Understand the Absorption Rate

Only a limited number of properties will sell in any market and the absorption rate will give you an idea of what your chances are. This calculation will tell you how many months it may take to sell your home and here is how it works:

In your market area

DETERMINE HOW MANY HOUSE SOLD IN THE LAST 12 MONTHS

DIVIDE THE SOLDS BY 12 (12months) and THAT WILL TELL YOU HOW MANY HOMES SELL IN A MONTH (ABSORPTION RATE)

DETERMINE HOW MANY ACTIVE LISTING ARE ON THE MARKET

DIVIDE THE NUMBER OF ACTIVES BY THE MONTHLY ABSORPTION RATE AND YOU WILL GET THE NUMBER OF MONTHS IT WILL TAKE TO ABSORB ALL THE PROPERTY THAT IS CURRENTLY FOR SALE.

If that number- the monthly absorption -  is too high, you will need to undercut the competition by making sure the home is show worthy and pricing the property lower than the average price from the beginning. It doesn't help to price it high to see if it will sell and then reduce the price. You will always be chasing the market down. If it's priced right you will be more likely to get an offer sooner and save money by selling rather than hanging on as you continue to make payments and lower the price to catch up. the key to selling a house is the price. PRICE IT RIGHT.

Robin Scott, Broker. Certified Residential Specialist, Accredited Buyer's Representative, Seller's Representative Specialist. Amelia Bullock Realtors. 512.589.7988.