Sale Days - Days On Market
I was asked to write an expanded post with value so here?
In MLS (for those who do not know it is the US database that contains all the information about the houses sold, that are for sale, that are under contract and so on regarding the rental market) there is an important figure that we look at every time we review a deal. It is called DOM - Days On Market and in clear Hebrew the number of days that the house stands or was for sale.
This figure can give us another angle on the market price of our house.
When we look at the viability of a deal and look at the homes sold in the area for comparison in order to estimate the price of our home, we look at the number of rooms, the size of the home, the condition of the home, etc. What many people forget or do not know how to check is the DOM.
If we look at a house sold at a certain price, but the time it took to sell it is very long compared to other houses in the same area, then we can conclude that the market price of that house is not really the same price. This can be for a number of reasons, it can be related to the property environment data, it can be related to the property status, the design of its rooms and more. But the bottom line of the house is being sold at a higher price than its real price. Again, the emphasis is on what the DOM is relative to the regional average. It will have more impact on us in Flip's deals, but also on Rent's deals it is always good to understand where we stand with the property.
Moreover, there will be areas that we may not even want to enter because perhaps the average DOM in the area is too high for us and it will take us a long time to sell.
So have a good DOM!
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