What is the true market time of property in today's housing market? Real Estate Pawleys Island, Myrtle Beach, Grand Strand
In today's housing market, it is extremely important to know what to expect when considering the timeframe, or days on market (DOM), of how long a property has been or will be on the market. In my local area (Pawleys Island, Myrtle Beach, Murrells Inlet, Georgetown & Horry Counties), the amount of time on the market a property sits can be misleading. This information is relayed to the public by use of the local Multiple Listing Service. If a seller has decided to market their property on the Multiple Listing Service, then the statistics are tracked from the time the listing is input into the MLS, to the pending, to closing. If a property does not sell within the time constraints of the listing agreement (executed at the time the listing is taken), then the status of that property will change from an active listing to expired, withdrawn, or become an entirely new listing.
If the property goes into an expired status, the listing can then be taken by either the same agent or another one and resubmitted as a new listing. If this takes place, then the true market time of a property can be misconstrued. The MLS accumulates the DOM (days on market) by attaching it to an MLS number assigned to that listing. If the property is listed with another agent, then a new listing number is assigned, and the DOM starts all over with the new listing number. It does not take into account the old listing information for the new listing.
The agent or the seller can also decide to withdraw the listing before it expires. If this takes place, then the property can be relisted with a new listing number, and the expired information will not be accounted for. Thus, this listing will look like a "new listing" with the DOM starting from the new input date. One of the top reasons for this practice is to keep the listing at the top of the prospecting lists. The automatic emails that will go to those prospective buyers will receive the listing as if it were a new listing because of the newly assigned listing number. Keep in mind that certain changes made to a current listing (such as a price reduction), will also be sent out to those set up with an automatic email notification. Any auto prospecting searches sees the listing as a new property sending it out to their clients. They would receive the same listing each time this property was "re-listed". This practice also results in multiple submissions to the search engines, which can actually depress the chances of finding a buyer. While this practice can help with marketing a property, it skews the MLS figures.
However, the Coastal Carolinas Association of Realtors MLS does keep a history of the property by tracking Tax Map numbers and property address. If the information is input correct, then the buyers looking to buy and the sellers looking to list can get a better picture of the timeframe involved on each property by simply asking their agent for the history of comparables, and properties. On another note, if the properties are priced well to begin with, then there may not be as much to comb through when researching the local housing market.
In conclusion, the days on market a property has been can be misleading, but with enough research (and a good agent) a buyer or seller can gain an inside picture on what lies down the road, to avoid any pitfalls and gain knowledge to create a smooth transition from listing to sold. If you would like more information, please don't hestitate to contact me at your convenience.
Tara Melech, Realtor, Keller Williams Realty, Pawleys Island, SC (843) 907-8787