Does DOM matter? Or is it just a dog and pony show?

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Does DOM matter? Or is it just a dog and pony show?

On Sunday, I did something I don't normally do, I worked!! I had canceled a listing appointment on Saturday and figured since I would already be dressed up and lookin' real purdy from Church I'd swing by and meet with my future Sellers. I go walking in, as I usually do, full of confidence and ready to take a listing, when the Seller hit me with this, "What's your average days on market(DOM)?"

Well now, I thought, that's a pretty good question. So being the professional, experienced, big time heavy hitter, top producer that I am, I answered him, "Heck...I don't know."

I was thrown off track for a minute and then I had a flash, "What a great topic for a blog post!" So here I am writing a post about DOM (days on market).

Now you're probably wondering how I, Broker Bryant, listing machine, couldn't answer such a simple question. Well....let me tell you, I honestly don't know. Today, I decided to figure it out. Now I can tell you that prior to February of this year, my DOM was 38 AND I sold every listing I placed on the market. Then, as we all know, my market in Poinciana hit the wall. Everything changed.

So.....today was MLS research day. The first thing I found out was that when you are looking for DOM, in our MLS system, it only gives you the DOM for the last REALTOR® that had the listing. It does have a field for CDOM (cumulative days on market) BUT it doesn't average them out for you. That means when you see a report in our local paper telling you DOM is 98 or whatever.....it is NOT accurate.

Here's what my research came up with for my market Poinciana (all of zip codes 34758 and 34759). For the 39 closings that we had in October, the average DOM was 126 BUT the average CDOM was 195. Quite the difference wouldn't you say?

My last 10 sales average DOM was 95 BUT the average CDOM was 192! The big difference is because I take a lot of expired listings. So I guess, in all honesty, I could have answered my Seller's question by saying my average DOM is 95.

But let's slow this dog and pony show down a little bit. What about all of my listings that haven't sold? I have 18 listings on the market right now with an average DOM of 102 and an average CDOM of 180. And to complicate things further, 9 of these I have had for less than 45 days and 2, I have had for more than 300 days!

What about the 11 listings I have withdrawn over the last 45 days and placed with management companies? How do I factor these in? So the question is, "Is my average DOM really 95?" Should I tell a Seller that when the reality is his house may not sell at all? Or would telling him 95 be a dog and pony show?

In fact, only about 2% of the inventory in Poinciana is selling every month. Based on that statistic, the truth is, that for the 2% of the inventory, that IS selling, the average CDOM for Poinciana is 195 days. For the other 98% of the active listings the CDOM is unknown.

OK, I have now managed to further confuse myself. So here are my conclusions:

Average DOM doesn't mean squat.

Average CDOM means a little more BUT only if your property is in the 2% that will sell in any given month.

My average DOM is 95....assuming I can sell your property.

I liked my first answer best, "Heck...I don't know."

So folks, that's my analysis and I'm sticking to it. Are you as confused as I am? What's your average DOM? And please...leave the dog and pony out of it.

***Image compliments of Lenn Harley. Thanks Lenn!!!

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Posted by Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc on 11/06/2007 02:23 PM

Comments (98)

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98 Comments on Does DOM matter? Or is it just a dog and pony show?

NOV

2007

Reserved Parking For "The Lovely Wife"...TLW...ROAR!

Blog Boy...

I agree with you on this. In our market DOM doesn't mean squat. With all the variables I rather doubt it ever did.

As you have always done this (DOM) off the cuff (and quite accurately) I can see how Mr Seller caught you off guard :)

TLW...ROAR!

This is something that I never really thought of or have ever been questioned on. I'm going to figure out my DOM average for future reference. If the results are favorable I might be able to use it in my listing presentations. Thanks!

You know, I've never gone back and calculated the CDOM-I admit that it's too tedious a task and I think the MLS system shouldn't be so unwieldy.

And since the market is changing so fast, DOM is going to be harder and harder to pinpoint. Your method of confusing your prospects with all the acronyms is quite brilliant, though. =)

Agreed. DOM doesn't mean squat. But, but, but, the DOM trends mean a lot. When the average DOM for 2005 is 38 and for 2006 it's 83 and for 2007 its 130, THAT means something.

We show DOM and we show DOMP for Days on the Market for the Property.

I don't really care about DOM anyway except as a mental exercise for real estate in general.

I've sold homes that were on the market over a year and they turned out fine. I've sold homes the day they hit he market and they turned out fine too.

Your work with what the buyer's needs are. The house is the important thing, not statistics.

I do love that stats though.

BB, Did you ask why they asked you that? Where they looking for a reason NOT to list with the Poinciana Listing Machine, or what? This is a real question. ?I want to know. Heck, enquiring minds want to know too.

