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Why a High DOM may be a Good Thing

Today’s housing market in the communities of Minneapolis and St. Paul is most definitely a “sellers market.”  With housing supply continually shrinking year over year many homes are getting well over list price.  This is especially true in the lower priced homes under $400,000.

Most seller’s agents will price a home to market.  Meaning they will look at comparable homes that have sold in the past 6 months, near the subject home, and price it accordingly.  This manner of pricing is most likely to bring the multiple offers.  Especially if the home is well staged, in good condition, and has been professionally marketed.

Days on market graph real estateBut some homeowners get greedy and think if they price the home above market they will still get the multiple offers and above listing price.  It just never works this way.  Today’s home buyers are extremely knowledgeable.  They’ve been out looking sometimes for months and know what homes should be priced at.  If they see a home priced too high they don’t go and see the home because of fears they will have to pay even more, or they find another that is priced reasonably and go after that one.

But as a buyer, step back and take a look at some of these homes that aren’t at the top of your daily MLS email updates.  They are the one’s with a Days on Market (DOM) above 10.  And the higher that DOM the better.  It may or may not mean the home is in tough shape.  What it usually means is the home was overpriced to start with and has had some price reductions to get it back to market price.  It also may mean, good home at market price with less competition.  For more buyer strategies, contact Minneapolis area Realtor Dan Kokesh.

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