Real estate investing requires the experience from a variety of fronts. There are simply too many variables that can turn a potential profit into loss and without the assistance of others, you’re leaving setting the right price for real estate investmentsyourself open for mistakes. Mistakes that will cost you money.

For example, when estimating the cost of repairs you need the guidance provided by a licensed contractor. An attorney should assist with obtaining and reviewing a title report, and so on. And of course, the all-important pricing strategy concerning how much to pay for a prospective property and how much to sell it for. That means you need an expert real estate agent on your speed-dial.

But where should you price your real estate? Certainly you want to sell for a profit, that’s a given, but you want to maximize your profit as well. When considering what to ultimately list your flip for, your real estate agent can help with a Days on Market analysis, or DOM.

The multiple listing service, or MLS, has current and historic data on real estate sales from homes that were listed and not sold, currently listed homes and homes that have sold and closed. The original list price as well as the final sales price can be accessed by anyone who has permission to log into the MLS. An interesting piece of data on all sold homes is the DOM. In other words, how long did it take for the home to finally sell?

The shorter the DOM number, the quicker the sale, right? But how quick? Sure, you want to sell your property sooner rather than later but a home that sold in one day in a neighborhood where the majority of homes sold in 60 days? In this example, the home was way underpriced. The seller obviously needed to sell quickly so the home was priced accordingly. A home that sold in 90 days in a 60 day neighborhood? Perhaps there was something wrong with the property but more than likely the seller priced his home too high. Homes taken off the market after an extended listing? In all likelihood the home was overpriced.

Your real estate agent has the ability to help establish a likely sales price for you real estate investment to sell within your ideal time frame by reviewing how long it takes sell a home and at what price. You don’t want to price it too low, but you do want to sell within a reasonable time.