Comments on: Is Days On Market Stigmatized?

By: Jay - The Phoenix Real Estate Guy

Jay - The Phoenix Real Estate Guy — Tue, 23 Sep 2008 13:58:05 +0000

Paula – excellent point on averages. One of the most overused and misunderstood statistics out there…

Greg wrote – “Besides, the Avg. DOM doesn’t mean much if the inventory of similar available homes has grown to a ten year high.”

That was pretty much my point. In our current market, DOM is pretty much meaningless. BUT, it clearly means something to a lot of buyers and agents.

By: Paula

Paula — Tue, 23 Sep 2008 11:56:43 +0000

Jay – I can’t tell you how many times a buyer client asks me how long the home has been on the market, as if it does make a difference. Everytime it’s a home with longer DOM, they want to offer less, regardless of whether the home has recently been reduced.

You ask, if the average DOM are 119 and the home has been on the market for 120, is it really too long? Averages are just that – you take a seller who is stuck on “their” price and on the market for 200 days, average that with a seller who is priced well and sells in 45 days, and the seller who sells in 20 days – then there is price point; averages don’t tell the whole story.

By: Gregory Bain

Gregory Bain — Sun, 21 Sep 2008 23:28:46 +0000

Jay, You know a 120 days in a normal market is standard. So, I don’t encourage the so called low ball offer from any buyers I may be working with at that time. However, if it’s a 120 day and you are the second or third agent ()I want to count all days on the market) – I’m betting the owner may be willing to talk.
Besides, the Avg. DOM doesn’t mean much if the inventory of similar available homes has grown to a ten year high. Economics 101 – supply and demand. How many offers have they gotten and how many have they turned down? If they want to mov, they better start talking or your going to spend a lot of money advertising something that will never sell. Good Luck and Happy House Hunting.

By: Jay - The Phoenix Real Estate Guy

Jay - The Phoenix Real Estate Guy — Sun, 21 Sep 2008 15:48:31 +0000

So, how many days is “too many” before DOM becomes a red flag? If I said, “This home has been on the market for 120 days” a lot of people would say, “Wow, wonder what’s wrong with it?”

But what if the average DOM in this area is 119 days? (which it is).

By: San Antonio Attorney

San Antonio Attorney — Sun, 21 Sep 2008 07:05:19 +0000

If I am the buyer and learn about DOM of a particular unit being sold, I would be skeptic about it, so I think it does affect the buying decision of people who are interested.*San Antonio Attorneys last blog post..Get Assistance From Lawyers That Care NOW!

By: Gregory Bain

Gregory Bain — Sat, 20 Sep 2008 21:54:47 +0000

Since when is lying (or, manipulation of facts) an obligation to anyone. Maybe, George Bush mentality is what’s wrong with our country today.

By: Jessica Beganski

Jessica Beganski — Sat, 20 Sep 2008 18:17:35 +0000

My MLS allows manipulation of the Days on Market but anyone with two brain cells can find out how long the house has really been on the market.

The reason why agents manipulate it in my area is because our email notification system only emails listings to clients when there has been a change – new price, new listing, etc. New buyers and even agents will overlook properties on the market for a long time. Priority is always given to the newer listings – so if you’re a listing agent you have an obligation to expose your listing to as many people as possible.

*Jessica Beganskis last blog post..Connecticut Dog License Rules and Application

By: Gregory Bain

Gregory Bain — Sat, 20 Sep 2008 16:22:43 +0000

Jay, I disagree. No Surprise there. DOM makes all the difference. I tell someone what the house is worth and they list with someone who tells them 20 or even $50,000 more (sometimes even more than that). Anyway, the other agent gets the listing and then “works” them down to market value. The owner wastes time and looses money because it ends up selling for even less than what I told him.
And, when I am a buyers agent – I always suggest a price based on the DOM and how many times it has been with different agents. Where he started means nothing to me and the buyers I represent. The offer is based on today’s value.
Happy House Hunting! It’s an Investor’s Market.

By: Louis Cammarosano

Louis Cammarosano — Sat, 20 Sep 2008 14:57:58 +0000

A home with many days on market certainly raises (perhaps unfounded) suspicions in consumers. I’ve seen homes taken off the market and put back on just to reduce the days on market count.
I agree with Jim and Russell, if a home is a good one, it shouldn’t matter how long it has been on the market.

By: Lisa Sanderson@Poconos Real Estate Blog

Lisa Sanderson@Poconos Real Estate Blog — Sat, 20 Sep 2008 00:37:13 +0000

Excellent summary, Jay. I agree that the number isn’t all that relevant without further information, although it is a good flag to say ‘yoohooo, something’s up here.’ Our local MLS is considering changes to it’s advertisement of DOM and associated rules, and I can’t help but wonder why we are going to the trouble. Regardless of how it’s handled, buyer’s agents have some ’splaining to do. If your client is considering an offer, you should be looking deeper in to the pricing etc whether the DOM is 25, 300 or 450.