Talking about the curse of a high Days on Market and what sellers can do to prevent this when selling their home…
There are 3 questions that everyone that is selling a house ask:
- How Much Will I Get When I Sell My House?
- How Long Will It Take to Sell My House?
- How Much Commission to Sell a House?
Today, I am only going to discuss the 2nd question and what you can do to sell a home faster!
Buyers Will Ask
I can tell you that many buyers want to know how long a home has been for sale. Some buyers think that they will be able to pay what they want instead of what a home is worth because of a high DOM.
Oh wait…you’re probably asking, “what the heck is ‘DOM’?”
DOM = Days On Market
“DOM” is the shortened industry term for Days On Market, used by the multiple listing services or MLS. It’s exactly what it sounds like: the number of days your home for sale has been on the market. This measures the time from when the listing first went live until the house has closed (or went under contract depending on how the MLS measures it).
Days On Market is Important
Like I said, some buyers think if a home has been for sale for a long time it means it is time to make a ridiculous low ball offer.
To anyone that likes to make offers based on fantasy instead of reality, I must ask you…
Do You Want to Buy the Home Or Piss the Seller Off?
In some cases, such as foreclosures, a high DOM can mean the seller is more willing to negotiate. Notice that I said negotiate.
Making a crazy offer that is insulting is NOT negotiating…
I would suggest looking at the average DOM for similar homes in the same area. Then determine if the home is overpriced.
Always Make Offers Based on Reality
If the home has been for sale for a long time, MAYBE the seller is more eager to negotiate.
If the home is overpriced, MAYBE the seller is willing to face reality.
High DOM Means Less $ For You
Statistically speaking, the longer a home is on the market, then more likely it is to sell for much lower than list price. I can preach about the importance of selecting the right listing price until I am blue in the face. It is the sellers choice to be realistic about the initial list price.
Of course, it is also my choice to NOT take a listing if the seller is not willing to listen to reason…
How much you will get depends greatly on some of the same factors that also lead to a high DOM!
It Has Been a Long Long Time
I usually include the average DOM in my Weekly Market Reports. But these are just statistics for a week…
Interesting and informative? Yes.
But neither one tells you how long it will take to sell your home.
The problem with the Days on Market is that it causes buyers and agents to make assumptions. If a home has been on the market for a long time, they start to wonder, “what’s the matter with that listing?”
Even though I know there are other reasons for a home to NOT sell, many people automatically think there’s something wrong.
Reasons For A High Days on Market:
Overpriced – Nothing is wrong with the property itself; it’s just priced too high.
Sticking To Your Guns – Often, sellers get fixed on a price and won’t budge, come hell or high water.
Ready to Show and Sell – Sometimes, a home is NOT 100% ready to for the market
Availability – Lack of access to a home for sale is a serious mistake
I can tell you that the majority of activity for a listing occurs when the home first hits the market. If a home is overpriced or put on the market BEFORE it is 100% ready to show, then the seller has just shot themselves in the foot.
I can also tell you that it is pretty much impossible to sell a home that is hard to show. It may be inconvenient but you must make every effort to let your home be shown…
Even on short notice!
Yes some buyers and their agents are rude or inconsiderate jerks. That is just the world we live in. If you want to sell your home, this is something you MUST deal with.
How Long Will It Take to Sell My Home?
I cannot and will not guarantee that your home will sell in X days. I can give a general idea of how long similar homes took to sell.
Only YOU can prevent the pain of a high Days on Market or DOM.
You can sell quickly IF you take this advice seriously.
All you need to do is SELECT THE RIGHT PRICE, have your house 100% READY to show and make it EASY to show. If you’re serious about selling your home, remember the reasons above.