If you’re in the process of buying a home, you may come across the term ‘DOM’ wondering what it means. The term DOM stands for ‘days on market’, but what is its role? In this post, we’ll explore the different meanings and implications of DOM in real estate. We’ll also look at how buyers can use this information to their advantage. So, if you’re thinking about buying your first home, be sure to read on!
What does DOM mean in real estate?
DOM, or Days on Market, is an important metric to consider when buying a home. The number of days a listing spends on the market can give buyers an indication of how popular the property is and how much negotiating power they might have.
A property that spends a long time on the market may be overpriced or in need of significant repairs, while a property that sells quickly may be underpriced or in high demand.
How to know if a property is experiencing high DOM
There are a few key things to look for when trying to determine if a property has been on the market for too long:
- Check to see if the listing price has been reduced. If so, this is usually a sign that the sellers are getting desperate and may be willing to accept a lower offer.
- Take a look at the number of days the property has been listed. If it’s been more than 90 days, this is definitely a red flag.
- Pay attention to how well the property is maintained. If the lawn is overgrown and the windows are dirty, it’s likely that the sellers have given up on trying to make a good impression and are just hoping to unload the property as quickly as possible.
If you see any of these warning signs, it’s best to steer clear and keep looking for a better deal.
Additional factors influencing DOM numbers
DOM can also be affected by such factors as season, location, and property type, so it’s important to compare properties that were listed during similar time periods.
- Season
The time of year can be a factor because there are typically more homes on the market in the spring and summer than in the fall and winter.
- Location
The location of the property can also be a factor because properties in different areas can have different DOM averages. For example, properties in urban areas tend to have shorter DOM than properties in rural areas.
- Property type
The type of property can be a factor because different types of properties can have different DOM. For example, condos tend to have shorter DOM than single-family homes.
By taking this metric into account, home buyers can get a better sense of a property’s true value and avoid overpaying for their dream home.
How to use DOM to negotiate a better deal
Properties that have been on the market for a long time can be a great opportunity for buyers looking to get a good deal. While there are a number of factors contributing to a high DOM number, such as an overpriced listing or challenging property conditions, it can also be an indication that the sellers are motivated and open to negotiation.
For buyers, this is an important opportunity to get a property at a lower price than what was originally listed. And here is what you can do to get a better deal:
- Analyze the average DOM for homes in the area where you are looking to buy. This will give you a better sense of what is considered a “good deal” and help you avoid overpaying.
- Try to find out why the home has been on the market for a long. Is there something wrong with the property that has turned off other buyers? If so, you may be able to use this information to your advantage when negotiating the price.
- Consult with a real estate agent or another expert before making an offer on a home. They will be able to advise you on the best way to negotiate considering the DOM status.
- Be prepared to make a low initial offer. The longer a home has been on the market, the more motivated the seller is likely to be. So, it’s important not to lowball them too much.
- Be ready to walk away from the deal if you can’t reach an agreement. The longer a home stays on the market, the more likely it is to sell at a discounted price, so don’t be afraid to walk away if the seller isn’t budging.
DOM status is an important factor to consider when buying a home, as it can have a significant impact on the price.
FAQs
What does DOM mean?
Days On Market (DOM) is simply the number of days that a listing has been active on the market. This information can be useful when trying to gauge how quickly or slowly a particular market is moving. The DOM can be used to negotiate pricing. If a home has been on the market for a long time, the seller may be more willing to accept a lower offer. However, it is important to keep in mind that there are many factors that can affect the DOM, and it is not always an accurate measure of market conditions.
Can the DOM metric be misleading?
Yes. If a property goes “contingent” on day 8, but the deal falls apart 40 days later, the actual days on market is 8, but most Listing Services will display 48. Looking at the full history of a property is just as important as looking at the days on market. In some cases, it may even be more important. For example, if a property has been on the market for a long time and has had several price reductions, it may be more likely to sell quickly than one that has only been on the market for a short time. Similarly, if a property has received a lot of interest from potential buyers but has not yet gone under contract, it may more likely receive an offer in the near future. The best way to determine whether a property is a good deal is to look at all the available information, not just the DOM.
Sum Up
DOM is just one metric among many to consider when purchasing a home. The best way to make sure you’re getting the most for your money is to consult with a real estate expert who can help guide you through the process and ensure that you’re looking at all the right factors. If you’re considering buying a home, take advantage of DOM to negotiate the price, but don’t let this metric be the only thing on your mind – there’s much more to consider!
