Suggestions for relisting a home after a sale falls through
It is no doubt very discouraging when all of the preparation associated with putting a house on the market ends in despair when the sale falls through. But, do not fret too much. Take some time to reflect on the situation and make an informed decision: chart a new course, lower the price or take the property off the market temporarily.
Perhaps the reason the deal fell through was out of your control. Did the buyer run into financing difficulties, have a legitimate family emergency, or have a change or heart? Or to your chagrin, the deal fell through because problems were found during the lender’s required inspection, the appraisal came in low, or some other extenuating circumstance.
Hopefully, despite your preferred deal falling through, you had another legitimate offer waiting as a contingency. If not, consider the following suggestions.
Should you continue the relationship with your chosen agent?
Though your agent is highly competent – or you would not have chosen them to start with – deals fall through due to unforeseen issues. Be very careful to place blame where it is truly due. If you honestly feel that your agent is directly or indirectly to blame for the deal falling through then end the contract and start anew with another competent agent. If you truly feel this is the appropriate move, remember you must give the broker notice in writing, including compelling reasons for the mandate to end the current relationship. However, if you and your agent saw the deal fall through due to no fault of anyone on your side of the transaction, then retain your agent and plot a new course of action.
Let an appropriate amount of time pass.
Regardless of the whether or not you decide it is your best interest to replace your agent, perhaps pulling the property of the market for a short (or longer) period of time is the proper response to having a deal fall through. At the very least, carefully evaluate the price to see if it is still appropriate given the current market environment, realizing that comparable home prices may fluctuate wildly based on current demand and availability. Also, conduct an objective analysis of the entire listing, showing and offer timeframe and gauge whether some things could be done differently to optimize the probability of successfully closing the sale. Do not dwell on the negative, but do suggest or ultimately enact modifications of the earlier process. Note: at this juncture it is very important to include your agent (retained or new) intimately in the conversation.
Make needed repairs.
Though perhaps obvious, if the home inspection or buyer pullout revealed any major reservations about the property, repair what is needed as soon as possible. Being frugal is one thing, but being cheap is another altogether. If the property earned a stigma due to a deal falling through over structural defects or cosmetic reality, then by all means mitigate the issue and make a special note to have your agent point out the corrected situation as newly renovated and/or repaired. If you are truly unwilling to fix the documented issue, then make sure to have your agent be very upfront about the problem to potential buyers the next time the property is placed on the active market – and, importantly, make a legitimate concession in the property’s price to account for the needed repair.