DABOs

The term DABO, which realtors will bandy about effortlessly, means Deposit Accepted By Owner. What is really means is that there is not only an accepted offer but that contracts have been written and the parties have gotten through attorney review. Attorney review in New Jersey last a minimum of three FULL business days and usually the attorneys extend it, typically it lasts 5-6 days. Once the contract is completed and agreed upon by both the seller and buyer and their attorneys, a second deposit will be required and will be held by the seller's attorney. The initial $1000 good faith deposit given at the time of the offer is usually held in the realtor's escrow account and later that money is sent to the seller's attorney. Most second deposits are expected to be sent by the buyer within ten days of the end of attorney review. So technically, when a property comes up DABO on our Multiple Listing Service, the second deposit has not been given in most cases. From a practical standpoint, DABO on the MLS means the contract is solid and the property is out of attorney review.

The serious lack of DABOs on the MLS right now is the greatest indication of how soft the current market is. Though a DABO listing does not give the informaton on what the agreed price was (it is confidential until the closing), a good realtor can generally guess based on number of days on the market about what price the property went for. DABOs are often the single best way to determine where the market prices are, realistically, right now. Appraisers need three sales from the last six months to comp a property and determine value, but DABOs, for the purpose of pricing and knowing what to pay as a buyer, are even more useful.