MLS changes CDOM rule to properly reflect how long it takes to sell a property

By
Real Estate Broker/Owner with Safe Haven Realty CalBRE# 01433049

dalendarThe Bay Area Real Estate Information System (BAREIS), our MLS in Sonoma and surrounding Counties, has changed the Cumulative Days On Market (CDOM) rule at the request of several Brokers.

The current rule states a property must be off the market (Expired or Withdrawn/Canceled) for at least 30 days before the CDOM counter will reset to zero. This seemed perfectly reasonable at first, but apparently too many agents have been "gaming" the system to make their listing look brand new.

I've been watching one particular property that has been on the market for 1,163 days, yet the MLS says it has only been on the market for 170 days. This is easily accomplished today by letting a listing expire, wait 30 days, then re-entering the listing as brand new.

In this example, the MLS says 170/170 and it should read 170/1163.  (DOM/CDOM)

The new rule, which takes effect June 6th, states the property must be off the market for at least 90 days before the CDOM counter will reset. If somebody wants to pull their property off the market for an entire season just to reset the CDOM, all the power to them.

This new rule should give the public a better idea how long a property has REALLY been on the market. And it should stop skewing statistical data as well.

Thank you, BAREIS.

 

 

 

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Ambassador
515,970
Cindy Marchant
Keller Williams Indy NE 317-290-7775 www.marchantteam.com - Carmel, IN
"Cindy in Indy" , Realtor, Fishers Real Estate

I like it...I do it anyway whenever I comp a listing; so will save time.  We also are being instructed not to use MLS anymore...here it is the BLC (Broker Listing Cooperative)

May 04, 2011 10:23 PM #29
Rainmaker
1,335,314
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

We also have the DOM/CDOM and no grace periods.  I like it.  I think 1,163 DOM tops what I saw once, about 3 years, 

May 05, 2011 12:27 AM #30
Rainmaker
381,881
Bill Cobb
Accurate Valuations Group, LLC - Baton Rouge, LA
Greater Baton Rouge's Home Appraiser

We have CDOM in the Greater Baton Rouge MLS, BUT it only reflects CDOM of that home being listed with the same Agent.   If a home is listed for 180 days with Agent X and then listed by Agent Y consecutively for 127 and then 32 days, when the home finally sells, it will reflect CDOM of only 159 days on the market instead of the more accurate 339 days on the market (180 + 159).  I don't like manner in which my Solid Earth MLS handles this situation as it certainly skews reality and makes my market appear healthier than it really is.  Bill 

May 05, 2011 12:34 AM #31
Rainmaker
23,783
Karen Hunt
www.SeattleHomeBuzz.com, Skyline - Seattle, WA
Seattle Real Estate Broker | Hunt Seattle Homes, Skyline Properties

We have 90 days here in Seattle and some agents still game it. I like seeing  an accurate number. Transparency please.

May 05, 2011 12:39 AM #32
Rainmaker
1,001,021
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

I guess no matter what rules are in place there will always be someone out there trying to circumvent them.

May 05, 2011 02:22 AM #33
Rainer
75,617
David James
ReMax Real Estate Services Columbia South Carolina - Columbia, SC

We don't have this in Columbia and we have one agent who always lists his houses for 90 days and immediately relists them on the day they expire.  I don't see any advantage an agent would gain by doing this since it is so easy to look up history.

May 05, 2011 05:56 AM #34
Rainmaker
769,671
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Cynthia,

We have a 30 day rule, and agents work it hard, pulling and re-listing to freshen.  Consumers know about it.

I have had listing calls where the seller tells me they will be off the market 30 days "next week" and want to get back on the market at that point.

May 05, 2011 06:46 AM #35
Rainmaker
1,188,123
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566
We have 90 days rukes, too, and that seems to be a fair representation for cumulative days on market.
May 05, 2011 07:51 AM #36
Anonymous
Anonymous

Cynthia,

We don't have any such thing in our MLS and I sure wish we did.  I have to pull it manually far too often.

May 05, 2011 08:13 AM #37
Rainmaker
552,125
Cynthia Larsen
Safe Haven Realty - Cotati, CA
Independent Broker Serving Sonoma County, CA

Betsy - I'm used to looking at history, but I'm not sure all agents are aware of the CDOM rule.

Charita - I know of some instances where the seller is fully aware of what the agent is doing.

Anne - Bingo. The buyers (public) is the one getting scammed, they don't have access to property history.

Rich - good to know, I was wondering what the "down" side of this change might be.

Cindy - Is the BLC taking the place of your MLS?

