With some calling for the removal of "Days on Market" data on listings, broker Cara Ameer warns that consumers need context, insight and advice -- and concealing the information is a disservice.
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The real estate industry has long been accused of being anything but transparent, and there are always some bad apples who give a less-than-professional reputation to the stellar agents.
Days on the Market are part of transparency and are fundamental factors to help a buyer and their agent understand the big picture regarding the single largest investment a consumer makes in their lifetime. Wiping out Days on the Market puts us back in the dark, shady days of real estate. The industry just got out from under one mess, and there is still copycat and spinoff litigation to be resolved. Why risk creating more?
As we have seen, rising interest rates, along with higher sales prices and insurance costs, have also impacted marketing times, but that doesn't mean that we should hide this information. Maybe the property went under contract and has fallen out a couple of times. The consumer deserves to know why -- was it due to the buyer's financial situation, inspection findings or something else?
We don't need to confuse the consumer, let alone ourselves, with not knowing how long properties have been on the market or the confusion that ensues from not getting an accurate listing history. If we are asked how long a property has been on the market because it is no longer published on MLS and related websites, how are agents supposed to answer? Anything but the truth is grounds for an ethics violation and exposing their license to further discipline.
Sometimes, longer DOM is just a matter of timing with respect to a property, what it is competing against and the time of year. For example, resales with a lot of competition from new construction may take longer to sell in certain areas. Other times, a property may be priced too high relative to its condition, and it starts to grow stale.
Is the property difficult to show? Are there pets? Is it tenant-occupied or does the home not show its best? Could it use some improvements on the outside or inside?
Sometimes, a property that was previously ignored or received little traction becomes the next hottest thing due to little competition because of things around it going under contract and fewer choices in a particular area. Whatever the case, none of this information should be hidden.
Publishing Days on the Market also holds the seller and listing agent accountable. If a property is sitting, what is holding it back from selling, and what is needed to get it sold?
As we know, many sellers don't always want to cooperate or hear the truth, so they resist their listing agent's recommendations every step of the way. They think they know better, so the property sits and sits and sits some more.
A perceived "low" offer was rejected. The seller then decides to terminate their relationship with the listing agent and re-list with another agent, sometimes doing everything that their prior agent had recommended, and the property sells very quickly.
Days on the market don't define the listing, and, as we know, there are many hacks that can be employed to refresh a listing that is growing stale due to days on the market. Relisting it as a new listing at a slightly different price, new photos, changing out the primary listing photo or sitting out of MLS a certain number of days or months before coming back on as a new listing resets the immediate Days on the Market counter to zero, but the cumulative DOM remains posted and the listing history also gives a clearer picture.
If the seller wishes to have an agent represent them, they can file an exclusion to MLS; their agent can file the appropriate documentation with the MLS, including a copy of their listing agreement. While this does restrict what marketing can be done, the seller has to acknowledge the limitations of exposure by not going into the MLS. In these situations, a buyer may not have a clear picture of how long the property has been on the market.
As eXp CEO Leo Pareja put it, "Not once did a seller look me in the eye and go, Hey I want you to sell my house, but don't you dare put it in MLS." Off-market only benefits the agents who want to pursue "underground real estate" and is an overhyped talking point on so many levels. (I've got a secret, I've got secret, but I can only tell you bits and pieces.)
Agents have so much information coming at them at any given time that it can be easy to forget about an off-market listing when information is limited. They risk wasting their buyers' time as well, if the only way to learn more about it is to go see it, and immediately the buyer sees why it won't work for them.
In transitioning and challenging markets such as this, it truly takes all of us to facilitate matching buyers and sellers with each other. The consumer wants context, insight and advice, and only being able to give them part of the story is a huge disservice to not only the consumer but to the integrity and professionalism of the real estate industry.