Why does “Days on Market” matter and what it can tell you about your home search?

You keep hearing industry professionals say “Home closed in 37 days!” or “The Port Washington market is seeing homes on the market for an average of 15 days over the past 2 months”. In the simplest of terms, Days on Market (DOM, industry lingo) means homes are being listed and sold in 15, 67, or 398 days, whatever the local market is bearing.

How can you use this in your home search? Well, DOM can tell you a story about the home, neighborhood, or market you are looking in.

If the days on market is low it can mean:

1) Home was well priced

2) House was in a great location or was in pristine shape

3) It is a seller’s market

When the days on market is high it can mean:

1) The home was priced too high

2) Home isn’t In the best location or needs lots of TLC

3) It is a buyer’s market

How do you use this information?

Lower DOM you should come in with competitive offers. Higher DOM you can be a little more aggressive on your negotiating. Either way, work with your agent to come up with the right strategy.