Living Green Olympia: February 2011

Days on the Market - Why Do They Matter??

Most all MLS systems track days on the market- that is how many days a particular listing has been on the market currently, or until it became a pending sale in the case of listings that are no longer active.   Our NWMLS in Washington state has a field called CDOM which stands for cumulative days on the market, and it captures total days a listing has been on the market, even if it has expired and been relisted with a different agent.  The CDOM does not reset to zero unless the listing is off the market entirely for at least 90 days. Buyers and sellers both can learn important things from the CDOM information.

Calendar

For buyers, days on the market may be a clue about how best to negotiate if they want to make an offer on a house.  It is certainly not the only important factor, but a house that has only been on the market a few days may have sellers who are still hoping to get their asking price, and not so interested in negotiating too much.  On the flip side, if a house has been on the market quite a while, maybe the sellers are ready to do some serious negotiating.  Of course neither of these theories is set in stone, so the days on the market statistic is only one factor to consider. 

Buyers can also look at the overall trend to see whether houses of the type and price range they are looking at tend to sell very quickly or take months and months on average.  Again, this info is not going to tell you what will happen on any particular house when the negotiations begin - but can just set some general expectations.  For instance, in the Thurston County market currently, a home at a price of $150,000 or less has an average market time of just over 100 days (and there will be homes in that category with a market time of less than a week).  But a home listed at $400,000 or more has an average market time of almost 3 months longer.

Sellers are looking at the days on the market from the other perspective - on average, how long is it taking for similar homes to sell.  This can help sellers understand the importance of aggressive pricing to make sure they have a good chance of selling in the average market time or quicker.  And they can see that although there are homes that sell very, very quickly, the average time does mean they will need to be patient.

Sellers also may notice that homes with a long, long market time are also likely to have started at a higher price and then reduced once or more along the way, trying to get to a competitive price point.  It can be a clear visual picture of what overpricing can do to a seller's chances of selling quickly, or within the average time frame.  Very few overpriced homes are going to sell in an average length of time, so those sellers should be prepared to be VERY patient - or rethink their asking price.

                                                                           

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For Info on the Communities of Olympia, Lacey & Tumwater  WA and the real estate to be found here, just call me, text me, email me!  And I'd love for you to subscribe to my blog.

Nancy Conner, City Realty Inc,    360-701-1086     nancy@cityrealtyinc.net      

Comment balloon 10 commentsNancy Conner • February 07 2011 09:57PM
Days on the Market - Why Do They Matter??
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Most all MLS systems track days on the market - that is how many days a particular listing has been on the market currently, or until it became a pending sale in the case of listings that are no longer active. Our NWMLS in Washington state has a… more
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