The Effect of Relisting on House Selling Price

Posted: 22 Jan 2016

See all articles by Karen M Gibler

Karen M Gibler

Georgia State University - Department of Real Estate

Velma Zahirovic-Herbert

University of Georgia

Patrick S Smith

Independent

Date Written: January 21, 2016

Abstract

When house sellers reach the end of a listing contract without a sale they are faced with several decisions. A seller who wants to continue to market the property can leave it on the market, relist the property immediately, or take it off the market for a period of time before relisting it. Research has shown that properties with longer time-on-market may carry a stigma and sell for less. In an attempt to mitigate the negative perception of a house that other buyers appear to have passed by, a seller can have the agent relist the property so it appears as a new listing. If a seller decides to relist the property, the owner also has to decide how long to wait before relisting. We use a hedonic approach to investigate the choices sellers have when deciding whether to relist their property and the impact those decisions have on the property's selling price. We find that relisting a property results in a higher selling price and that to maximize price, the seller should relist the property with the same agent within 30 days.

Keywords: House price; Listing contract; Relisting; Hedonic model; Market efficiency

Suggested Citation

Gibler, Karen M and Zahirovic-Herbert, Velma and Smith, Patrick S, The Effect of Relisting on House Selling Price (January 21, 2016). Journal of Real Estate Finance and Economics, Vol. 52, No. 2, 2016. Available at SSRN: https://ssrn.com/abstract=2719677

Karen M Gibler

Georgia State University - Department of Real Estate ( email )

P.O. Box 4020
Atlanta, GA 30303-4020
United States

Velma Zahirovic-Herbert

University of Georgia ( email )

Athens, GA 30602-6254
United States

Patrick S Smith (Contact Author)

Independent ( email )

No Address Available

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