Days on Market (DOM) Explained: A Comprehensive Guide to Selling Your Toronto Home

It can be challenging to sell a home in Toronto, particularly if you lack experience in the real estate market. The length of time your home is on the market is one of the most important factors to consider. This is known as "Days on Market" (DOM) and is an important indicator of how quickly your home will sell. This comprehensive guide will cover everything you need to know about DOM and how it impacts the sale of your Toronto home.

What is Days on Market (DOM)?

The average number of days a property is on the market before being sold or removed from the market. It is a crucial indicator for buyers, agents, and sellers to monitor and evaluate the real estate market situation. A high DOM indicates a buyer's market in which homes remain on the market for an extended period of time, whereas a low DOM indicates a strong seller's market in which homes sell rapidly.

Toronto's real estate market requires DOM, but why?

DOM is a crucial indicator that sellers on the Toronto real estate market must attentively track. In a competitive market like Toronto, where there are numerous properties to choose from, buyers are more likely to acquire a home with a short DOM. On the other hand, a high DOM may indicate that the property has issues, such as being overvalued, requiring extensive renovations, or being located in a less desirable neighbourhood.

How do you determine DOM?

To calculate the DOM, multiply the number of days a property has been listed by the number of days it has sold, been withdrawn from the market, or expired. For instance, the DOM would be 30 days if a home was listed on January 1 and sold on January 31.

Variables affecting DOM in the Toronto real estate market

Numerous variables influence the Toronto real estate market. These encompass:

Generally, homes with desirable addresses have lesser DOMs.
Overpriced homes will likely remain on the market for an extended period of time, resulting in a high DOM.
Generally, homes that are well-maintained and move-in ready sell faster than those that require extensive maintenance.
Marketing: Successfully marketed properties typically have a lower DOM.
The number of available properties in the vicinity may have an effect on the DOM. In a buyer's market, there are more properties available, resulting in a prolonged DOM.
Reduce the average number of days on the Toronto real estate market: some helpful advice

Here are some tips to reduce DOM and increase the likelihood that your Toronto home will sell quickly:

Based on recent market activity and comparable sales, a real estate agent can assist you in determining the ideal price for your home.
Ensure that your property is spotless, decluttered, and attractively presented in order to attract potential buyers.
Promote your home effectively by using professional photography, virtual tours, and web advertising to showcase it to potential purchasers.
Be adaptable: To accommodate prospective purchasers' schedules, be flexible with showings and open houses.
Employ an experienced real estate agent: An experienced agent will be able to help you sell your home quickly and will have the knowledge to navigate the Toronto real estate market.

DOM is a crucial metric that every seller in Toronto should carefully track when listing a property. Understanding how DOM works and taking action to reduce it may increase your odds of selling your home quickly and for the right price. Employ a reputable real estate agent to assist you in navigating the process and achieving your home-selling goals.