Ditching "days on market"
Should the MLS remove this field from all listings?
As a listing broker, I don't think the days on market (DOM) field should be captured, published and available on each active listing. In fact, the field should be immediately removed from all types of active listings posted on the multiple listing services (MLS).
After all, shouldn't the MLS work in the best interest of you and your listing broker's client, the seller? Before buyer agency arrived, the DOM field wasn't as valuable to MLS users. All brokers and agents worked for the seller.
To some, this might seem like an alarming suggestion, but I have a couple questions for you if that seems the case:
• Would there be a MLS as we know it, if there weren't any sellers (listings)?
• If potential buyers feel this data is important, why limit it to MLS displays? Why isn't the MLS displaying this field on the public IDX display?
• Listings are routinely forwarded to many Web sites. If DOM is such an important number, why isn't the active/cumulative DOM forwarded to Google, Homeseekers, REALTOR.com etc.?
Promoting the DOM figure borders on breaching our fiduciary duty to our seller clients. Here's why: publishing the DOM figure merely gives the prospective buyer a reason to offer a lower price to the seller. The information puts the seller at a disadvantage in negotiations, something he or she would probably never agree to if given an option.
Offices that offer agent floor time are more at risk, since an agent reading the listing display may quickly disclose the seller's DOM position when asked by the caller.
Many MLSs offer a choice to the broker whether to display their listings on other websites (such as Google, Realtor.com, etc.). A MLS, especially a broker-owned MLS, should allow the broker the choice to publish this confidential information or not. The DOM should not be displayed if the listing broker so chooses. Default off, unless requested by the listing broker.
I believe in providing a history report for all properties. Listing brokers and buyer brokers can determine the value of a property based on the number of current active listings, the DOM of recent sales, sales prices and expired prices. This is basic supply and demand economics.
Removing the DOM field on each listing would reduce the number of agents deleting and re-listing their property. No reason to keep doing this if there was no clock to re-set.
We all know that a property sells because of one reason: price. If there is an abundance of similar properties for sale, the seller must reduce their price.
Perhaps removing the DOM field would lead to buyers making an offer if they like the property, regardless of what the DOM is. If the seller gets an offer, perhaps it will sell. If it sells, perhaps prices in Metro Detroit will become stronger. Even in a sellers market, removing DOM is a good thing for the listing broker's client, the seller.
Active DOM data does not have to be one of the fields collected and distributed. This field serves little purpose or value for the seller, your client.
Let me know what you think.
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