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Trouble Selling Your Home? What is Your Absorption Rate?

By
Real Estate Agent

According to my Keller Williams Team Leader, the number of Days on the Market (DOM) for metropolitan Columbia SC homes for sale is steadily increasing. Depending upon how you slice and dice the data, the average real estate listing is sitting on the market for approximately 95 to 105 days.

What are you and/or your real estate agent doing to reduce your DOM number?

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 calculate your Absorption Rate before pricing the home? What?.............. You are unfamiliar with the term Absorption Rate.

"Basically, absorption rate is the amount of time it will take to sell all of the homes on the market, based on current sales trends." -- Ryan Hukill with Paradigm Realty in Edmond, OK

Knowing the absorption rate and using it as a tool to properly price your home is critical to selling your home in significantly less time than the 95-105 average DOM timeline.

Here are Absorption Rates for some Columbia SC neighborhoods.........

The Highlands in Northeast Columbia SC currently has 10 Months of Inventory on the Market. What does that mean to Highlands homeowners? In laymen's terms, if you have a home on the market in The Highlands, it could take you TEN (10) MONTHS to sell!

Turtle Creek in Northeast Columbia SC - Your Absorption Rate is NINE (9) MONTHS!

Milford Park in Irmo SC - Good News! Your Absorption Rate is four (4) months.

Heatherstone in Irmo SC - Better News! Your Absorption Rate is three (3) months. If your home has been on the market longer than three months, it might be time to perform The 4 Ps Analysis on your home! (That's another article for another day!)

If you have questions about your Absorption Rate or conducting 4 Ps Analysis of your home to reduce your DOM number, call today to schedule an appointment with Patterson Group and the Keller Williams team.

Jeannette Neerpat
CondoDomain.com - Coral Springs, FL
e-Pro Coral Springs/Parkland Real Estate

Good info David!

Aug 31, 2008 01:00 AM
Jon Wnoroski
America's 1st Choice RH Realty Co., Inc. - Green, OH
Summit County Realtor

Interesting article.  Price it right and it will sell!  Some sellers don't want to listen to that.. and some can't sell at the price their home needs to be set at... overcome those hurdles... and we'll reduce our inventories.

Aug 31, 2008 01:06 AM
David Patterson
Columbia, SC
ibdp3

Jeannette - As always, thanks for your consistent comments on my blog.

Jon - I would love for someone to write a book that will coach us on how we get sellers to help us help them. Thanks for sharing your comments.

Aug 31, 2008 01:43 AM
Ryan Hukill - Edmond
405home @ ERA Courtyard - Edmond, OK
Realtor, Team Lead

David, great info for the consumer.  Absorption Rate is one of the most telling stats a home seller can (AND SHOULD) look at when determining a price for their home.  Keep up the good work.

Aug 31, 2008 03:22 AM
Kim Southern- "Sold" with Southern Hospitality
Century 21 In the Mountains - Ellijay, GA
Greetings from the North Georgia Mountains!

David: Being primarily a second-home market that got hot, hot, hot over the last 6 or 7 years, absorption rate never really entered the equation. Builders were building as fast as they could to meet the demand and anticipating steady demand in the future. Now that the market has cooled off, Blue Ridge has a backlog of absolutely opulent cabins that folks are now realizing they will have to deeply discount in a market that has an Absorption Rate of 21 MONTHS!!!

I feel part of my job as a responsible agent it to educate my sellers so that they understand that PRICE IS KING!!!

What a great time to be a buyer!

 

Aug 31, 2008 03:43 AM
Monica Bourgeau
Portland, OR
Business Coaching

Excellent article - how do you do your four P's analysis?

Aug 31, 2008 08:13 AM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

David, absorption rate has become so critical in the shifting market. I have been using it with sellers for about18  months now, in every pricing discussion. Great post!

Jul 03, 2009 07:48 AM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

David, a question: when you have a neighborhood with very few sales and few homes on the market what do you do - just expand geograpphically?

Jul 03, 2009 07:49 AM