From Inman News:
MLSs attack for-sale home ‘relisting’ practices
That new property listing may not be so new, after all.
Some agents are pulling properties out of local multiple listing services and then relisting the properties with the MLSs in an effort to give the properties a fresh start in the eyes of other agents and prospective buyers.
This practice, which is referred to as “relisting” or “refreshing,” can be deceptive if it is used to give the appearance that a property has spent fewer days on the market, say critics, and it is becoming more widespread in slowing real estate markets as inventory builds up and properties take longer to sell.
…
Whether relisting is an acceptable practice that exemplifies creative marketing in a down market — or whether it is a misleading and potentially illegal practice — is a topic of heated debate in the industry. The National Association of Realtors trade group, which has about 1.3 million members working in the real estate industry, has not taken a formal stance on the issue and looks to local MLSs to set their own policies for relisting practices.
…
Relisting is widespread in some states. The New Jersey Star-Ledger newspaper reported in an August article that it gained access to MLS data that showed hundreds of examples of relisting practices in three New Jersey counties.James Bednar, who publishes the Northern New Jersey Real Estate Bubble blog, said he and members of his audience believe that relisting for purposes of restarting a listing’s time on market is deceptive.
“I feel the practice walks the very thin line between marketing and fraudulent misrepresentation, especially if this information is not revealed to the buyer by their agent,” he said, and the misuse of relisting “obscures the time on market as well as any price reduction information” for New Jersey consumers.
“The fact that this issue is even being debated as potentially unethical and misrepresentation should be more than enough for the NAR to take a stance against it,” he said.