Oh, the dreaded/happy DOM question: "How long has this house been up for sale?" If it's your home for sale we're talking about, you're probably wondering about the split "dreaded/happy" bit. For that matter, whether you're a buyer or a seller, you're probably asking, "what the heck is 'DOM'?"
Days On Market
"DOM" is the shortened industry term for Days On Market, used by the multiple listing services. It's exactly what it sounds like: the number of days your home for sale has been on the market. This metric covers the time it actually goes on sale to the time the deal is closed.
Why Is DOM Important?
Remember the "dreaded/happy" part at the beginning of this article? As a buyer's agent, I might gleefully answer, "Fifty days." I say "gleefully," because a house that has sat on the market for a long time is a good thing for my client.
The seller is probably more eager to sell than a month before, and is most likely willing to work a deal. An eager seller makes a happy buyer in most cases.
On the other hand, as a seller's agent, I might not be so happy about it, and for the same reason. My seller is now an eager seller. I want to get the best deal for my client, but I know the buyer has the upper hand. It is then up to me to help my client get the home sold without giving away the barn, the pool, the tool shed and the tools.
Already, you may be beginning to understand how the DOM metric can affect the sale of your home.
The problem with the DOM metric is that it causes buyers and agents to build false assumptions. If a home has been on the market for an above-average length of time, we start to wonder, "what's the matter with that listing?" Even though I know there are other reasons for a home to go static and not sell, many people automatically think there's something wrong.
Reasons For An Extended DOM Metric:
- The Home May Be Overpriced – Nothing is wrong with the property itself; it's just priced too high.
- Testing The Market – Although it's a big mistake and agents will tell you so, some sellers test the market by throwing a high price on a home they don't care if they sell – just to see if somebody is foolish enough to take it.
- Sticking To Your Guns – Often, sellers get fixed on a price and won't budge, come hell or high water. They figure they can wait around until the market can meet their price, not the other way around.
- Renovations – Sometimes, a home will go on the market in the middle of renovations. The sellers aren't ready to let the home be seen, so it just sits there.
- Availability – A growing problem is the lack of access to a home for sale. Sadly, agents and FSBOs alike seem to be unavailable when a buyer wants to view the home. Obviously, no viewing means no sale.
Don't let your DOM get high because of simple mistakes. If you're serious about selling your home, remember the five reasons above and make sure you aren't doing them.
If you're ready to sell your home with a professional who understands how to keep the DOM to a minimum, contact your real estate professional today.