Can You Take Your House Off the Market?

Homeowners occasionally find themselves in situations where selling their property is no longer the desired path. Life circumstances can change unexpectedly, leading to a reconsideration of a home’s market status. Understanding the implications of removing a house from the market requires reviewing the contractual agreements in place and the various ways a listing can be concluded.

Your Listing Agreement Terms

A listing agreement establishes a formal, legally binding contract between a homeowner and a real estate broker. This agreement grants the broker authority to act as the owner’s agent in the property’s sale. It outlines the broker’s responsibilities, the duration of the agreement, and the terms for compensation.

The “Exclusive Right to Sell” agreement is the most common listing contract. Under this arrangement, the homeowner grants the agent the exclusive right to market and sell the property for a specified period. The broker is entitled to a commission if the property sells during this time, regardless of who secures the buyer. Less common agreements like “Exclusive Agency” or “Open Listings” have different commission terms.

Listing agreements also contain clauses detailing their duration and conditions for termination. These contracts typically last for a defined period, often ranging from 60 to 180 days. A “protection clause,” also known as a “broker protection period,” is frequently included. This clause specifies a timeframe, commonly 30 to 180 days after the agreement expires or is terminated, during which the broker may still earn a commission if a buyer they introduced to the property during the listing period ultimately purchases it.

Ways to Take Your House Off the Market

Removing a house from the market involves distinct statuses, each with different implications for the homeowner and the listing agreement. These statuses determine whether the contract remains active or is formally concluded.

A “withdrawn” status means the property is temporarily removed from the multiple listing service (MLS) but the listing agreement with the real estate agent remains in effect. This option is often used when a homeowner needs to pause showings for personal reasons, undertake minor repairs, or wait for market conditions to shift. While withdrawn, the house remains under contract with the agent, and other agents are generally prohibited from soliciting the homeowner. The original term of the listing agreement continues to run during this period.

A “cancelled” status indicates that the listing agreement has been formally terminated before its original expiration date. This typically requires a mutual agreement between the homeowner and the real estate agent or brokerage. Cancelling the agreement often involves signing specific paperwork, such as a “Listing Cancellation Agreement,” which formally terminates the contract. This is the most direct way to permanently remove a house from the market before the contract naturally concludes, though it may come with conditions.

An “expired” listing occurs when the listing agreement simply reaches its natural end date without the property being sold. In this scenario, no specific action is required from the homeowner to remove the house from the market. Once expired, the agent no longer has the contractual right to market or sell the property under that specific agreement. At this point, other real estate agents are generally free to contact the homeowner to offer their services.

Potential Costs of Removal

Taking a house off the market prematurely can result in financial consequences for the homeowner, depending on the listing agreement terms. These costs compensate the real estate agent for their efforts and resources expended while the property was listed.

Some listing agreements include clauses for “early termination fees” if the homeowner cancels the contract before its specified end date without cause. This fee compensates the agent for the time and resources invested. The amount can vary, potentially ranging from a flat amount to a percentage of the expected commission, and should be clearly defined within the agreement. Homeowners may negotiate this fee with the brokerage, especially if circumstances warrant the early removal.

Additionally, homeowners might be responsible for reimbursing the agent for out-of-pocket marketing expenses incurred during the listing period. These expenses can include costs for professional photography, virtual staging, advertising fees, and other promotional materials. The listing agreement typically specifies which expenses are reimbursable and under what conditions. This reimbursement ensures the agent does not incur a financial loss for services already provided.

A commission might still be due even if the house is taken off the market, particularly due to a “broker protection period” clause. If a buyer introduced to the property by the agent during the active listing period subsequently purchases the home within the specified protection timeframe, the agreed-upon commission may still be owed to the original agent. This clause protects the agent’s efforts and prevents homeowners from bypassing commission by waiting for the listing to expire before selling to an interested party.