We received a couple of questions this week surrounding “Days on Market” and price changes in the MLS. (Multiple Listing Service)
What is the AZ real estate law regarding resetting the number of days on market (what is required)?
There is no state statute defining how “days on market” (DOM) is set, counted, or reset. These factors are based on the MLS rules and regulations, not state law. That said, here’s how it works (note, this applies only to the Arizona Regional MLS (ARMLS) — other MLS’s have different rules and regs).
ARMLS uses two number to show DOM. “Agent DOM” (ADOM) and “Cumulative DOM” (CDOM). It’s easiest to explain with an example:
If you list your home with Jay and Francy Thompson, then the ADOM and the CDOM clock begins ticking when we enter the listing into the MLS. Assuming you don’t fire us (and you wouldn’t of course), the ADOM and CDOM will be the same number, with the DOM clock stopping on the day of close.
Now, let’s assume that you fire Jay and Francy (that’s a real stretch, but it’s theoretically possible) and enlist the services of another agent. At that point, the CDOM clock continues to click as if nothing changed. It is after all, tracking cumulative days on market. However, the Agent DOM clock will reset to 0 and start counting again.
So how do you reset the CDOM clock to zero? The only way you can do it in ARMLS (legally) is by taking your house off the market for 90 days. The system was designed this way to prevent practices like changing price by a dollar, moving the home from a listed to a pending and back to a listed state — and similar such practices used just to reset the DOM clock to zero and give the impression your home was just listed. (There is a way to reset the CDOM clock to zero within the 90 day period, but I’m not putting that in print, and I won’t do it for a client as I don’t think it’s an ethical practice. It’s a loophole ARMLS needs to close.)
Can agents see on the MLS how many price changes a house has had? If so, can the listing agent reset that so agents can’t see how desperate you are in selling your house?
There is a report that can be run that can access MLS listing changes. Many agents probably don’t even know it exists. I didn’t until VERY recently. (Thanks Greg!) Once the change is made and hits the archive, I don’t believe there is a way to remove it. And if there was, doing so would certainly cross the ethics line. The “desperation perception” is one (big) reason it’s critical to list a home at the right price to begin with. Too many agents will take any listing, let the client dictate the price, and just hope to be able to reduce it later. That’s not a good plan. Price it right in the first place and you won’t have to worry about it.
Personally, I think DOM is an overrated metric that causes way too much heartburn for buyers, sellers and agents. There are multitudes of reasons for long DOM, and too many unethical agents manipulate it. Price, condition and location are what matter in any real estate transaction. Long DOM may simply mean the home was listed at too high a price. That doesn’t mean there is anything wrong with it, other than unrealistic seller expectations (which may make it difficult to get the house at the proper price). But DOM is probably whole ‘nuther post.
If anyone out there has something they’d like to Ask the Agents, just let us know! (Ask the Agents, or contact us)
Technorati Tags: ARMLS, DOM, days on market
If you're new here, you may want to subscribe to this blog via email or RSS feed. Thanks for visiting!
Email This Post
Print This Post
Thanks for reading! We value your thoughts and opinions, so please feel free to leave a comment. Please contact us if you have any questions or need help. You can also get automatic updates for this blog free via:
Subscribe via RSS
Updates via email
{ 7 comments… read them below or add one }
Jay, We don’t have CDOM in my area but I sure wish we did. Realtors are constantly playing games with their listings to bring DOM back to 0. We are able to click on property history though that will give is the history of the property in the MLS going back, I think, 5 years. I do agree with you though that DOM is given way to much merit anyway. I have had listings that were priced right and sold like hot cakes but unfortunately there were several deals that fell through. Because of this DOM was very high when in reality the house was sold very quickly. So you just never know. Pull comps. That’s the best way to make sure a house is priced properly.
Hey BB, thanks for stopping by and commenting!
CDOM is relatively new here, been in place a year, year and a half. Before that, the same games were played here too. It has helped a great deal.
Jay,
Thanks for the tip on finding the original price on active listings in ARMLS. Can you find the price history as well? When the price was changed?
Jay,
I found the play by play of the listing under the MLS# Search, Archive Report.
Excellent. Thanks.
Yep, it’s kind of hidden, but there is a wealth of info there…
Days on Market is irrelevant, for starters. And also archaic, imbecilic, asinine and otherwise worthless. My branch manager likes to tell of the good ol’ days, when a listing agent couldn’t disclose that information without breaching their fiduciary responsibility to their seller.
How long has it been on the market? Who cares? Maybe it was priced too high. Maybe the angels preordained it was you who should buy this house and helped keep others away the entire time. Maybe the prior agent did nothing to sell the home.
It’s not a material fact about the home and ought to be abolished, if not entirely, then at least until the transaction closes.
Jonathan - don’t sugar coat it. Tell us what you really think of DOM…
I agree completely. Here’s my favorite (true) DOM story.
House is listed. On Day 2 it goes under contract, full price offer.
On day 37, it falls out of escrow, buyer doesn’t qualify.
On THAT SAME DAY, it goes under contract again, full price offer. On day 54 it falls out of escrow, buyer didn’t get job transfer, cancels contract, forfeits earnest money to seller.
On day 55 it goes under contract, OVER list price. On day 68, falls out again. Another flaky buyer, another forfeited EM deposit.
On Day 69, we get a call from an agent… “My buyer wants to know why the house on been on the market so long. What’s wrong with it??”
It reality, it had been “sold” 3 times in less than 48 hours of time it was actually available for sale. Yet DOM was showing 69 days…. talk about meaningless!
BTW, it went under contract on Day 72 for good. Closed 29 days later. To this date, the MLS shows it was “on the market” for 101 days….