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Days On Market Statistic Much Harder To Trust Now

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BUYERS AND SELLERS TAKE NOTICE

Our local Westside MLS (Multiple Listing Service) board has recently made a change to how it views days on market and has also added a new category for cumulative days on market on the setup sheet.

DOM=Days On Market

In my opinion, the MLS board has now screwed up the days on market statistic to the point where you can no longer trust that number. Once a property receives an accepted offer, a real estate agent will change the status in the MLS to one of two statuses, Pending "P" or Looking For Backup "B". Either one means the property has an accepted offer and is in escrow. However, if an agent chooses to put "B" for any period of time, then the days on market counter keeps going. Which doesn't truly reflect the days on market it spent before an accepted offer. And often you see the status go straight from "B" to closed or sold.

If for example that property came on the market, received an accepted offer in 30 days, status changes to "B" and then proceeded to have a 60 day escrow period and closes, the MLS would report 90 total days on market (DOM). This doesn't paint an accurate picture of the market time.


Additionally, the MLS has retroactively changed all DOM in the system to reflect this new way of reporting the days on market. When I did my latest statistical report on How's The Market Is in Westwood, the DOM came out to be about 75% higher because of the new reporting. I had to manually go in and calculate the actual DOM so I can give you the best possible statistics and accurate picture of what is happening in the market place.

So just be aware when you see the DOM, it may be much higher than actual. And if you see DOM reported on any public website/resource, it also may be incorrect if not manually imputed.

The only way the DOM can be accurately reported is if the agent uses, the "P" status and never uses the "B" status.

CDOM=Cumulative Days On Market


The other new change the MLS did was add a new category, cumulative days on market, which I think is a good addition. This provides more transparency to the consumer on how long something has been on the market in case the property was re-listed within 90 days of the last listing period. We sometimes see a property be on the market X days and then be taken off and re-listed by the same agent or their partner days later, only to start the DOM over. With the CDOM, you will now see the total DOM.