Ah, welcome to the vibrant world of Toronto’s real estate rollercoaster! Amidst the frenzy, there’s this little number that struts around like it’s the star of the show: Days on Market (DOM). Yep, it’s that unfamiliar metric that winks at both buyers and sellers, teasing, “You think you’ve got it all figured out? Ha! Keep your eye on me, and I’ll show you who’s boss.”

Prepare your popcorn as we explore the fascinating domain of DOM. In this realm, each tick of the clock narrates a distinctive tale, and every listing conceals its own intriguing secrets. For both buyers and sellers, understanding the significance of DOM can be instrumental in making informed decisions. It’s not just a couple of letters, it’s the heartbeat of the market. So, let’s dive in and get comfortable with one of the most critical metrics in the game. 

What exactly is ‘days on market’? 

DOM? It’s essentially the countdown from the day a property hits the market until it gets scooped up by a buyer. Think of it as the journey from “Hey, I’m available!” to “Sold! Let’s pop some champagne!” In more specific terms, the term refers to the number of days a property remains listed on the market from the day it’s listed until it becomes officially sold. It serves as a vital measure of the property’s marketability and attractiveness to potential buyers.

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Why should a seller pay attention?

For sellers, DOM is more than just a number, it’s a reflection of the property’s appeal and the effectiveness of its pricing and marketing strategy. A shorter DOM in neighbourhood sales, usually indicates high demand and strong market conditions. In this type of market, desirable homes will typically be listed with a ‘multiple offer pricing strategy,’ where the list price is strategically low to attract multiple offers in a short period of time. If well executed, this strategy will almost always translate into a quicker sales (7-8 DOM) and a higher sale price.

In a fast pace real estate market like Toronto, a prolonged DOM could mean the use of an ineffective pricing strategy and raise red flags for prospective buyers. They may perceive the property as undesirable or overpriced, leading to fewer inquiries and offers.

Sellers should remain well-informed and reassess their pricing strategy in collaboration with their agent. Swiftly addressing any issues that may be discouraging potential buyers is crucial. An extended DOM can also result in carrying costs for sellers, such as mortgage payments, property taxes, and maintenance expenses, which can eat into their profits. We also know that as time marches on, the likelihood of a seller receiving a great offer price decreases. Therefore, minimizing DOM is often a top priority for sellers looking to maximize their returns and expedite the selling process. 

Why should buyers pay attention?

Buyers, on the other hand, can use DOM as a valuable tool to gauge market dynamics, pricing strategies and seller expectations to help them negotiate effectively. A property with a high DOM may indicate a less competitive market, providing buyers with greater bargaining power and potential opportunities for price negotiation. Furthermore, a lengthy DOM could signify underlying issues with the property or its listing, prompting buyers to conduct more thorough inspections and due diligence before making an offer.

By being aware of the property’s history on the market, in Toronto, the DOM re-sets if you cancel your listing and refresh it with a new one. Essentially, checking the full address history is an important step for buyers, giving them further insight and helping them make more informed decisions and avoid potential pitfalls. 

Staying informed on market insights & trends!

Tracking DOM trends can also offer valuable insights into the overall health and trajectory of the Toronto real estate market.

A consistent decrease in DOM across various property types and neighbourhoods may signify a robust seller’s market characterized by high demand and limited inventory. On the flip side, a significant increase in DOM could indicate a shift towards a buyer’s market, where properties take longer to sell due to increased competition and/or economic factors. Such market conditions can influence pricing strategies, negotiation dynamics, and the overall buying and selling experience for both parties involved.  

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Tips & tricks for sellers to slash DOM… 

Looking to speed up the sale? Here are some tried-and-tested strategies to minimize DOM and maximize the chances of a successful sale. 

• Pricing Strategy: Ensure the property is priced competitively based on market conditions and comparable sales. If other listings in your neighbourhood are seeing success with an ‘offer date pricing strategy’ (priced lower to attract multiple offers), you should be doing the same!
• Staging and Presentation: Interior presentation and staging, plus exterior curb appeal will attract potential buyers and make them fall in love!
• Effective Marketing: Utilize a comprehensive marketing plan, including professional photography, virtual tours, video, individual property website and more, to reach your ideal buyer. In the age of online marketing, your property should be seen all over the internet.
• Flexibility: Be open to negotiating terms and accommodating potential buyers’ needs to facilitate a quicker sale. 

So, there you have it! Whether you’re selling or buying property in Toronto, paying attention to DOM can provide valuable insights into market conditions, pricing dynamics, and negotiation strategies.

Buying or selling in the West End? Get in touch today by calling 416-909-1602 or emailing us directly at hello@getnested.ca, we’d be happy to help!

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