Days on Market: What It Means for Buyers and Sellers in Today’s Real Estate Market

In real estate, timing is everything. For buyers and sellers alike, understanding the dynamics of the market can make all the difference in achieving success. One of the most critical metrics to consider is "days on market" (DOM)—the average time a property stays listed before going under contract. DOM offers valuable insights into the health of the market and provides strategic advantages to those who know how to interpret it.

What Does "Days on Market" Mean?

Simply put, "days on market" refers to the number of days a property is actively listed before it receives an acceptable offer. However, the implications of DOM go far beyond just a timeline:

• For Buyers: A high DOM might indicate a chance to negotiate, suggesting a property could be overpriced or less desirable. Conversely, low DOM often signals high demand, which could mean increased competition and the need to act quickly.
• For Sellers: A low DOM is a strong indicator of a seller’s market, where homes sell fast due to high demand. On the other hand, a high DOM can point to potential issues, such as incorrect pricing or insufficient marketing, requiring sellers to adapt their strategies.

Insights for Buyers: Making DOM Work to Your Advantage

1. Negotiation Leverage:
A property with a high DOM might provide buyers with a better chance to negotiate terms and pricing. Sellers with homes that linger on the market are often more motivated to make a deal, creating opportunities for buyers to secure a favorable price.

2. Investigating the Story Behind High DOM:
High DOM properties can raise red flags, such as structural problems or location concerns, but they can also signal overlooked gems. By partnering with an experienced real estate team, buyers can uncover whether the high DOM is due to fixable issues or strategic missteps by the seller, enabling them to find hidden value.

3. Responding to Hot Markets:
In markets with low DOM, quick decision-making is crucial. Buyers must conduct due diligence and have financing pre-approvals in place to make competitive offers. Knowing the average DOM for the area can help buyers navigate this fast-paced environment without overpaying.

Insights for Sellers: Turning DOM into an Advantage

1. Setting the Right Price:
If a property isn’t moving, price adjustments might be necessary. Conducting a comprehensive analysis of comparable listings can ensure your property aligns with market expectations, reducing DOM and drawing in serious buyers.

2. First Impressions Matter:
High DOM can negatively affect buyer perceptions, suggesting something is "wrong" with the property. Sellers can combat this by ensuring the home is well-maintained, professionally staged, and marketed effectively from the start. Repositioning the listing—such as refreshing photos, enhancing the description, or even relaunching it under a new MLS number—can breathe new life into the listing.

3. Acting Quickly on Feedback:
In today’s fast-paced market, waiting too long to address high DOM can be costly. Sellers should work with their agents to reevaluate and refine their approach, whether through improving curb appeal, boosting online visibility, or offering buyer incentives.

The Broader Market Implications of DOM

DOM reflects the balance between supply and demand, making it a valuable barometer for understanding broader market trends. A decrease in DOM across the board often signals a competitive market favoring sellers, whereas an increase can indicate a cooling trend, offering buyers more negotiating power. Understanding these shifts can help buyers and sellers alike adapt their strategies to align with the current climate.

For example:

• Low DOM Across the Market: This often correlates with rising home prices, limited inventory, and higher competition, compelling buyers to act quickly while sellers enjoy increased leverage.
• High DOM Across the Market: This may indicate a shift toward a buyer’s market, where sellers must compete more aggressively by adjusting prices and offering incentives.

Partnering with Experts for Strategic Guidance

Navigating the complexities of DOM requires more than just data—it demands experience and insight. For buyers, understanding why a property has a high DOM can uncover opportunities or highlight risks. For sellers, leveraging professional advice to optimize pricing and marketing can be the difference between a quick sale and a lingering listing.

Ready to Make an Impactful Move?

At the Faber Real Estate Team, our expertise in analyzing market trends, crafting tailored strategies, and providing exceptional service is unmatched. Whether you’re a buyer looking to secure the perfect home or a seller aiming for a swift and successful sale, we’re here to guide you every step of the way.

Take the first step today—partner with us to ensure your next real estate transaction is as smooth and rewarding as possible.

Contact Us Today

Faber Real Estate Team | Compass
The Key to Your Dreams®
Ben Faber DRE #01913767
[email protected]
www.faberrealestateteam.com
@faberrealestateteam
415.686.4980