How the MLS® works with the DOM Statistic
To begin with, it is important to understand how the MLS® used to work in the Calgary Real Estate market. In the past, when a house was listed, as soon as it hit the MLS®, which is the abbreviation for Multiple Listing Service, the Days On Market (DOM) counter began at 1. The counter continued to move for as long as the house was listed by the agent, until it was leased, sold, cancelled or removed from the listing agent. Well, there is a difference between withdrawn and cancelled, but that’s a topic for another time.
On the other hand, certain houses take long to sell than others, and those that stay on the market for a long time worry both the seller and agents. Both the former and latter don’t want to see their properties on MLS® for so long as it indicates a red flag to buyers and agents alike. For this reason, many agents opt to interfere with the MLS®.
One day agents decide to cancel their listings and then re-list them the next day. This prompted the DOM once again not taking into account the days the house was listed before. This approach went out of hand and made DOM become useless. However, MLS® had to do something about this and took the necessary steps.
Setting up the MLS® now
On the MLS®, you can still see the DOM, however, currently, you get to see the Cumulative Days On Market (CDOM), which features all the days the house was listed on MLS® by agents, in spite of the number of times the house was cancelled and listed again on the market in the term of the listing agreement.
Assuming the house was listed on the market for a month, and the agent cancels the listing for 15 days, the listed the property again, a month later the house is sold.
The DOM will indicate 3o days, which are the days between when the house was listed on the market again and sold, or rather closing. This clearly indicates the amount of time it may take to sell the house.
The value the CDOM offers
The CDOM may be very accurate, but it might also mislead you a great deal since it has comes with some limitations. Assuming the agents listed the house for nine months, and then the listing expired and the home owner decides to hire another agent. The new agent takes on the new job and lists the house on the market the next day, then he will have started a new CDOM on the same house at 1.
You should only consider the CDOM as a grain of salt. It may come in handy or not. In addition to that, do not assume there is a CDOM listing at 1, which a new home is coming on the market.
The purchaser agent should know the history of the house before you submit any offer. Make sure you ask them to carry a current and historical title search. Carrying out a flood search is also really important in the Calgary Real Estate market.