Days on Market, aka D.O.M., is the number of days a property has been listed on a broker’s multiple listing service such as Houston Association of Realtors. D.O.M. in real estate is important for buyers and sellers, because it is a measurable statistic that gauges the property’s performance on the market. New properties get viewed the most when they’re new to the market
The longer the property is on the market, the lesser the interest from the buyer’s group. Interest will most likely drop as buyers tend to keep looking and purchase other properties. Once the current buyers have seen a home and decided not to purchase, the seller will be limited to the smaller population of new buyers entering the market.
Today’s buyers notice a home’s D.O.M.; if it is higher than average, they sometimes assume something is wrong with the home. There are consistently three common factors in all properties with a high D.O.M. It could be one of these, two of these, or all three: price, condition, or location. Location is something that is permanent that cannot be changed; price and condition are the changes that can be made to increase your home’s marketability.
Many years ago, a high D.O.M. led buyers to believe that a seller would be motivated to take a lower offer than asking price. However, in today’s market a high D.O.M. translates to an unmotivated, seller. With land only sales or homes on land, a high D.O.M. is common, especially on larger tracts of land where the price is substantial.
Single family residences with a high D.O.M. can have a damaging effect on the sale of that property. D.O.M. can vary from city to city, area to area, but proper pricing is imperative in any market. A Realtor should be able to present current sales and trends to their seller in order to help them market the property efficiently.
If you are currently selling your property, and it has been on the market for longer than you were expecting, here are some things to consider:
Repairs and/or Updates: The home may have deferred maintenance, cosmetic flaws, or need some fresh updates. A fresh coat of paint, a new roof, new shutters, a new kitchen sink, new flooring, or fresh landscaping; the list goes on. Depending on your budget, your home will show better and sell better if it is immaculate condition and up to date in appearance.
Cleaning and Staging: Sellers who do not have the ability to repair or update their home should have the home cleaned and staged. A clean home that is arranged in a welcoming way can leave the buyer to imagine how they would make repairs and update the home. When a home is unclean and/or cluttered, some buyers do not have the ability to envision beyond what they currently see.
Price Adjustment: Many sellers decide to sell their home based on what amount of money they need to obtain. This will not work if a seller needs to net more money than what the market will bear at that time. Property pricing must be according to market value, not what is needed to purchase another property.
A low D.O.M. states that the property was priced to sell whether it needs a new roof or new floors. Proper pricing also gives a seller more than one offer to choose from sometimes which is great for the seller. He or she can accept the best offer as far as price, concessions and loan type. Proper pricing is crucial from day one in the real estate market for sellers who are in need to sell and obtain different housing.
The right price will overcome a bad location, deferred maintenance, and green shag carpet no matter how particular a buyer is.
--Lisa Hatcher Taylor is a Madisonville real estate agent.