To be honest, these stats do not have as much value as many assume:
Q: What is the average days on market?
A: This TOTALLY depends on the house, condition, price, marketing, current market conditions â€¦ AND your Realtor. Homes that are prepared well, priced competitively AND marketed well have a habit of disappearing off the market very quickly, regardless of current market conditions. The better a home is prepared AND the better it is priced, the better a â€œdealâ€ it appears to be thus more attractive to buyers. In fact, these homes can quickly garner multiple offers and be off the market in a few days.
Sellers always ask me what my DOM ratio is â€“ itâ€™s really a worthless number. I tell my sellers, â€œQuite frankly, that depends on YOU.â€ As an example, if I have a non-FHA approved condo in poor condition and a seller who is unwilling to price it correctly â€¦ it could be there a long time no matter how aggressively I market it. Using the DOM as an evaluation of my abilities as an agent would be worthless in this case. On the other hand, if I work with an extremely motivated seller who understands the basics, lets me prep the property to the max and prices below the market â€“ I look like a genius with an extremely low DOM number. Again â€¦ in light of the overall market â€“ a meaningless number.
IF, however, your home has been sitting on the market a long time, DOM can be used to identify that the property has some issues, could be priced too high â€¦ etc. In that case, DOM actually has value â€“ not for the market as whole, but for that particular property.
Q: How does that change from listing date to sale date.
A: DOM is usually measured from list date to pending date.
Q: How many homes sell for original list price?
A: Again, this is a rather worthless number â€“ some listing agents are willing to set list prices too high simply to get the listing. If that particular agent has a number of homes on the market that are overpriced, the list-to-sale price ration is worthless because many homes were valued too high to begin with. In addition, since this is an average number, it does not reflect property condition from home to home, nor is it a reflection of how the home may have been improved, staged, marketed, etc.
If the area has a number of high-end homes that are priced â€œoptimisticallyâ€ and not selling, yet the bottom of the market is red hot with well-priced homes, then the list-to-sale price ratio could be off by many hundred thousand dollars. As an example, average list price could be $1,150,000 but average sale price could be $780,000 â€¦ a huge and meaningless differential. It does not mean a home going on the market at $1,150,000 will sell for $780,000 â€¦ it simply means that the lower priced homes are selling and the higher priced homes â€¦ are not.
As an extreme example, if you look at the average list price of Clayton, it is $934,000. Average sales price is â€¦ $464,000. ???? Unless you know that there is a home on the market for $6,000,000 and 8 homes priced over $1,000,000 (out of 47 homes) â€“ one with DOM of 644 days, one at 530 days and others at 345, 207, 160 â€¦ the numbers can be absolutely meaningless.
Iâ€™d recommend you meet with a couple of agents and discuss the local area numbers with them â€“ make sure they explain them to you CORRECTLY â€“ you can use stats to prove almost anything and, in many cases, be dead wrong.