Realtor Denial Syndrome

Yesterday, I read two different blogs in regard to disclosing of number of days that a property has been on the market. One author is convinced that less transparency in real estate is what is necessary to “protect sellers,” while the second author stated that according to Altos Research, Miami has the highest average days [172] on the market out of all the top metropolitan areas in the country.

To the author of “Posting Days On Market Unfair To Sellers,” I say give up your license and find a new profession. We NEED more transparency in real estate and trying to withhold important information from buyers is the last thing we should be doing.

In regard to Miami having the highest average days on the market, we have certainly had an increase in the average number of days on the market. Which market hasn’t? However, based on recent statistics provided by the Southeast Florida MLS, the data is very different to what Altos Research is publishing. The following closed sales statistics are for Miami-Dade County during the last 30 days, from October 11, 2008, through November 11, 2008:

• Condominiums/Townhomes: 448 closed sales, average number of days on the market = 126
• Single Family Homes: 469 closed sales, average number of days on the market = 108

David Knox, of David Knox Productions in Minneapolis, has termed the new seller disorder “PDS” or Price Denial Syndrome. I think that he brings up a very valid point as it also applies to real estate practitioners, particularly here in Miami. I think that the majority of realtors do not “say it like it is” to their clients. They are too concerned with obtaining the listing and then dealing with the high price later. 

In a declining market, this “Realtor Denial Syndrome” and lack of responsibility will have a direct effect on the results. Buyer interest is always at its peak when the property is just listed, so pricing it too high will turn buyers away. Additionally, if you are so overpriced that you are constantly making price reductions, buyers will sit on the sideline waiting for further price decreases. Furthermore, if you are priced too high, many people will just consider your price unrealistic and not even contact you.

The bottom line is that property that is overpriced is simply not going to sell in a declining market, and this responsibility rests directly on the shoulders of the listing agent. Blaming the seller suffering from Price Denial Syndrome is just an excuse.