We've heard the feedback of our members regarding how Days on Market (DOM) are calculated and we took it seriously. So SmartMLS is standardizing the Days on Market calculation beginning Thursday, September 13th.
Moving forward, Days on Market will be defined as the number of days a listing was in an active status from the Listing Date through the Contract date. For the purpose of MLS DOM calculation, the Contract Date is defined as the date the final signature was obtained on the Contract. The new calculation does not take into consideration the dates a listing was bindered or subject to a purchase agreement.
Additionally, all listings that were closed prior to this new calculation being implemented (on 9/13/18) have had their Days on Market recalculated using this new method. You may reliably compare the DOM for Closed listings from ten years ago to listings Closed this year and be confident that it is an accurate comparison.
Here are a few examples of how it works:
Example 1 (direct to contract) – A listing is entered into the MLS on September 1st. On September 5th all parties sign a sale or lease contract. On September 6th the listing agent modifies the listing to Show status on the MLS. Since the listing is still in an Active status, Days on Market will continue to accrue. On September 15th the listing will have 15 days on market. The agent modifies the listing to Deposit and is required to enter the Contract Date during the edit listing process. The listing agent enters September 5th as the Contract Date. The listing re-calculates the Days on Market to 5, the Listing Date to the Contract Date.
Example 2 (using a binder or purchase agreement) - A listing goes on the MLS on September 1st. On September 5th all parties sign a binder. On September 6th the listing agent modifies the listing to Show status on the MLS. Since the listing is still in an Active status, Days on Market will continue to accrue. On September 15th a listing contract is fully executed. On September 16th the listing agent modifies the listing to Deposit, the listing now has 16 Days on Market. The listing agent enters September 15th as the Contract Date. The listing re-calculates the Days on Market to 15, the Listing Date to the Contract Date.
Please remember: The Listing Broker/Agent must report to the MLS the date on which a final Contract of Sale and/or Lease has been fully executed by all parties. The contract date is not dependent on the satisfaction of any contingencies or conditions of the contract which must be satisfied prior to closing.