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What does Market Time Really Mean?

By
Real Estate Agent with Coldwell Banker Residential Brokerage

One question that every buyer seems to ask me when they enter a house is "How Long Has It Been On the Market?"

My response is often "Why do you ask?"

"Why?" is such an important question when asking about market time because of several reasons. 1. If a buyer doesn't like a home, why do they care if it just came on or if it's been on 3 years. It doesn't matter one way or another how long it's been on the market if they don't like the home. 2. If they do like the home, the ISSUE of market time often gets in the way of them purchasing the home... Which is a HUGE problem in a buyer's market (like my local area is in now). Let me explain...

All that market time indicates is just that... the time the home has been on the market. It doesn't mean the house is a bad house. It doesn't mean that no one wants the house. It also doesn't mean that it is a great house (if the market time is short). All it means is that the right buyer hasn't come along yet, or the seller isn't motivated to sell at a lower price yet. That's all. That's it. Nothing more.

The contrary argument is that if something has been on the market a long time, the seller is going to be more motivated or take a lower price... NOT NECESSARILY I say. It usually means the seller ISN'T motivated or WON'T or CAN'T take a lower price.

Buyer's would do much better for themselves if they didn't look at market time and instead looked at the home for what it is or what it will be. It doesn't matter if other buyers like it or not. Only if you like it. Because, if other buyer's liked it, it'd be gone and you wouldn't be looking at it in the first place!

So, keep your eyes on the home and NOT on the Market time!

David Elya
BROOKVIEW REALTY - Rochester, MI
ABR, CRS, e-PRO, GRI, SFR - Associate Broker

Bryce,

I couldn't agree more! Read my previous post.

How much is that doggie in the window? How long has he been for sale?

Why do we cage our seller in when we list their property on the MLS? Would our sellers bite us if they knew? I think they would bark if they read the listing and questioned us. I, as a REALTOR®, am tried of rolling over on this issue.Don't cage our sellers

The issue that I find harmful to our sellers is displaying their confidential days on market. The role of the REALTOR® is to work to promote the best interest of their client, the seller (Article 1 of the code of ethics). Is telling the buyer agent in an easy to calculate display, working to the best of our client? I think not. Our duty to the client is to obtain "top" dollar for them. The fiduciary duty is to our client, the seller. Without the seller, there would not be a MLS as we know it. (The "L" in MLS stands for listings.)

Do sellers know and understand that once their property is inputted into the MLS it starts a history? A history that is detrimental to them. Do we as listing Brokers, tell/explain this to sellers? In any market, buyers or sellers, the listing which has the best chance of selling is one that has NO history. This type of listing is known as a "virgin" listing, a property listing that has never been listed before on the MLS.

Do sellers of any other product, property or merchandise openly and freely disclose how long they have been trying to sell it? Do car sellers/dealers, does Macy's, does eBay, does the local pet store, and does the FSBO seller? DOM disclosure is not necessary as a FSBO. Perhaps sellers should remain a FSBO? If a seller tried selling FSBO before an agent listed it, should those DOM during the FSBO period be disclosed?

DOM is primarily a function of supply and demand. DOM is an artificial number. DOM is a flexible number. DOM is a magical number. It is a magical number which tells buyers if they should even look at the property, if it has a hidden problem and even how much a buyer should offer for it. DOM is NOT necessary in order for the buyer to make a decision. If this is/was crucial why don't we publish it on public and IDX websites?

DOM is a function of price.

DOM only works against the seller.

Why isn't the pending price that a seller accepted posted on the MLS? Why wait until the closing to reveal it?

Do sellers have a basis for a class action lawsuit against the MLS and listing Brokers?

Who's interest is the listing Broker working for? Theirs or their client, the seller?

Dec 16, 2007 12:41 AM
Linda Tremblay
Long & Foster Real Estate, Inc, PA License #AB065488 - Doylestown, PA
Associate Broker - Bucks County, PA Real Estate Services
Good post! It really is about the house, not how long it has been on.  I had a listing that expired from another broker, expired with us and the sellers still will not lower the price even through it is now with broker number three. They are not desperate to sell.
Dec 16, 2007 12:48 AM
Brian Corwell
RE/MAX Sauk Valley - Sterling, IL
Sterling, Illinois Real Estate

Our MLS keeps a cumulative days on the market so if a house jumps from agent to agent to agent it keeps a running total. It is great for the buyers agent, but not so for the seller. A good agent can look at a MLS # and get a good feel for when it went on the market.

But if a buyer isn't motivated to sell a long days on the market won't matter. I do use it though on the REO properties for my investors when it is time to toss one of them an offer.

'

 

Dec 18, 2007 08:18 AM