DOM – Days on Market: What does that mean?
Every home for sale has a statistic called “Days on the Market”. Many MLS systems will abbreviate this to DOM. Throughout this year, so many buyers will ask “how many days has this home been on the market”?
The number of days on the market can be a different market indicator during different real estate market trends. So I wanted to give my explanation and opinion of the DOM stat. (Buyers Market or Sellers Market).
During a ruthless “sellers’ market” and the inventory of homes for sale & “ACTIVE” in our MLS Database was very low, the “Days on Market” stat could cause a Realtor or a Buyer to ask…..”Hmmmmm, why has this home been on the market so long?” My gut reaction might be….”what’s wrong with this listing?”
In a “sellers’ market”, if a home is priced competitively, the seller might end up with multiple offers within a week. So, if a home during a seller market had been on the market for 200 days, that might make buyers and Realtors curious as to why??
In our current market – which is a “Buyers’ Market”, the DOM stat on most listings will have a different meaning. If the MLS Database has a high number of homes for sale, that means extreme competition for any home for sale. All the homes are competing for the same buyers. It “WILL” take longer to sell.
Currently in the Gainesville-Alachua County MLS, if a buyer was wanting to see how many homes are for sale – that number is 2,542 single family homes. This means we have a high inventory. The more homes for sale, then the “longer” the homes are on the market. The specific “DAYS ON THE MARKET” does not have a negative connotation in a slow market – but it does make most Realtors do a bit more investigating. If you are a buyer now, just ask your Buyers’ agent/Realtor to does some investigating!
- Since being on the market, has that home had any “price reductions”?
- The buyers’ Realtor should pick up the phone, call the listing agent and “ask questions”.
- Listing agents will share information! They will share feedback from other Realtors. Their goal is to get the home sold for their clients (the sellers).
- Is the home “over priced”? (Look for closed sales in the area & compare)
- Is the listing a “short sale” or “foreclosure”?
- If you are concerned about the condition of the home, or if it needs updating, or the curb appeal is bad….then go preview the home for your buyers!
The more a Realtor knows about a home listed in the MLS, the better a job they will do when answering a buyers questions.
Knowledge is Power!
******** Written and Posted By: Chris Bohn, GRI- ABR-ePro– Gainesville FL Real Estate Copyright © 2008 Chris Bohn, RE/MAX Professionals, Inc., is a Florida Realtor® who specializes in Gainesville, FL and communities in Alachua County, FL .