Are you having trouble getting buyers to visit your home?
One reason could be how you arrived at your listing price.
Did you and/or your real estate agent discuss Absorption Rates before pricing the home?
What?..............
You are unfamiliar with the term Absorption Rate.
Christine McInerney & Jennifer Halinkowski are two of my fellow KW Associates at one of the newest Keller Williams Market Centers in Knoxville, TN. They have done an excellent job (below) of simplifying the Absorption Rate equation.
Having two small children and several rescue animals I know how important the concept of absorption is- I need highly absorbent paper towel and napkins to clean up all their spills (they inherited their clumsiness from me). I also know that kids absorb information quickly so you need to be careful what you say around them because sometimes they absorb the "wrong" thing.
The concept of "absorption" is even more important in my career as a full time Realtor. Before, I ever put a home on the market I always calculate the absorption rate. Absorption rate is a concept and practice that is often over looked by many Realtors and lack of knowledge can lead to expired listings which everyone know is no good- it hurts the Seller, the Realtor, and can lead to poor sales results in an area.
So what is the absorption rate?
Just like the name applies, the absorption rate is a calculated estimate, based on current and past market trends, that determines how long it will take for Buyers to absorb (aka buy) the current inventory in a given area.
So what does this number tell you?
As a Realtor, I often have Sellers ask me how long I think it will take to sell their house. While I do not have a crystal ball or the ability to see into the future, the absorption rate can allow me to make an educated estimate of how long it will take for a home to sell based on the number of comparable homes on the market and the number of closed homes in a given time period.
The absorption rate follows the simple law of supply and demand. If an market area has 46 similar homes on the market and only 5 comparable home sold the past month that are has a current absorption rate of 9.2 months. In other words there is 9.2 months of inventory. Therefore if a Seller "needed" to sell within 3 months they better make sure that their price and condition were better than that of the competition.
Selling real estate is not about guessing- it is both a science and an art. Because both Jennifer and myself have advanced science degrees we thoroughly research market areas both before and during our listing periods as good knowledge of the market is critical in selling a home and allowing Sellers to get the most money out of their homes and to sell in the shortest period of time.
Interested in Selling your Knoxville TN home contact Christine and Jennifer today. We provide a free no obligation Compartative Market Anaylsis and detailed Market report.
Instantly search for more homes for sale in the Knoxville TN and surrounding areas now! www.HomesForSaleKnoxville.com
In relation to The American Recovery and Reinvestment Act of 2009, first-time homebuyers WITH THE RIGHT LENDING PARTNER might have an opportunity to obtain $8000 at the closing table for down payment assistance, closing costs and/or prepaid expenses.
We also discussed MYTHunderstandings of first time home buyers. If you are a first time home buyer and want to take advantage of low interest rates, tax credits and lower home prices, TODAY IS THE DAY to start your home buying process.
Do you really understand the current real estate market? Are you truly prepared to make the best purchase? Listen to this podcast for the answer.
Here is a direct quote from a section of that letter ---
II. FHA Tax Credit Guidance
Secondary Financing
Consistent with existing FHA policy, FHA will permit entities covered by Section 528 of the National Housing Act to use the current authority to offer tax credit advances with second liens in a manner consistent with the requirements in 12 U.S.C. 1709(b)(9). Eligible government agencies and instrumentalities of government are described in handbook HUD-4155.1 5.C3 and 5.C4.
Conditions:
The tax credit advance when combined with the FHA-insured first mortgage may not result in cash back to the borrower.
The second lien may not exceed the total amount needed for the down payment, closing costs, and prepaid expenses.
Secondary financing may be "soft" (silent) or require a monthly repayment.
If payments are required, they must be included within the qualifying ratios and, when combined with the first mortgage, cannot exceed the borrower's reasonable ability to pay.
Payments must be deferred for at least 36 months to not be included in the qualifying ratios.
If the tax credit advance loan has a short term for repayment, it must also provide that if the borrower fails to repay by the designated deadline, principal and interest payments begin automatically or the loan converts to a "soft" second.
