We’re going to talk about What is DOM (Days on Market) in Real Estate and What is CDOM.
What is DOM (Days on Market)
Real estate agents love to use acronyms CMA, BPO, DOM. So we’re gonna talk about all of this stuff and figure it out and tell you exactly what it means.
“DOM stands for days on market and CDOM stands for cumulative days on market”
So when we as real-estate agents look at a property or look at pricing a potential listing or helping a buyer buy a property.
One of the lenses that we would look through in order to assess a property would be the days on market or how long did it take to sell that home.
When you’re helping a seller price a property you’re gonna look at sales nearby comparable sales or comps to determine the price of that subject property.
What are the average days on market
Now you’re always going to want to look at what is the average days on market for that area. What are the other homes specifically your comps, How long did they sit on the market, what were their days on market?
Then also what can you expect when you list that property the DOM or the days on market to be. How long is that seller going to be working at it with you to get that property sold?
Now if a home has been sitting on the market for a while there are couple tricky things a listing agent can do to make the days on market go back to zero.
One of which would behave a very substantial price reduction. In my market with my MLS 5 percent or greater price reduction. Can reset your days on market.
So when people are looking when buyers are looking online it looks like a fresh listing. Because the DOM or the days on the market goes to zero rather than like three hundred or whatever the days on market was prior.
Now, this can be a little bit tricky because the public-facing websites will show zero days on the market. But people and agents and buyers that have been in the market will probably know that property has been sitting for a while.
There’s another little filter you can search for cumulative days on market and so that’s the CDOM.
So even though agents can reset the basic days on market through a big price reduction or if they’re taking it off the market and waiting three months before putting the property back on.
What is CDOM (Cumulative Days on Market)
There’s a way that agents can go into the MLS and see what was the cumulative days on market. So yes they had some big price reductions but what was the total of time that it took to get that property sold and that’s the real picture.
When you’re looking at pricing and upcoming listing or as a buyer determining what offer you should make. Days on market is a really important statistic for real estate agents and for home buyers and sellers.
Because it shows how much or how long is it taking to absorb the average inventory. Properties come on the market and they come off the market but how long it takes is a true indicator of how fast your markets moving.
I hope you found this helpful and you must understand What is DOM (Days on Market) and What is CDOM.