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Ditching "days on market"

By David Elya

Real Estate Broker/Owner with BROOKVIEW REALTY

May 13, 2007 01:00 PM

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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Christina Ethridge

The North Idaho Dream Team powered by SKE Realty Group - Coeur d'Alene, ID

I am a listing agent and I disagree. It does serve a purpose, a big purpose (when not cheated of course) for listing agents.

When I'm pricing out a property, I always include DOM in the factor. In other words, if I feel the best price placement is $315k but 2 other properties have been priced at $320K for 120 days, then the price point just got lower on the new listing (depending of course on my sellers time frame). In other words, if 2 other similar properties didn't sell at just $5k more (for no other reason), then pricing ours just $5k below isn't going to make a difference.

Knowing how long comparable properties are currently on the market and how long pendings and closed were on the market are a very important factor in pricing properties.

May 13, 2007 01:16 PM

Lania DeMers

Rocky Mountain Realty Co. - Colorado Springs, CO

Broker, Rocky Mountain Realty Co.

Oh boy! Where do I begin? Well...I wonder if the Sellers you are talking about ever become buyers, (hopefully they do and hopefully they use you as their buyer's agent). If you do become the BA...do YOU look at the days on the market to see how you should offer, c'mon...be honest David.

I agree with Christina. How do you acurately price the listing if you have no DOM. In Colorado, where I am a Broker/Owner, we not only have DOM, but CDOM which is the Cumulative Days on Market. Now THAT is not fair. For instance, if a property is listed by a broker who doesn't know what they are doing and the house needs, let's say, structural repairs...when the broker leaves the property on market or even temporarily withdraws the proeperty,but does not cancel...every day that brokerage holds the listing is a day on the market.

When someone comes to me to list after another broker has not had success in selling, I have to start off with their old CDOM on my listing. It's a beat the cheat thing. However, I've heard that you can leave the listing off for 32 days AND switch brokerages to beat that.

BTW, would there be any need for the MLS if there were no BUYERS? I'm not sure I understand what you are saying there.

May 13, 2007 01:44 PM

David Elya

BROOKVIEW REALTY - Rochester, MI

ABR, CRS, e-PRO, GRI, SFR - Associate Broker

Christina:

We all know how to cheat the system. That is my point.

How about having the MLS generate a random MLS number instead of the sequential numbering scheme widely used? Tougher for the buyer to determine if the property has been listed a long time.

I have no problem displaying pending and sold DOM.

By the way, do you inform the seller that the DOM will be used AGAINST them if they don't price it right from the beginning? I bet many REALTORS choose to ignore this important statement to their client? Does your listing contract state this?

Dave

May 13, 2007 01:49 PM

David Elya

BROOKVIEW REALTY - Rochester, MI

ABR, CRS, e-PRO, GRI, SFR - Associate Broker

Lania:

What I am saying is that the purpose of an MLS is to promote the best interests of the seller first and foremost!

We too have the CDOM. That is what started me thinking about the DOM field being displayed on active listings. In our board, the listing has to be off the market with the "other" broker for 30 days before the CDOM stops, BUT the listing history will still display the DOM, all you have to do is have a calculator.

And yes, I do work as a buyer agent when dealing with buyers. And yes, I do use DOM against the seller every chance I can. Is this working both sides of the fence? Well if the active DOM was not available, I still would assist the buyers with recent SOLD DOM information.

Dave

May 13, 2007 01:54 PM

Eva Wilson

Long & Foster Real Estate - Camp Springs, MD

BS, GRI - DC Metro Area - Home Marketing Specialist: The DVD Lady

I think that some information should only be available to agents - otherwise, if consumers knew everything and could get to everything, they may think (incorrectly of course) that they could do everything without us, including negotiation - which is one of our primary duties. Days on the market is an important bargaining tool that buyers would not be able to use without us working for them. Either way, if someone wants the property, they want it. The days on the market on the market don't mean anything in the long run. If it is a good fit for the buyer, it is a good fit for the buyer - no matter how long it has been on the market. The concessions that the seller may be willing to make because of the fact that it is taking a while to sell and the deal the buyer wants to make because of the days on the market end up cancelling each other out in the end.

As far as the "well, it is still on the market - what is wrong with it" theory goes, you have to educate your buyer and let them know that it may have been on the market for a while because it appeals to a particular buyer - one who has yet to see it and fall in love with it.

Eva

May 13, 2007 01:58 PM

Carol Spengel

Prudential Rubloff - Wheaton, IL

Wheaton IL

Our MLS has found a way around the "cheat the system" types. We see the current market time and we can click on a history button and see all the historical data about the property - how many other times it has been listed, sold, expired, etc. It's not on the main page, but with a click I can see everything.

