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Days On Market numbers

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int1st

Freshman Member
Joined
Aug 6, 2007
Professional Status
Licensed Appraiser
State
California
I been trained to show Days On Market numbers, but I do not see it as a requirement by any authorities. What are your opinions as to why we should add in this extra info?
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
I can't remember is Fannie requires DOM or not. I show DOM for every comparable in the information source field on page two: MLS#xxxxxx DOM=zzz.

I think it appropriate since you're stating typical marketing times. That way the reader knows the comparables you've chosen at least have typical marketing times.
 

Rufus

Junior Member
Joined
Apr 3, 2008
Professional Status
Licensed Appraiser
State
Indiana
I can't remember is Fannie requires DOM or not.

The only referene to days on market in FNMA is in Section 402.10 - Competitive Properties and that is refering to listings and 2 - 4 family dwellings.

The appraiser must provide a narrative comparison of the competitive listings that are comparable to the subject property, describe the general market conditions that affect two- to four-family properties in the subject market area, and identify trends in listing prices, average days on market, and recent changes.
(My bold.)


Like c w d, I include the DOM for each comparable.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
it's another Free data ploy by Lenders who think they have an idea of what the market is, when in actuality they have no clue whatsoever.

DOM' are fabricated to accomodate the Agent as a "Marketing Too" - no more, no less. If you track the History of the property, you may find it to have been Listed for much longer and there is always (Agent Option) to delete info, so DOM's are like used undies, I try not to go near them, but ifn I have to - I use rubber gloves (caveat) in regards to reliability. Therefore, in my book it's Not needed, but only to accomodate the inquiry. heh, heh
 

redmg

Freshman Member
Joined
Mar 7, 2008
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm starting to get stips from the Underwriter requiring Actives to be adjusted for the LP to SP ratio which has DOM inherent in the ratio. I try to explain the difference between marketing exposure time and reasonable exposure time and its' impact on the ratio. I make the adjustment and put a comment in that this was done at the request of the Underwriter and could be misleading as nothing in the appraisal is an opinion of "marketing time" which impacts the LP to SP ratio and is beyond the scope of a normal appraisal assignment. As a result, I've added another CYA standard comment in the report.
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I always put days on market in my grid. It gives support for my exposure time. It can also help. It helped today. I appraised a property where a pending sale was under contract for $206,000 and an identical one was under contract for $240,000. The agent of the first said he had a hard time pricing the house. His time on market was about 30 days, so I thought, okay maybe he priced it low. The other sale at $240,000 came on the market right after his contracted, and then contracted within 18 days. (Total historic time, not just for those particular agents). It gave me support that the $208,000 price was below market.

For list price sale price ratios I don't normally make adjustments but just explain why I don't. I have a standard comment at the bottom of my additional comps page; and I have never (knock knock) been given a stip to make the adjustments.

List price to sale price ratio adjustments are not made. According to the statistical "Law of Large Numbers" applying the list price ratio adjustment to an average list price of a large pool of data can converge on a reliable average sales price for that sample group; however, applying the ratio to any single datum within the pool will provide less reliable results. Therefore, the listings above are to show the upper level of the market. They are not weighted.
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
DOM is an important piece of data in your overall analysis, especially in your analysis of exposure time.

By showing it in the grid for each of your comps, your sales comparison analysis/reconciliation and your trend analysis (exposure time)comments can refer back to it hand help with the clarity of your comments.

Ditto Jay in that my MLS has very poor statistical info on DOM. I have to manually investigate sale by sale to calculate the DOMs.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
I do not trust them. I show them, but I research them first. Often you wil find a "reset" by looking for the property's expired/withdrawn's also. I like to lok at the listing history as well. Property listed at $300K, on the market for 700 days. Price dropped to $210,000, sold in 90 days. What is the DOM? 790 or 90? (assuming typical marketing time is 3 to 6 months?)
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
DOM' are fabricated to accomodate the Agent

That may be true. But, the industry as a whole considers what realtors report as reliable, officially. Unofficially, everyone knows it's a load of bunk.
 

Dutchman

Member
Joined
Jul 11, 2007
Professional Status
Certified Residential Appraiser
State
Washington
The MLS system in my area shows both a CDOM cumulative days on the market and a DOM which is the days om market at the current list price. Makes research a bit easier
 
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