The Practice of taking a home off the market and re-listing it to show 0 days on the market again is becoming more and more common. Debates are heating up on the subject from coast to coast.
Listing Agents argue they are doing their client a service. They also argue that Buyers can't handle knowing the truth about how long a home has been listed because a home that has been on the market for a long time has an assumed problem or diminished value.
The Public cries "foul" and says they are being deceived.
Does the end justify the means?
Would re-listing fall under the category of "deceptive" advertising, or is it simply showing the home in the best possible light?
As an Exclusive Buyer's Agent, I will look at the listing history of a property when evaluating it for clients. Many times when we see new listings that appear to be familiar, they are, in fact, re-listed homes. Knowing that a home has been on the market for a year and a half with no significant price changes tells us a little bit about the Seller's motivation, and how other Buyers have perceived the value of the home compared to the asking price, without even setting foot in the door.
Ethical and Moral DilemmaIf an unrepresented potential buyer asks the listing agent, "How many days has this home been on the market?" Is it honest for a listing agent to say, "It just listed yesterday"?
What if they are working with an agent who says they will be their "Buyer's Agent", but that agent thinks the home is a good fit for the Buyer and doesn't want to "cloud the waters" by telling them that the home has actually been listed for a year and a half already with no price changes?
Many home buyers are unaware that they can hire an Exclusive Buyer's Agent to protect them and provide them with this type of information when they buy a home.
If a Buyer wants to know the listing history of a property, we look up the "real" information and inform them. I believe that how long a Seller has been trying to sell their home and at what price is a material fact of benefit to my buyer-client.
That's the real reason other agent's don't want you to know.
You want the truth? You CAN handle the truth!
If you are thinking about buying a home in the Salt Lake area, make sure you get an agent on YOUR side.
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Benjamin, I really appreciate the MLS's that are now showing DOM and CDOM. I look up each property I use as a comparable for all listings, current, cancelled or closed. Price changes are helpful too for what I do.
Benjamin,
Personally, I don't think the days on market should have an impact at all. It should come down to if the home is priced properly and its' condition is similar to other homes in the area. If it is, then it may be slow to sell just because the buyers liked another feature in a similar home better. This could be for various reasons, just as a seller could remove their home from the market for various reasons. Let's say we take the home off the market for 30 days during the holidays, because the sellers are having family in from out of state, or any of the reasons you mentioned above. Should this have a negative impact on the property? On the other hand, if the home is not priced similarly or in the same conditions as others in the area, does the days on market really impact the home or is it the price or condition?
Whether the home is on the market 1 day or 500 days, if a buyer likes it they will buy it. I think too often agents and buyers negate a home before they even look at it. We should look beyond just the number of days and evaluate the price and condition. The only place I see a real need for days on market is for evaluating an average to convey to sellers how long they can anticipate it will take their home to sell and for us to decide the time-frames for the listing. Just my opinion and I'm sure there will be many who agree and disagree.
Hey Ben. I enjoyed reading your post. So true. Some do play this game. Here, we just have to check the history to see what has happened. This practice really does not fool anyone, if the client has a Realtor that can explain everything properly.
Thanks
Don
On the listing side-I think it's smart to relist and show as "new". It creates curiousity for the buyer and in our system shows up as a brand new home to look at if it fits their buyer profile.
Most buyer's agents, I believe, check the history and know this trick. Working on the buyer's side, it's important to get that buyer into the home but obviously let them know that it was already listed for _____ days. As a buyer's agent, you represent the buyer and so it's important to give them all the information to make a wise decision.
Benjamin,
Thank you for asking.
Well, first of all, appraisers must report DOM when doing an appraisal of a purchase. I include DOM for the subject and the comps. If I am doing a refi I provide DOM for the comps.
What is indicated by DOM? For me, it is an idicatator of many things...
1. If the DOM is lengthy and it is the only one that has been on the market for that length of time then I take it as an indicator that something with this particular sale needs to be investigated. Motivation of the seller for one thing, condition of the property might be another.
2. Lengthy DOM of one property might indicate market resistance to the price, especially if it is a property that has longer DOM than others.
3. Shorter DOM may indicate a sale priced for quick sale. In other times it might indicate an escalating market, depending on how it relates to other comps at the time.
4. Long DOM's that are typical of the area may indicate something going on in the immediate area with regards to employment, loss of a major employer or other influence.
Well, I could go on but it all boils down to indicators and of course none of this is the entire picture but rather just a piece of the puzzle that gives us the economic picture.