Acronyms, jargon and vocabulary can often confuse people when they want to find a home. One important acronym is DOM or Days on Market. During any conversation about buying or selling a home this important number helps tell a home’s selling story. This story is important when trying to determine what you, the buyer, wants to offer for a home.
Home sellers have many motivations for selling including buying a new home, moving out of state, 1031 exchanges or other life events. Many of these reasons for selling require a short time frame to sell the home. Therefore, when a buyer sees that a home has been on the market for a long period of time, or a long DOM, they may have some power to negotiate a lower price. This doesn’t always work of course, as the seller may be very set on a certain price. However, every clue a buyer can use to their advantage can help them discover an accurate selling price.
For example, if a home has been listed very recently with a DOM of only a few days, then trying to negotiate a lower selling price will probably not work as effectively if the DOM is longer. On the other hand, if a DOM is 60 days or more in a market in which homes sell rapidly there is probably more room for a lower selling price. Your Real Estate Agent is an important partner in this decision as they can help determine what type of market the subject home is in and how much you should offer.
If a seller realizes that their home has been on the market for a long time they need to consider their options: should they lower their price? should they accept a lower offer? should they stick to their original offer? These are all decision that should be made with your Real Estate Professional who can help you analyze the market conditions and determine how your home fits into the overall market story.
If you would like help analyzing the market you are trying to buy or sell in please contact me.