Successfully Relist?
Chances are pretty high that you will relist your property once you are through with your reasons for delisting. Here, you have to be extra careful to ensure you maximize your chances of a successful sale.
Some ideas:
- Take your time. Carefully reevaluate your property’s value and tweak the listing price accordingly. This can help attract a new pool of potential buyers.
- Freshen up the property listing. Ensure that your property is presented in the best possible light, with high-quality photographs, detailed descriptions, and a comprehensive virtual tour.
- Keep a close watch on the market conditions, including interest rates, inventory levels, or buyer demand. Relist your property when conditions are the most in your favour, even if this means waiting for a specific season.
- Partner with an experienced real estate agent and take advantage of their advice and market insights.
To List, Delist or Relist?
Listing or Delisting, you will jump through hoops no matter what you decide.
However, it is your unique circumstances that will pave the way for making a decision that is best for you. All that we can say is that when you are armed with knowledge, you are automatically more confident about your choices.
Whether you choose to sell your house or not, contact us and we shall walk you through the entire process. Trust the Save Max team to have your best interests at heart, every time.
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