What are days on market?
If you are house shopping, you may already be looking at DOM (days on market) when researching listings. Why is that data important? Well, if it’s new to the market, it means the seller is not likely to take a low bid. It hasn’t been available long enough to be “sitting”. Alternatively, if a house has been on the market for 48 days, the assumption is that the public is not valuing that property at its list price. That is why it hasn’t sold. If the seller is realistic and actually wants to sell the property, he or she should be prepared to accept a lower offer. As a rule, old listings are more likely to sell below list price than at or above it.
How do days on market translate to buyer urgency?
Another piece of information you can learn from days on market is how quickly you, as a home buyer, need to get in to see the property. If it has been on the market for a while, it probably means the intitial buzz has died down and it’s unlikely there are lots of showings. If it’s brand new to the market, it’s bound to have lots of showings, so if you think it might be a good fit for you, be sure to make an appointment as soon as possible so it’s not gone before you’ve had a chance to see it.
What is CDOM?
Another MLS entry you might see is CDOM. It represents cumulative days on market. Here’s what it means: sometimes, a property is for sale and then it’s taken off the market and relisted. If fewer than 60 days have elapsed since it was removed and relisted, the number of days it had previously been on the market are added to the current days on market so buyers can see it is not exactly “brand new” to the market. Then your agent can help you learn about the pricing history, when it was originally listed and other specifics that can help you obtain a clearer picture of the scenario. This information may enable you to make a more strategic offer.
Days on market takeaway
The moral of the story is that people often pay no attention to the number of days a property has been on the market, but that metric can provide valuable insight into how competitive an offer needs to be. In a perfect world, your real estate agent should not only be monitoring days on market as well as other ancillary entries for any MLS listings you are considering, but also explaining to you how and why they matter and what they can tell you.
If you are relocating to the Philadelphia/Main Line area, please go to my blog page and search for posts using the relocation tag. Contact me to discuss your Philadelphia area relocation! jen@jenniferlebow.com/610 308-5973
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