When it comes to real estate, it’s important to understand the lingo.
Buying a home is a tricky business, involving an intricate dance between seller and buyer. Understanding what a home’s “days on market” (DOM) means is a big part of making the right buying decision.
This is because a home’s market time can impact the price it commands. And if you’re a home buyer, knowing a home’s DOM can help you negotiate the best deal possible.
So, let’s look at everything you need to know about days on market and how this can be turned to your advantage.
“Days on Market”: What It Means
So what does DOM mean in real estate?
In a nutshell, a home’s days on market represents the number of days that property has been on the local multiple listing service (MLS) until it’s sold. It’s also known as a home’s “market time,” and it’s a good way of gauging what other buyers are thinking about a home.
There are several reasons why a home might have a high days on market number. The most obvious reason is that the home is simply overpriced for the market. It’s an indication that the seller has either misread the local market, or is testing the waters and isn’t really serious about selling the home.
On the other hand, the home might be priced more or less accurately, but other factors—such as the nature or condition of the neighborhood—are working to mitigate the home’s value.
So, when you start looking for a home, be sure to consider these factors during your search.
What Buyers Need to Know
As a buyer, an important thing to know about DOM is that it can be used to your advantage.
Of course, it’s possible that a home with a high DOM may indicate an unserious seller who isn’t willing to accept a lower price. This is why it’s crucial not to become overly emotional about a certain home, and steer clear of sellers who aren’t serious about selling their homes.
But, on the other hand, a high DOM may indicate a seller who hasn’t received any offers, since the home has been overlooked by most buyers. In this case, there’s an opportunity to make a much lower offer. The weary seller might be looking for just such a chance.
After all, what do you have to lose? Nothing ventured, nothing gained.
What Sellers Need to Know
What should you do if you’re selling a home with a high days on market number?
Oftentimes, the reason for this high number is that a seller imagines their home is worth more than it is, and won’t accept anything less. But remember that homebuyers set the market numbers.
So the best home selling tips are to check out the comparables in your area and consult with your agent to set a realistic price for your home.
Know Before You Buy
If you’re a seller, a high days on market value can sink your home’s chances. But if you’re a buyer, don’t overlook a home with a high DOM—there just might be a hidden opportunity.
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