If you are shopping for a home, then you've seen the abbreviation DOM on the Multiple Listing Service (MLS) handouts. What does DOM mean? DOM stands for Days on Market from the time that the property was listed until the time the status changes to Under Contract.
Why is DOM important? Some buyers assume that if a home has a large DOM, then there is something wrong with the home. While that may be the case, a more likely scenario is that the home was listed during a slower time of the year (such as the winter months) or the home was priced higher than the market. The home may have a special feature, like a pool, that may limit the number of potential buyers. Do not discount a house based on its DOM.
Buyers should know that if a home is withdrawn from the multiple listing service (MLS) and re-listed for a lower price, this action will re-set the number of days on market.
Knowing the average number of days on market for a town is important for both buyers and sellers. Buyers should be aware that if the average DOM is short, they should not take too long when deciding on a purchase or they will risk losing the house to someone else.
On the flip side, a seller should be aware of the average days on market to set expectations. If the DOM is 2 months, a seller should not assume that he or she will get an offer in a week (although it is possible). Price and appearance are the top two factors in determining the length of time that a home sits on the market. Sellers should also remember that it's an "average" and that a few homes that sit on the market for several months can increase the number for everyone.