What Time on Market Tells Us About a Property’s Value
Quick Overview
When a home has been sitting on the market for a while, most people start to wonder: Why hasn’t it sold yet? The answer often lies in a metric called Days on Market (DOM). It sounds simple, but it can tell you a lot about buyer behavior, pricing trends, and how the market is moving—if you know how to read it.
This article is a companion to our Substack post that breaks down DOM and CDOM from a market analyst's perspective. Here, I’ll show you how I use this data in real-life valuation work—and what it can mean for your decisions as a homeowner, buyer, or legal professional.
First: What Is "Days on Market"?
"Days on Market" (DOM) is the number of days a property stays active before it goes under contract. It tracks how long it takes a home to attract a committed buyer.
There’s also a version called Cumulative Days on Market (CDOM), which adds up all the time a home has spent on the market—even if it was listed, pulled, and relisted.
Why It Matters
DOM is a direct signal of how buyers are responding to the listing. A low DOM usually means the price is right and demand is high. A high DOM? It might signal a mismatch—either in price, condition, timing, or all of the above.
For example:
A listing with 5 DOM might reflect strong pricing and a hot market.
A listing with 75 DOM might point to overpricing, slow buyer activity, or some condition issue.
But it’s not just about the number. It’s about the context.
What I Look For in an Appraisal
I always ask:
How does this property’s DOM compare to similar recent sales?
Are longer DOMs tied to price reductions, condition issues, or seasonality?
Are buyers snapping up properties quickly in this area, or taking their time?
I zoom out to look at broader patterns over months and years—and I zoom in to look at the comps I’m using in a specific report. Both matter.
Why Sellers Should Pay Attention
If you’re listing your home, looking at local DOM trends can help you set a price that sells quickly and avoids the dreaded price-drop cycle. It also tells you how quickly you might need to make decisions when offers come in.
Why Buyers and Attorneys Should Pay Attention
DOM can help you gauge whether a home might be overvalued, or whether there’s room for negotiation. It also helps you understand whether a sale you’re reviewing—say, in the context of an estate or divorce—represents true market conditions or an outlier.
Bottom Line
DOM isn’t just a number. It’s a signal. And when you read it alongside other market data, it can help you make smarter, faster, more confident decisions—whether you're buying, selling, or settling an estate.
Want help interpreting DOM in your area? I’d be happy to take a look.
Article written with the aid of AI. Thanks, technology!