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Real Estate Glossary - Absorption Rate

By
Real Estate Agent with Keller Williams Indy NE 317-290-7775 www.marchantteam.com

When a seller puts their Fishers home on the market to sell; the Fishers Real Estate Agent better know the absorption rate.  Kristal Kraft writes a great explanation of Absorption Rate.  Basically it tells us how much inventory that looks like your home is currently on the market and how often homes like yours sell.  It gives us an idea of how long your home may be on the market and more importantly helps us determine the best price for your Fishers home.Real Estate Glossary

Here is an example for Sunblest Farms located at 116th and Holland and also the Sunblest across from the Fishers Ice Rink.  If we look at the number of homes that have sold since January 1, 2008 to current, we see that 58 homes have sold.  That means that about five homes per month sell.  (58 homes divided by 12 months).  There are currently 35 homes on the active market or pending (they have not sold yet).  If 35 are on the market and only 5 sell per month we have a seven month inventory of homes in Sunblest Farms.  (35 homes on the market divided by 5 homes that sell each month).  So if you are planning to put your Sunblest Home in the active Fishers Real Estate Market this is good information to know. 

Of course there is more to pricing than just an absorption rate but it gives the more educated seller and the Fishers Real Estate agent information that can be used to begin the process. 

 

 

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 Cindy "in Indy" Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

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Emily Lowe
RE/MAX Homes and Estates, Lipman Group - Nashville, TN
Nashville TN Realtor

Absorption rates (especially now) are so important to look through when deciding how to price a home to sell.  In this market sellers really need to know the kind of time frames they are looking at!

Jan 01, 2009 12:55 PM