I do not like the Days on Market statistic. Never have. Oh, that doesn't mean that I don't use it to my 
advantage when representing a buyer, but it has always struck me as an unfair competitive edge provided to one party. Some might argue that it is an objective measure of a home's place in the market, but I disagree.
To a large extent, we are all lemmings. We like the safety in numbers. If other buyers have passed on a home for 100 days, we assume that they know something that we don't. Forget the fact that the right buyer might simply not have come along yet, the original list price might have been too high, it is difficult to view, or the innumerable other possible reasons for the house not selling yet. It is an objective measure of subjective factors.
Do we demand that buyers disclose how long they have been searching for a property? Wouldn't this provide some insight into the buyer's level of motivation or likelihood to consummate a transaction? How about the buyer being forced to divulge whether or not they have breached a contract to purchase another property? Not an inability to obtain financing, mind you, but an honest to goodness breach of contract. A good agent should seek as much insight into the other party's position as possible. I just don't find it a particularly fair practice to force sellers to divulge, for all of the world to see, how long they have been attempting to sell their home. Especially right next to all of the material facts in the listing that detail the physical property. 4 Bedrooms, 3000 square feet, pool ... 200 days on market.
We certainly wouldn't have all of the nuisance issues with agents attempting to manipulate the statistic if we didn't mandate it and place such critical importance on it. Now we have Cumulative Days on Market stats as well as Agent Days on Market stats here in Arizona that are designed to prevent such manipulation. I suppose that Owner Days on Market is next for the agent that takes over a FSBO? I would just as soon flush the whole thing.
It's a genie that isn't going back in the bottle anytime soon, but I'm very curious to hear your thoughts. Days on Market: Material fact or unfair advantage?
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I believe that Days On the Market are important in helping us gain an understanding of the condition of our market.
Of course, I'm a buyers' agent.
Great points, Adam. Most buyers and agents are savvy enough nowadays to know how long a property has been for sale. If the seller is forced to reveal how long he has been searching for a buyer, shouldn't there be some form of reciprocity? If so, what info could the buyer provide that might similarly affect the course of negotiation? I say just junk the DOM stats.
Garbage in garbage out...we can change that number in a heartbeat, just depends on which side you and your client are on. Like you said use it to your advantage.
Dick Beals
I also think they are important in deciding price either to set a home at or to put an offer in on a home. If a home has been on the market 90 days with no price reductions, I know I can usually offer a lot less, but it also tells me how determined they really are to sell the home.
Hello Paul, Nice post. Here is what I have to say about Days on Market.
I dislike it as well.
Why aren't the Days on Market total displayed online?
Hi David, thank you for your comments. After I wrote this piece, our local MLS stopped listing the DOM directly on the agent property report. There is now a link to a complete archive report. At least this puts this DOM stats in the same place as the entire listing history so that price reductions are noted. Rather than just seeing 200 days on the market, the changes in status and price are present to give a fuller picture.
Paul,
We have 2 MLS's here. They both publish the dom on the agent print out. Both have a link that can easliy be used "against the seller". This link will add up the "true" DOM for that listing and display all the brokers the seller has tried out. Really what good does it do in our market to see the DOM? Currently we are approaching 400 plus days on most of our 96,000+ listings. Does this help motivate the buyer? Does this help the seller understand they are over priced? I think not.
The reason many homes are NOT selling is that there is much concern from buyers about their future.
Will they be employed? Will they be able to feed their family.
I say DO AWAY WITH THE DOM NOW!