Scott's Blog

What are absorption rates, and why do I want to know?

Scott Riedel (Keller Williams Realty) — Tue, 30 Aug 2011 17:05:57 -0400

Absorption rates sound more like a measure of how well a paper towel soaks up a mess, than a valuable piece of information as applied to real estate pricing. With real estate, simply stated, the absorption rate is the ability of the market to sell off all of the houses for that price range or geographical area. Let's use the example below:

Subdivision A has 50 homes on the market for sale. Your real estate agent has studied the market and observed an average of 5 homes sell every month. At this rate, it would take 10 months for all homes to sell. In our local Murfreesboro area, there are 1,553 properties for sale with sales last month of 224 homes. 1,553/224=6.93 absorption rate.

Ok, so what does that mean to me as a home seller you ask? These figures are important to know for your local area as this is an indicator of length of time for your home to sell. Of course there are many other aspects to consider such as condition, location, neighboring properties, etc. But all other aspects being equal, this would indicate if you need to sell your home faster, it would need to be priced better than your competition.

For an analysis of your local area, be sure to contact your real estate professional or you may contact me for an agent in your area.

Sold "As-Is"

Scott Riedel (Keller Williams Realty) — Tue, 30 Mar 2010 11:54:12 -0400

Many factors are influencing the real estate market today. Markets are beginning to stabilize, the Federal Tax Credit remains in effect until April 30th, many discounted home values (i.e.- foreclosures and/or short sales) and lets face it; the weather is just plain nice.

When searching through available homes and find a property being sold "as-is", what is your first reaction? For the savvy investor they may see a diamond in the rough. For most, they see a potential problem and look elsewhere. The words "as-is" should not serve as a total deterrent. Although the problems may be severe, they may also be minor or simply cosmetic. Working with a Realtor(r) and a good home inspector are sure tools help you diagnose the value of a home.

As with any home purchase, even new construction, I would strongly suggest having a home inspection completed. While many potential problems with a property can be seen simply by walking through, there are many clues to other issues that lie behind what you can visibly see. A certified home inspector will give a detailed view of the property and arm you with the knowledge you need to make an informed decision.

There are several financing options to assist with repair issues that are discovered. In certain cases, you can finance the purchase and repairs in one loan leaving available cash in your pocket. Contact me today to discuss the potential pitfalls and possibilities with a home being sold "as-is". Who knows, you might just find that diamond after all.

So what is it? Two story or one and one half?

Scott Riedel (Keller Williams Realty) — Fri, 08 Jan 2010 10:24:43 -0500

Have you ever shown a home, and climbed the full set of stairs to the second story and wondered, why did the listing agent call this a 1-1/2 story? You are not alone. Many have wondered what truly makes the difference between the two distinctions. To define a 1-1/2 story, you really need to pay attention to the roofline and upstairs windows. If the home has dormers, or gable ends that include windows, than by defenition it is a 1-1/2 story. In other words, there is a loft area, or living space between the ceiling of the first story and the roofline.

In a traditional 2 story home, you will have full 8 foot or taller walls throughout the entire floor. Ceilings may still contain details such as trey, vault or cathederal, but will not be lower at any point than 8 feet. This is not typical of the story and a half plan. Here you can expect to see sloped ceilings, many times reaching a height of four feet, or lower. The benefits to this plan can be extensive, but will typically include many areas of potential storage. Often times these areas will be accesible without stairs.

One area to consider in placing value to these types of plans is square footage. Although rather easy to calculate on a 2 story home, it is quite different on a 1-1/2 story plan.

What is a short sale anyway?

Scott Riedel (Keller Williams Realty) — Thu, 17 Sep 2009 14:20:26 -0400

In today's market, there have been many short sales. However, this term has been misunderstood by consumers. Most people think a short sale is a great "steal of a deal". While this may be true in certain cases, there are things you should know.

Short sales are nothing more than a seller of a property owing more money to the lender than the home is currently valued my the market conditions. In approved cases, the lender has agreed to accept less for the property than what the seller owes. What does that mean? Well, most importantly it means the price is determined by market conditions. Ironically, this is the same way most homes are valued.

That being said, there are deals to be had. The wealth of information available on the internet allows most consumers to determine the correct pricing for a home. However, there are several factors that need to be taken into consideration that my affect the price of a home. Contact a real estate professional todayto have an in-depth, cost analysis completed with no obligation.

$8,000 Tax Credit for Homebuyers

Scott Riedel (Keller Williams Realty) — Fri, 15 May 2009 14:02:30 -0400

What's that? Still have not taken advantage of the $8,000 tax credit? Not sure who it applies to ? Get answers to all your questions here!

