A business practice among some agents is to solicit sellers whose listings have an MLS status of Expired or Withdrawn. This often includes downloading data of expired listings and sending it in bulk or paying third parties to contact sellers of expired listings. According to Section 12.6 of REcolorado’s Rules and Regulations, trolling or prospecting Expired or Withdrawn listings is not an acceptable use of MLS content, and providing MLS information to third-party companies is a violation of REcolorado Rules and Regulations.
What is the difference between Expired and Withdrawn listings?
Withdrawn listings have a valid listing agreement in place and therefore, brokers should not solicit these listings. This could be a DORA violation for sign crossing.
Expired listings have reached the end of their Listing Agreement period. Brokers should heavily research Expired listings to make sure they have not already been relisted with another broker. If they have, it could be a DORA violation for soliciting a seller who already has a contract with another broker.
It’s part of my business model to contact sellers of Expired Listings. Is this not allowed anymore?
Brokers can contact individual sellers with Expired listings to look for new business. However, brokers may not give Expired or Withdrawn listing information to third-party servicers or companies to solicit business on the broker’s behalf or the company’s behalf.
If you have questions about this rule, contact REcolorado Customer Care at support@REcolorado.com