What does the term "DOM" mean?
In real estate, DOM (Days on Market)refers to the number of days a property has been listed for sale before it is sold or taken off the market. It is a key metric used by real estate professionals and buyers to gauge the attractiveness and competitiveness of a property.
DOM is calculated from the date a property is listed on the market to the date it goes under contract (when a buyer's offer is accepted).
Some markets distinguish between "Cumulative Days on Market" (CDOM) and DOM. CDOM accounts for the total days a property has been on the market across multiple listings or relisted by multiple agents without a significant break.
Properties in high-demand areas or those priced attractively typically have lower DOM.
Properties that are overpriced, located in less desirable areas, or in need of significant repairs tend to have higher DOM.
For instance, in Greenwich, the DOM in May 2024 was 18 days compared to 28 days in May 2023, indicating it is still a seller's market.
A property with a low DOM often indicates high demand and can lead to a higher sale price. Buyers may perceive it as a "hot property" and be willing to pay more to secure it quickly.
A property with a high DOM may be perceived as less desirable. Buyers might think there is something wrong with the property or that it is overpriced, leading to lower offers.
It is to the seller’s advantage when a property sells quickly, sellers often have more negotiating power because buyers may feel pressured to make strong offers. When a property has been on the market for a long time, buyers may have more leverage to negotiate a lower price, believing the seller may be more eager to sell.
Properties with high DOM often see price reductions. Sellers might lower the price to attract more interest and avoid the stigma of a long time on the market.
