And How it Relates to Austin Buyers and Sellers
One of the most important duties of my profession I feel is educating people about Real Estate in Austin and how it evolves over time. This has been especially true since a hot topic in the national media is real estate practice and how many seems to think it applies here locally. After all it is for most a crash course because most sellers and buyers do not practice real estate daily and can not keep up with the ever changing trends in both market and practice. It only comes into play in most of their lives when it is in greatest need or ironically when it hits the media. National reports vary in many ways from local practices.
This blog entry came about from the Nightline story entitled Re-listing Homes: Buyer Beware. The Article can be found here.
Hopefully those reading will understand that Austin has not been in such dire conditions for sellers such as most of the rest of the country, however there are occasions where re-listing does occur here. The most common time is during expired/terminated listings where the buyer decides to change listing agents. The practice of re-listing the same house with the same agent to skew market time is not as prevalent due to the Realtor MLS database we have here. Although we have moans and groans with our database, it is very detailed and the Austin Board of Realtors have rules in place that prevents manipulation.
The only way that cumulative days on market can be reset is for the listing to be withdrawn and inactive for a period of 90 days. At that point the listing will receive a new running count of market time, however any agent can view the property history where record of any previous listing for the address can be found. If it is simply re-listed, information for active days resets but then cumulative days will continue to count and is shown at the bottom of every agent report.
Buyer Deception?
There is a reason that Texas strives to have clear agency laws and although not totally illegal, advises against dual agency where one agent represents both parties. There are buyer agents and listing agents for a good reason- to protect the interest of their respective clients. In my experience, it is almost scripted conversation for clients to ask about days on market for a home they are interested in. In most cases this is part of my information presentation about homes we discuss. Any good buyer agent should do the same in their clients best interest.
The only way this is deceptive here in Austin is if the agent with holds this information for malicious intent- all of which is unethical. The information is not hidden in our MLS database like the story suggests is in other parts of the country. So be sure to ask and if there are a high number of days and inquire to the possible reasons why. The number one reason for high days on market generally is improper pricing.
Seller Benefit?
I am not sure how it can be in our market. Ultimately the objective is to market the house properly from the start which includes proper pricing, aggressive marketing, and strong agent interaction with all interested prospects. If the market will not react to the initial listing, make the changes received from feedback, adjust pricing, and detail those changes in marketing materials and internally for agents to see those changes in the database benefit you most. One or two of those details could sway a on the fence buyer to take a second look.
There are many differences on what happens here versus in other parts on the country. We do have the days on market data in our MLS database. We can see history of any changes made to price or change of listing agent. We have all the detailed information necessary to make the best informed decision for clients.
For more information or questions feel free to comment, e mail me, or call me at 512-744-4553 for immediate service.
Christopher
RE/MAX Capital City
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