A List Price that Would Make P.T. Barnum Proud…

Finally, RMLS – our local multiple listings service for real estate in Vancouver and Clark County – has caught wind of a tricky tactic that was happening way too often.

Recently, we noticed some real estate listings that simply looked too good to be true.  I mean, I realize short-sales are all the rage, and there have been some screamin’ real estate deals for smart buyers out there.  But the “List Price” on some of these left me scratchin’ my head and searchin’ for my checkbook.  (Right, like I could have done any damage with the latter of the two, but I digress).

First, some school: List Price is defined as a published or advertised retail price of something that can often be discounted by the seller, or a basic published or advertised price, often subject to discount, or even the price at which a product is usually sold to the public.

In all of these definitions, it is an established price, and for the most part, one which a buyer can assume is somewhat negotiable.  Of course, normally – and especially in this market – one would assume the negotiations could generate a reduction from the list price. But there’s the rub. In a questionable marketing ploy, some listings seem to have been priced to simply generate buyer leads.

Sure, there have been real, stupid-cheap real estate deals out there (usually with some big strings attached), but in some cases, listings seem priced simply to pull buyers out of the woodwork, with no true intent to sell at that price.

Well, now according to the MLS for Vancouver, “Listing a property at a lower price than what your seller is willing to accept is a violation of RMLS™ Rules and Regulations (see section 8.5).  Properties listed for less than the seller will accept obviously attract attention because they are literally too good to be true.  Enticing buyers with false information is unethical.” (emphasis mine).

Good. The last thing we need is bait and switch, loss leader tricks in this business. From now on, when you see that house on Craigslist, priced tens of thousands below market value, think twice, and then give me a call or shoot me an email… we’ll get the real story, and you won’t have to worry about being fodder for P.T. Barnum’s historical phrase. (which, by the way, did you know he never actually said…)

Clark County Real Estate: “Days on Market” Doubles!

Well, not really, but the headline caught your attention, no?

Days on Market (how long it takes a home to sell in the Vancouver/Clark County market) jumped from 75 in September, 2007 to 146 in September, 2008, a 94.7% jump, at least according to the details in the way the Columbian reported the September number.  Yikes!

Now, as Paul Harvey used to say, the rest of the story.

Because of the recent challenges in the market, RMLS (the multiple listing service that includes Vancouver, Clark County and Southwest Washington) changed the way they calculated Days on Market (DOM).  The move seemed focused on changing seller’s “expectations” of how long it takes to sell.

The old way, a representation of the current listing DOM, was determined based on only the most recent real estate listing. Where the new “Total” Market Time, reflects the cumulative number of days on the market, including those from a previous real estate listing (so long as the house wasn’t off the market for more than 31 days in between).

Clear as Mud Pie?

Regardless of the complexity of the definitions and massaging of numbers, the new way is actually a much better reflection of the time it takes to sell a home.

Days on Market is a key factor in a listing, especially to buyers. Our free home search service on our site www.search360homes.com allows buyers to sort their search based on time on market, and in conjunction with our daily updates, is a great way to stay on top of the what’s new (or old, if you so desire) on the market.

For kicks, I searched our site and with a little sleuthing found that the “oldest” currently active home on the market has been for sale for 756 days, and counting.  Yes, Seven Hundred Fifty Six.  That’s a lot of time to make mud pies.