What Does "Days on Market" Mean?
You may have heard the term “days on market” before as it relates to real estate and I want to take a moment to explain it in further detail.
Days on Market is the number of days that a property has been listed on the local MLS until a seller has accepted and offer and signed a contract.
Let’s say for a moment that your online doing a search for homes. You find one that matches what you like. Just the right number of bedrooms and bathrooms. The pictures look nice. Neighborhood is nice and schools are good. Every box is being checked and this looks like a potential match! You then see that it’s been on the market for 214 days. Where does your mind go from there?
Why hasn’t anyone purchased this home yet? How is this still available?
There’s any number of scenarios that can explain why a home has been on the market for a long period of time. Perhaps a buyer’s financing fell apart at the last minute. Maybe legal proceedings haven’t moved quickly and the property needs to clear bank or legal hurdles before it can be moved long. Whatever the reason, the longer a home sits, the harder it is to overcome the perception that something’s wrong.
More likely than not, it comes down to 2 things- the home is either overpriced OR there’s something wrong with it. Again, this isn’t ALWAYS the case, but usually is.
In the end, it doesn’t have to be the sole reason to write off the home and keep looking. As a buyer, you may be able to score a great deal.
As a seller, the longer your home sits the more it becomes stale.
Here’s a word of advice: based on the national average, a properly priced home should sell in 30 days.