Have you ever come across the abbreviation DOM while browsing real estate listings and wondered what it meant? Well, DOM stands for Days on Market, and it plays a crucial role in the home buying and selling process. In this article, we'll delve into the significance of DOM in real estate and why it should matter to you.
Understanding Days on Market
In simple terms, Days on Market refers to the number of days a property has been listed for sale. It starts counting from the moment the property is entered into the Multiple Listing Service (MLS) and continues until it goes under contract.
Image: What is DOM in Real Estate and Do They Matter
However, it's worth noting that the days on market can sometimes keep accumulating even after the seller accepts an offer and changes the status. This is because there are multiple statuses in the MLS when a property goes under contract, such as contingent, back-up, and pending. Generally, only the "pending" status will halt the DOM clock.
The Value of Days on Market
Days on market can provide valuable insights for home buyers. It offers a snapshot of the real estate market and individual properties. By looking at the DOM, buyers can gather crucial information.
A low number of DOM indicates that the property is newly listed, attracting significant interest from potential buyers. However, it may also suggest that the seller is less open to negotiation due to the property being fresh on the market. On the other hand, a high number of DOM might indicate that the property is overpriced, and the seller is not being realistic. However, it's essential to consider the property's history as well, as a high DOM could also be a result of a price reduction.
The Unchangeable Days on Market
Once a property is listed on the MLS, the days on market cannot be adjusted. It continues to accrue without any possibility of going back. The only way to reset the DOM to zero is if the listing is canceled or expired and then re-entered into the MLS. However, if the property is re-entered within a specific timeframe, the DOM will reset, but the Cumulative Days on Market (CDOM) will remain.
Understanding Cumulative Days on Market
CDOM stands for Cumulative Days on Market, which represents the total number of days a property has been on the market, regardless of any relisting with the same or a different real estate agent. Only by taking the property off the market for a certain period, usually one year, can the DOM and CDOM be completely reset.
Tips for Sellers to Reduce Days on Market
For sellers, it's crucial to keep the DOM as low as possible to achieve a quick sale. Here are some top tips:
1. List Price
Avoid overpricing your home. Setting a practical and competitive price is essential to attracting potential buyers.
2. Access
Ensure your property is easily accessible for showings. Be flexible with showing times and avoid imposing unnecessary restrictions.
3. Appearance
Present your home in the best possible light. Invest in necessary repairs, stage the property, and keep it clean and well-maintained.
4. Negotiation
Stay open-minded and willing to negotiate with potential buyers. Don't let emotions get in the way of a possible sale.
5. Marketing
Invest in professional photography to create a positive first impression. Craft a detailed and informative description of the property. Consider additional marketing strategies like open houses or classified ads.
6. Hire a Top Realtor
Choose an experienced and knowledgeable real estate agent who can effectively market your property and negotiate on your behalf.
Final Thoughts
While the number of days on market can provide valuable insights for buyers, it shouldn't be the sole focus when considering a property. Understanding the full history of a property and assessing other factors is equally important. For sellers, keeping the DOM to a minimum and selling for top dollar should be the primary goal.
Please consider sharing this article to help others understand what DOM means in real estate. If you're buying or selling a home, it's crucial to be aware of its significance. #realestate #homeselling #homebuying
