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One of the most useful terms in the housing business is the days on market - also known as the DOM - that enables real estate professionals find out home values by verifying how long the certain home has been on the market in relation to the number of sales in the area of homes in a comparable price range. To determine this figure, they take the average number of sold houses over the last thirty days to six months and divide that figure by the total number of similar houses listed. employing this formula, real estate professionals can hopefully determine if the market is affecting the sales or if the house is simply priced too high. Unfortunately, this formula may at times be biased to provide misleading information by real estate professionals trying to manipulate the figures to their advantage.
The bottom line is that the longer a house is listed on the market the less chance the sellers have of being offered the asking price. Real estate agents use their Multiple Listing Service (MLS) to look at all the homes offered for sale in their market so that they can establish which properties might have been originally overpriced because they have been up for sale for a greater length of time than the average time it has been taking for a home to sell in that neighborhood.
Real estate professionals working for purchasers often evaluate the DOM numbers to see which houses have been on the market for the greatest length of time the reason is they can often submit an offer lower than the asking price and have it go through. Many homeowners began to realize after their property has been listed for an extended length of time that the chances of selling for their listing price diminishes proportionally, so they may be willing to consider lowering their asking price.
Unfortunately, there are real estate agents who attempt to falsify these figures and undertake to roll back the counter by removing a property from the market for couple of weeks hoping that when it is re-listed it will show zero number of days on the market. This method is highly discouraged and many industry organizations have taken steps to ensure that home buyers are not misled by such questionable practices and have created a system where realtors can see all of the genuine home past, including any trials to reset.
The Multiple Listing Service uses two figures to establish the DOM - referred to as the current vs. the cumulative - that shows at a glance the whole past of any home's listing. This method assists to determine if a seller has switched realtor after the house has been available too many days on the market, so the current number determines how long the new agent has been handling the home and the cumulative number keeps count of how many days total it has been listed. This causes the current number to be reset, however the collective number of days on the market continues to accrue despite the property's history, such as how often it's been taken off the market for sale, escrow or was just pulled while the sellers waits for the market to bounce back from a recession.
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