Tech Tip-Be alerted of Price Drops

Scott Riedel (Keller Williams Realty) — Mon, 02 Mar 2009 11:17:17 -0500

The convenience of online shopping just can't be beaten. You can avoid crowded shopping centers. Parking and long lines are never a problem. Of course, you'll often find better prices online, too. That's because Web sites don't have the overhead associated with retail locations. But these days, low prices aren't enough. We need to find the lowest prices possible. Fortunately, the Internet makes comparison shopping easy. You can check an item's price on numerous sites in a matter of minutes. There's no driving all over town or making endless phone calls. To make online shopping even easier, try Price!pinx. All you need do is install a bookmark in your browser. Then, when you're on a site's product page, highlight the price. Next, click the Price!pinx bookmark. Price!pinx does all the work for you. You'll receive a notification if the price drops! Price!pinx can also help you with low-price guarantees. It's great for cash-strapped families! (content provided by www.Komando.com)

Of course if you are are looking for the most up-to-date information in Middle Tennessee Real Estate, you can always visit my website www.MovingTennessee.com for real estate prices updated 24/7! Create your own personal search and be the first to know when a price changes. Powerful and FREE!

Nice home with country setting

Scott Riedel (Keller Williams Realty) — Mon, 22 Dec 2008 21:43:49 -0500

Links

Photo Gallery

Description

This permanent foundation, manufactured home is ideal for the beginning family, or anyone interested in the country life with the convenience of being close to everything! Located in beautiful Arrington, Tennessee, this home is just minutes from Nashville, Smyrna, or Murfreesboro and just 3 miles from interstate 840. Ammenties include 3 bedrooms and 2 full baths, ceramic tile in all wet areas, large rooms with walk-in closets, seperate dining and laundry rooms.
Outside, enjoy the 1 and 1/2 acres with tree-lined privacy, new concrete patio and a heated/cooled, 2-car detached garage!

Features

Bedrooms:	3
Bathrooms:	2
Parking Spaces:	2
Year Built:	2000
Lot Size:	1.4 Acres
Garage Size:	2
Square Footage:	1560
Agent Name:	Scott Riedel
Broker:	Keller Williams Realty
MLS #:	1041769

vFlyer Id: 2129461

Rates Fall

Scott Riedel (Keller Williams Realty) — Tue, 25 Nov 2008 17:03:03 -0500

RATES DROP TODAY

Contact me today for current rates: 15 Year 4.875 at 1% origination fee 30 Year 5.250 at 1% origination fee 30 Year 5.500 with NO origination! Rates move quickly, so do not delay!

Tech tip of the week

Scott Riedel (Keller Williams Realty) — Tue, 18 Nov 2008 14:38:06 -0500

Looking for the latest tip in Technology?

Look no further! Visit here often for the latest helpful tips and acrhive of previous tips offered through my site. Wether you are new to tech stuff or seasoned, you will be sure to find the tools you need! Thank you for stopping by.

Click here for this weeks tip!

Are we at the bottom of the market?

Scott Riedel (Keller Williams Realty) — Mon, 10 Nov 2008 11:33:40 -0500

While analysts try to predict the bottom of the market, we can all sit back and ask 1 simple questions. Is this the best time to buy or sell for me?

Timing plays a crucial role in our lives. We rely on timing each day as we shop for new insurance, look for great deals on groceries, new tools, even when to fill up our vehicles with gas. Many will agree that sitting home from work to wait for gas prices to drop would not be the best decision. Similarly, if you have the home picked you would like to purchase, there is not much room for gain by waiting for further housing drops.

There are undoubtedly areas in our Country that have experienced sharp declines in the housing dollar. Throughout Middle Tennessee, we have enjoyed a stable market due in part to increasing population, commercial development, new industry, comfortable climate and general proximity to the center of our Nation. What simply must be asked is do you have the time to wait?

Time is a crucial ingredient that many do not have. Our current market boasts excellent loan rates and a larger than average inventory of homes available. If purchasing a home is in your immediate future, either for occupancy or investment, there may not be a better time to buy.

For further information, or to review the homes available throughout Middle Tennessee, please visit my website www.MovingTennessee.com.

Lease or Lease Purchase in Murfreesboro Tennessee

Scott Riedel (Keller Williams Realty) — Thu, 18 Sep 2008 13:55:36 -0400

Description and Features

This tremendous property is better than new! Now available or Lease or Lease Purchase, don't miss this opportunity to live is the newest part of Murfreesboro! Located just minutes off I-24 and within seconds of the new "South Loop" this loccation will only become more attractive as time progresses.

Bedrooms:	4
Bathrooms:	3
Parking Spaces:	2
Square Feet:	2820
Lot Size:	12360
Year Built:	2007
Floors:	2

Location

Click to view map: 2710 United Drive Murfreesboro TN 37128

Links

Nashville Condo for Sale

Scott Riedel (Keller Williams Realty) — Mon, 15 Sep 2008 13:24:54 -0400

Description and Features

Ground floor condominium in highly sought after Versailles development! Just minutes off I-440 and close to downtown, this is a great opportunity to be convenient to all areas at a great price!

