Absorption Rate Example for Cherry Hills, Champaign, IL

By
Real Estate Agent with Keller Williams Realty

Cherry Hills Home ValuesIn a recent listing appointment in Cherry Hills I discussed the local absorption rate with the home owners as a component of their overall pricing strategy. More details on that example and how the it is calculated can be found here:  Home Update for Cherry Hills - Champaign, IL

 

 

In establishing the market value and recommended list price for a home I incorporate the following 3 components (at a miminum).

  1. The Absorption Rate - What is the overall supply and demand of homes for this segment of the market?
  2. What is the general range of $/sqft for sold homes?  This is used as a 'reality check' but not as a true guideline.  The goal here is to make sure that the house doesn't extremely stand out from the competition unless there is added value in the home.
  3. Comparative Market Analysis (CMA) - The tried and true method of comparing a home to similar homes in similar or identical subdivisions that have sold in recent months.

Using these 3 components requires balancing the "sold" information with the active competition and pending sales.  In a buyers market that is continually shifting a home seller needs to make sure they don't get caught looking in the past. 

How is your home positioned in the market when you compare it to the competition?  If there are 20 similar homes for sale will yours be one of the 5 to sell in the next 4 months?

 

www.ChampaignValues.com – Get a Free Estimate of Your Home's Value Instantly!

www.ChampaignExperts.com - Search Champaign County Real Estate Hassle Free!

 

Comments (1)

Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

Mark, I like the way your rate of absorption explanation is presented and how you really do research to determine a price. It's a combination of science and art. Too many agents just do the art part. Good job.

Jan 24, 2010 10:00 AM