iRealtee OS Glossary

Days on Market

DOM calculation follows a straightforward process:

Days on Market

Days on Market (DOM) is a real estate metric that measures the total number of days a property listing remains active before receiving an accepted offer or the listing agreement expires.

Key Components

  • DOM (Days on Market): The basic count from listing date to contract signing
  • DOMM (Days on Market - MLS): Number of days a specific MLS listing has been active
  • DOMP (Days on Market - Property): Total days the property has been for sale across all listing agents
  • Average DOM: Market-wide metric showing typical selling timeframes in an area

How it Works

DOM calculation follows a straightforward process:

  1. The property is listed on the market (start date)
  2. The clock runs daily while the listing remains active
  3. Counting stops when the seller accepts a buyer's offer or the listing expires/withdraws
  4. The final count represents the property's DOM value

In the Philippine real estate market, DOM tracking typically begins when a unit is posted on a property listing platform or registered with a brokerage's inventory system.

Pros & Cons

Advantages:

  • Identifies overpriced properties quickly
  • Helps buyers negotiate better deals on high-DOM listings
  • Signals market demand for specific locations or property types
  • Enables real estate brokers to adjust pricing strategies

Disadvantages:

  • Can be manipulated through listing withdrawals and re-listings
  • Does not account for seasonal market fluctuations
  • May create negative stigma for properties with legitimate reasons for longer market time
  • Varies in calculation methods across different platforms

Real-World Application

In the Philippine real estate industry, DOM serves as a critical performance indicator for:

  • Pre-selling condominiums: High DOM may indicate the unit is priced above comparable properties in the same tower or project
  • House and lot packages: Extended DOM suggests potential issues with location accessibility, pricing, or market fit
  • Sales pipeline management: Agents use DOM to prioritize follow-ups and identify listings needing price adjustments

For realty hubs and brokerages, tracking average DOM across inventory helps assess overall sales team performance. A rising average DOM signals the need to revisit pricing strategies or improve lead generation efforts.

When a property exceeds the market's average DOM (typically 60-90 days for Philippine residential properties), sellers often consider:

  • Price reduction (commonly 5-10% below original listing)
  • Enhanced marketing through virtual tours or open houses
  • Reviewing the property's market value assessment

References

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