Bill Roberts

BTW Your first answer was the best.

I agree that as a marker for individual performance DOM means squat! I do track for trends, as absorption rates have become very important to lenders again (my appraiser hat is on now -sorry) and I wan to give my current and future sellers an accurate overview of the market. Our MLS does not even show cumalitive - so I have to search by address and try to track - ick!

Broker Bryant, I agree with you in that DOM do not mean a thing anymore. So many agents in our area pull the house of the market for a couple of days and re-list the property with a different price. It is just crazy. If I were you, I would stick to your first explanation.

DOM??????????????????? doesn't mean squat in our market.....for starters...we can withdraw a listing at any given time and spruce it up...you know make it look like a new listing. When that happens days on market returns to 1. Yes there is a history....but most often people seem to gravitate to days on market and never even look at history...why I do not know.

When I sold real estate I rarely did that especially since I farmed a specific area that I was dominant in...I tried very hard to keep the numbers true....

I tend to agree with you....Who knows....

It seems to me that the buyer is the first one to ask this Question, Like it makes a big differance here in Thermopolis :) We had a home sit on the market for 10 yrs at 425,000 way ahead of its time :) they had two great showings and one offer that fell through this summer so what does the seller do? He raised the price to 499,000 sold the home less then a month later for 450,000 :)

so DOM.. DOM... DOM.. DOM....... DOMMMMMMM

BB - Like Bill I'd be curious to know why they asked that question. I've founc that when I remember to ask my clients why they are asking a question, I often find that the question they are asking isn't going to get them the information they're really looking for. I don't think DOM is relevent for an agent, but as others have commented they are certainly an indicator of market trends.

Great post! I think sellers ask the wrong question. It's not about how much is YOUR average DOM, but how much is the average DOM for the area, and what are you, as the listing agent/broker, going to do to make sure my house stands out above the rest and help it sell quicker than that average...

I take a look at a home to see how long it has been on the market and the dates and amount of price drop the home has experienced when I help the buyer come up with a strategy for making an offer on a home they are interested in. I agree that part of this is smoke and mirrors - however, sometimes the information can be quite instructive. It really DOES depend on the reason for the question.

They want to know if you will sell the house or it will sit there until it sells itself. I think this was a fair question. If it takes longer to sell, let them know that. They are just trying to get as much information as they can about how you work in the changing market. Looks like sellers are looking for the Realtors that will sell their home the quickest. This may save them from having to list their home higher to make enough to pay mtg payments until it sells.

I never do DOM cause like you said it doesn't mean diddley squat. You can use it if the house is priced right, condition and location ... to have an average everything needs to be equal. With real estate that will never happen.

WHERE IS TLW???? Does she not love us anymore...? Did Bertha do something to her??

This is a great topic. Primarily because agents use Their personal DOM statistics as a part of the overall listing presentation.

Generally agents that do that, manipulate the numbers in their favor so that there will be an impression that that individual will sell the property faster than an agent that publishes actual DOM numbers.

Squat is exactly what it is.

True, numbers can be skewed to achieve a desired outcome most of the time. I can have a ridiculous DOM figure while listing properties at 80% of their market value all day long.

hhhmmm, that was a very confusing topic and I think you should stick to your number of 95.....it just sounds better.

I guess I should figure my DOM.....Oh wait, I don't have a DOM. I'm just a mortgage guy..ohwell.

Good Post.

Sean Allen

Hmmm....good question. I wish that our MLS had a "Cumulative Days on Market" field, but it doesn't, that I'm aware of. When doing my CMAs, I do go into the History window, so I can view the actual days on Market and give that info to Sellers. I think DOM is important, to a certain extent, but of course we all know and explain other relevant market conditions.

I agree with Lenn, DOM are really fun to analyze by price ranges or areas over periods of time to note significant changes in the market. For instance, when I left Southern CA our average DOM was about 33 but I found out that here in the Charlotte/Lake Norman area the average DOM is typically 90-120 days. But, I do a quarterly sales analysis by price range that gives me a good idea what price ranges are hot and cold when combined with months of inventory as well.

I can tell you that one of the best agents I knew in CA could rattle off his numbers...percent list to sold price, DOM etc. and it worked for him. If you were to use one of your options I would use the 95 days since I think what they really wanted to know is how long do your listings take to sell. That number will change once your others close but until then...boy, can you tell I love numbers:)

Very interesting. I knew my DOM back the past few years also but this year - I think I might have to answer with yours "Heck...I don't know." LOL We have had a few unique properties with long DOM & a couple very hot ones that sold quite quickly but to average it all out I am not for sure what the #s would say. Now maybe I should go & check.

