As a home buyer, you probably gauge how hot the market is based on several different statistics. Among them are average selling price, days-on-market (DOM), and days-to-offer (DTO). As you evaluate days-to-offer statistics in the MA real estate market, it’s important to understand common real estate practices. DTO figures do not always accurately reflect how hot the market is based on a few of these practices.
Showings & Deadlines
The MA real estate market is pretty hot right now. Homes are going under agreement quickly after receiving multiple offers. A common practice by real estate agents is to begin showings at the open house and to set an offer deadline a few days later.
Showings Delayed Until Open House
Why begin showings at the open house? There are so many buyers on the market right now (more than there are listings) that asking buyers to wait until the open house makes showings more manageable. Otherwise, homes could have 60 showings within 3 days, which would be a huge inconvenience for most sellers. Since listings are entered into the local MLS system before the open house, the first few days on market are really lag days.
In addition to the showing delay, offers are delayed for a few days after the open house. This allows all buyers time to evaluate the property and prepare their contracts. It also improves the chances of a bidding war. However, again, this can create a few lag days.
More Accurate Days-to-Offer Statistics in the MA Real Estate Market
In many areas throughout Eastern MA, particularly in and around Boston, most homes would go under agreement the very first day if not for the real estate practices described above. Instead, days-to-offer figures are much higher, by several days or up to a week. Buyers looking at these figures may be under the impression that they have a week to decide whether to submit an offer, but that’s simply not true. Homes that are properly priced and in good condition would go under agreement within a single day, if not for the real estate practices noted above.