Realtor organizations, trainers, housing economists, media and others all report the days on market (DOM) and often emphasize whether the days on market is increasing or decreasing, and the importance of the DOM.
In Tampa Bay, specifically the metropolitan area of Tampa-St. Petersburg-Clearwater, FL the DOM is reported in two numbers ADOM and CDOM.
ADOM - Average Days on Market: The days on market the home has been listed with the current listing agent.
CDOM - Cumulative Days on Market: The days on market the home has been continuously listed with the current and previous listing agents.
Take the home off the market for two months and the ADOM and CDOM both reset to zero. With a little creativity your home can be listed for several years, but never show more than 300 days.
Some buyers and Realtors use the DOM as a guide to making an offer, saying the longer the home has been on the market, the more motivated the seller might be.
Does this make sense?
Do days on market really show the level of seller motivation?
Not really.
Is the seller whose home is listed for 2,100 days, more motivated then the one listed for 259 days, 79 days, or the one that was just listed today? Can you tell which one would be most motivated to sell?
Any one of them can drop the price at any time to become the best priced home versus the competition. You just never know when a seller will truly become motivated to sell.
The buyer or Realtor that predicts seller motivation by the days on market will likely be very disappointed.
The only thing that should matter to buyers, sellers and Realtors is what the asking price is today.
The DOM statistic is one that should be thrown out with the garbage.
In Tampa Bay, specifically the metropolitan area of Tampa-St. Petersburg-Clearwater, FL the DOM is reported in two numbers ADOM and CDOM.
ADOM - Average Days on Market: The days on market the home has been listed with the current listing agent.
CDOM - Cumulative Days on Market: The days on market the home has been continuously listed with the current and previous listing agents.
Take the home off the market for two months and the ADOM and CDOM both reset to zero. With a little creativity your home can be listed for several years, but never show more than 300 days.
Some buyers and Realtors use the DOM as a guide to making an offer, saying the longer the home has been on the market, the more motivated the seller might be.
Does this make sense?
Do days on market really show the level of seller motivation?
Not really.
Is the seller whose home is listed for 2,100 days, more motivated then the one listed for 259 days, 79 days, or the one that was just listed today? Can you tell which one would be most motivated to sell?
Any one of them can drop the price at any time to become the best priced home versus the competition. You just never know when a seller will truly become motivated to sell.
The buyer or Realtor that predicts seller motivation by the days on market will likely be very disappointed.
The only thing that should matter to buyers, sellers and Realtors is what the asking price is today.
The DOM statistic is one that should be thrown out with the garbage.
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