I received the following eMail after a video I posted on my page for "Home Not Selling Forum"
This relates to Home Absorption Rates and how to use it and help you sell a home.. .
"Hi Fernando, just listen to your Youtube video...have ??? well as you said try to be in 1st position to sell your home quicker.. we feel that we are but what happens when buyer to comparing to other town that are a little cheaper and get more home for the money.... as for my home in my town we look in great position 1st or 2nd.. had so many viewing but no offers in 3 months now.... its hard to lower any further unless its by owner then we can lower it by 20k that commission eats into the small profit we get back.. what do you think,, we live in Fort Lauderdale area in a very nice section.... Thanks R&B"
I decided to post my answer as to provide help in case you have a
house that will not sellas well
My Response:
Hi R & B thank you for watching my video.
Just understand that the Absorption Rate of any house is for a particular market only. .at any given time
When buyers are first looking for homes,
They are considering many areas at first.. (no absorption rates yet)
Then they decide particular areas because of school ...conveniences..walkability ...status......(no absorption rates yet)
It is when they are committed to a neighborhood or small area where your agent must ask this question when your house is located inside...
How many houses have sold in the last 6 months?
How many houses will sell in the next 30 days
What is the position of your house vs the competition?
If I was your agent, I would come to pick you up and make appointments with the competition...and I would ask you to pretend you are buyers
This is how you can help yourself and let your agent do the work...
Ok, you had enough
drop your agent
and save on the commission .....to transfer those funds to the asking price?
Big mistake!
Buyers are savvy ..and if your house is in the "expensive" side...all the buyers are intelligent....this is why they are buying expensive homes in first place!
The first thing they ask...
What is the history of the house?
How long has been in the market?
Why are the sellers ...selling it?
Assuming that these buyers have their own agent...very likely because most "serious prepared buyers" have already crossed path with dozens of agent while preparing to buy...
They will be represented by one of them ..I can assure you of that
Their agent will be answering those questions...
"They been trying to sell this house for a long time...for this amount and this amount...now they are asking this amount, they are desperate, let's offer them $$$$ and see what they say...they should be grateful we at least bringing them an offer.
The odds of you selling your house at top price and saving in commissions is almost zero in this case.. .
You've inspired me doing another video
I researched and analyzed why these houses are not selling..
They are all active and they been in the market for OVER 365 DAYS!!!
Thanks for the blog. It just opens up so many avenues to discuss the pricing, absorbtion rates, condition and current competition. I rather price them low and get multiple offers and inch it back up by creating competition.
Fernando - In some cases our neighborhoods within a specific area can be very, very similar - same builders, and sometimes even same models of homes. In that case, we do an analysis that included an area a little larger than the specific neighborhood. Everything else I completely agree with.
Maxus Realty Group of Samson Properties Serving Montgomery, Frederick, PG Counties Maryland PLUS Northern VAListing Marketing Expert at your service 30 miles radius fromGaithersburg ,MD20878
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