I agree with you. We just have to find that 1 buyer. It may take a week it may take a month. Who knows.

DOM and all it's varied cousins are proof that statistics can be manipulated for what ever your purposes need. Take a number, add a little water, then maybe a pinch of salt and voila' your average DOM. Add or subtract salt as you need for each client

Seriously though, I see DOM as useful for the property only. If listing a property that has previously expired, use its DOM and/or CDOM as reasons for pricing the listing. The same goes for making an offer. It helps solidfy the offer for that property. I agree that an agents average DOM is squat. I know that BB explained to his client more after his first answer and got the listing anyway. He is that good!

What is your days on the market is a fun question. Is that at your price or my suggested price? Is it how long does it take to sell from the last listed price? I have for years suggested that the time on the market is directly related to the condition and price but in the most recent market price is KING and with out being the best price in the market you set on the market. So with that said MR. seller tell me the time you want it to be and I will give you the price that needs to be on the property to accomplish that end. With all the news about the flat growth in pricing I think most sellers will except that and they can be more receptive to the first price reduction which is at the listing appointment. Sorry to go on so long but it is a topic I have had to cover several time in the recent week. DOM Means nothing with out price.

WOW!! I guess I picked a......confusing topic if nothing else. I guess my point of this post was that in my market at this time when very few homes are selling at all DOM really doesn't matter. When every home was selling last year I think it did make a difference.

These Sellers have been in Poinciana for 13 years and have actually known me before I opened my company so I should be getting the listing. I think they just asked the question because they are supposed to.

My full answer was: "Hell I don't know. Up until about 8 months ago I could tell you within a $1,000 what your house would sell for and within a couple of weeks how long it would take. Now? I'm clueless. The market is very much hit and miss. I can tell you that selling your house will not be easy no matter how we price it because of the age. I placed a house on the market last month at $250,000 that I thought would sit forever and we had multiple offers in 2 weeks. I placed one on the market 3 months ago at $149,000 that I thought would fly off the shelf and we have only had but 1 showing!! But what I can do is come up with a price that will give us the best opportunity to get folks through the door and get some offers. And if you need to sell it immediately I will cut you a check for $75,000 right now! Other than that we just have to throw it out here and see what happens. We'll then monitor the market and make changes if we need to."

Folks, that's the truth. It's my opinion, that's what our Sellers need to hear. It may not be the "scripted" answer that I'm supposed to use to sell them but I don't handle my business that way. I just tell it like it is. I want to sell their house as bad as they do but I never give false hope. And in this market there are no guarantees except that I will do my best.

As a standalone measure, DOM means nothing. Thare are just too many factors that affect how long a home is on the market -- price, condition, marketing exposure, competing inventory, seller's motivation, etc. Where I do see value in it is with trends as Lenn pointed out in her comment.

Some real estate coaches I've heard speak tell agents to show their DOM in their listing presentations and they do. But, the last several years it is not a good thing to report. It use to be when homes were selling quickley. The charts I have seen have each of their listings listed and the time it took to sell it vs the average day most realtors have. For this they use the Board stat's. We use mlxchange like you do and we can see the day listed, DOM etc. If we put the address in, then we can see the cumulative days on the market, we call it history.

Until you said in a comment he was a friend and you would get the listing, I thought he had interviewed an agent that used that chart.

Last thing, our board puts out the stat's and our average day on market is 95, but many take a lot longer than that to sell. I've had the same experience..... the ones I think will be on the market for awhile sell quicker and the ones I will sell quick, sit. Go figure...

This is a stat that we rarely use in this market. I arely use price per square foot either and the newbies cannot understand why. I do tend to look at the history of the property and what has been doen to the propery since the last sale. Without subdivisions for most of the areas that I work having a sense is much better than numbers. I know the numbers when needed however. I guess it depends on your local market and what seems to be in vogue.

One thing that media and real estate cogitators seldom seem to recall... or if they do they never mention it... is that every time there is a quoted statistic on the sold market, it is out of date... We see EVERYTHING in a rear view mirror. About the only thing we can see that is the "right now" is the average listing price of properties in a market... and that doesn't say what they might sell for.

So, you can only tell people that "It used to be 95 days... unless..."

I love this post.

What do we really know anymore? Really? In my MLS DOM are so skewed. I have a home that has been on the market over a year. I recently left Re/Max and started my own company and took this listing with me new MLS number. Property is now under contract DOM 27. DOM 27 I am a ROCK STAR!!

