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What about the 11 listings I have withdrawn over the last 45 days and placed with management companies?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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