What is Days on Market and Why It Matters?

Days on Market (DOM) is exactly what it sounds like: the number of days a property has been actively listed for sale. It's one of the most powerful—and most misunderstood—metrics in real estate.

DOM tells you whether a property is priced right, whether the seller is motivated, and how much negotiation leverage you have. Here's what you need to know in 3 minutes.

How DOM is Calculated

Simple version: From the date a property is listed until it goes under contract or is withdrawn.

But there's a catch: DOM can be manipulated. If a seller withdraws a listing and relists it, some MLS systems reset the counter. This is why you should also check:

• Cumulative Days on Market (CDOM): Includes previous listings within a certain timeframe (usually 6-12 months)
• Total Market Time: All time on market, including expired or withdrawn listings

What Different DOM Ranges Mean

What DOM Tells You

1. Pricing Accuracy

In a normal market, well-priced homes sell within 30-45 days. If DOM is much longer, it's usually overpriced. Quick rule:

• DOM under 20 days: Priced at or below market
• DOM 20-45 days: Fairly priced
• DOM 46-90 days: Likely 5-15% overpriced
• DOM 90+ days: Likely 15-25%+ overpriced or has serious issues

2. Seller Motivation

The longer a property sits, the more motivated the seller becomes:

• Mortgage payments continue (principal, interest, taxes, insurance)
• Moving plans are delayed (job relocations, family needs)
• Psychological frustration builds with each showing that doesn't result in an offer
• Market conditions may worsen (rising rates, seasonal changes)

After 60-90 days, sellers often become significantly more flexible.

3. Property Issues

High DOM might indicate:

• Previous buyers walked away after inspection
• Financing fell through (red flag for appraisal issues)
• Title or legal problems
• Poor location (busy road, bad schools, declining neighborhood)
• Condition issues visible during showings

Always ask: "Has this property been under contract before? If so, why did the deal fall through?"

4. Market Conditions

Average DOM varies by market:

• Hot market: 10-20 days average
• Balanced market: 30-45 days average
• Buyer's market: 60-90+ days average

Compare the property's DOM to the local average. If it's 2x the average, something is wrong.

How to Use DOM in Negotiations

Low DOM (Under 30 Days)

• Limited leverage
• Offer close to asking if interested
• Act quickly—may have competing offers
• Consider escalation clauses or best-and-final offers

Medium DOM (30-60 Days)

• Some negotiation room
• Offer 5-10% below asking if justified
• Seller will negotiate but still has some confidence
• Request seller concessions for closing costs

High DOM (60+ Days)

• Strong leverage
• Offer 10-20% below asking (if justified by comps)
• Request repairs or credits
• Seller is likely willing to negotiate aggressively
• Consider lowball offers if property has major issues

Beware of DOM Manipulation

Sellers and agents sometimes game the system:

• Withdrawn and relisted: Resets DOM counter in some systems
• "Coming soon" status: Property marketed but not officially listed (doesn't count toward DOM)
• Price increases: Raising price can reset the counter in some MLSs
• Office exclusive: Listing held within brokerage before going public

Always check the listing history and total market time, not just current DOM.

Key Takeaways

• DOM measures how long a property has been listed
• Low DOM = competitive market or good pricing; high DOM = problems or overpricing
• Compare to local market averages—not absolute numbers
• High DOM gives you negotiation leverage
• Always check listing history for manipulated DOM counters
• Ask why previous deals fell through if DOM is high

Related Reading

• 5 Red Flags in Property Listings You Can't Ignore
• How to Negotiate Like a Pro
• Understanding Market Cycles: When to Buy