Days on Market. Use contract date or closing date?

[jtrotta]

DOM
Closing dates are felt to offer best use for time frame;

One of the biggest problems with DOM, is that you may miss previous Listing time from one agency to another. In our area you cannot search some of this data; one agent gets the boot and another comes in, that market time is unknown, so you won't know the real market time.
Additionally, lately have noted "back up" contracts exist on almost every deal, in case the original falls apart. Wouldn't you have to consider that if the first deal blows and the second comes into play (what happens to all that time :?: ) it doesn't dissappear does it. Also, there are ample variations as to why a deal can be delayed, if the deal falls apart, what do you do with all that time :?: Not consider it :?: How would you explain it to the UW :?:

Unless someone distinctly asks for "DOM" we do not use it, as it is felt it has minimal bearing on market reaction. Most Buyers don't care how long it's been on the market, the only one that makes an issue out of it is the Realtors. 8)

 

[Farm Gal]

I contend that it is entirely dependant on the market and the availability of data. Some areas we cover simply don't have any, but are very satable markets, some have a great deal of reliable data.

In our area you cannot search some of this data; one agent gets the boot and another comes in, that market time is unknown, so you won't know the real market time.

8O WOW that must be interesting! We can ALWAYS search a individual address history and I usually do a street history to insure that I get the whole picture and avoid any 'unfortunate' typographical errors on the part of any listing agents :roll: .

Also, there are ample variations as to why a deal can be delayed, if the deal falls apart, what do you do with all that time :?: Not consider it :?: How would you explain it to the UW :?:

Words. I use words. :wink:

Our market is very stable within the individual sub-markets: some areas have higher desireability and very fast marketing times (if reasonably priced), two miles away the marketing times can be 10 or more times as long! Thus, DOM is something I look at very closely: if a sale has an atypically long marketing time or I find several listings for the same property, I need to find out why!

In our primary market the MLS indicates expired listings as well as withdrawns, so there is quite a lot of data available, if you take the time to look and THINK. I indicate those times in my report just to insure I DID do my research and didn't forget to check out each comps sales history NOT that I'd ever do such a thing :roll:

I had a comp the other day which had a DOM of 178, in a desirable area where a 2-20 day listing is more common: it finally it sold for 98% of original list... so there HAD to be a story... agent said house was nice, a little dated etc.. however the former owners were retiree's with way too much stuff(paths through the rooms, stacked stuff in the halls.... House sold within a week after they (finally) had a personal property auction! So I 'splained it all and felt good that night.

 

[Caterina Platt]

DOM to me means from time of offering to contract date. I'll use a different example than the one on the General Forum. The buyer and seller agree on $zzz on 1/1/02, with an anticipated closing of Feb. 15th on a piece of reasonably desireable commercial zoned land. On Feb. 4th, it is announced that the neighboring 100 acres is being purchased by a regional developer for a shopping mall. Kaboom! There goes the value right through the roof. But guess what, you're already in a binding contract that you signed at the 'market price' as of a month ago.

This example is hardly a daily occurance, but the concept is why 9 times out of 10, I use DOM based on the contract date.

The old "It ain't closed till it's closed" is right. It isn't a comp until it's closed, but at what point in time and market conditions was that value negotiated ? Contract date.