Relisted properties: Important points to consider

Every year, more than 300,000 property transactions collapse, and disappointed house owners have to start selling their property all over again. 

There’s sometimes an assumption that a home that didn’t sell must have something wrong with it. House hunters fear that other potential buyers have spotted hidden problems so steer well clear. 

However, this assumption is often baseless. Property transactions fail to reach completion all the time, and it’s often not because the home in question has anything wrong with it. In fact, nearly two in five sales fall through simply because the buyer changes their mind.

Relisted properties don’t need to be bad news at all. For buyers it’s a chance to get a great price with a ready seller. While for sellers, there’s plenty of ways to keep their property in a good light – and even turn the situation into an opportunity.

Why is relisting perceived as bad

When relisting their home on sites like RightMove or Zoopla, sellers often take a hit. For instance, Rightmove has rules that prevent a property from being relisted as new within 14 weeks of its original posting. Houses relisted within this time keep their original listing date and don’t go out in property alerts.

These restrictions prevent “portal juggling” — a practice used by some real estate agents to make houses on the market for a long time look like new buying opportunities. Homes that have been on the market for a while carry a stigma that can put off potential buyers. This can be a major issue.

As this stigma affects relisted properties too, the eventual sale is often tens of thousands less than the original offer. The advice given to estate agents is to reduce the price by at least 2%, so the property is sent out again in Rightmove’s instant alert emails that notify buyers of new prices. That can feel unfair to sellers, particularly if prices in their property’s area have actually increased since it was originally listed.

This quirk of the housing market is frustrating and costly for people selling a house, but it can be an opportunity to secure a better deal for house hunters. Here we unpack what sellers and buyers can do to make the most of it.

How a seller can make a new opportunity out of relisting a property

When relisting a property, you’re not starting from square one. For a start you are more prepared, probably closer to buying if you are moving to a new place, you’ve done some of the legal work, collected some of the required documentation, and so on. 

Because you’re prepared, you can offer a quick, hassle-free sale when the right buyer does come along. This makes your house more appealing as you probably don’t want to wait any longer at this stage, and there are buyers out there in a very similar frame of mind. 

You can also be in a better position to evaluate buyers now, so you can find those who will follow through with the sale. If the agent didn’t do a great job managing the buyer relationship, you might want to consider relisting with an alternative provider. 

When it comes to stopping the collapse of a sale, prevention is better than a cure. To help you here, we have published articles on how to spot uncommitted buyers and strategies to stop gazundering and gazumping.

A fresh set of photos and a new description could help propel your house sale forwards. With this in mind, run a critical eye over your home from the perspective of the type of buyers you expect will look at your property. Will they want a highly polished house they can immediately relax in? Or will they want it for that great school down the road? How you choose to set the scene can make all the difference.

This might mean a quick lick of paint and a spot of gardening is in order. Think of how you can best showcase your home for people coming to view the property: make sure each room is well-lit, free of clutter and looking its best.

Take a deep breath and reflect on your asking price. As noted above, agents are advised that a drop of at least 2% is in order. Do your own homework online and see how your property compares in the market and what properties have historically sold for – Zoopla can help you out here.

You want your relisted home to stand out and to appear as fresh as possible. Virtual house tours are popular online and can catch a buyer’s attention. People are savvy; if your original photos were taken in the height of summer and it’s now the depths of winter, they’ll spot that. So ensure that you or your agent takes plenty of new, attractive pictures. 

If buyers view your home as one that has lingered forlornly on the market, your chances of securing reasonable offers are much reduced. So a new cover photo is all important, as this will help make it stand out again to people browsing the online portals and give a new introduction to your house

Relisted homes: a buyer’s opportunity

While those forced to relist their property because a sale fell through are in an unenviable position, a motivated buyer who puts in a reasonable offer may well secure a bargain.

When negotiating over a relisted property, keep in mind that the vendor is already frustrated and wants a good buyer. As noted, the stigma associated with relisting means that the property is probably already priced competitively, and this price reduction gives you an opportunity to save money.

You can also expect a quicker than usual time frame. The sellers are often far along in buying their new property and so want to move quickly, especially if they're part of a property chain. If you can demonstrate a readiness to go, they may take an offer considerably lower than their already deflated asking price.

When putting in an offer on a relisted property, you’re negotiating with a seller who might now have little faith in buyers. If you can show that you’ll be a reliable buyer, it will stand in your favour and can lead to a relatively stress-free purchase.