Once you know the difference between the three, and that there is a very relevant difference between the three, the most commonly used term that you have heard over and over again (Market Time ) becomes incomplete information and nearly irrelevant as it pertains to pricing your home or negotiating for your purchase.
Market Time: This number is measured in days and is on every listing data sheet. As I have mentioned in previous articles, the number is pretty much hidden in plain site at the top of your MLS listing fact sheet, and it would appear as trivial as MT 122. As a buyer, you may not be aware that MT 122 means that the market time is 122 days on that listing.
Market History: A complete rundown on that particular home's listing history. For example, that MT 122 that I just mentioned is only for the listing that is active NOW. If that home has been on the market before for 200 days and didn't sell, the market time on that house would effectively and cumulatively be 322, and NOT 122. Would that make a difference to you as a buyer in what you might offer?
That particular home could have been listed more than once before. The cumulative market time is the most important figure with just a few things to remember as you look at this data.
Listing History: A detailed listing of any changes in status of a particular home's listing(s). If it has been on the market more than once, you will need the full Market History before you can obtain the full Listing History. The Listing history will include the date the home went on the market and the original list price, the date and amount of any price reductions, the date of any deposit, the date the deposit fell through, adn the date that particular listing went off the market
IMPORTANT TIP: Market time is valuable information, but as far as knowing how to best negotiate for a home, it means nothing unless a the Listing History is obtained.
Here's a Counterpoint -Why do Realtors seem to quote market time as such an important number in market statistics if in fact, it may not be complete information as you say?
We refer to and quote market time on a townwide basis for averages. At least I do. I cannot speak for other Realtors. A few things to note about averages. There has to be a high and a low, obviously. Most homes will also fall above and below that average, obviously. It is a generalization, but still an important one to understand the townwide market performance.
Once you understand town performance, you can better pinpoint a property value within that town. Does that make sense? I liken it to learning the alphabet, before one is able to write a word. You MUST have a very good knowledge of the alphabet before you can write a word and understand what you actually wrote. You MUST know the town well, before you can price an individual home effectively.
Obtaining Listing History is great for an indiviual property, but lends little if anything more to the overall town's market performance which is based on averages. So Market Time is best used as a generalization for the town, and to recap, Listing History should be used specifically to price a home as effectively and appropriately as possible after reviewing market history. Bottom Line:When it comes to pricing a home, never forget the market time as an average, but the Market History and Listing History are both KEY.
Contact me to price your home. And to sell it. Or negotiate the best deal for you.
Remember, the right agent is KEY, too :)