DOM is also predicated on price. Which is not our decision. Of homes priced within our recommended range, my DOM is "x". Of overpriced homes whose seller made it impossible for us to move quickly, our DOM is "y." That of course sets up an arbitrary, unverifiable number that certainly could be prone to "embellishment". which leads us back to your first bullet point. That squat deduction.

DOM, we find, does mean a little about overall market performance from one time period to another. So do absorption rates, which does it better. But at the agent level, IDMS. (That's like what CRS stands for, "Can't Remember ....!" But different.)

cheers

BB, I agree. DOM is gooey and CDOM has a little more substance. What will it matter in a few months as inventory stays on longer? It's like two guys going in for bypass. One has cholesterol of 550 and the other is 600. They're both off the charts! Relative?

I think it matters to the buyer.The first question they ask walking through the door is, How long has this house been on the market? Older listings get a nose turn up.

What I am focusing on more than DOM these days is average number of showings per month. Statistics say that our listings are being shown on average 1.7 times per month. My listings are being shown twice that much. That points to my marketing efforts working at getting people in the door...that's probably what they want to know is will your marketing pay off & get their home sold. I point out that there are so many variables, like condition, updates, location that are beyond my control. Why should I be saddled with a long DOM because I take a listing on a busy road?

Well, I thought I could use it to sorta, kinda predict how long it might take to sell a listing. But who knows now! I love it for the year to year trends. Our MLS at least tracks this with all the combined days on market no matter how many times it's been listed - within the last six months. And it shows just this listing.

I've used it to successfully show someone who planned to try FSBO just for a month that his days on market would be waaaaay more than going with say, me!

It's not part of my dog and pony show.

BB,

As always you should have stated to the client "price dicates DOM" nothing more...

I`ve sold homes in 3 days and as long as 381... When you break it down, it`s always the same.

1- Home is well kept.

2- Good school districts.

3- Home is priced right.

Works for me in our listing presentations..

I had to bookmark this so that I can go back and digest it when I am not so tired.

DOM is in direct proportion to seller listening to and obeying listing agent! Cheers, David Swierczynski

DOM doesn't mean squat! One of the last houses I sold was only on the market one day. Then another was on maybe 240 days. It's the luck of whatever when the right buyer wants the house for some reason.

That said....I won't be sitting here trying to make some sense of the DOM on my sales. I could be painting my toenails or doing some other important task. Loved your post by BTW...entertaining as usual! Goes well with a glass of vino.

I would have probably just said I don't have an average because we have 2.5 years of listings in our MLS right now and with the constant fluctuations we're seeing in our market, I couldn't give them an accurate depiction of my track record if I were to just throw a number at them. So yeah; I don't know! (Don't really care to know, either)

BB, Totally agree with you. And the joke of it is that sometimes these figures in the MLS are not even correct. I print out the ADOM & CDOM on my broker's synopsis & I always get a laugh when the later is less than the former. I even remember one home that was sold a couple of years ago and the DOM went back as far as when it was listed then. It has to make you laugh.

Gee BB....I was getting all confused by time I got to the bottom....so I agree....I like

"Heck...I don't know."

Here...they get listing agreements for three months....relist it if it's not gone.....geez.

How's this..... "it fluctuates". :)

BB,

I feel like an Idiot!! but I have no idea what DOM is....

Sorry, But at least you know I'm honest.

Tom Weiss

It sounds like we are all pretty much in agreement here. I have a question though. Does DOM really matter to a buyer? And if it does, should it? A perfect example is when I take over an expired listing that may have been on the market for a year or so but was GROSSLY overpriced. Was it ever really on the market? I don't think so. It could have been because of an unreasonable seller but you know, from my experience it is usually because the prior agent didn't know how to price the property. It had NOTHING to do with the sellers motivation or lack of. Their agent told them this is what your house is worth and the seller took their advice.

I go behind a lot of agents and this is a very common occurrence. In many cases the seller has never even seen a CMA. I've even had sellers tell me they have been asking their agent for months to reduce the price and their agent wouldn't do it!!! What's up with that?

The fact of the matter is the house is worth what it's worth no matter how long it's been on the market. And in my market it will sell when it sells. If it sells. All I can really do is try to price it where we will have the best opportunity to get it sold.

I apprecaite you guys stopping by. This has been a very good conversation. I think I'll email this thread over to the sellers tomorrow. I'm sure ot will help answer the question that I couldn't answer:)

You just did my job for me. Thanks!!!!

