You may have seen the abbreviation DOM on real estate listings and what this means is “Days on Market”. This is the number of days a home or property listing has been active on the market consecutively. Even if the property is re-listed by another real estate agent within a short amount of time, the DOM does not change.
In order for the days on market to drastically change the property either needs to be sold or taken off the market for at least three months. However, any buyer is able to ask their buyers agent on previous listings or activity on the property over the last 5 to 10 years. This can show whether the property has been pulled off of the market, sat for a while and then reenlisted within a few months. This may be a good way to get more interest in a property especially if it has sat on the market for several months.
On the other hand, many homes may sit for several months, if not a couple of years depending on the sellers, the profits needed, and the current market in the area. The average days on market are typically 30 to 90 days depending on how a home is priced and how well it is marketed. Once a home has an offer it takes approximately 30 to 45 days to close depending on mutual negotiations between the buyer and the seller. On average, it takes about 30 days for a home loan, financing contingency, appraisal and inspection to all be satisfied and completed in order for the property to close.
Read more: How Should I Price my Portland Home?
If the home has sat on the market longer than three months it may be time to drop the price or consider a new selling strategy. If the home needs work, updating or the price needs to be lowered, sellers should consider doing all of these things if they really want the home sold. Most sellers don't like to sit on the market much longer than they have to so by creating a home that is desired for the right price creates the buzz needed to get buyers to the door and an offer on the table.
As a buyer, you might be leery on a home that has had numerous DOM but it could be that the right buyer just hasn't come along. You might be surprised as to what sellers will take especially if the home has sat on the market for several months. They might be getting more and more motivated and may take a lower offer. There may not be anything wrong with the home but the price just might be too high. Remember, the home must appraise for the price offered as well otherwise buyers will either need to make up the difference or the seller will need to lower the price.
Knowing DOM is a good way to get a sense of how urgent and offer might be accepted on a property. If a home is newly listed it might have many offers so you might be fighting against multiple buyers. The longer home has sat on the market the less interested usually create which allows buyers a little more time in negotiating for their price. Start here for all new Portland homes on the market.