Like in any profession, Realtors tend to forget that not everyone speaks their language! Certain terms become part of our daily vocabulary that we may unknowingly rattle off and you may have no clue as to the meaning.
Just tell us to slow down and explain!
I will explain a few of these terms in the Pro Tip section.
Today’s term is D-O-M.
When you hear this term is simply is referring to how many Days On Market a property was active in the local multiple listing server. Once an agent enters a listing as Active, it will begin to populate across all the real estate sites and is visible to all agents in their systems. Showings are opened up and the Sellers are open to entertaining offers.
Once an offer is accepted and the listing status is changed from ‘Active’ to ‘Pending’ the DOM clock stops.
This is critical data when analyzing comparable sales. A property that went under contract quickly was likely priced correctly and had strong buyer interest. A property that is active on the market longer than the average home may not priced correctly or has some other less desirable factor.
I often look at both the DOM along with the Closed Price vs. Listed Price. When I see a property go under contract quickly and for more than their list price, it can indicate there was a multiple offer situation (bidding war).
This is all important information for both Buyers and Sellers. For Buyers, this will help you structure your offer when you see what is going on with similar properties. For Sellers, this will help you properly price your home.
In more traditional markets, I would analyze data from the past 90 days, however in this fast changing world right now (2022) I try to stick to the last 30 days if I can.
Emily Woods, Realtor - Licensed in NJ & PA