However, with all the inventory in our area, the MLS decided not to update MLS numbers. In 2005 they started with 05, in 2006 they changed to 06. In 2007, they still start with 06. I guess that is to help all the sellers still on the market so they don't stand out too much. Sherry

May 13, 2007 02:41 PM

Jim Little

Ken Meade Realty - Sun City, AZ

Your Sun City Arizona Realtor

I hve mixed feelings about the subject. DOM gives vital feedback to a seller as to why he should do something to improve the marketability of his home. It can needlessly stigmatize a property also. Somehow during the buyers market, buyers learned to ask about DOM. They weren't taught to understand what it might mean, or to determine if the factors that caused it were fixed. My MLS requires a property be off the market at least 91 days to reset the counter, but gives no way to explain what has been done to alleviate the cause of excessive DOM.

May 13, 2007 03:03 PM

Stefan Scholl

Buyer's Broker of Northern Michigan, LLC - Petoskey, MI

Northern Michigan Real Estate

Happy Spring, David! I admire your persistence. Lania summed up my sentiments, precisely, when she commented, "would there be any need for the MLS if there were no BUYERS?"

The MLS is a two way street. It is the duty of both the listing agent and the buyer agent to do their jobs to the best of their abilities based on solid information, including DOM. The days of the MLS as the exclusive domain for listing agents is long gone.

May 13, 2007 04:38 PM

Christina Ethridge

The North Idaho Dream Team powered by SKE Realty Group - Coeur d'Alene, ID

David - Most definitely I inform the sellers of this. We have marketing strategies specifically because of this for specific properties. In fact, I find it advantageous and yet another "why" to price the property correctly from the outset.

May 14, 2007 12:16 AM

Gary Smith

Agent Marketing Today - Commerce Township, MI

David, I see you're also a Realcomp subscriber. Sorry I cannot agree with getting rid of DOM. And, most definately I discuss in detail DOM and history that is available to anyone that can fog a mirror. Of course, I will black out the names to protect agents and brokers.

May 16, 2007 12:57 PM

Maureen Francis

Coldwell Banker Weir Manuel - Bloomfield Hills, MI

Coldwell Banker Weir Manuel

You said, "We all know that a property sells because of one reason: price."

Then why should people do anything other than MLS entry only? If price is the only reason that homes sell, then we Realtors are really obsolete. People should just hire an appraiser and then list for $300 bucks with a flat fee broker.

Removing DOM does not remove listing date. Most floor calls ask "when was it listed?" Do you propose that we hide listing date?

Jun 16, 2007 02:02 AM

Billnulls Blog Florida Realty Professional

Charles Rutenberg Realty - Clearwater, FL

AHWD

I agree with Christina, I use this information when pricing the property. It is valuable information for the agent to have!

Jun 16, 2007 08:58 AM

David Elya

BROOKVIEW REALTY - Rochester, MI

ABR, CRS, e-PRO, GRI, SFR - Associate Broker

Maureen:

I would be in favor of removing the listing date from the listing. After all, that is the "born on" date that trails the property for life. I have no problem telling the world the DOM or listing date AFTER the sale closes.

If the floor call agent gives out the listing date to buyers whom they don't have a relationship with, it further solidifies my position that the listing broker should work in the best interest of the seller, NOT the buyer. Do they inform the caller of all the price changes? Do they tell the buyer the seller is way over priced? Do they give away information freely in an effort to gain a buyer client? Who are they supposed to be working for at that point? The seller of course.

I have received a few emails from buyer brokers who are against removing DOM, for some reason they chose not to post their opinion here.

As a strong listing broker, I use existing active listings data as a guide. I look at what others are asking for their property, and if my seller is motivated to sell, I list it lower in price.

As for the argument that we all should post MLS entry only listings, that is not what I am suggesting. I am still capable of negotiating the best interests of my client, the seller. And when I have a buyers agency agreement, I can negotiate for the best interests of my client the buyer. Even without the DOM.

Dave

Jun 20, 2007 01:14 AM

Angie Vandenbergh

Crye-Leike, Realtors - Memphis, TN

A Crye-Leike Blogger

In my mind this goes to the bigger issue... There is a constant battle of part of the real estate community wanting to hide certain information from public view. Days on market, listing date, street addresses, other fields etc. This is highlighted especially well in one of the comments above, "I think that some information should only be available to agents - otherwise, if consumers knew everything and could get to everything, they may think (incorrectly of course) that they could do everything without us, including negotiation - which is one of our primary duties."

Then there is the part of the market that wants to make that data available for the consumer.

I am of the opinion that all of the data should be available and used. There is a time and a place for all of these pieces of information. An agent still has value even if this information is given to the public freely. It goes back to the fear agents had when listings started to be searchable online...the fear that they wouldn't be needed anymore for real estate transactions. This is just not the case. There is a certain expertise that an agent is able to provide to tie pieces of the transaction together and to help people realize the full view.

Jul 06, 2007 04:18 AM

Georgie Hunter R(S) 58089

Hawai'i Life Real Estate Brokers - Haiku, HI

Maui Real Estate sales and lifestyle info

Good points on both sides of the discussion. As we work with both buyers and sellers, it's hard to make everyone happy at the same time.

Dec 04, 2008 11:19 AM