0 Days on market adjustments Posted by Tyrone Henderson on March 28, 2009 at 1:49pm in Uncategorized Does anyone have a formula for making dom adjustments on a bpo?Thanks You need to be a member of REO Pro Network to add comments! Join REO Pro Network Email me when people reply – Follow
First you need to figure out the average % of decline in your area per month, then for comp properties listed over 90 - 120 days I minus that % out for the number of months over either the 90 or 180 marker. I also take into consideration the area of town for my DOM average because 'hot' areas tend to have an shorter average DOM, where 'not as desireable' areas tend to have a longer DOM.
Say your market area is declining 1% per month.
A comp you are using is priced at $200,000 and has been on the market for 365 days. Using the 120 adjustment, just minus the 1% decline for 6 months or $200,000 minus 6% = $188,000. Then take the difference as an adjustment value which would be <$12,000>. However, be sure to check the listing history of the compable you are using to check to see if the agent has not already been reducing the listing price the approprate %.
Hope this makes sense.
Regina P. Brown