T
he concept of "days on market" (DOM) is a complex one, with industry leaders debating its relevance and accuracy. At the heart of the issue lies the question: when does DOM truly begin? Is it when a property is listed on the Multiple Listing Service (MLS), or does it start earlier, when the seller begins marketing the property to potential buyers?

    Gary A. Pickren, an attorney and board member of the Real Estate Commission of South Carolina, believes that DOM should be counted from the moment a listing agreement is signed and the property is made available for public purchase. "That's a day on the market," he emphasizes. James Dwiggins, co-founder and CEO of NextHome, agrees, suggesting that even if a listing isn't on the MLS but is being shared within a brokerage, DOM is still happening.

    However, there appears to be flexibility in how MLSs, brokers, and portals calculate DOM. Brian Schneider, partner at ArentFox Schiff and legal counsel for Bright MLS, notes that there's no standardized definition for DOM, and different websites may calculate it differently depending on the data available to them. This raises questions about the accuracy of DOM data and its potential impact on the real estate market.

    The way DOM is displayed can significantly affect both buyers and sellers. A property with a low DOM may be seen as more desirable, while one with a high DOM may be perceived as stale or overpriced. But what if an agent misrepresents DOM data to their client? Schneider warns that this could lead to legal or ethical concerns, including false advertising, violations of state license laws, or breaches of the Realtor ethics code.

    The debate around DOM has also sparked discussions about the merits of private listing networks versus public MLS listings. Some brokerages, like Compass, have taken a bullish position on their "Private Exclusives" channel, arguing that it addresses the "critical flaw" of DOM by allowing sellers to shop their property around internally before listing it publicly.

    However, others see DOM as a mutually beneficial data point that provides valuable insights into the market. Pickren notes that a low DOM can actually work in favor of buyers, who may be able to negotiate a better price or more favorable terms. Ultimately, the accuracy and relevance of DOM depend on how it's calculated and presented to consumers.