Figures don't lie, but liars figure. - Samuel Clemens (alias Mark Twain)

I wont lie to my clients so I dont use statistics

BB, one more comment. I have had quite a few buyers who ask how long a property has been on the market. You are absolutely right that the DOM is determined by the ability of the listing agent to price it properly and what kind of market we are in at the time. However, if the house has been on the market for over a year with a couple of price reductions and the market is decent, like it is here, then I would share that information with the buyer as part of a CMA on the property before they make an offer. I understand you are in a very different market...heck, are you in virgin territory???:)

Diane, I truly do not have a handle on my market right now. I just can't seem to figure it out and it is very frustrating. I have managed to sell 23 properties thus far but it has been like pulling teeth. Not only to get them sold but to get them closed. I just placed one of my properties pending yesterday for the 6th time!!! And that's not even including the other 4 or 5 fraudulent offers we have received for it.

I just sold a listing in 17 days and have an active listing that just hit 435 days!!! There is no rhyme or reason right now. I can't even imagine an inexperinced REALTOR(R) surviving in my market. At least it's keeping me on top of my game:)

DOM don't mean much in this market either. An agent that can sell is what matters.

Thanks for giving me FOOD for THOUGHT....

Back again........... What I have a problem with it sellers saying when we present an offer is "We just reduced it 30K".

So my buyers wouldn't have even looked at it at the original price. But, they think because they have reduced that we should appreciate that fact. NOT.

DOM and CDOM are relevant - but so is DOMACP - Days on Market at Current Price. Our MLS doesn't give this, but I think it's very important.

I concur!

I think "Heck, I don't know" is a perfect answer. Followed by, "Time on market is a direct correlation of your property's ability to compete in these 7 categories: Price, Location, Price, Condition, Price, Marketing and Price."

I get this question mainly when I am working with buyers, they believe that they will have a better chance of hitting low if the home has been on the market for some great period of time and what that time is they only know themselves and it is different for every buyer client. Go figure.

Amen.

Sellers should be more concerned about absorption rates instead of DOM. In most markets a properly priced home will still move quickly.

I think peope think of it as a psychologcal stat... that guy will break down when it hits the average in the neighborhood.... that house is stale 30 days after ADOM... that person won't take a lower offer until ADOM

Another way is to use the absorption rate approach along with CDOM. DOM are a joke but with a down market I think you need to place some weight on the properties that are similar to the subject property but are on the market and haven't sold. My 2 cents. I like your first answer though.

DOM are just one more stat to be used, misused and abused at will.

As pointed out in several comments, MLS data isn't always accurate to begin with (too many agents agents "tweak" listings to reduce apparent time on market).

DOM can be further manipulated by adjusting criteria any which way.

Too many buyers place considerable weight on high DOM as a sign sellers are desperate and likely to flex on price . . . but, if the sellers were desperate they would have priced lower to begin with. Long DOM is often more of a sign that they're not flexible.

An agent's personal listing DOM likewise isn't reflective of anything, unless you're listing very similar homes, in the same neighborhood, during the same market conditions.

About the only use I have for DOM is when working with investors looking to buy for resale purposes. I can give them a general sense of how long properties in a certain price range and area are sitting on market on average, to help them decide on a project.

Other than that, hmmmm . . .

I list properties in Deltona on a regular basis and it is the same there. Once you go over the 150K price range, your chance of selling at all goes to basically infinity. Odds are it will not sell. Under that price it is several months. DOM is a nice figure but it doesn't mean much. If the seller wants to price super-agressively, they can beat the DOM every time. If not, their DOM may be infinity.

BRYANT: Why do we cage our seller in when we list their property on the MLS? Would our sellers bite us if they knew? I think they would bark if they read the listing and questioned us. I, as a REALTOR®, am tried of rolling over on this issue. Don't cage our sellers

The issue that I find harmful to our sellers is displaying their confidential days on market. The role of the REALTOR® is to work to promote the best interest of their client, the seller (Article 1 of the code of ethics). Is telling the buyer agent in an easy to calculate display, working to the best of our client? I think not. Our duty to the client is to obtain "top" dollar for them. The fiduciary duty is to our client, the seller. Without the seller, there would not be a MLS as we know it. (The "L" in MLS stands for listings.)

Do sellers know and understand that once their property is inputted into the MLS it starts a history? A history that is detrimental to them. Do we as listing Brokers, tell/explain this to sellers? In any market, buyers or sellers, the listing which has the best chance of selling is one that has NO history. This type of listing is known as a "virgin" listing, a property listing that has never been listed before on the MLS.

Do sellers of any other product, property or merchandise openly and freely disclose how long they have been trying to sell it? Do car sellers/dealers, does Macy's, does eBay, does the local pet store, and does the FSBO seller? DOM disclosure is not necessary as a FSBO. Perhaps sellers should remain a FSBO? If a seller tried selling FSBO before an agent listed it, should those DOM during the FSBO period be disclosed?

