Markets

Adjusting Your Offer When Average Days on Market Increase in Your Local Area

When the average days on market for properties in your target area start to climb, it signals a shift in market conditions that requires a reassessment of your offer strategy. This change often means sellers are facing less competition among buyers, which can influence their expectations and your deal structure.

October 13, 2026 · 4 min read

What rising days on market means for you

When you see the average days on market (DOM) increasing in your target neighborhoods, it's a clear indicator that the market is cooling down. Properties are taking longer to go under contract and close. For an investor, this means you can't assume the same quick turnaround for your disposition that you might have in a hotter market. It impacts how quickly you can flip a contract or a property itself.

A longer DOM suggests that there might be more inventory available or that buyer demand has softened. This directly affects your cash buyers, as they too will be looking at their own holding times and projected profits. You need to adjust your assumptions about how fast you can exit a deal.

How to spot the trend early

You don't need fancy software to track DOM. Pull data regularly from your local MLS or public records for recent cash sales in your target areas. Look at the last three to six months and compare it to previous periods. You're looking for a consistent upward trend.

Pay attention to specific property types and price points. A general increase in DOM might hide sub-markets that are still moving quickly. Focus your analysis on the types of distressed properties you usually target. You can also talk to local agents and other investors; he or she will often have a feel for current market speed.

Rethinking your exit strategy options

A rising DOM means your typical 30-day closing window for an assignment might become tight. You might need to build in more time for your buyer to close or for you to find a buyer. Consider if a straight assignment is still the best option, or if you need to entertain a double close to provide more flexibility.

For a fix-and-flip strategy, a longer DOM means higher holding costs for utilities, insurance, and interest on any borrowed funds. This eats into your profit margin, so you need to factor this into your initial calculations. It might also mean you need to be prepared to hold a property longer before it sells.

Negotiating with a longer timeline in mind

When negotiating with a seller in a slowing market, you have a stronger position to ask for a longer inspection period or a more extended closing timeframe. This extra time can be crucial for lining up your cash buyer or firming up your rehab estimates.

Sellers who are watching their properties sit on the market will often be more realistic about timelines and pricing. You can frame your offer as a solution that provides certainty and a clear exit, even if it's not the highest dollar figure. Emphasize the speed and convenience you offer compared to waiting on the open market.

Adjusting your offer price calculation

A longer DOM ultimately translates to a lower after-repair value (ARV) if you're wholesaling or flipping. Your cash buyers will factor in their own longer holding costs and increased market risk. This means your maximum allowable offer (MAO) needs to drop.

If you typically use a 70% rule, consider dropping it to 65% or even 60% of ARV, minus repairs. Suppose you use a hypothetical $10,000 extra holding cost for an additional month on market; that $10,000 needs to come directly off your offer.

Communicating market realities to the seller

Sellers might be anchored to recent high sale prices from a faster market. It's your job to gently educate them on the current market conditions. You can point to recent comparable sales that took longer to close or sold for slightly less than comparable properties did a few months ago.

Focus on the certainty and convenience you provide. He or she doesn't have to wait for months, deal with showings, or make repairs. Your offer takes these current market challenges off his or her plate. This approach helps set realistic expectations and reinforces the value of your cash offer.

Questions people ask

Is a high days on market number always bad for me?

Not necessarily. A high DOM indicates a slower market, which can create opportunities for you to negotiate better deals as sellers become more motivated. It just means you need to adjust your strategy.

How often should I check days on market data?

You should check DOM data at least once a month for your primary target areas. If the market is volatile, consider checking every two weeks to stay ahead of trends and make timely adjustments to your outreach and offers.

Does days on market affect my cash buyer's interest?

Yes, a rising DOM will affect your cash buyer's interest because he or she also factors in the time it will take to sell the property after rehab. He or she will adjust his or her own offer to you based on this increased holding time and risk.