One of the most frequently asked questions among prospective buyers is, how long has the house been on the market? Days On Market, commonly referred to by it’s acronym DOM, is a key statistic in real estate measuring the length of time a listing has been on the market before an agreement of sale for the property is accepted. Let’s take a look at how the length on time that a listing is on the market affects it’s selling price.
PERCENT OF ORIGINAL SELLING PRICE VS DOM
Using the last 6 months of closed transactions in Wallingford, PA the chart above measure the percentage of original list price of a home that was realized by sellers in relation to the DOM (Days On Market). It exhibits the correlation between the selling price of a listing and the time it is on the market.
The underscoring theme here is that time is money. The initial price of a listing is a crucial decision that ultimately impacts a seller’s bottom line, price it incorrectly from the start and there is a price to be paid.
The honeymoon for a new listing is a brief lasting 3 weeks at most. During that time a listing will get the most views online, the most visitors through the door, and the most interest by prospective buyers. Once the new listing aura has worn off it becomes increasingly difficult to attract attention, especially if the home is not price correctly.
Many sellers will say they want to “try” a higher price for a while and reduce it later after seeing what happens. They are oblivious to what peril that strategy entails. The listing is only new once, and the proper pricing from the start is the only way a seller can realize the most financially from a sale. Successive price reductions over the course of a listing is not a viable strategy to produce the most favorable outcome.
There were 15 sellers in the top performing group during the last 6 months that sold their homes in 10 days or less realizing 98.29% of the original selling price, and 6 that received the asking price or above. The next largest group of homes sold in the 46 to 90 day range and the percentage of original selling price realized dropped to 89.82%. Homes that were on the market 6 months were the poorest performers only garnering 83.68% of the original selling price.
Price it properly from the start and you will reap the most reward, price it too high and the buyers will be like sharks sensing blood in the water as they watch your DOM count creep higher and higher.
Wallingford PA Real Estate – Wallingford, PA 19086