DOM is primarily a function of supply and demand. DOM is an artificial number. DOM is a flexible number. DOM is a magical number. It is a magical number which tells buyers if they should even look at the property, if it has a hidden problem and even how much a buyer should offer for it. DOM is NOT necessary in order for the buyer to make a decision. If this is/was crucial why don't we publish it on public and IDX websites?

DOM is a function of price.

DOM only works against the seller.

Why isn't the pending price that a seller accepted posted on the MLS? Why wait until the closing to reveal it?

Do sellers have a basis for a class action lawsuit against the MLS and listing Brokers?

Who's interest is the listing Broker working for? Theirs or their client, the seller?

View my previous posts on this topic.

Other posts about days on market

Days on market, does it matter?

Nice conversation going on here. I have never really like the DOM stat because the market always fluctuates. You never know when the right buyer will come along. It could be tomorrow, it could be next week, or it could be next year. If you don't know your DOM, then I don't feel so bad!

Nice to know I'm not the only one confused and left pondering this issue from time to time. Thanks for sharing your thoughts on the relevance of average DOM.

BB: I made a blog post about DOM on my other blog in late October. I love and hate statistics. You can pretty much use whichever ones you want to say what YOU want said.

I gave a listing presentation to my sellers after they had talked to a top producing team in our town. Seller asked me that question. I could only figure that the team that the seller had already talked to had given him a speel on their short DOM for their listings. My reply: Well, it depends on the property. I listed a condo that sold in four days, I listed a home that sold in four days, I listed a fixer-up that sold in 30 days, I listed 52 acres of raw land that sold in 6 months, but I currently have a townhouse that I have had listed for a year. (None of the listings in that complex have sold since we have been on the market and a few of them have cut our price by $30,000 and still did not sell. We are waiting for that just right person who is used to brownstones in metro areas to come buy this elegant townhome immediately.) So I told him that I don't think that my average DOM would be a reasonably factor in whether or not his house would sell quickly. I did tell him the average DOM for properties in his neighborhood which was 45. He agreed with me and I got the listing. His property sold in 30 days.

On the other hand, a young Realtor in my company was telling me that he only pulled up listings over 200 DOM to show his client because those sellers have been on the market so long that they will be more likely to take a low offer. I told him not to look at my townhouse because my seller would not come off their asking price even though it has been a year. Donna Grady, Wilmington, NC

NOV

2007

In this fear-driven market, with an election year ahead, record high oil prices and the stock market whipsawing down 300-plus points one week and back up again the next, days on market have become virtually meaningless.

My average day on the market is filled with lots of hard work and is never boring. It is usually combined with listings and buyers.

Ooops you meant average Days on market. Never Mind.

That would have been a very easy question last year.....but this year, I can still answer it relatively easy, but the answer is 100% different. Last year I sold everything I listed, this year, I just get extensions ;(

Great picture! With the market the way it is here 95 days isn't such a bad thing.

http://www.gregorygarver.com/

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I'm sitting here reading this post and laughing my butt off because when a clients asks me outright, "what's your rate?" with that demanding tone, the first words out of my mouth are... Heck....I don't know! (I need an app. first!)

™

Very Interesting break down Broker Bryant. It depends on price and location. In Osceola the average appears to be around 121 days. However, in Harmony it is over a year. Price will be a determining factor in how long the house will sit. Does that sound reasonable to you? How is that for an answer?

Bryant - You've discovered the simplest answer to be the correct answer - the rest you can donate to the GAO for their next report. It's an answer the client never needs nor understands.

I think the key phrase - "Assuming I can sell your property" tells it all. I'm not sure of a potential client's goals in asking that question - is it for planning his move or for shopping you? If the latter, will he go with the guy who says "89 DAYS!" or "68!, etc - low net score, like golf? It's akin to a borrower calling a lender and asking "What's Your Rate?" and losing him because I actually answer that inane question.

Your client chose you for something other than your use of the calendar - I hope. They sometimes forget, don't they?

Thanks.

BB,

In my area days on the market really could be a fallacy...what I see happening is listings are taken off the market and re-entered with different MLS numbers which change the time. I saw a listing that said 2 days before going pending. When I looked at the history..3 days earlier it was expired and originally was on for 366 days...making the DOM inaccurate. The only way to be sure is to look at the history when you show the public...they do not see our Realtor(R) gibberish in the MLS so they could be manipulated into believing something that is not really accurate and some agents that are not as savy or lazy enough to check will most certainly be lying.

The average days on the market stat is only good if the agents are putting them into the mls correctly...I guess that goes for sold price to . You wouldn't believe how many agents game that system in order to make their stats look good.

