It’s simple, really. A Malibu homeowner decides to put his or her house on the market. They list it with a local agent. Everyone wants to live in Malibu, so it quickly gets offers and goes into escrow. A 30-day escrow closes and the new owners move in. And one last thing—the agent makes a giant commission for doing almost nothing.
Except, to paraphrase Mark Zuckerberg after he saw the movie “Social Network”: “That’s not really how it happens.”
Scenario No. 2 is more likely. The home is listed. It gets few showings. The buying public ignores the lofty asking price that graces all the marketing. At some point, that price is slightly reduced. There remain no offers, in most cases, and few offers in other cases. The sellers give up. The listing expires or is withdrawn. The agent is paid nothing, and may actually regret the enormous time and money spent on the futile effort.
As wonderful as real estate is in Malibu, and as glamorous as the Realtor profession has become, 63 percent of the listings signed and marketed in Malibu never sell during the course of a year. At least, that was the result in 2016, which was a very good year (as an abundance of buyers sent median values soaring up 17 percent).
That is, 606 times last year, a Realtor signed a listing (sometimes in teams, or co-listings), and the house was exposed to the public. But only 227 of those listings resulted in a sale.
That is a 63 percent failure rate.
Such is the summary of a review of every single home in the Malibu real estate area that touched the local MLS…
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