If your DOM keeps on increasing as the days go by, it’s time to start implementing some changes. If about 40 buyers have passed through your home and you don’t have a single interested buyer, you should have at least lots of feedback to work with. This is a serious red flag and if most people are suggesting that it is a bit pricy … guess what? It most likely is! A house that is priced right will start to get offers within the first month. If you are at a five week mark then pretty soon you will be chasing the market. The more DOM has accumulated the more your home is viewed as if there is something wrong with it. You can’t afford to have your home stagnate on the market. In this case it is best to take it off the market. Give yourself some time to really look at similar homes within your neighbourhood, look at what price they were sold at, and compare the their interior to yours; are your renovations on par with that of the comps? If not, then it’s time to do some touch-ups, and then re-list. Maybe all it takes is some staging. Staged homes sell by about 80% quicker and by about 20% more than those homes that are left as it. Another thing to consider, when you re-list it is to list the home at a slightly lower price than the market price, this way you will create leveraging power, you increase your chance of getting multiple offers which will in the end bid up the price.
Just as with anything else in life it helps to prepare, study the market. Know the average time the homes stay on the market in your area, and if you find that you’re way past that point then it’s time to reduce the price, if you haven’t past that point then don’t do anything for the time being. You should also know the number of homes that have had a price reduction in your area, and if the reduction resulted in a sale, and know the sale price. By doing your homework you will minimize your losses.