The secondary financing may not require a balloon payment before ten years.
Are you looking to purchase your first home? Do you want $8,000 in assistance?
".....life is simply a matter of priorities. Your future is based on the choices you make today." - Terry Padalino
As a leading real estate professional, Terry Padalino specialized in turning clients' dreams into reality throughout the Lake Murray, Columbia and Lexington, South Carolina areas. Padalino has the knowledge, insight and sphere of influence necessary to help valued clientele succeed in this competitive marketplace.
Since January 1, 2002*, there are ONLY TWO agents that have more Consolidted MLS SOLD VOLUME than Terry Padalino.
Does fear play a dominant role in your life? Most real estate professionals believe that fear has made a significant impact on the current economic climate and local real estate markets throughout the country.
With decreased home prices, the $8,000 tax credit and interest rates hovering at record lows, these are very "buyer friendly" times in the real estate market. Unfortunately, a climate of fear is causing first-time home buyers to become paralyzed and miss moments of great opportunity.
What role does/should fear play in your life? How can you conquer fear? What does it take for you to move from paralysis to power? Spencer Combs is a NLP Master Practitioner, licensed Life and Busincess Coach and specializes in creating massive progress in a short period of time.
Spencer shared his thoughts on these and many other questions on this The David Patterson Show podcast.
On May 14, 2009, Keller Williams Realty Associates throughout North America accepted the challenge of actively engaging in a coordinated effort to improve local communities. In recognition of her constant commitment to KW Culture, May 14 was named RED (Renew, Energize and Donate) Day in honor of our Vice Chairman, Mo Anderson.
In Columbia, South Carolina, several Keller Williams Associates partnered with Food From The Heart and stood in front of groceries stores for ten hours to collect food for Harvest Hope Food Bank in an effort to assist in their mission of sharing quality food with dignity, compassion and education.
On RED DAY 2009, Keller Williams Columbia Associates were able to collect approximately 6,600 pounds of food for those in need throughout the Metropolitan Columbia SC area.
THANKS TO COLUMBIA for donating money, rice, beans, cereals, diapers, medicine, canned goods and personal hygiene products in your lovely red bags! YOUR CONTRIBUTIONS ARE GREATLY APPRECIATED!
To volunteer for the next Food Drive, contact Food From The Heart!
3620 Pelham Road, Suite 175 Greenville, South Carolina 29615
Integrated Financial Services, LLC (IFS) is a full-service mortgage brokerage firm. With over 45 years of combined mortgage experience, IFS are dedicated to providing high quality customer service and support to our clients with mortgage financing needs.
What is Karen's Recommended First Step in the home buying process?
How can you purchase a home that stays within your financial synergy?
Should we use "clear credit" companies to aid in bringing financial synergy to our lives?
Please listen to the TWO-PART podcast for answers to these questions.......
AMF bowling centers is offering a great free deal.
Kids under the age of 15 can bowl 2 free games EVERYDAY, ALL SUMMER LONG. With the price of bowling this is a great offer.
You can also buy and adult pass good for 4 people for $23.95.
Select a bowling center near you.
Register directly on the bowling center page (The registration is valid only at the bowling center where you register and cannot be used at any other bowling center unless otherwise noted.)
If you have one of the GE Security ActiveKeys, you might want to read this letter that was sent to me on last week.
Dear ActiveKEY Customer,
GE Security has recently identified a potential safety issue that may affect your ActiveKEY. We have isolated the source to a shipment of batteries we received from a vendor last year. Testing has revealed that certain batteries from this shipment do not currently meet the vendor's specification and, in rare circumstances, these batteries may overheat, melt and emit smoke if, for example, left in a vehicle on a hot day. We have confirmed three recent field reports of this overheating occurring in ActiveKEYs with batteries from this same shipment. These batteries were used in ActiveKEYs manufactured between January 26, 2008 and April 17, 2008 only. Your ActiveKEY was manufactured during this date range.
