What and How can understanding Days on Market or DOM help you with your real estate investments?
1) There are lot of stats when it comes to the housing market, perhaps a little overwhelming at times with some being more useful than others.
We feel Days on Market or DOM is a very insightful market indicator, which can be interpreted fairly easily if you know the right questions to ask.
2) In a quick summary. Days on Market is the actual number of days a property has been on the market for sale.
3) A good Buyers Agent will share the DOM with you, as this information can be very useful.
When you are ready to make your property choice.
4) The DOM tells a story - You can look for price reductions which have been put in place over periods of time. For example if the DOM is 90 days and the listing started out at $2 Million, why is it at $1.5 Million and how long ago did this price reduction take place.
5) What you looking for? Ask your agent not only for the DOM, but the CDOM or Cumulative Days of Market - How do you get this?This is the total days your agent has had a property listed, plus the number of days other agents, if any, have had a property listing. This will give you the true DOM. This can greatly influence the selling price of a property!
6) Summary
1) Do not be afraid to ask questions
2) Ask your agent “How many days have you had it listed?”
3) “Did other agents have this property listed before you?”
3) If so - “How long?”
The combination of these factors can influence the selling price of a property and can sometimes save you money on your purchase price.
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