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How Ethical Are “Junk” Listings?

Now that just about every real estate broker and agent has a website, there are many “virtual” listings out there that are no longer on the market but have not been removed or updated as sold, leased, withdrawn, expired, etc. Many of these listings I imagine are left out there as lead-generators. “Oh, I’m sorry, that one is no longer available but we’ve got plenty of others to sell you.”

These “junk listings” can provide many leads for agents but, it’s a bait and switch tactic that does a disservice to the consumer as well as other agents. I get calls on these from clients occasionally and have to do the research on them. Our MLS has strict rules about updating the status on a property when that status changes. “All listings with an executed contract must be changed to “pending” status within two business days, with the exception of Right of First Refusal.” This essentially removes the property from the market and makes it no longer visible on public search sites like Realtor.com.

But what about all of the other places on the web where we go to place listings? Should each of those listings be updated as well? The National Association of Realtors has a code of ethics and states specifically that “REALTORS® shall be careful at all times to present a true picture in their advertising and representations to the public.” As Realtors, we know that the MLS should provide the correct information, but you cannot rely on the MLS to even be correct.

So is it ethical to leave these “listings” that are no longer available for purchase, out there on the web? Not in my opinion. Have I been guilty of it? Yes. It is difficult and time consuming to go to many websites to change the status or remove the listing. And many of us are guilty of this infraction. The inventory of “junk listings” will continue to grow.

But as a few websites begin to pull away from the rest of the pack and become the “go-to” sites for consumer home searches, this problem will hopefully go away. The popular home search sites are very fragmented at this time and we really have to go to many sites to assure that our clients’ listings are getting adequate and maximum exposure. The day when 1 or 2 sites have 99% of the home search business is probably not too far off.

Importance of updating..

Where to Advertise…

End of the MLS….?

For Sale or Not For Sale?

Posted by Lenny Gurvich on 12/11/2006 10:28 AM

Comments (5)

advertising, mls

5 Comments on How Ethical Are “Junk” Listings?

DEC

2006

Advertising expired or sold listings as "for sale" is not only unethical but it probably meets the definition of "fraudulent misrepresentation" of most real estate legislation. It certainly does in my area. I participate in the Point2 network which offers "handshake" and listing sharing amongst agents. I often get calls on homes which have long ago sold or expired. I not only have to do the research to find that out but I also feel compelled to call the listing agent and ask them to get their database up to date. You're right! It's a pain and something needs to be done about it. Seems to me I recall some agents in Ohio being charged with an offense several years ago but I've not heard of other actions since.

Junk listings is not a new thing. Some agents have done it for years in magazines and flyers. They want to look like a power agent by advertising many listings at one time. It was misrepresentation then and it is misrepresentation now. It doesn't matter what media you use. you should only advertise what you have the legal and ethical right to advertise.

Keith,

Yes, this is nothing new and with print there is not much we can do. The home mags have long shelf lives, much longer than most listings. But we all have the ability to remove our listings or change the status of them on the web in close to real time. And as Norm states, we can even get leads off of other agents' junk listings! Hopefully the MLS will remain as the place to get the real answer on a property's true availability.

Advertising is just a means to get new buyers or appeal to sellers. "Oh that one is sold, but there are three more of the same model in that neighborhood"

Lenny is absolutely correct. There is nothing we can do about print but we can easily remove from the web just as easily as we put it up there.

DEC

2006

In Arizona there is another "status" - Active With Contingency - that flags folks looking in the MLS that the property is under contract, yet keeps it visible in realtor.com - just in case!

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