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If Your Home Doesn't Sell, Try To Confuse The Buyer!

Reblogger
Real Estate Broker/Owner with Arizona Resource Realty BR518926000

Original content by Harold "Hal" Benz

New and Improved ListingI saw a new home for sale in Westfield recently...or at least that's what the seller wanted me to think. But when I looked closely at the address and pictures, I knew it was a home that's been on the market for months.  The only thing "new" about it is that they replaced the exterior photo from one with snow on the roof, to one taken on a glorious spring day. Oh yeah...and they dropped the price by a whopping 1.2%!

Did they think we wouldn't notice?

It's a process that real estate brokers call "churning a listing". A seller takes their home off the market for a few days (or weeks), and then re-introduces it again.  It's a game that's as old as the hills. But it's a pretty bad idea (just my humble opinion, I guess). Here's why...

Churning A Listing Resets Days On Market...But At What Cost?

The reason a seller and/or agent churns a listing is because the MLS keeps a record of days on market. When you "churn it", the DOM count goes to zero and starts over again. So a house that has been sitting on the market for 5 months looks like it's brand new. Or does it? 

As a broker, I'm constantly asked "how long has that one been on?" The assumption (and often an incorrect one) is that the higher the DOM, the more "motivated" the seller would be to hear a lower offer. The seller doesn't want that, so they pull it off the MLS...wait a bit...and put it back on again.

But the serious buyers are not easily fooled. And the full-time agents are NEVER fooled! So when the house comes back on in the "new listing" column, everyone who is serious about real estate sees two things: 1) the same house, and 2) that this seller and their agent are open to manipulating the truth

And then I'm asked this question: "If they're trying to hide the days on market, what else will they try to hide?"  Is this REALLY the message you want to be sending out to the market?! It's kind of like resetting the odometer at the used car lot. Nobody's really fooled, and it makes everyone look sleazy.

Now I have colleagues in the business who disagree with me on this point. They tell me that they're just doing what they're told...just honoring their fiduciary responsibility to their clients. BUNK! Article 1 of the NAR Code of Ethics is pretty clear. It says that the obligation to the client is primary, but it doesn't relieve the Realtor from treating all parties honestly. Exactly where does resetting the odometer fall on the honesty spectrum?

So here's what I propose to be a better plan: 1) Price your home properly the (read the rest of "Confuse The Buyer" here...)

Comments (2)

Chuck Gollay
Exit Realty Paramount - Traverse City, MI

Our MLS has worked to outlaw, or at least minimize, this churning.  If the property comes back on the market within 30 days, it has to use the old MLS number and the DOM doesn't reset.  That being said, I don't think there is anything wrong with updating or upgrading the listing photos.  If it's spring then the pictures should be current, in my opinion.  I don't see that as fooling anyone or hiding anything, as the DOM is clearly visible to any agent who looks.  We all want our listings to look as sharp as possible, and updating photos is a way to keep the listing fresh. 

May 21, 2010 07:16 AM
Mykel Martin
(909) 476-9600 ~ WeLoveSellingRealEstate.com - Rancho Cucamonga, CA
Realty Masters & Associates

VERY good points Tamra - and I also agree with Chuck that updating the photos in and of itself is actually a good practice to show that you're on top of things. That combined with the resetting of the time on the MLS, however, is where it becomes dishonest and sneaky.

May 21, 2010 11:04 AM