Which DOM, CDOM or the 'real' DOM

[cushie0105]

I did a 1004 w/ an REO addendum last week and one of my comparables was on the market for 120 days prior to selling. In this market, 120 days is considered a reasonable exposure time. Anyway, the issue is the house was offered for X amount of dollars and did not sell for the first 115 days, then the asking price was slashed 40% and it sold 2 days later. Which DOM should I report in the REO addendum. Obviously I explained the situation in the report. But are the first 115 days even relevant? I mean likely the house was listed too high. And it's also pretty clear that the price was dropped too low. But it created somewhat of an issue as I tried to explain that the comparable was liquidated when it was showing a DOM of 120. Just to clarify the statistical DOM was also 120 days as per the listing information. What say you? What DOM do you use in this situation?

 

[Meandering]

Are you sure they did not drop the list price when the offer came in?

If they are the same listing, I'd use the 120 days. If they are two different listings, I'd use the most recent one, 2 days and explain.

Also, check the math between the listing date and the pending date, some of the listings are not correctly calculated in the MLS. I've found that one more than a few times.

Don't ya just love sales people?

.

 

[cushie0105]

Hi Marion,

Thanks for the quick reply. I attached another listing with a very similar situation. I also attached the listing history. This home was listed 02/10/2012, it sat on the market for almost 1 year until the price was cut 30% on 01/30/2013, then it sold 6 days later. Would you report the DOM as 360, or 5??

thanks again

 

[Meandering]

so, they're calling the rain drainage ditch a creek now?

Use the full DOM. And I'll tell you why.

Your REO appraisal is going to be compared with a BPO, and they are going to start out listing it at the Agent's opinion. When it does not sell, they'll drop it to your opinion. Which might be okay now because the summer is coming, but I've seen them blow past the appraiser's opinion and sink the list price lower because the market dropped enough and enough time had passed that neither opinion becomes valid. If you have a bunch of comps that are showing a pattern of being overpriced for 100 days or more before selling, someone is going to start to get the message.

Use the full DOM (360) for the listing, that's the length of time it was marketed and that's how long it took to attract a ready, willing, and able buyer. But notice the comments at the bottom. Says he dropped the list price due to a lack of a handrail???? in a Bi-Level, and that caused a price drop of 30%? So at least someone looked at it and noted a below MPR issue.


.

What's scarey about that comp is Citizen's used to use ISGN as their AMC.

 

[Meandering]

Oh, and the other reason to use the full DOM is if some lender or GSE gets a wild hair and has your work reviewed, they are going to ask for the MLS sheet and then they are going to say you under reported the DOM according to the MLS sheet which says, 360 days on the market.

 

[CindyR]

I have a client who requires DOM/CDOM which refers to "days on market" at the most recent sale price as well as "cumulative days on market" for the entire listing period. That might be a good method for you to adopt in this assignment.

 

[sputnam]

In this area, probably other areas too, Realtors often create new listings for expired or withdrawn properties. Instead of relisting, they get a new MLS # and reset the DOM. A property that is newly listed within a few days of the expiration of the previous listing...that's all part of DOM for the property. Six months later, probably not. You'll have to make your own call on the break point.

 

[Mr Rex]

The appraiser must provide the data source(s) utilized to obtain the data for each comparable sale. When using MLS as the data source, the MLS organization acronym or abbreviation followed by „#‟ and the listing identifier (numbers and letters) must be reported. If the appraiser utilizes additional data sources that do not fit into this data field, they must be provided in the comments section or addenda in the appraisal report. Additionally, the appraiser must provide the DOM for each comparable sale for the latest time period that the property was listed or advertised for sale. DOM is defined as the total number of continuous days from the date that a property is listed or advertised for sale until the date that it is taken off the market or sold. DOM applies not only to properties that are listed in the MLS, but also applies to properties marketed for sale outside MLS. If the comparable property was not individually listed or advertised for sale, enter the numeral zero (0). If the DOM is unknown, enter „Unk‟. The appraiser may report any other relevant information regarding the length of time that a property was offered for sale, including cumulative days on market elsewhere in the appraisal report. Reporting Format: Data Source(s) – Abbreviated MLS#Listing Identifier or Text DOM – Numeric to 4 digits, whole numbers only The PDF creator will automatically insert a semicolon to separate the data values and print the letters „DOM‟ prior to the response.

 

[TxArmadillo]

Yeah, some realtors get very creative with their listings. I've seen some in my area do the DOM/CDOM dance that many have posted above. I've also seen them modify the street address of the listing so that it restarts the DOM counter (change St to Street, Ln to Lane, etc.).

On new construction, I've even seen them change the UPSP address to a Lot # (123 Main St to read Lot 15, Main St).

Makes me wonder about their ethical compliance but, as we all know, ethics (e.g., don't be misleading!) only applies to appraisers.

 

[Michigan CG]

The following goes in my summary of all comps in my addenda:

Comparable 1 Summary
Original List Price: $159,900
Final List Price: $159,900
Sale Price: $156,000
SP/LP Ratio: 98%
$/SF GLA: $101.96
Concessions: Cash Sale
Adjusted Sale Price: $158,100
Days on Market To Contract: 8
School District: Monroe