Days on Market (DOM): A Complete Guide
Introduction
I love talking about real estate metrics that make a real difference in buying and selling homes. Days on Market (DOM) is one of those numbers that tells us so much about a property and the local market conditions. Whether you're buying or selling, this number can be your secret weapon in making smart real estate decisions.
Days On Market (DOM): Days On Market (DOM) refers to the number of days a property remains actively listed for sale, starting from when it first appears on the Multiple Listing Service (MLS) until a sales contract is signed or the listing is withdrawn. This metric helps indicate how quickly properties are selling in a particular market and can reflect both property desirability and overall market conditions.
Understanding DOM in Today's Market
The math behind DOM is simple - start counting from the day a property hits the MLS until it goes under contract or gets taken off the market. But what makes this number truly interesting is how it varies across different areas and seasons. For example, homes in hot urban markets might sell within 5-10 days, while rural properties could take 60-90 days or longer.
Spring and summer typically see shorter DOM numbers, with homes moving faster during these peak selling seasons. Winter often brings longer DOM, though this isn't always bad news - it might just mean fewer buyers are looking.
Why DOM Matters
DOM affects everything from your selling price to your bargaining position. A house sitting on the market for 100 days tells a different story than one that's been listed for 10 days. Buyers often use DOM as a tool to gauge how much room they have for negotiation. Properties with longer DOM might signal potential issues with condition, pricing, or location.
Common DOM Misconceptions
Let me clear up some confusion about DOM. Some sellers think they can outsmart the system by taking their house off the market and relisting it to reset the DOM clock. While this might work on paper, savvy buyers and agents can still track a property's history. The relationship between price and DOM isn't always straightforward either - an appropriately priced home might still sit on the market due to other factors.
Using DOM to Your Advantage
As a seller:
Price your home right from the start - the first 30 days are critical
Consider a price reduction if you're approaching 60 days without serious offers
Refresh your marketing with new photos or staging if DOM creeps up
As a buyer:
Use high DOM as leverage in price negotiations
Look deeper into why a property has been sitting - you might find a hidden gem
Make stronger offers on low-DOM properties to stand out
DOM in Different Market Conditions
Market conditions dramatically influence what's considered "normal" DOM. In a seller's market, homes might fly off the shelf in days. In a buyer's market, longer DOM becomes standard. The key is comparing current DOM to local market averages rather than national statistics.
Related Metrics
DOM works hand-in-hand with other market indicators. CDOM (Cumulative Days on Market) tracks total time including previous listings. ADOM (Average Days on Market) helps establish local market patterns. These numbers, combined with price reduction history and absorption rates, paint a complete picture of market health.
Conclusion
DOM is a powerful tool for understanding market dynamics and making informed real estate decisions. At Bellhaven Real Estate, we analyze DOM alongside other market indicators to develop winning strategies for our clients. Our team provides detailed market analysis and strategic pricing guidance to help you navigate your real estate transaction successfully. Ready to put this knowledge to work? Let's talk about your real estate goals.