New Listing! (Sort Of) by Peter Coy of BusinessWeek, (January 22, 2007 Issue, News & Insights)

Agents are pulling houses off the market and then presenting them as new offerings.

"With open houses as quiet as death lately in many parts of the country, sellers' agents are trying everything they can to make a sale, including sometimes tweaking the computerized data that potential buyers depend on. Fresh listings attract attention and can fetch higher prices because buyers are less likely to make lowball offers."

KNOWING WHAT TO LOOK FOR
"When many homes in an area are re-listed as new, it skews the "average days on market" statistic, making the market look healthier than it really is. For sellers, refreshing a listing can also disguise the fact that the previous listing was at a higher price. Buyers often regard a price cut as a sign of weakness."

"Whether it's within the local rules or not, the practice of relisting houses to give them a new debut is a symptom of an imbalance in market knowledge. Buyers can sometimes spot manipulation of the databases, but you have to know what to look for, and many buyers' agents don't."

"Is this wrong? Many MLS organizations think so."

Labels: Bay Area Real Estate, BusinessWeek, Housing Watch, Multiple Listing Service, Real Estate Cycles