Days on market (DOM)—the amount of time a home has been listed for sale on the MLS—is one of the most important numbers for buyers to consider. It provides a general idea of how other buyers are responding to the property and its price.
Homes that have been sitting on the market for an extended period, about three to five weeks, are considered “stale listings.” Are they repelling buyers due to flaws, or should buyers view them as potential bargains?
Agents often have to explain to sellers that the best opportunity for getting the highest price and a fast sale is in the first week or two after the house is listed, when potential buyers flock to see the home. Once this peak interest wears off, the home may have lost some of its sparkle in the eyes of buyers, and fewer buyers may be interested in taking a closer look at the home.
According to real estate site Inman, here are three suggestions agents can give buyers:
1. Take a realistic look at the buyer’s ability to write a winning offer in the face of intense competition.
With offers being made over the asking price, as-is and with no contingencies, buyers who can’t compete with these terms are at a disadvantage. They should focus on other properties.
2. Take a serious look at homes that have been on the market for some time.
These homes may not have significant flaws and may have a high DOM number for a variety of other reasons. These properties might be available at a lower price because sellers might be more motivated to sell.
3. Monitor properties coming back on the market.
Agents should set up auto-feeds to be notified when a transaction fails and the listing is restored—before the general pool of buyers becomes aware that the home is available again.
According to Forbes, patience can pay off. “Homes that have been languishing on the market can present excellent buying opportunities. Sellers are more likely to negotiate on price, especially if they’ve already bought another house and are paying two mortgages. Many sellers pulled their homes off the market in March and April when the pandemic precipitated strict stay-at-home orders. Over the next few months, a number of sellers will likely relist their properties.”
Photo: iStock.com/Gearstd/RapidEye
