Have you ever come across the term CDOM while browsing real estate listings and wondered what it meant? CDOM and DOM are two acronyms commonly used in the real estate industry. Although similar, they have slightly different meanings. CDOM stands for cumulative days on market, while DOM stands for days on market. Let's explore the difference between the two to gain a better understanding.
Days on Market (DOM)
DOM refers to the number of days a property has been listed for sale in the multiple listing service (MLS). This count starts when a property is listed for sale and continues until it enters the pending status. In some MLS systems, the count may even continue during the contingent listing status. However, the count stops increasing only when the property moves into the pending status. It's crucial for both buyers and sellers to understand the various active listing statuses, such as active contingent and active kick-out, as they impact the DOM. The lower the DOM, the better it is for home buyers.
Cumulative Days on Market (CDOM)
CDOM represents the total number of days from the first listing of a property until it goes pending for the last time before being sold. It takes into account the previous listings of a home. For instance, if a home was listed for 90 days with company A and then relisted with company B, the original 90 days would add to the listing history. Therefore, moving forward, there would be a total of 90 days included in the CDOM for the property. The CDOM only resets to zero if the property remains off the market for a certain period, which varies across MLS systems.
By now, you might wonder why there are so many abbreviations in real estate. Another term associated with the length of time a property has been on the market is ADOM, which stands for agent days on market. ADOM represents the number of days a house has been listed for sale with a particular real estate agent. Depending on MLS rules, the days on market for a property listed with the same agent may carry forward to a new listing. This rule exists to prevent agents from resetting days on market to zero, as it would provide an inaccurate representation of the property.
The Benefits of Having a Lower CDOM
When selling real estate, the time a home spends on the market has a direct impact on its selling price. Properties with a higher number of days on market tend to attract lower offers from potential buyers. On the other hand, when a home is listed accurately from the beginning, it has a higher chance of selling quickly and for more money. A high DOM can be detrimental to home sellers. Therefore, it is crucial to have an accurate comparative market analysis (CMA) to correctly price the property.
Other Days on Market Abbreviations to Know
In addition to CDOM and DOM, there are a few other abbreviations related to days on market that you may come across. LDOM stands for listing days on market, which is essentially the same as DOM. PDOM stands for days on market since price change.
Summary of Days on Market Acronyms
- DOM = days on market
- CDOM = cumulative days on market
- ADOM = agent days on market
- PDOM = days on market since price change
- LDOM = listing days on market
Final Thoughts
The duration for which a home has been listed for sale is a critical statistic that both buyers and sellers should understand. There is a direct correlation between how long a home has been on the market and its final sale price. The longer a home remains listed, the greater the chance of it selling for less. By grasping the concepts of DOM, CDOM, and ADOM, you can make more informed decisions in the real estate market.
About the Author: Bill Gassett, a nationally recognized leader in the real estate field, provided the above information on the meaning of CDOM in real estate. With over 35 years of experience, Bill has helped numerous individuals move in and out of many towns in the Metrowest area. Reach out to Bill via email at [email protected] or by phone at 508-625-0191. If you are considering selling your home, Bill's passion for real estate and his marketing expertise can be an invaluable asset to you.
