DOM stands for Days on Market—indicative of the term, DOM represents the number of days a property has been listed. DOM usually provides you information on how long it takes to sell a home from listing to pending status in the current market temperature. Real estate agents obtain “average days on market” by totaling all of the days on the list of each property and dividing the total by the number of listings.
Buyers would usually want to see the history of the property, and are often inquisitive about the DOM of the listings they’re considering. Homebuyers often wonder the reason why a property stays in a listing for longer compared to its competitions. People hold onto their properties for a range of different reasons. However it is important to know aspects of DOM to make an informed decision on a property.
DOM is used as a thermometer of the market
Across several listings in one or multiple areas, the length of time it takes for someone to sell a house is often an indication of how the real estate market is fairing. Days on Market can be a big indication of whether the current time is a buyer’s market, a seller’s market, or even a neutral market. Knowing your DOM would prove to be a good resource for both homebuyers and sellers alike.
Homebuyers do pay attention to DOM
Homebuyers tend to wonder why a certain listing has been active for a long period of time. This would especially become apparent when compared to the competitors around the area. Potential buyers tend to wonder if there is anything faulty with the property or if there is other underlying issues that might influence the length of time it takes for a property to sell.
Multiple Listing Service (MLS)
MLS contain a large number of data of property’s features as well as other relevant information in real estate sales. This is one of the listings people go to in order to obtain data on properties’ DOM. An individual generally is not able to put their listing directly to the MLS, as the membership is often restricted to real estate brokers and agents who are licensed or are members of associations. MLS are highly controlled by the real estate industry. Resourceful real estate agents would be able to research the accurate length of how long a property has been on active listings. It is a bit difficult for the general public to obtain information, but not improbable with the right, resourceful aid.
A property is overpriced for a range of reasons. Often time, the price of a property is not adjusted to the “temperature” of the market. This is a very common mistake sellers make. A lot of sellers do not take their time in learning the current state of the market. Selling a house for a high asking price in a cold market may lead to “period of silence” until the listing price is lowered. Sometimes, sellers have not assessed the value of their property well, often leading to a much higher asking price compared to what a real estate agent or an appraiser would value their property for.
Some people do the practice of re-listing in order to start the days of their listings. This is done because homebuyers tend to gravitate towards new listings. This could be very misleading for potential homebuyers. Sometimes re-listing needs to be done because a the property’s listing has expired. It is possible to gain an accurate information on a listing’s DOM if consult a neighborhood specialist, especially if this is a concern for you.