One of the biggest frustrations facing buyers today is how many homes go under contract before they have a chance to make an offer — or even see those listings.
It is estimated that somewhere between 10 and 20 percent of all transactions are done without even being listed on the MLS. Those numbers are hard to measure, but here are some revealing numbers from homes that were listed on the MLS.
Of 1,478 homes listed as “Sold” on Denver’s MLS from May 25 to May 29, 61 showed zero days on market. This suggests that they were entered as “Under Contract” initially and were never “Active,” locking out other prospective buyers. It’s worth noting that 24 of those 61 transactions were “double-ended” by the listing broker. That means the listing agent pocketed the entire commission instead of having to split it with a buyer’s agent.
All agents are required by law to put their clients’ interests ahead of their own. One might reasonably question whether all 24 of those listing agents had satisfied that legal obligation.
Another 193 listings which closed that week were on the market only 1 or 2 days before going under contract. Only five of those transactions were double-ended. Quick-working buyer agents were able to secure 97% of those listings for their buyers. But was that the best deal for the sellers? Could the sellers have gotten more for their homes if they had allowed another couple days for buyers to submit competing offers? For some, yes.