How can I find out which areas has the lowest market time on lowest days on market

Question

Hi I am looking to invest in a market and I'm also looking to find out how I can find which areas in Illinois have the lowest days on market, and quickest sale time periods In Illinois, please send me a website or link i can look at to find!

Thanks I am buying residentual real estate , renovating them, and reselling them and looking for the most desirable markets in Illinois

John Moore · Answer

Answering Seth's question about the DOM advantage - the hotter a market area is with lower DOM it signals to potential buyers a number of things: 1. it tells them that they better move fast with an offer or lose it 2. its tells them to put forth their best offer up front instead of playing games (which is typical negotiation strategy) 3. It also tells potential buyers that if they mess around and argue over piddly repairs, that I can just drop/refuse the repair request because I know that I have more offers right around the corner.

As a general rule, you will never get as much attention or offers as you do in the first 30 days of going active on the market. Short DOM are a blessing and very desirable to investors because it usually (not always) means that buyers are driving up the prices via supply-demand pressures. As an example, I recently had a flip in SA in a very desirable community called Blossom Park, its not high priced or wealthy by any stretch but its a nice central area and homes are in the $150,000 and under range which is HOT HOT HOT right now. When we bought the property in October it had an ARV of $115. My wife Irene is our General Contractor and we typically do a higher grade remodel than most (granite, canned lights, designer paint scheme, custom tile) so we get slightly better sell prices but the recent short DOM sales had created a lot of pent up demand for the neighborhood and I knew that. We went with a gamble and list it at $135,000 and the day we put the sign out front (and before i actually hit "active" on the MLS i got an offer for $138,500 and then the next day it went live and we got two more offers both for $140,000 with no seller closing costs! So for me - that is what short DOM means. The only time I have seen a property go up in price as it sat for a longer period of time in Austin and in one of the super hot neighborhoods like Travis Heights where home sales were going up so fast that the comps increased sold prices in 90 days enough to justify a price increase - but thats Austin and it ain't normal, they're keepin it weird like that :-)

Josh Caldwell · Answer

You can pull that sort of data from the MLS system but it is regionalized. Call up a local agent, tell him/her what data you are looking for, and buy from the one who takes the time to gather that data for you.

to your success

Josh

to your success

Josh

John Moore · Answer

In Texas a lot of Title companies keep track of that stuff and so do the local Board of Realtors and many of them will gladly give the info out on their websites or upon request. but of course if you ask, they will likely refer you to a licensed Realtor who can run up to the day MLS reports and give you a more accurate real time snapshot of any particular area.

Seth Nadreau · Answer

I'm curious why the focus is on shorter DOM.

Typically, unless the market is on fire, you are leaving money on the table by selling too quickly.

Would you rather turn a property in 30 days? Or turn it in 60 and put 10% more in your pocket?Sure, the numbers are non-specific, but most lending institutions anticipate maximum value to be obtained with 90 - 120 days exposure. Many of my appraisal clients require a 90-120 day value and a less-than-30 day value... and rarely are these numbers the same.Regardless, to answer your original question, an agent can run a market CMA or two for you. Just make sure he/she omits short sales as these tend to have high DOM and can skew your data greatly.I have friends that work in real estate in Chicago if you need help finding an agent.

JOAN DICKIE · Answer

Short days on market is a double edged concept.  It means you can sell your flip quickly, but it can also mean that you likely won't find many deals to buy over the MLS.

How can I find out which areas has the lowest market time on lowest days on market

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