Carla - 4 years is the longest I've seen. The transaction wouldn't close until the City would allow a lot partition.

Bill - that is interesting ... our CDOM doesn't care who the agent is, so we see a lot of short sales turning into REO's where the agents are different, but the CDOM ticks on. I can understand your frustration.

Karen - what is it with the CDOM stigma? I think agents care about it more than buyers!

Ronald - sad but true!

David - I believe they are doing it to trick the public. How ethical is that?

Mike - I'm not sure that buyers in my area know about it, but it sounds like the sellers in your area are clued in and go along with the game. That's sad.

Cheryl - glad to know it is working there, I have high hopes.

Irene - put in a suggestion to your MLS, I do it all the time.

May 05, 2011 10:00 AM #38
Rainmaker
1,374,157
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

One wonders how this rule originally came into effect. Trying to find way's around things only produces more regulations....and we all suffer for it....thank you Cynthia

May 05, 2011 10:21 AM #39
Rainmaker
895,372
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Cynthia, this is a good way to prevent gaming the system. However, as some commenter's stated they will find other ways to do it. 

May 05, 2011 10:24 AM #40
Rainmaker
552,125
Cynthia Larsen
Safe Haven Realty - Cotati, CA
Independent Broker Serving Sonoma County, CA

Richie - yes, everyone suffers because of the handful that tries to trick the system. Such is life.

Michael - I'll keep my eyes open for the next new "trick" that agents come up with. I don't care if they are trying to trick other agents, it's the public that doesn't deserve this kind of behavior.

May 05, 2011 10:41 AM #41
Rainmaker
447,867
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

Hmmmm, over 1100 days on the market, now that's a stat not to be terribly proud of. I think your board has made a very sensible rule change. The DOM stat could be manipulated too easily with a 30 day hiatus, but 90 days sems more reasonable by far.

May 05, 2011 12:17 PM #42
Rainer
69,392
Michael Ford
EncinitasHomes.com - Encinitas, CA
California+Oregon

only agents care about this.  there are no secrets in this world and buyers and their agents easily learn the truth. 

i had a fun talk with a client the other day who wanted to go in low and hard because a home had been on  the market for over 270 days.  i had to let him know the place had been in and out of escrow twice and the short sale was delaying all efforts top sell the shack.  in many cases nowadays (shortsales) days on market really has no real meaning. 

if a buyer thinks the listing agent is gaming the system it's because they are...point it out and demonstarte that agents desire to deceive.   the only place the days on market might come into play would be if an agent serially relisted a home and them claimed they "sold it in just 7 days!"  well actually 7 days...plus 90 days...plus that other 90 days...

May 05, 2011 12:18 PM #43
Rainmaker
552,125
Cynthia Larsen
Safe Haven Realty - Cotati, CA
Independent Broker Serving Sonoma County, CA

Malcolm - no, it isn't a proud stat. I think the change is sensible too.

Encinitas Homes - It puts me in an awkward position when I have to explain that some agents are trying to fool the public. It doesn't shed a good light on agents in general.

May 05, 2011 12:40 PM #44
Rainmaker
564,387
Diane McDermott
Realtor®, GRI, Landis e2 Real Estate, LLC - Charlotte, NC
Charlotte NC Real Estate Market

Cynthia, I really like that rule and wish we had something similar, I pull history all the time even just for market reports and it's not uncommon to see withdrawn/re-listed within the same day or next day.  That's not a new listing!

May 05, 2011 12:59 PM #45
Rainmaker
552,125
Cynthia Larsen
Safe Haven Realty - Cotati, CA
Independent Broker Serving Sonoma County, CA

Diane - when I do a BPO and I get to the box that says "How many days on market" I have to pull up the history for the comp and grab my calculator. What a time bust!

May 05, 2011 01:20 PM #46
Rainmaker
243,870
David Ames
Zephyr Real Estate, San Francisco - San Francisco, CA
San Francisco

Cynthia...It really comes down to skewed statistics doesn't it.  We don't have a CDOM yet, but it's amazing the amount of "gaming" that takes place.  I always click the "history" link to get the true story if it's a property a client might be interested in.  Now THERE'S where you can get a really interesting perspective.  ;-)

May 05, 2011 09:04 PM #47
Rainmaker
1,602,252
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Cynthia, it is amazing that your MLS system did not show the true DOM!    This is rather important when doing a listing presentation!      

May 06, 2011 09:19 AM #48
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Rainmaker
552,125

Cynthia Larsen

Independent Broker Serving Sonoma County, CA
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