Friday, February 15, 2008

Our area MLS (MRIS) Changes Rules in Reference to Days on the Market

Both Sellers and Buyers alike ask me all of the time how long a home has to be off the market before the days on the market in the MLS system resets back to 0.  This question was asked very rarely when the houses were selling very quickly.  However as the average days on the market has increased and many Sellers have realized that their friend who just got their license or the limited service brokerage cannot get the job done there have been more times than not, that Sellers switch agents or brokerages to other companies.  Up until recently a home had to be off the market for 6 months before the days would reset back to 0.  However the rules have changed as of today.  Here are the new rules. 

Here are the new rules:

DOMP Changes Set to Take Effect February 15, 2008
Effective Friday, February 15, MRIS will change the way that it calculates Days On Market Property (DOMP).  Currently, DOMP will not reset to zero until a property has been off the market for a total of 180 consecutive days.  Effective February 15, DOMP will reset to zero when a property has been off the market for 90 days.
Why did MRIS change this policy?
MRIS periodically reviews all of its policies.  MRIS is led by a Board of Directors comprised of experienced brokers serving our region.  The expertise of the Board is further bolstered by at the MRIS Compliance Committee as well as feedback from our customers via subscriber surveys.
In 1993, MRIS selected 180 days (a half year) as the inactivity period.  It was an arbitrary number selected to represent what was then considered a complete market cycle.
Over the past few years, the entire flavor of the real estate market has changed dramatically.  Consumers buy and sell with much more frequency, the economy has been extremely volatile and 90 days, or one quarter, seems to more appropriately represent a complete market cycle.  Industry statistical reports are generated quarterly, economists form their judgments and predictions based on quarters, etc.  And 90 days is more consumer-friendly; it allows a reasonable amount of time for a homeowner to repair or refresh a property and/or redesign a marketing plan.

 

Posted by Scott Smolen at 16:50:16
Comments

4 Responses to “Our area MLS (MRIS) Changes Rules in Reference to Days on the Market”

  1. Anonymous says:

    Hi Scott,
    first of all I wanted to compliment you on this wonderful blog site, and thank you for keeping up providing us with the latest news affecting real estate.
    As you mentioned that this blog could be interactive, I was hoping to get an answer from you to the following question. If I was the first-time buyer of an MD home, and later on put my husband’s name in the title, if he buys a home in MD, will he be condsidered a first-time homebuyer in MD, or will his name in the title undermine that? Thank you. Doris

  2. Scott Smolen says:

    Doris,

    Thank you very much for the compliment and the question. Although I am 99% sure I know this answer, I am going to run it past my title attorney on Monday to make sure it is accurate. As soon as I speak with him, I will post the answer for you.

    It is a very good question. I will also post an entry later tonight that goes into the savings that a 1st time Md. home buyer receives as well when they purchase.

  3. Scott Smolen says:

    Doris,

    I was able to get the answer to your question confirmed by my attorney. Sorry that I was not able to get back to you yesterday, however they were off for Presidents’ Day.

    If your husband has been put on title on your principal residence. At that time, he does lose his first time buyer provision once he goes on title. Hope this helps a little, even though I doubt it was the answer you had hoped to hear.

  4. Anonymous says:

    Scott Smolen,Hi Scott,
    I very much appreciate your efforts to get an accurate answer for us. As you said, sadly, it was not the news we wanted to hear:( But again, it was wonderful to be able to count on you for a definite answer. So, thanks again and best of luck with the business:) -Doris

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