Days on Market Is a Silent Profit Killer
Time is the most underestimated cost in real estate. Here’s the monthly burn rate math and how pros manage it.
Days on Market Is a Silent Profit Killer
Most investors obsess over purchase price.
Fewer obsess over time.
That’s a mistake.
Time is a cost, and it compounds.
The monthly burn rate nobody respects
On a $250,000 property, typical monthly carry might look like:
- interest: ~$1,200
- taxes & insurance: ~$400
- utilities/maintenance: ~$300
That’s roughly $1,900–$2,100 per month.
Even if your financing is different, the point stands:
Every extra month quietly eats profit.
Why DOM expands more than planned
DOM expands because:
- rehab takes longer than expected
- inspections fail
- appraisal delays
- buyers negotiate harder in soft markets
- listings need multiple price cuts
Many investors plan for “best case” and are shocked by “normal case.”
The false economy of waiting for more
A classic mistake:
“Let’s wait for a better offer.”
But waiting costs money.
If you wait 3 months to gain $5,000:
- you may lose $6,000+ in holding costs
- and add market risk
That’s not patience.
That’s negative arbitrage.
How professionals manage time risk
- Price realistically from day one
- Avoid “top-of-market” pricing unless the house truly deserves it
- Move fast when feedback appears
- Track net proceeds, not just sale price
A deal that barely works turns into a loss with 60–90 extra days.
What this means for wholesalers
Deals that drag:
- lose buyer confidence
- invite retrades
- reduce deposits
- waste your time
Speed creates certainty.
Certainty creates closings.
Bottom line
Time is not a rounding error.
It’s a line item.
If you don’t track it, you’ll pay it anyway—quietly—at closing.