Do you normally look for specific towns with a low DOM? how long is too long?
141 days is the average in my market, says the MLS. I'm a little skeptical of this number only because I see the guys that have properties listed for 1000+ days. Those numbers certainly skew the true number. I'd say for properties that are priced realistically, it's between 75 and 90 days.
Hi @Shannon X. ,
I'm not sure I fully understand the question, but are you asking which areas to look in for deals?
Regarding DOM, I wrote a detailed post on DOM here:
Hope this might help!
Not exactly, there are many things to look for, not just the lowest DOM areas. Also, DOMs can be skewed by short sales. Many short sales can take 6 months plus and others are strategic short sales where home owners use them simply to avoid foreclosure and stay ini the home for free for longer. If you do look at DOMs you must first discard short sales as they are not a true indicator.
@Will Barnard I agree. Usually homes, if priced right, are only on the market here for a few days maybe a week. However, they then sit in escrow for 5 months which throws the DOM average out of wack.
Very true Robert. Short sale transactions are often "in escrow" or "pending", or "backup offers" for months, even years which is why i said that tossing distressed sales and only calculating DOM's based on standard sales will give you a more accurate picture.
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