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

By
Real Estate Broker Owner with Bryant Tutas-Tutas Towne Realty, Inc BK607690

Broker Bryant on his ponyOn 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!!!

Copyright © 2007 Broker Bryant Real Estate Ramblings | All Rights Reserved

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Comments 100 New Comment

Ambassador
1,779,110
Nestor & Katerina Gasset
Realtors, Wellington Florida Homes For Sale
International Properties and Investments LLC
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
November 09, 2007 12:57 AM
Rainmaker
1,080,210
Bryant Tutas
Broker/REALTOR, Tutas Towne Realty, Inc
Bryant Tutas-Tutas Towne Realty, Inc
Katerina, Except for the prices there doesn't seem to be much difference between our markets. I hope you are doing well today.
November 09, 2007 07:20 AM
Rainmaker
129,326
Jim Little
Your Sun City Arizona Realtor
Ken Meade Realty
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.
November 09, 2007 11:59 AM
Rainmaker
1,080,210
Bryant Tutas
Broker/REALTOR, Tutas Towne Realty, Inc
Bryant Tutas-Tutas Towne Realty, Inc
Jim, Rant away my friend. I wish they would do away with DOM in our system too. Probably never happen but I can dream. 
November 09, 2007 01:57 PM
Anonymous
Spencer Barron

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.

November 13, 2007 07:22 PM
Rainmaker
1,080,210

Bryant Tutas

Broker/REALTOR, Tutas Towne Realty, Inc
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