Understanding the Concept of 'Days on Market' in Real Estate

23 August 2025

When you’re buying or selling a home, you’ll come across a bunch of real estate jargon that might leave you scratching your head. One of the terms that pops up frequently is “Days on Market” (DOM). But what does it really mean, and why does it matter?

If you’ve ever wondered whether a home sitting on the market for too long is a bad sign or if a newly listed property is priced fairly, then you’re in the right place. Let’s break it all down in simple terms.

What Is “Days on Market” (DOM)?

In real estate, Days on Market (DOM) refers to the number of days a property has been listed for sale on the Multiple Listing Service (MLS) before it goes under contract. Essentially, it tells you how long a home has been waiting for a buyer.

The countdown starts when the home is officially listed and stops once the seller accepts an offer. If the deal falls through and the property gets relisted, the DOM clock may reset (depending on local MLS rules) or continue accumulating.

Why Does DOM Matter in Real Estate?

DOM is more than just a number—it gives insight into a real estate market's health and a home's desirability. Whether you're buying, selling, or investing, understanding DOM can help you make better decisions.

1. For Home Buyers

Buyers often use DOM as a tool to gauge whether a home is a hot commodity or if it’s been sitting on the market for too long.

- Low DOM (Hot Property): If a home has a low DOM, it usually means it's in demand. A house selling within a few days or weeks might suggest that it's well-priced, in a great location, or offers high value.
- High DOM (Red Flag or Opportunity?): If a home has been listed for several months without selling, it could mean one of two things:
- The property is overpriced.
- There might be issues with the home (bad location, structural problems, outdated design, etc.).

However, long DOM isn’t always a bad thing. Sometimes, a home may have simply been overlooked, and you might have a chance to negotiate a better deal.

2. For Home Sellers

If you're selling a home, DOM is something you must pay attention to. A long DOM can make potential buyers skeptical. After all, if no one else wanted it, there must be a reason, right?

- A high DOM often leads to price reductions and lowball offers.
- A low DOM indicates a well-priced home and can encourage multiple offers, possibly driving up the price.

To avoid a high DOM, sellers need to price their homes realistically from the start, ensure great listing photos, and market them effectively.

3. For Real Estate Investors

Investors use DOM data to gauge market trends. In a seller’s market, where houses fly off the shelf, a high DOM might signal an investment opportunity. Conversely, in a buyer’s market, homes tend to sit longer, meaning investors need to be extra cautious about pricing and resale value.

What Affects Days on Market?

Several factors influence how long a home sits on the market. Let’s go over the most critical ones:

1. Pricing Strategy

One of the biggest reasons homes linger on the market is overpricing. Buyers today are well-informed and can easily compare prices. If your home is priced too high compared to similar properties (comps), buyers may pass it by.

On the flip side, pricing a home too low can attract attention but may leave money on the table. Finding the sweet spot is key.

2. Market Conditions

- Seller’s Market: When demand is high and supply is low, homes sell quickly, leading to lower DOM numbers.
- Buyer’s Market: When there are more homes than buyers, properties sit longer, increasing DOM.

If you're selling in a slow market, patience (and maybe a price adjustment) might be necessary.

3. Location & Neighborhood Demand

Location plays a massive role in DOM. Homes in desirable school districts, near amenities, or in trendy neighborhoods tend to have a lower DOM because they attract more interest.

On the flip side, homes in less popular areas or near nuisances (like busy roads or industrial zones) may take longer to sell.

4. Condition of the Home

A home that’s outdated, needs repairs, or has maintenance problems will likely have a higher DOM. Buyers don’t want a money pit, and most prefer move-in-ready homes.

5. Marketing and Presentation

- Professional Photos & Staging: Homes with high-quality photos and staging often sell faster than poorly presented listings.
- Listing Descriptions: A well-written description that highlights key features can make a home stand out.

How to Use DOM to Your Advantage

For Buyers

- If a home has a low DOM, act fast if you’re interested—it might not be available for long.
- If a home has a high DOM, use this as a bargaining tool. Sellers may be more willing to negotiate on price or concessions.

For Sellers

- If your DOM is climbing, reassess your strategy:
- Is your price competitive?
- Do your photos and listing description showcase the best features?
- Should you offer incentives (closing cost assistance, home warranties, etc.)?

How Do You Calculate Average DOM in a Market?

To get a sense of a local market, real estate professionals look at the average or median DOM for similar homes in the area.

- The average DOM is calculated by adding up the total days on market for multiple properties and dividing by the number of properties.
- The median DOM is the middle value when sorting all DOMs from lowest to highest.

If a home’s DOM is significantly higher than the area’s average, it could indicate an issue with pricing, condition, or desirability.

Final Thoughts

Days on Market is an essential metric in real estate that can influence pricing, negotiations, and overall market perception. Whether you’re a buyer hunting for the best deal, a seller looking to move quickly, or an investor analyzing market trends, DOM provides valuable insights.

Understanding this little number can help save money, avoid bad deals, and make smarter real estate decisions. So next time you're browsing listings, don’t just look at price and features—check the DOM too!