Thursday 05 Sep 2019
Everybody deserves a second chance, especially when it comes to their property. Vendors want the best sale price, and so do agents, but sometimes things just don't go to plan. It can be for a number of reasons - it could be the time of year, or maybe there weren't enough photos on the listing, it could just be that it's not a seller's market.
Whatever the factors are, being unable to sell a home in the first listing is a position that no one really wants to be in, but life is complicated and if things don't work out, it's a good idea to have a rethink of your selling strategy.
When you should consider relisting your home
So your home has been on the market for a few more weeks than you intended, but at what point should you call it quits? The short answer - it depends.
After a property is listed for sale, a count of how many days on the market (DOM) will begin. Real estate agents use this to determine the performance of markets in different areas, and buyers can use this figure to see how the sale of a home is performing.
"After a property is listed for sale, a count of how many days on the market (DOM) will begin."
Most areas will have a median or average DOM, and if a home isn't selling before this time, it's likely the market has changed or there's something that isn't quite right about the property or its associated marketing campaign.
Vendors and/or agents will generally only consider relisting homes if they don't sell within a preferred amount of time. This varies for every sale, and so do the reasons that could be preventing your home from finding a happy new owner.
So what factors could inhibit sales, promoting sellers to relist their home?
- One of the main reasons is simply that a property is overpriced. If the property was visited by a number of people and nobody made an offer, it's probably likely that you or your agent were asking too much for your home.
- Premium homes generally take longer to sell. If your home is one of the more luxurious offerings in the suburb, it's likely that it will take longer to sell.
- What kind of market is it?A buyer's marketgenerally means that more people are trying to sell houses than there are people buying. Obviously, you can't help long term trends, but over the course of a year, the market does tend to fluctuate.
- Think about the time of year!During December and January, people are preparing for festivities and holidays, so weekends are generally not an option. The middle of winter can also bring a natural slump to the market, which tends to pick up as spring arrives.
- Marketing is crucial. If your home has poor listing photos, it probably won't stand a chance in the crowd. These days, agents may need to use all the latest gadgets such as drones and VRto give your home a great first introduction to potential buyers.
- How many open homes or visits did you have for your home during its listing? If there are any factors that restricted buyer viewing time- such as having tenants occupying the home - you may have deterred potential buyers.
- Maybe they set unreasonable expectations, maybe they didn't devise a marketing plan comprehensive enough for your property, or maybe they simply didn't cater to your needs. Whatever the reason, maybe your current agent may not be the right person to represent your home.
Benefits of relisting your home for sale
Now you have a picture of what can go wrong, it's crucial to have a look at your own listing and think about how you are going to do it differently to maximise your chances the second time around. So when it comes down to it, what do you stand to gain from a relist?
- For a start, think of it as a turning page! You can come with a new strategy in the hope that it will be refreshed in the eyes of potential buyers.
- It's also a chance to change what wasn't working last time. It could be a matter of taking better photos, giving the garden a quick fix-up, evicting tenants or even hiring a new real estate agent.
- Relisting your home resets its days on the market count, which looks good to customers who haven't seen your property before. Bear in mind that it's also an easy way for agents to keep their personal average down if you choose to go with the same person.
- If it wasn't the right time to sell the first time around, relisting your home can give you some time to make some adjustments while you wait for different conditions in a market that is more suited to selling.
Risks of relisting your home for sale
Relisting your property might seem like a no-brainer, but before you dive straight in the process doesn't come without some risks. What are some of the most important challenges to consider?
- If potential customers or buyer agentsremember your home from the first listing, they may begin to wonder why you had so many problems. Suspicion on this end could see you losing potential customers. For this reason, it's good to have a solid reason for relisting, as you can probably expect customers and agents to ask what happened.
- Again, if customers or agents have been watching a property closely, they may come to the opinion that the seller will continue to face challengesdue to an inflated price and if they wait, the price could drop again.
- Properties that keep being relisted can start to pick up a reputation. This will depend on the size of the market, but you wouldn't want your home to earn a reputation as 'unsellable'. You will need to be able to address all the concerns of those watching and enquiring about your property.
- Finally,the relisting process can take a while, and every day that your home isn't on the market, you could be losing potential customers - especially if the market has a sudden change.
How to relist your home for sale
Relisting you home can be an effective way of boosting some interest back into your property, but again, it doesn't come without its fair share of issues. In the end, it's not likely to be a quick fix, but when done right you might just snare the sale that you've been waiting for. If you think relisting is for you, here's the best way to go about it.
1. Is it right for you?
Make sure relisting is the right move for you. Does the reward outweigh the risks in your case?
2. What went wrong?
Carefully consider the factors that may have gone wrong and speak to your agent about what can be done to improve your home's chances on a second listing. Or if you believe that your sale isn't working out as a result of your current agent, consider employing the help of a different agent to represent your home.
3. Set the stage!
A new listing means your home is going to need to look new. Consider having your property styled by a professional home stager. Or if you're on a budget, try to refresh your property with low-cost improvements. A fresh coat of paint and some landscaping can go a long way when it comes to making an impression. Your marketing strategy, including photos, social media presence and interior furnishings need to be reconsidered.
4. Make sure the price is right
Change your price to a realistic target that's appropriate for the current market if you want to be serious about selling. You don't want to undervalue or overvalue your property according to your emotions and risk having your home languish on the market again.
5. Work with the market
Once your home is listed, it's a waiting game. But be prepared to get savvy when you need to be! Don't be afraid to ask for advice and make minor adjustments to work with the market along the way. You'll need to be patient and do the best that you can when relisting your home, but sometimes all it can take is the change of season for a home to sell.