Absorption Rate Pricing - The Probability of Your Home Selling In The Next 30 Days
Definition of Absorption Rate - The ability to determine through a comprehensive analysis, how many homes in a given market are absorbed on a monthly average.
Pricing your home to sell is a totally separate issue when you prepare to put your home on the market. I consider this Part II of “So You Think You Are Ready To Put Your Home On The Market? You Have to Price It Right!!”
FACT:THERE ARE ONLY A CERTAIN NUMBER OF HOUSES THAT WILL SELL IN ANY MARKET IN ANY GIVEN PERIOD OF TIME.
Let’s see how your house can be one of them through Absorption Rate Positioning!
Using the MLS search criteria - I prefer to show the seller the BIG picture of a defined area 1st and then narrow it down to their particuliar subdivision.
Example: let’s use your zip code to see how many homes sold within your zip code in the last 12 months. (we can also define by area, school district, price range etc.)
Divide the number sold by 12 = this is the number absorbed per month.
Next we will look at the number of current actives (for sale) + your house divided by the average closed, this number will provide us with the months supply of houses in your zip code currently.
RULE OF THUMB: A SIX MONTH SUPPLY IS A BALANCED MARKET, LESS THAN A 6 MONTH SUPPLY IS A SELLERS MARKET. MORE THAN A 6 MONTH SUPPLY IS A BUYERS MARKET.
Let’s Narrow It Down To Your Subdivision
Number sold per month divided by current properties for sale = % odds of selling your home in the next 30 days.
There are other factors we have to consider: Keep in mind at this point we want to take on the mindset of looking through the eyes of a prospective buyer.
We have to position your property versus the competition. (buyers tend to search based on 3 general criteria: location, style, price range.)
Condition: _____________ Rate (1-10)__________
Location:_______________Rate (1-10)__________
Size :__________________ Rate (1-10)__________
Features:_______________ Rate (1-10)__________
Price:__________________ Rate (1-10)__________
Now that you are equipped with the absorption rate Mr. & Mrs Seller you can decide how aggressive you will need to be to position your home to be one of the next in your market to sell in 30 days.
Contact me today and let me provide you with a free comprehensive market analysis of Absorption Rate Pricing for your home.
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