What Does “Days on Market” Mean and Why Should Buyers Care?
If you’ve been scrolling through home listings, you’ve probably noticed a little detail called “Days on Market” (DOM). But what exactly does it mean, and more importantly, why should you care as a buyer? Let’s break it down!
What is Days on Market (DOM)?
DOM refers to the number of days a home has been listed for sale before it gets an accepted offer. It starts counting from the day the home hits the market and stops when a seller accepts an offer. If a deal falls through and the home gets relisted, the count may restart, depending on how long it was off the market.
Why Does DOM Matter for Buyers?
It Can Indicate Pricing Strategy
A home with a low DOM (just a few days or weeks) often means it’s priced competitively and is in high demand. A home sitting on the market for a while could suggest it was priced too high initially, and the seller may now be more open to negotiations.
It Helps You Spot Hidden Gems
Sometimes, a home with a higher DOM isn’t a bad thing. Maybe it was overlooked due to bad listing photos, poor marketing, or a previous deal falling through. If you’re willing to dig a little deeper, you might find a great home with less competition!
It Gives You Insight Into the Market
If homes in your area are selling quickly (low DOM), it’s a sign of a seller’s market—meaning high demand and potential bidding wars. A higher average DOM suggests a buyer’s market, where you may have more negotiating power.
It Can Signal Room for Negotiation
A seller with a home sitting on the market for months may be more motivated to accept a lower offer or include perks like covering closing costs or repairs. If you see a high DOM, don’t be afraid to ask if there’s flexibility on price!
What’s Considered a “High” or “Low” DOM?
There’s no magic number, as it varies by location and market conditions. In a hot market, homes might sell in just a few days. In a slower market, homes may sit for a month or longer. Checking the average DOM in your area can help set expectations.
DOM is just one piece of the puzzle when buying a home. While it can give you useful insights, always consider the full picture—pricing, condition, location, and your personal needs. If you see a home with a high DOM, don’t dismiss it immediately. Instead, ask why! You might just find an opportunity to land your dream home at a great price