BB--In our market there is DOM for the listing and CDOM for how many days it was listed with a past broker. It can be anything you want it to be...If I just look at one community, it can be less than the average. If a seller chose to price at a give away price, it could be less than 30 days. My answer would be qualified with if you do everything I say to get your home ready, my DOM is XX but each house is unique so the time it takes to sell your home will be different.

Bryant - As Always great post and terrific commentary. It is never an easy answer when a seller asks that question. If I was able to set the pricing it would be better than it is.

yes and no to DOM mattering. I think it depends on the condition of the property and the initial pricing. If the property is priced right and it is truly new on the market then it matters. If it is over priced, it does not matter if it is 5 DOM or 95 DOM it will not get any offers.

Bryant, another one of those great post with great commentary that we all learn a great deal in the reading. I agree with your position on it, however it is interesting to consider the implications and prepare. It is all about perspective as David pointed out. Not sure the seller really wants to know all that, but not a bad idea for us to have a handle on it. I just like learning. Thanks for the post. Great comments by all!

My goodness!!!!! What GREAT responses! I love these types of discussions. It's how I learn and this one has been very interesting.

I really like David Elya's response about how DOM being public is hurting our sellers. I couldn't agree more. Especially now that you see how skewed that information really is.

You'll like this one. I received an email this morning from a seller whose house I am placing on the market later this week. The listing is signed I'm just getting it market ready. Anyway, she read this post and we are now discussing a price reduction. We had discussed market conditions over the phone(absentee seller) but this post really brought it home how difficult it is out there. It just goes to show you how important it is to educate our sellers and to make sure they are getting the truth NOT some dog and pony show just to make us look good at what we do. The truth is what they deserve. Any thing less than that is dishonest whether you call it selling, optimism or whatever.

OK I'll be back.

Of course DOM matters. The notion that DOM is confidential and should not be displayed in the MLS is archaic. I suppose we shouldn't display sale prices either. Allowing those pesky buyer agents to pull comparables could hurt sellers as well. Damn buyers anyway, always trying to get a deal.

BB, That is just to funny. DOM obviously is a factor in the market. But it truly is a tiny factor when compared against two much more important factors.

How many listings does the Agent have that do not sell ( expireds)
How often has the Agent lowered the sales price

Any Agent can take a listing and continue to lower the price till they get it right. That is not how I hired real estate agents prior to becoming an agent myself.

Your Own personal DOM will absolutely be lower and will be a direct reflection of Original Sales price vs Sold price.

Bryant,

I have to laugh when I think of this too. I have been asked that question by almost all of my listings during the interviewing phase. My 2nd listing ever asked me that question. I had to tell her that she was only my 2nd listing opportunity (I was sure that'd end the conversation and the listing appointment) but she allowed me to list her property that she had unsuccessfully tried to sell for almost 2 years with other brokers. I sold it a week after our 3 month listing contract expired. So, was my DOM 95 days, or was it 825?

I don't even try to go there with listing appointments any more. What's the point? I have sold every house I've listed and I haven't asked for an extension yet. Some take longer than others, but I'll get it done. That's what I tell them when they ask for my DOM. And, I'm not even close to being the big bad top producer that you are. Some day...

Broker Bryant -- I was asked this same question by a potential seller last week. As the market has slowed more and more clients on both sides are concerned with market time. . .but as this discussion has indicated, there are a multitude of factors involved in how quickly a home sells. Some are within our control and others well outside the scope of our control. The best I can do is educate my sellers about all factors and make sure that we fully prepare the home for sale, price it competitively and I market it agressively.

DOM is just a stat that can be manipulated and is often misunderstood by clients and misused by agents.

My answer for a prospect who asks "what is your average days on market?"

"The average days on market for customers who follow all of my professional advice is 39 days. But the average days on market for customers who do not take my professional advice is 292 days. Unfortunately some customers can't help experimenting with selling their house before eventually taking my advice."

Michael, Blogging is all about reading and getting inspired by what others write. I do it all the time. When you do it just link back to the blog that inspired your post. Go for it. Yours is very good comment and should be made into a post.

TO ALL: This has really been a very informative comment thread. Thank you so much for adding on with all of your great comments and thoughts. I'll be sending this comment thread out to all of my current sellers. They'll learn a lot from it.

Great job everyone!!!!!

This can be a very misleading figure, one that the prospective client has been told to ask their REALTOR to find the "best" REALTOR to hire.

