No industry standard for ‘days on market,’ says NAR 

The topic of days on market (DOM) has become a point of debate in recent weeks, though determining the specifics — when the clock starts ticking, and the potential consequences for getting this information incorrect — is more complicated than it might appear. Some industry leaders and legal experts have a clear point of view about when DOM begins, but others argue there isn't a hard-and-fast rule. 

As the arbiter of many real estate standards and practices, what does NAR say?

It's up to local brokers and MLSs: NAR's Clear Cooperation Policy — which mandates that a listing be added to the MLS one business day after an agent starts to market it publicly — has been the focus of fierce debate within the industry over the last several months. NAR's explanation of the policy, it turns out, offers some insight into the topic of days on market.

The association's FAQ includes a question about how the policy impacts listings that are not ready for showing — and how DOM is calculated in such cases. NAR's response notes that those factors "can be determined locally" and suggests there's room for interpretation: "Brokers and MLSs should consider whether a new listing must immediately become active, whether a temporary 'coming soon' or 'no showings' status is allowed, and when 'Days on Market' will begin in these scenarios," NAR writes.

Tracking DOM isn't required, but … An NAR spokesperson said this topic is also addressed in the association's lengthy Handbook on Multiple Listing Policy. Specifically, Section 17 (Policy Statement 7.96) references days on market, which, the spokesperson said, clarifies that the use of DOM is "a matter of local discretion." 

While the handbook doesn't define DOM, it notes that it is not a mandatory listing field: "MLSs are not required to track or report days/time on market information," the section states. 

If an MLS does choose to track and share that data, however, it cannot be considered private or withheld from any MLS subscriber, according to the handbook. Once DOM information is included in the MLS, related details, including "the current list date, or prior list and expiration dates," are fair game and may not be "classified as confidential" — meaning MLS participants can freely share that information with their clients. The handbook goes on to say the data can also be used "in advertisements, including IDX display, of other Participants' listings as a matter of local option." 

How does DOM fit in with NAR's Code of Ethics? While the calculation of "days on market" appears to be somewhat subjective, member Realtors still have a fiduciary responsibility to their clients and are obligated to honor the NAR Code of Ethics. When it comes to DOM — especially the notion of transparency and presenting accurate, consistent information to clients —  articles 1 and 12 are particularly relevant, an NAR spokesperson said. 

Article 1 requires Realtors "to protect and promote the interests of their client" and "to treat all parties honestly" — suggesting agents have an obligation to accurately communicate any listing information that serves their client's interests — while Article 12 states that "Realtors shall be honest and truthful in their real estate communications and shall present a true picture in advertising, marketing and other representations."