GE Security takes feedback and reports on our equipment from our customers very seriously. While we have received only a small number of reports and there have been no reported injuries, as a precaution GE Security will begin voluntarily replacing affected units in the coming days. As part of this effort, we will send you a replacement unit along with instructions on how to return your current ActiveKEY.
Important Safety Reminder: Until you receive a replacement unit, please DO NOT leave your ActiveKEY in a parked car. High temperatures such as those encountered in a parked vehicle on a hot day may cause the ActiveKEY's battery to overheat.
If you have questions or concerns, please call the GE Security support line at 1-877-699-6787.
Quality, safety and reliability are the cornerstones of all GE Security products. We apologize for the inconvenience this may cause and thank you for your patience and assistance in this matter. Thank you for your business.
USDA loans in many areas are becoming more popular, yet many loan officers still don't know much about them, hence why they still aren't talked about much. Just as FHA loansweren't used as much as they should have from 2000 - 2006, because subprime and some conventional loans were easier for the loan officer to give to the consumer, even though it might not have been the best loan for them. I am sure in some cases, FHA loans are given before the USDA loan because of the lack of education on the loan officers part.... just my .02.
Some great benefits that USDA loans offer -
It's one of only two types of mortgages that offer real 100% financing, with no money down on the property. The other would be VA loans.
Just because it says rural development doesn't mean farm land or properties that are miles apart from each other. Ask your loan officer if your property that you are looking to purchase might fit into the property location guidelines.
There is no monthly mortgage insurance, even with zero down payment. The only other mortgage like this, again, VA loans.
There is no seller contribution limit, just as in FHA loans, to where the seller can contribute up to 6%. It's look upon as reasonable closing costs. And keep in mind, each state has their own limits to what a lender can make anyhow, usually falling under section 32.
100% of the closing costs can be gifted.
The loan amount can include closing costs and repairs up to the appraised value. (call me or e-mail me for more of an explanation)
Credit scores of 580 and below are highly scrutinized by USDA. There are many things that need to be looked upon. Scores from 620 and above meet the normal credit standards and get an automatic credit waiver on such things as explaining derogatory credit and rental verifications.
Normal qualifying income ratios are 29%/41%. You can exceed these ratios if you have scores above 660 and you don't have to apply for a debt-to-income waiver. Those below 660, you have to have compensating factors and apply for an income ratio waiver.
There are income restrictions, yet as of April 20th, 2009, there will be new income limits for the better. Basically the 4 person income limits will now be for 1 person income limits.
One important thing to remember, you can't have an in-ground swimming pool if you are using USDA that came from the 2009 stimulus bill. If it's the normal USDA monies allocated yearly, then it's okay, but you need to check on this with your lender.
IMPORTANT - These are USDA's guidelines, yet lenders can after overlays, to where they might be more critical on credit scores or debt-to-income ratios. Please keep this in mind.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
The absorption rate follows the simple law of supply and demand. If an market area has 46 similar homes on the market and only 5 comparable home sold the past month that are has a current absorption rate of 9.2 months. In other words there is 9.2 months of inventory. Therefore if a Seller "needed" to sell within 3 months they better make sure that their price and condition were better than that of the competition.
combined mortgage experience, IFS are dedicated to providing high quality customer service and support to our clients with mortgage financing needs. 
that certain batteries from this shipment do not currently meet the vendor's specification and, in rare circumstances, these batteries may overheat, melt and emit smoke if, for example, left in a vehicle on a hot day. We have confirmed three recent field reports of this overheating occurring in ActiveKEYs with batteries from this same shipment. These batteries were used in ActiveKEYs manufactured between January 26, 2008 and April 17, 2008 only. Your ActiveKEY was manufactured during this date range. 
USDA loans in many areas are becoming more popular, yet many loan officers still don't know much about them, hence why they still aren't talked about much. Just as FHA loansweren't used as much as they should have from 2000 - 2006, because subprime and some conventional loans were easier for the loan officer to give to the consumer, even though it might not have been the best loan for them. I am sure in some cases, FHA loans are given before the USDA loan because of the lack of education on the loan officers part.... just my .02.
;)
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