Caitlin O. Bigelow’s April 21 LinkedIn post is getting noticed. And with the title it’s got, we’re not surprised real estate executives and industry leaders are responding to it:
“Compass Exclusive Almost Became a $100K Mistake”
Given the hundreds of comments by real estate executives to Errol Samuelson’s earlier LinkedIn post on Zillow’s new listing access standards—and Compass CEO Robert Reffkin’s responses, in particular—this post is a must-read for both sellers and listing agents.
True, not all sellers are listing their homes with the hope of maximizing their profit. But a $100K shortfall is not something most people would shrug off.
Read on for the highlights.
Two Approaches & One Near Miss
Bigelow and her husband listed their property and had a “magic number” in mind when sitting down with their Realtor to discuss marketing. The Realtor sat them down and told them there weren’t any comps to support that price and suggested listing their home on Compass Private Exclusive—which, until the rules change on May 1st, would still allow the Bigelows to list on the MLS and Zillow at a later date.
Two showings later, and a buyer offered the magic number. And at first, Bigelow was thrilled. But the more she thought about it, a question kept nagging at her:
“If only two people saw it and we hit the magic number—what if 50 people saw it?”
Turns out the lack of comps was niggling at the buyers, who doubted the home was worth what they were offering and ended up backing out of the deal.
Oddly relieved, the Bigelows then listed on the MLS, which also meant the home was live on Zillow and other portals. Six days later, a buyer offered $100,000 more than that magic number the previous buyer had backed out of.
As of April 21, the couple’s home is under contract. But they’re fully aware of the debate surrounding Zillow’s new listing standards.
And in her post, Bigelow doesn’t dance around the issue. Having nearly missed out on $100,000, here’s her big takeaway:
“A free and open market is what allowed us to get top dollar, and ultimately, walk away with a much bigger win, so I’m all in favor of Zillow throwing its weight around.”
We realize this is just one home sale involving Compass Exclusives. But it does help to highlight the contrast in buyer attention (and perception of value) between even a large network for office exclusives and the open market.
Industry Leaders Respond
As co-founder and CEO of NextHomes, Inc., James Dwiggins has been vocal in the ongoing debate over Zillow’s new listing standards. And he was among the first to respond to Bigelow’s post.
But that question on Caitlin’s mind would probably have lingered. And that’s not something you want for any of your clients.
So, what are you doing today to ensure your sellers get the results they want?
