One of the first things buyers look at when they’re searching for a home is the number of days it’s been on the market. And honestly, I get it. If a home has been listed for 100 days, the immediate reaction is usually:
“What’s wrong with it?”
On the flip side, if a home goes under contract in three days, people assume it must be an amazing property. The funny thing is, neither of those assumptions is necessarily true. As a REALTOR®, I’ve seen great homes sit on the market longer than expected, and I’ve seen average homes sell almost immediately. That’s because Days on Market only tells you how long a property has been available. It doesn’t tell you why. And the “why” is what actually matters.
The Story Behind the Number
A few years ago, a property sitting on the market for 90 days might have been a major red flag. Today? Not necessarily. Sometimes a property sits because it was overpriced when it first hit the market. Sometimes the seller wasn’t very flexible with showings. Sometimes the marketing wasn’t great. Sometimes it’s tenant occupied. And sometimes it’s simply a unique property that needs the right buyer. The point is that the Days on Market number doesn’t tell you any of those things. It only tells you how long the property has been waiting for the right match. One of the biggest mistakes I see buyers make is immediately dismissing homes that have been on the market for a while. In fact, some of the best opportunities I’ve helped clients purchase had relatively high Days on Market. Why? Because by that point, the seller has often received feedback from the market. Maybe they’ve already adjusted the price. Maybe they’re more willing to negotiate. Maybe they’re open to repairs or concessions they wouldn’t have considered during the first week on the market. I’ve had buyers find tremendous value simply because they were willing to look at a property everyone else ignored.
And Sellers… Don’t Chase the Three-Day Sale
I see this from the seller side too. A neighbor’s house goes under contract in a weekend and suddenly every seller thinks their property should do the same. But what they don’t always see is everything that happened before the sign went in the yard. Maybe that home was updated throughout or priced aggressively. Maybe it hit the market at exactly the right time or it was the best home available in its price range. A fast sale isn’t always proof that a property is worth more. Sometimes it simply means it was positioned correctly from the start. Every house competes against something. This is something I tell clients all the time. Your house doesn’t compete against every house in town. It competes against the homes a buyer is considering right now. A property might be fantastic, but if there are three better options available at the same price point, buyers will notice. Likewise, a property that’s been sitting for 90 days may suddenly become attractive when competing inventory sells and buyers start looking at it with fresh eyes. Markets are constantly moving. That’s why looking at Days on Market in isolation can be misleading. Instead of asking:
“How many days has it been on the market?”
Ask:
“Why has it been on the market that long?”
Those are two very different questions. The answer could be pricing or the condition of the property. It could even be seller motivation. Or it could be something that presents an opportunity. The only way to know is to dig deeper.
Final Thoughts
Real estate would be a lot easier if a single number told the whole story. But it doesn’t. Days on Market is a useful piece of information, just like price per square foot, list price, or recent sales. It’s one tool in the toolbox, not the entire toolbox. Some homes sit because they’re overpriced or because they haven’t been marketed properly. And some homes sit because the right buyer simply hasn’t come along yet. Whether you’re buying or selling, don’t get too caught up in the number itself. Focus on understanding the story behind it. More often than not, that’s where the real opportunity is found.
This article is for general informational purposes only and is not legal, tax, or financial advice. Laws and programs can change, and individual circumstances vary. Consult qualified legal, tax, and lending professionals for advice specific to your situation.
Written by: Roy May Jr.