Let’s look at real estate ~ days on the market

Let’s look at real estate ~ days on the market

Let’s look at real estate ~ days on the market. What does it mean?

Days on the market  (DOM) is a calculation based upon the number of days a property is for sale.   Days on Market is calculated from the date when a property first comes on the market (list date) to the time it is taken off the market due to a sale (contract date) or off market condition (off market date).  If a property changes between Active and other statuses during the life of the listing(s), the cumulative on market time is tracked.

Regardless of a buyers experience in the real estatemarket most have one question in mind... “How many days on the market?” The number of days on the market tells a story, whether fact or fiction it is buyer perception. It’s a key factor in buyers or sellers markets.

If a buyer is sincerely in the market to buy and not just “kick the tires” they are watching for new properties to come onto the market. They may even receive alerts in their email from their buyer agent so they are the first to know about the next available property in the area they are looking.

During the first few days on the market the property is fresh and appealing, the excitement is at its maximum. Buyers expectations are set high with the prospect of a new listing to view. The property should be inline with the price with regard to location, condition and amenities.

For example if a buyer is looking for a move-in-ready property and the listing/property is  photographed well and appears fresh and clean online the buyers naturally want to know more. They read the remarks on the listing and the details of it’s amenities. Words like “new & updated” lead them to believe they have a possible match. The next step is to take a look in person, schedule a showing with your realtor.

Average Days on the market is the middle or typical amount of days a property takes to sell in a specific location based on historic data. Average DOM sets the bar for the market.  If a location has properties that remain on the market for longer than the average DOM we need to stop, take notice and understand why. The opposite is also true, if a property goes under contract faster than expected or below average DOM  we need to stop, take notice and understand why.

Above average DOM and the buyers assume (never a good idea) that the property has issues or is overpriced. Both of those ideas open the seller up for questions, negotiations and lower than list price offers. Higher days on the market can occur for a number of reasons. Maybe there are too many properties available creating a buyers market.

Below average days on the market and you have not just a fresh property that intrigued buyers but also one that is likely properly priced for it’s location, condition and amenities. If there is high demand, not enough inventory, a sellers market is likely.

Let’s look at real estate ~ days on the market