Bedrooms:	1
Bathrooms:	1
Parking Spaces:	1
Square Feet:	1081
Year Built:	1967
Floors:	1
MLS #:	1017873

Location

Click to view map: 3000 Hillsboro Road #110 Nashville TN 37215

Links

Beautiful home in Bell Buckle Tennessee with 1.55 acres and pool

Scott Riedel (Keller Williams Realty) — Fri, 14 Mar 2008 13:24:32 -0400

Very well kept home situated in the country, yet convenient to Bell Buckle, Murfreesboro and Franklin. Located on 1.55 acres of land, this home boasts 1300+ square feet with an additional 600+ square feet of exapndable space. Two dormers upstairs, fully floored, partial wiring and plumbing stub-outs make this ready for your touches. Large deck and pool are a welcome addition for those hot summer days. Plenty of storage available with a seperate storage building for all your tools. Visit http://www.MovingTennessee.com

Great home in Bell Buckle

Scott Riedel (Keller Williams Realty) — Fri, 14 Mar 2008 12:21:42 -0400

Murfreesboro home with Acerage

Scott Riedel (Keller Williams Realty) — Tue, 04 Mar 2008 23:01:10 -0500

This property has 5+- acres, surveyed to two parcels of 2.5+- each. Current home has over 3000 s.f., 2 car heated attached garage, seperate 1 car detached garage. Large eat-in kitchen, and bonus rooms upstairs to house all sorts of furniture or gaming items.

Please visit my website for further details : http://www.movingtennessee.com

Quadplex Investment Property

Scott Riedel (Keller Williams Realty) — Tue, 04 Mar 2008 22:55:37 -0500

Property for sale: Quadplex, fully rented with cash flow of $1650/month.

Visit my website for further details: http://www.MovingTennessee.com

Brentwood Home for Sale

Scott Riedel (Keller Williams Realty) — Tue, 04 Mar 2008 16:01:25 -0500

visit my website for further details: http://www.MovingTennessee.com

This home is a true find! Although a single address, this home is designed for a two-generation family. Seperate kitchens, laundry rooms, living areas and bedrooms make this the ideal property for any growing family with needs to take care of family members. Seperated by one common room, the larger side boasts 3 bedrooms and 2 full baths, completely remodeled kitchen, hardwood floors, and 3 LARGE living areas.

The other side features hardwood flooring, large living room, 2 bedrooms and 1 full bath. Stay out of the elements with a custom 3 bay all brick carport and full brick exterior on the home. Truly a must see property. Contact Scott Riedel with Keller Williams Realy at 615-207-8154

Video your homes contents

Scott Riedel (Keller Williams Realty) — Tue, 16 Oct 2007 16:45:09 -0400

I recently heard about a family whose home was broken into, but who never got full replacement value for their losses because they couldn't supply the insurance company with reasonable proof of what they owned.

With that in mind, I just wanted to mention that, in order to avoid such claim problems, insurance companies suggest that you make a complete inventory of your belongings and also videotape or photograph them for visual proof.

No one ever likes to think about having their home broken into, but in the event that it happens, it pays to be prepared

Murfreesboro Investment Property For Sale

Scott Riedel (Keller Williams Realty) — Tue, 09 Oct 2007 10:44:06 -0400

Click here for details

Murfreesboro Investment Home For Sale

Scott Riedel (Keller Williams Realty) — Thu, 13 Sep 2007 09:37:39 -0400

Great investment opportunity with 3BR, 1.5BA in the heart of Murfreesboro Tennessee. Currently rented with positive cash flow. Storage barn in rear yard with electricity. Please contact me for further details.

http://www.mlsfinder.com/kwls/kw/index.cfm?action=listing_detail&property_id=1183906172&searchkey=ff6f2777-0778-ef38-ec29-e18a95e87c78&npp=10&sr=11

Absorption Rates

Scott Riedel (Keller Williams Realty) — Thu, 13 Sep 2007 09:26:44 -0400

Hello, and welcome to my blog post. If you have not heard the term "Absorption Rate", then you may not have your home(s) priced correctly to sell.

Absorption rate is simply the time needed to sell a home based on inventory available and recent sales. Let me further explain:

Let's assume there are 100 homes sold each month and there are 1200 homes currently on the market. Given this example it will take 12 months (1200/100=12) to sell all the homes. How does this affect you as a seller?

Pricing your home correctly is the key. To price correctly your home would need to be in the lower 50% of inventory to sell at the current rate. If you need to sell faster, you should price in the lower 25%.

The above numbers are for example purposes only. Please contact me directly to learn about current absorption rates in your neighborhood. 615-207-8154 or Scott@MovingTennessee.com.