Lies, Damn Lies, and Realtor Statistics

What’s the best way to tell if a “saved” MLS search is in fact a prospective home Buyer, who’s watching the property in the hopes that the price drops?

Reduce the price.

If the price reduction triggers a wave of showings (and ideally, offers!) . . . the “saved” MLS searches were for real.

If there’s no discernible response . . . they weren’t.

Real Estate Red Herring

Most veteran agents (myself included) will attest that scenario #2 is far more common than scenario #1.

Which begs the questions, “Exactly who is watching the listing?; and, “What are they watching for?”

Here are some educated guesses, courtesy of my Edina Realty-City Lakes colleagues at this morning’s weekly meeting:  “Neighbors”; “Buyers who already bought”; “Buyers who stopped looking” (i.e., didn’t buy); and “Insomniacs.” 🙂

Bottom line: “Saved” searches on MLS are not especially useful as an indicator of latent Buyer demand for any given “For Sale” home.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

Leave a Reply