Here in the middle Tennessee area we have a LOT of new developments. It is very common to see almost daily these new homes be listed on the hotsheet as Active, Pending and Closed all on the same hotsheet!! That means that listing has a DOM of ZERO! So, if you take that house and one that is on the market for 360 days, you have an "average DOM" of 180. Try explaining to your client trying to sell that "360 day" home why their home has been on the market twice the average DOM!

Of course, its the REALTORs fault for not trying enough to sell it........

It really is irrelevant, taking into account, the motivation of the seller. Anyone can sell a Million Dollar property for 200K in a matter of minutes!

I usually answer first with the MLS stat and then break my stats into homes priced well and in good condition. The perception in the mindset of sellers and buyer is that is does matter. Also they do put to much weight on this as an absolute. The more we can be professional and address this the better for consumers in their expectations.

Bonner

BB, one thing that we DON'T have to worry about lately are agents using their average DOM to demonstrate their superiority...it's not something many of us want to "gloat" over!

BB.. When in doubt always go with your first thought.. you were right DOM doesn't matter.. the number of sold homes iws what's important..

BB - I suppose that the answer changes with the market. If asked today, I would have to answer "Well, in the last year, those that have sold have felt the DOM was too many and those that are still waiting to sell, the DOM has been the equivalent of Chinese water torture. (Not to be confused with water boarding which is like having an over priced listing on the market and you have no room to lower the price.)

NOV

2007

I think people ask that because they want to know how many more monthly payments they have to come up with before they get a check. I get the same question, but I've always had an answer for them. But, with the market ever changing it really doesn't matter anymore. My DOM now may not be the same in 30 days, it is an ever changing number.

Great insight and analysis!

Hello BB,

In my opinion most individual agent's average DOM/CDOM cannot be reliably calculated -- there won't be enough data points to provide a mathematically satisfactory answer. We also have the added variability of the Seasonality within each typical year; along with the multi-year market cycles, complicating the lack of data-points.

For a large enough market area, such as Vancouver's, even the market area average DOM/CDOM can be very mis-leading the further north of the Median Price range one goes. We can have a traditional Seller's Market south of the Median Price; and a Buyer's Market north of the Median Price.

I do like to look at the calculus (rate of change) for the price tiers at or near the Area's Median Price tier to help with a Seller's general expectations.

I still put more weight on your previous post(s); when they (listings) are priced correctly, Buyer's Agents will be scheduling showings.

John

BB - This is something I am always aware of and actually promote. Of course I wouldn't promote it if I wasn't doing a good job and getting my homes sold quicker than the average agent. Fortunately for me I am and hopefully will continue to.

Hey everyone! I hope you guys are doing well today. I have been out all day working. AGAIN!!! Don't you hate it when work interferes with our blogging? There must be an easier way to make a living.

Anyway, as always thanks for stopping by and commenting. I thought this was a really good comment thread.

NOV

2007

Bryant- Wow! This really became one hot post! Well, DOM does not mean squat in the market we are in right now! We are getting a listing where the agent before listed the condo for X dollars when the Comps came in at Y and he kept asking her to lower the price and SHE REFUSED! Like you said, what's up with that! She refused to reduce her overpriced by about 30,000! Listing! We get asked, how long will it take to sell our house, we say, " we have to be perfectly honest, we have no idea in this market, there is no rhyme or reason in what is selling or not selling, not even price! So if another agent tells you different, they are blowing smoke up your---. Katerina

Katerina, Except for the prices there doesn't seem to be much difference between our markets. I hope you are doing well today.

Broker B, thanks for the opportunity to rant. I hate the DOM question, especially from buyers. Agents have trained buyers to ask for DOM, a dangerous figure in itself. If there were conditions of the property that caused the DOM, it doesn't tell you they have or have not been corrected. My mls, ARMLS, recently dropped DOM as a default on the agents report. It is still available, but you have to ask for it. I now tell all casual buyers it is no longer reported. If a buyer wants to get serious, I'll get it for him.

Jim, Rant away my friend. I wish they would do away with DOM in our system too. Probably never happen but I can dream.

NOV

2007

Personally feel that DOM is a big waste of time on its own. What I pay attention to is DOM since a major status change or price change. That takes a little extra effort but it's worth it. What does it matter if a 300k home has been on the market 300 days when suddenly they dropped the price 50k and it sold the next day. Sold for 250k in 351 days. That would be absolutely useless information when compared to Sold in 1 day at 250k. Wow, I just found out where the buyer's are. Relying on DOM alone to get a grip on the market will always leave you months behind.

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Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc

Poinciana, FL

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Bryant Tutas-Tutas Towne Realty, Inc

Address: 628 Grand Canal Dr, Poinciana, Fl, 34759

Office Phone: (407) 870-9003

Cell Phone: (407) 873-2747

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