Why I, Scott Simmons, dislike the practice of Re-listing any property on the MLS®.
What is Re-listing?
If a property is not selling the listing agent can with permission of the owner re-list the property on the MLS®. The property is withdrawn (canceled) from the MLS® and then it is Listed back on the market as a "new listing" and shows as a new listing. This can be done on the same day. The history of the old listing is available to REALTOR®s but not the public.
Would you buy a car if you knew the mileage was rolled back? Could a car lot change the date on a model from 2006 to 2008? Of course not. They would be charged with fraud....
In the real estate business Re-Listing is a common practice. On Salt Spring in the fall of 2008 one agent just re listed 20+ properties. The agent told me the properties had "to many days on the market".
In my opinion this should not happen. It is deceptive in nature....Strong words yes they are but in this era of full disclosure how can this happen on a regular basis?
Re-listing can affect the statistics for:
- Days on the market.
- Percent of asking price paid.
- Canceled and withdrawn home.
- New listings.
This practice of re-listing can make the market activity look different. It could show a different trend then what is actually happening. It is deceptive in nature. It should not be allowed.
Some MLS® systems in different areas have put stop the practice of Re-listing. They do not let a agent Re-listed they make them wait for 30 days to re list the same property.
Buyers need to know the total days on the market...
It is one of the first things I check when I look at a property.
Here is an example of Re-listing
Jan 1 listed $800,000
March 1 Re-listed $700,000
May 1 Re-listed $600,000
May 15 sold $590,000
Days on the market 15
Percent of asking price 98.3%
Number of new listing 3
Number of withdrawn 2
Now here is the same house without Re-listing
Jan 1 listed $800,000
price adjustment $700,000
price adjustment $600,000
May 15 sold $590,000
Days on the market 136
Percent of asking price 73.75%
Number of new listing 1
Number of withdrawn 0
It is the same house but what a difference in the statistical results.
Without Re-listings you the buyer can get a more accurate statistics.
Not only are the statistics manipulated but what about the buyer who buys thinking it is a new listing. If they ask the listing agent is this a new listing he could say "sure is"... and he is telling the truth just not the whole truth...Unless the buyer knows to ask has this house been listed for sale before and canceled or withdrawn or expired....
This is out of Bill 41 REAL ESTATE SERVICES ACT Province of British Columbia 2004
(2) A licensee commits conduct unbecoming a licensee if the licensee engages in conduct that, in the judgment of a discipline committee,
(a) is contrary to the best interests of the public,
(b) undermines public confidence in the real estate industry, or
(c) brings the real estate industry into disrepute.
Re-listing seem to fit in this definition to me "is contrary to the best interests of the public" and I think it "undermines public confidence in the real estate industry" but I'm not on the Discipline committee.
If you have any questions about this or other Real Estate matters just drop me an e-mail.
This is why you need to hire Scott to represent you when you buy your new home.
Yes I do not like re-listing and will be happy the day this practice stops. It just seem wrong.
Cheers
Scott Simmons
These are just my personal thoughts about Re-listing as a independent contractor not those of One Percent Realty Vancouver Island. My intent is to stop this practice not to "bring the real estate industry into disrepute". Debate and point of views are healthy and are a catalyst to change. |