Delisting A Home: Why It Occurs And How To Avoid It

Forbes

08-05-2025

Learn how to avoid delisting your home.
Although it is still a seller's market, with demand for homes steadily outpacing supply, another trend is emerging. Sellers are delisting their homes. 'Delisting a property means it is removed from the market,' says Brett Ringelheim, licensed real estate salesperson at Compass in New York. He notes that there are numerous reasons why a delisting may occur.
And according to Amit Arora, chief investment officer at Opendoor, nearly 73,000 homes were removed from the market in December, 2024. Admittedly, some sellers may have delisted their homes for the busy holiday season. However, Arora says delisting is on the rise. And he points to Opendoor data showing a record-breaking 22% of homes delisted in July 2024 — nearly 60% higher than typical rates for that time of year.
These are some of the reasons a home may be delisted, and advice to help avoid delisting.
The reasons for taking a property off the market are plentiful. Vickey Barron, licensed associate real estate broker at Compass in New York, provides an extensive list of possible reasons.
Sometimes, Barron says the seller just changed their mind, and decided that they no longer want to sell their home.Or it may be for a personal reason that they don't wish to share.
'In other instances, a family member or close friend wishes to buy the property off the market,' Barron explains. Or in the event of a divorce, she says one spouse may decide to keep the house.
The real estate market may also affect the decision to delist. 'The market may not be in their favor, and they cannot get the price they need to make a move,' Barron says.
In fact, some homeowners may decide to delist the property and then rent it out until the market picks up. 'This strategy makes sense if they do not need the money out of the home and believe the market will improve,' Barron says.
Winter is my favorite season (no oppressive heat or flying insects), but it's not one of the best selling seasons for everyone. 'Perhaps the home looks particularly gloomy in the winter months, and sellers prefer to take a hiatus and wait until the spring to re-list,' Barron says.
If a home isn't doing as well as expected on the market, it may need some work – and Barron says this could be significant or cosmetic. 'It is better to do the work first, and not have the days on the market accumulate,' Barron advises.
There are also other possible reasons why a home may be delisted. For example, Barron says the listing may have expired, and the owner is delisting and then relisting wth a new agent/firm.
'The seller may have a good offer but can not find a place to move to, so they reject the deal and stay put,' she notes.
Barron also provides a humorous reason. 'Their dog psychic tells them it is a no-go – and don't laugh, this really happened,' Barron says. 'Their astrologer, accountant, or friend advised them not to move, or at least not at this time.'
In addition, it's possible that they were never genuine sellers and were testing the market out of curiosity. Often, Barron says the house was significantly overpriced, and the sellers were hoping to get lucky.
However, it may not always be the case that the home was overpriced. 'Factor in high interest rates and home prices, and buyers increasingly can't meet sellers where they want to transact due to affordability,' Arora explains.
It's not always possible to avoid the factors that may cause a property to be delisted. However, Ringelheim says real estate agents can reduce this risk by maintaining clear, open communication with sellers. 'Discuss potential buyer concerns early, price the property competitively, and address issues upfront,' he advises.
Arora agrees, and says it's essential to price the home based on current market data and comparable sales. 'Being open to adjusting expectations and staying informed about local market trends can help keep your home attractive to buyers,' he says.
In fact, when selling your home, Arora recommends that you consider the three C's: content, competition, and condition.
Context: 'Homes sell most quickly from April through June, so sellers should be ready to go by the spring,' Arora says. He recommends determining if it's a buyer's or seller's market in your desired area, since this will help to determine your pricing strategy.
Competition: 'Be aware of similar homes nearby that buyers might be considering, and how many of them there are,' Arora advises. The stronger the competition, the more you'll need to stand out, and he says this can be achieved with either price or condition.
Condition: 'Buyers need to fall in love with the home, so it should be clean, highlight the key features that make it special, and be as close to a blank canvas as possible so buyers can easily envision themselves there,' Arora says. He notes that condition can also include upgrades and renovation trends.