What Does ‘Days on Market’ Mean and Why Does It Matter to Home Buyers?
Let me give you a sweet analogy: Think of a home on the market as your favorite pastry or bread. Freshly baked breads are the best, and most of them, if they are not already, are better than any other type. Bread becomes less appealing as it ages, and this makes it less appealing. This same principle can be applied to listings. Prospective buyers become more interested in a property as it sits on the market for longer periods of time. This is a significant factor in real estate transactions.
The National Association of Realtors defines days on market (often abbreviated DOM) as the time between the day the property was listed on local brokers’ multiple listing service (MLS) and the date the seller signed a contract to sell the property.
The DOM, also known as “days on the market”, is a measure of how quickly a house sells. Buyers and agents use DOM to determine which homes are new to the real-estate market.
- DOM is a search filter
Buyers and agents can use DOM to search for homes that have been on the market for a long period of time.
- The market’s hotness is indicated by the DOM.
A market’s average days on the market can be used to indicate how hot a market is in a specific area. In a seller’s market, where there are more buyers than homes for sale, days on the market are shorter because of high demand.
- HigherDOM = “Is something wrong with your house?”
A home that is being listed on the market for sale is expected to sell quickly. Because homes attract the most interest when they are new, this is why it is common for them to sell quickly. It could indicate that there was a lot of interest in the property or it was priced too low, but still a good deal.
There are more days that the house is on the market, so it’s more likely that people will wonder if something is wrong. The house might be beautiful, but it could be too expensive, require staging help, or not desirable by most buyers. Buyers might also think the seller is lazy, inflexible, or unwilling to show their home.
- HigherDOM = A potential bargain
A house with a high DOM is a good deal. A house with a high DOM can be a sign of a bargain, especially from sellers who aren’t receiving offers but may be open for a lower offer. If there are many houses for sale in the area, the longer the house has been on the market, the days can be a negotiation tool for the buyer. Talk to your agent about why the property is on the market so long and the seller’s urgency.
This post was written by Josh Dotoli! Josh is the owner of Josh Dotoli Group which is a laser-focused real estate team at Compass comprised of industry experts selling Fort Lauderdale’s best neighborhoods. This dynamic group is one of the top-selling real estate teams in South Florida with over $94 million in sales in the past 12 months alone. Looking for Harbour Beach Fort Lauderdale homes for sale we are the real estate team for you!