– Buyers are trying to delete your listing from the Multiple Listing Service. It’s true!
– Okay, so I know it sounds weird that a buyer would try to delete your listing from the Multiple Listing Service, but yeah, it’s actually a true thing. It’s something that happens all the time, everyday, all day long. And to understand why that is and what we mean by this, is we have to look back about 15 years ago.
So, about 15 years ago, and prior to that, before the internet became so prevalent in the real estate space, what would happen is a buyer would want to buy a house and what would they do? They would go and see a real estate agent.
They would give them the criteria. The real estate agent would go and they would pull up a list of say maybe 30 or 40 properties that matched that criteria. And because that agent knew the inventory, and knew what was in that area, because most agents specialized in an area, which isn’t the case so much anymore, then they would narrow it down to maybe five, maybe 10 properties that they felt, this really matches what the client is looking for. And then they would take them out to go look at those five to 10 properties.
And, inevitably, the buyer would buy one of those five to 10 properties. Because well, it’s most likely what they in fact were looking for. And that’s kind of flip flopped now these days because all of the listings are now on all these big real estate portals, zillow.com, Redfin, Trulia, realtor.com.
Because they’re so prevalent out there, what happens is, the buyers now, they log into that portal, whichever one they choose, they set up a search and they save that search, and you’ve probably done this already yourself. They have the app on their phone. And every time a new listing comes available, it pops that listing up and says, here’s a new listing. Now, what happens is, you have literally a split second to capture that buyer’s attention. And probably one of the most important things is with photos. You have to have good photos as your primary photo in your listing.
So what ends up happening is they take a look. If they like it, well they’re gonna pop it open and look at some more of the details. If they don’t like it, they’re gonna put it on the delete list. And the reason they do that is because they’re getting hundreds of these listings, a month, right? And, you guys know, when managing your own email inbox, you don’t have the mentality of, gee, maybe I should open every single one of these emails to see what they’re about. No. You’re going, I wish there was a way that I could delete most of these and only have the important ones left.
Well, that’s kind of the same thing with these listings. They’re overwhelmed with the number of listings. So unless your listing catches them right away, they’ll swipe it away essentially deleting it.
The problem with this is that suddenly, once they do that, your listing will never show up to them again. Now, your house might be the perfect house for them, but for some reason, they found it wasn’t attractive enough, there wasn’t something listed, there was something in the primary photo that didn’t meet what they were looking for. And it would turn them off. They would delete it.
And so, there’s a solution to this. There’s a solution to it. And, what happens is, in the Multiple Listing Service, if you end up making certain changes, that will cause most of these other big real estate portals to bump the listing back up to the top. One of those things is a price change, right? And gosh, sellers hate to talk about price changes because usually that means it’s a down price change. But, what I’m talking about as part of a pricing strategy is that simple prices changes. The prices changes could be up, and they could be down. But simple price changes, is enough to bump that listing back on the top of those real estate portals.
There’s some other things that can be changed that do the same thing. But here’s where a challenge comes in with the pricing strategy. In the listing contract, the listing contract says, “The price that we are listing this property for is X.” Right there on that line. And the agent does not have the authority to arbitrarily change that price, unless they come to you every single time. So, if they’re gonna make those changes, say maybe twice a week like we do, or once a week even, or once a month, then they’re going to have to come to you, get you to sign this paper that says that we’re making a change. And as simple as it sounds, it’s really a big hassle. It’s a hassle for everybody, ’cause they gotta make sure you’re home when they come by, or whatever it is, or even just, if they have you sign a digital version, it’s still a little bit of a challenge. So what happens is because most agents don’t know how to get around that(like we do), they just put your property in at a certain price, and they just leave it there. And it sits, and it sits, and it sits. And then, what ends up happening is, you have to do a price reduction.
Well, the reason your house isn’t selling is probably because of the price. That’s always what you’re told, but that may not always be the case. It could be the marketing as well. I’m gonna give you some proof here real quick. (See the video on this page) So I’m looking at the city of Tustin in my Multiple Listing Service right here, you can see. And it shows only active properties in the city of Tustin, and I’m only looking at single family and condos. Down on the bottom left here, it says there’s 71 matches. And so if I click on results, I always find it amazing because if I scroll down I want you to notice how many of these red arrows there are. Those red arrows indicate that that is a price decrease. Now, I can say with a high level of confidence that very few, excuse me, if any of these agents who have the prices decreased, are using it as a pricing strategy. I very highly doubt that that’s the case. And so what this means, its just simply people are reducing their price at the suggestion of their agent because, well again, it must be your price is too high and they want you to believe that’s the only reason why your house isn’t selling.
But if they’re using good pricing strategy, good marketing strategy, this shouldn’t be the case. Because, heck, after all, we’re in a seller’s market right? Why aren’t these houses selling instantly? And why are they sitting on the market? And if you look over on the right hand side. Look, you got homes that have been on the market for a cumulative days of 288 days total. 223 days total. You know, a lot of days. Guys, look at that a lot of days. So, you can see that when you have your agent, whoever it is, market your home, they have to be aware of good marketing strategy and pricing strategies, in a sense to game the system to make sure that your property keeps popping to the top every time certain changes are made. And being put in front of that buyer, regardless of the fact that they’ve already deleted you once. They may delete you a second time, but maybe that third time it comes up, and it makes them go, gee, that’s really curious. This property keeps coming up. Maybe it’s fate. I need to buy that house.
Anyways, if you have any questions, happy to answer questions. You can comment. You can reach out to me, call or text me. Happy to answer any questions. So, anyways, good luck selling your house and we’ll talk to you real soon, take care.