Introduction
In most cases, a buyer's first question is how long a home has been available for sale. The days a property is listed for sale on the MLS before going pending is referred to as its "days on market" (DOM). Pending status indicates that the seller has accepted an offer but that the sale has not yet closed. The number of days a home is on the market depends on numerous variables. Elements include market forces, levels of competition, and standards for display. It is common for real estate brokers to "relist" property to make it appear like it has less time on the market.
Average Days on Market
A common term among real estate professionals, "average days on market" (DOM), is calculated by tallying up the total number of days a listing has been available for sale and then dividing that figure by the total number of available listings. Typically, the DOM will be longer in a buyer's market because of the increased time needed to sell available homes. A lower DOM is indicative of a seller's market.
The DOM is calculated by looking at the days a property was on the market before being sold, typically within the last six months. On December 2nd, for instance, six listings became pending. Offers were accepted on three properties after five days on the market, one after 21 days, and both after 30 days. We get 96 days from adding up all the days a listing has been available. If you take the total number of days a house can be listed (96) and divide it by the number of houses now available (six), you get 16.
Reasons That Days On The Market Can Be High
It's a good idea to talk to a real estate agent if you're concerned that a house has been on the market for too long. If a house isn't selling quickly, taking it off the market, resetting the number of days on the market to zero, and fixing a few obvious problems could solve the problem. Several factors can contribute to a long time on the market for that particular home.
Home Price
One of the most crucial steps in selling a house is setting the right price. Occasionally, the agent will set the price too high. The result is that the listing receives a price drop status on all real estate portals. Having buyers suspect there might be problems with the house due to this is unfortunate. Also, there are times when sellers overestimate the value of their home for various reasons, such as when the owner has done numerous modifications that do not add to the value.
Condition of Home
New construction and "turn key" properties are favourites among buyers. However, the house isn't in good enough shape to attract purchasers. As soon as it becomes clear that a house isn't selling, the owner may decide to invest in some repairs and updates. Since there shouldn't be too much construction when presenting the home, it's best to take it off the market, make the necessary repairs, and then relist homes.
Marketing
Marketing a home is almost as crucial as setting the right price. There's a chance the broker didn't do a good job with the photos or description. Perhaps they just haven't kept up with the times in terms of their social media strategy. Several considerations go into effective real estate marketing. There are instances when a home's "brand image" could use a refresh, and the seller would benefit from pulling it temporarily from the sale.
Relisting to Reset the DOM
Some real estate agents may remove a property from the Multiple Listing Service (MLS) after a set period and then re-list it as if it were first listed. Due to the deceptive nature of this tactic, many consumers find it offensive. It's not a true representation of the DOM, and it could hurt the house's sales if potential buyers find out about it.
Conclusion
In real estate parlance, "days on the market" measures how long a listing is available for purchase before going into "pending" status. Pending status indicates a contract has been made and accepted on a residence. The number of days a house has been on the market (DOM) is one-factor buyers consider. If this figure begins to creep upwards, it should warn prospective buyers that something may be amiss. Following that, they look at how many days on market houses in their area typically spend. Seeing how quickly similar homes have sold is helpful.
