Home Selling in Dallas>Question Details

jilljohnston…, Home Buyer in Dallas, TX

If a property has been renovated- how does it's past DOM impact it's resellability?

Asked by jilljohnston10, Dallas, TX Mon Jan 21, 2013

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If a home has been on the market then purchased for rehab I suggest taking it off the market if the rehab is going to be over 30 days. This will do away with CDOM which in the DFW area it is 30 days so it kind of a new listing. Not really that big of a deal in my opion but if it does pop up as a new listing it does attract more attention when buyers are surfing on thier own.
1 vote Thank Flag Link Mon Jan 21, 2013
I agree with Kenny. It's worth what it's worth based on the improvements, location and desirability. If it's "lipstick on a pig" that will negatively affect its resale ability - if it's a pro job done well then that will affect it in a positive way. Most pros can see through lipstick on a pig - by researching what the home was before the rehab, and knowing what it is now - and most of the time it is very easy to see. Quality work is also easy to see. If you are rehabbing keep copious records of what you do - the records and lists of improvements can be a huge help with resale and marketing. If you are a buyer looking at a rehab to purchase - ask for those kinds of lists and records; it will help you with your decision.
1 vote Thank Flag Link Mon Jan 21, 2013
DOM and renovation has ZERO to do with each other. Any home with upgrades for todays standards is nice MUCH MUCH more goes in equation of DOM for a home on the market

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com

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0 votes Thank Flag Link Sun Jan 27, 2013
Jill,

As a listing agent I was never asked by buyer's agents or potential buyers why the Days on Market was so high when my client, the seller, bought the house.

And when representing home buyer's, they never asked to see how many days the property was on the market when the seller bought it.

So, in my experience, that would not be a problem.

Good luck!

Jose Dias, REALTOR
(623) 418-5700
Jose@MyFirstHouseAZ.com
http://www.MyFirstHouseAZ.com
0 votes Thank Flag Link Tue Jan 22, 2013
HI Jill,

It shouldn't affect the archived DOM. But it also depends. Often times if you took it off the market to make updates on the market. It really wont affect much on how potential buyers see the home.

I would even put it on CSS if you use them before. Put something like back on the market and list the numbers of renovation on the email to get the previous buyers who seen the properties to come back.

good luck

Dixon
Realtor
http://www.findyourtexashome.com
0 votes Thank Flag Link Tue Jan 22, 2013
Exactly Kim. And my realtor is warning me that even though we may buy it and live in it for 1 -2 years to renovate it- that when we put it back onto the market that potential buyers will question why it had been on the market so long when we purchased it. I totally agree that A Lemon is a Lemon but if we were to get a thurough inspection beforehand; it just seems like the market history from back when we purchased it may not be as relevant to a potential buyer (2 years later). Am I incorrect?
0 votes Thank Flag Link Tue Jan 22, 2013
I'm with your line of thought. I wouldn't worry about what happened 2 years prior to resale. If the rehab is a good one the long CDOM that far back is irrelevant. Honestly, more buyers will look at what you paid for it then harder than they will look at how long it was on the market. Some buyers and their agents will try to make a reasonable guess on what kind of total investment you have in the place, then offer on that basis. If this is the right house for you, if you have good plans for it, are going to improve the value and it's in an area that experiences good stability then it could be a good buy. The previous CDOM will be completely irrelevant with regard to fair market value two years later. Btw, I instruct new agents on market analysis with our company, and if asked this question by an agent I would tell them exactly what you are thinking - the long CDOM 2 years ago has nothing to do with what happens at any given point in the future
Flag Tue Jan 22, 2013
Should also point out however that, in our area, the true CDOM does not go away unless the listing is completely removed from the MLS, and that is a violation of MLS rules. The CDOM is always available in the archives - and any good agent knows where to find it for their client.
0 votes Thank Flag Link Tue Jan 22, 2013
I agree with my colleagues, if it taken off the market for 30 days, it will reset the days on market to zero.
0 votes Thank Flag Link Tue Jan 22, 2013
It can impact. Some buyers will question why so long. Some may think they can get a discount because it has been on so long. Some investors start making low ball offers after 180 days or 360 days, etc.

So how do you overcome this? As you mentioned, perhaps take it off for 30days to reset the CDOM counter, not the DOM counter. Use the selling remarks to update the listing. New and Improved--or some type of wording to show what has changed. Change the pictures.

I don't think it is a big deal, you just have to be able to explain it or change the price. It sounds like you are in the right zone, but there might be something missing if you are that far under market and no one is still making offers. I'm almost wondering if the CMA is correct or should be run a different way? Are we comparing apples to apples. You might post your email address here and the address of the house and have 10 agents run a CMA for you and see what they say about pricing just based solely on CMA without seeing the house.
0 votes Thank Flag Link Mon Jan 21, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
That is a good question. Sometimes we see a house that has been on the market for a few months and we wonder why. When we look at the history we find out that it actually was bought by an investor, renovated and made available for sale again.

I believe most MLS boards have a minimum number of days that the house needs to be off the market in order to reset the Days on Market (DOM) counter. The idea behind it is to prevent sellers/listing agents from manipulating the DOM by cancelling a list and re-listing the house immediately.

I believe the DOM has a psychological impact on how buyers perceive the house. The higher the DOM the more likely it is for buyers to think there is something wrong with the property. Also, buyers may ask the reason for the high DOM and will learn that the house sold a few weeks ago for much less than the asking price. Some buyers may not agree to pay the current asking price.

Good luck!

Jose Dias, REALTOR
(623) 418-5700
Jose@MyFirstHouseAZ.com
http://www.MyFirstHouseAZ.com
0 votes Thank Flag Link Mon Jan 21, 2013
The home is listed at $89/sq ft and most in the area are at least $105/sq ft. It has Horrible curb appeal bc it looks way too modern! Has no curb front deminsion or interest at all. It was intially listed a year ago and has been taken off the market for at least 30 days- to reset the DOM count. My realtor is telling us that even after we improve the front of the house and de-modernize it that furture buyers will pull up the property's history and be discouraged that it Had been on the market for so long prior to our buying it.
0 votes Thank Flag Link Mon Jan 21, 2013
Fully renovated, move-in ready homes are selling for significantly higher than average houses that need updating- most buyers can't see past an ugly facade or outdated kitchen or ugly wallpaper. If you do quality improvements to the facade of the house and give the house great curb appeal then buyers won't care if it was on the market for a long time prior to renovations being done (just have Realtor explain what was done in Private Remarks so agents will know what improvements have been completed and why it was on the market for so long).
Flag Mon Jan 21, 2013
If it had been off the market for more than 30 days while it was being renovated then it will show up as a new listing. If someone does an MLS search for the address then it would pull up the old listing as well as the current one. Some people do renovations and then raise the price. Most buyers will not look at a house if the new price is higher than the original price (unless significant improvements were made).
0 votes Thank Flag Link Mon Jan 21, 2013
It depends on the improvements and the price point of the property.

Kenny
Turtle Creek Realty
0 votes Thank Flag Link Mon Jan 21, 2013
If the property has been off the market for 30 days or more the DOM resets to -0-
0 votes Thank Flag Link Mon Jan 21, 2013
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