DOM (Days on Market) and How it Affects Home Buyers and Sellers
Days on Market in Real Estate
When we speak with someone who wants to sell their home, there are two factors that usually come into play – (1) price and (2) timing. Many times sellers tell us that they are not in a hurry, and are willing to wait until they get their price. On the other hand, some sellers are ready to move and price their home accordingly in the current real estate market.
How long do you think it should take to sell a home? How long do you feel the buying process should take? Many home buyers and sellers may guess at that number, but did you know that you can actually view it from a statistical standpoint?
When a home is listed for sale, that time begins to be calculated using “Days on Market” or DOM. This factor tracks the time from the home’s first entrance into the multiple listing service (“MLS”) until an offer has been made and accepted by the seller – effectively, active marketing time. Once an offer has been accepted, the home’s status changes to a “back-up” versus active status in our MLS.
Cumulative Days on Market
In our multiple listing service, there is a second measurement of days on market that shows as CDOM – “cumulative days on market”. This can give a more complete picture of how long a property has been on the market and is supposed to include prior active listing days. You might see days on market in this format: 45/190, meaning the property has been on the market for 45 days currently but 190 days CDOM (including, perhaps, a listing that was cancelled and then the property was relisted).
Marketing Time in Real Estate
How does this affect real estate? Well, if a home has been on the market for a longer period of time, home buyers may think that a seller might be more ready and willing to negotiate on price.
The DOM figure can be a helpful guideline to home sellers, as well. Property condition, location, interest rates and other real estate and financial market factors can result in increased and decreased DOM statistics.
Balancing Days on Market with Price
Obviously, home sellers want to maximize their sales price. And, also as understandable, home buyers want to make a prudent home purchase. Finding the right balance of price and home selling time is what will help both the home seller and the home buyer achieve their real estate goals.
La Canada real estate – Days on Market stats
Let’s take a look at a one year history of days on the market for single family homes in La Canada Flintridge (zip code 91011) –
If you are buying or selling a home in La Canada Flintridge 91011, this is useful information for you to know. Ask your real estate agent to provide you with DOM and CDOM statistics for your area.