What is churning and burning a listing? It’s a little “tactic” some realtors use to make a listing appear “new” in the MLS (Multiple Listing Service.) It is actually against our code of ethics as per our Palos Verdes Board of Realtors. People do it anyway – all the time actually. The Board came up with a new category in our MLS called “CDOM” (cumulative days on market) vs. the other category “DOM” (days on market.) Typically we realtors see the DOM and then we look at the CDOM and know how many days a listing has really been on the market. Even then it is not always accurate as there are some other “tricks/loopholes” some realtors have found to make their listing appear “fresh.”
Honestly, a good realtor should really always check the “History” of a listing to find out the real story of how long a particular property has been on the market. History will show any and all transactions in the MLS for a certain address.
Why would someone do this anyway you ask? There is a strong correlation between DOM and sales price. The longer a house has been on the market the less they usually get to list price. List price to sales price are usually closer to each other the shorter a house has been on the market. Here is a graph showing the correlation for the Hollywood Riviera, CA.
Realtors all have different opinions on this of course. There are the realtors that do it and the realtors that don’t. For example, Elaine Carlson, of Re/Max Palos Verde,s Realty in her recent post “Resetting DOM, Fair or Foul” mentions that it is a great marketing ploy, but wrong. Lynne Pope – also of Re/Max Palos Verdes Realty, recently writes in her blog that she feels these people are “cheaters.”
