Fresh vs. stale listings: understanding days on market (DOM)

Days on market (DOM) refers to the length of time from when a property is first listed to when an offer is accepted and a contract signed. In a sellers’ market, DOM is low, and homes get snapped up fast. However, the longer a property stays on the market, the less likely buyers are to make an offer at or above asking price. Homes generate the most interest when they’re new to the market, and listings get “stale” after a couple of weeks. Reasons for a property not selling quickly include being overpriced, in poor condition, in an unfavourable location, or having unusually high maintenance fees. Buyers can use DOM to make an informed offer as sellers who are having a hard time selling are more likely to negotiate. The biggest mistake sellers make that leads to stale listings is overpricing. A good agent can help sellers price strategically and counsel them on an asking price that will generate the greatest interest.