There are many variables that go into determining the days on market in real estate. However, there are some general rules that can be applied to most markets. In this article, we will discuss the days on market in real estate and provide some tips to help you understand the market conditions.
The NAR or National Association of Realtors has a definition of days on market or DOM as the number of days from when a property is listed for sale on the MLS to the date a seller has executed an agreement for the sale of the home.
In a balanced market, homes will sell in approximately 60-90 days. When it is a very competitive seller’s market with bidding wars going on, homes will sell in a day or two. The trend is slowing now with the increase in interest rates.
What is The Definition of The Days On Market In Real Estate?
The days on market in real estate is the number of days that a property has been listed for sale. This number can vary depending on the market conditions, but generally speaking, the more days a property has been listed, the more difficult it will be to find a buyer.
Homes that are listed for sale with higher DOM indicate a weaker market for the sellers and tend to favor the buyers.
Conversely, homes that are listed for sale with a lower DOM are more likely to be sold quickly and is something commonly seen in a seller’s market.
Relationship Between the Days On Market and Listing Price
The days on market and the price of the property are not always directly related. For example, if a property is newly listed and has fewer days on market, it is likely that the price will be high because there is not a lot of competition. There is generally more inventory for a buyer to choose from.
Conversely, if a property has a higher number of days on market, it may be due to a number of reasons. The home may be overpriced in comparison to other similar homes for sale. The home may also have deferred maintenance and it is apparent to buyers when they walk through the door.
When you are purchasing a property, the DOM will help a buyer to assess the local market conditions. Generally speaking, the longer a property has been on the market, the less it will cost in comparison to the original list price.
A home that has a longer DOM may indicate the list price is higher than the market will bear. The seller may also be unrealistic with their expectations. When a buyer sees a higher number of days on the market, then they think something is wrong with the house and that is why it has not sold. The DOM is a good predictor of the reasons why a home is not selling.
Tips To Help Prevent The Days On Market From Accumulating
The most important tip to ensure your home for sale does not accumulate too many days on market is to price it at market value right from the start. Generally speaking, if a home is priced too high, there is less of an opportunity for it to sell quickly. If a home is priced too high, the property may sit on the market for an extended period of time, ultimately costing you more in lost potential sales.
If you are considering selling your home soon, consider staging it and making some minor updates. This will help make your home look its best from the beginning and could entice buyers to come to take a look sooner rather than later.What Are Days On Market or DOM In Real Estate?Click To Tweet
Benefits of Hiring a Real Estate Agent
Enlist the help of a real estate agent. A professional real estate agent can manage all of the details associated with marketing your home and negotiating with buyers. Listing agents are responsible for the marketing of the home. They will have real estate professional photos taken of the home to ensure the home has a good first impression both online and in-person. Additionally, agents will be familiar with the local real estate market and can advise you on the best way to price your home for sale.
In addition, good agents have access to vast amounts of knowledge about the market and can provide helpful advice about pricing, features, and more. Seasoned real estate agents will have knowledge about the communities, and will provide market data including comparative market analysis. Agents will also provide community information to help a buyer understand the community they are searching in.
So whether you’re thinking about selling your home or just want to get a better idea of what’s available of the services they provide, enlist the help of a real estate agent. These are some of the reasons for the importance of hiring a real estate agent.
Consider Making Repairs Before Listing it for Sale
Additionally, make sure you are taking care of all the necessary repairs prior to selling and maintenance as this will also help reduce the days on market. Finally, be proactive in marketing your home. Put up flyers in your neighborhood and post them online. Make sure you are using all available channels to reach potential buyers so that you can get your property sold as soon as possible.
There are a few things that you can do to improve the days on market in your area. First, you can try to sell your house sooner rather than later. Second, you can price your house fairly and make sure that it is in a desirable location.
Keep in mind a buyer will have a home inspection, so as a seller you may want to have a pre-listing home inspection so repairs can be addressed. Be sure to look at all the systems of the house including plumbing, HVAC, and electricity. If the home is older, the buyer may be concerned about the age of the roof as well.
The days on market in real estate can be an important indicator of the market conditions. However, it is important to remember that the relationship between the days on market and the price of the property is not always clear. A home may have more days on market as a result of the condition of the home.
You should always consult with a real estate agent to get the most accurate information. By following some simple tips, you can help improve the days on market in your area.What is the Definition of Days On Market or DOM In Real Estate?Click To Tweet
About the Author
The article “What Are Days On Market or DOM In Real Estate?” was written by Sharon Paxson, a top Newport Beach Real Estate Agent. With experience beginning in 2005, representing buyers, sellers, and landlords, we welcome the opportunity to share our expertise with you and guide you through your real estate transaction.