New Jersey real estate agents who remove a stale listing from the MLS and relist it, create a new DOM, thereby erasing the “days on market” stigma that attaches to property that has not sold. Not only does the relist appear as newly listed, it does not reveal any price reductions. It appears to be perfectly legal to do this in New Jersey reports the Star-Ledger, which got access and confirmed the relisting effect. (full article requires subscription). The practice may extend beyond New Jersey.
The dreaded “days on market” stat is used by the savvy home shopper to get a better deal. It also turns many away from even looking at the home, unfortunately. Since MLSs appear to know of the practice and allow it, it must be in accordance with their Code of Ethics. Brokers should not be faulted for doing something that is not prohibited.
If a seller relists with another broker, that new brokers listing creates a new DOM. Does anyone see a problem with this practice?
H/T Glenn Roberts for Inman Blog .
In the greater Phoenix MLS, a house that’s been constantly marketed, even by different brokers, continues to accumulate DOM. To start back at zero, the house has to be pulled completely off the market for at least 90 days. When I’m representing the seller I don’t like this rule because it creates a stigma that gets in the way of my client’s goals. And when I represent the buyer it’s an unnecessary rule, because I review the house’s history, not just the MLS # archives with my buyers. History garnered from the entire MLS and county tax records give them the knowledge necessary for well thought out negotiating. So my opinion? The DOM of rules our local MLS unnecessarily harm the area’s customers who are supposed to be served, and don’t help anyone. I think NJ’s system is better for the public.
DOM is definitely a stigma. There are many reasons a house can be on the market which has nothing to do with the pricing. If the house is cluttered, it’s a turn off. Some sellers don’t understand the effect of poor presentation.
In northern Utah agents do this not only for the DOM benefit, but we have what’s called a “Hot Sheet” where the new listings get emailed to brokers looking in that price range, etc.
So then by re-listing a home it gets sent out that next morning to those hot sheets…
The way we handle it in Chicago is to take away the incentive to re-list. We have a field called “Market Time” which is cumulative across listing records.
We also have “Days on Market” which is isolated to the specific listing. Change the incentive and the behavior changes.
Take a look at my aricle to see what happened in Chicago when “Market Time” was removed…
http://www.chitownliving.com/blog/2006/08/16/mlsni-market-time-removed-oops-returns/
Interesting to note that “Market Time” has been added back as a result of agent’s actions.