Monthly Archives: February 2013
When you put your home on the market for sale, your realtor may discuss absorption rates with you. Here is a simple explanation of the absorption rate.
Currently in The Greenville Pitt County real estate market there are 101 properties for sale in the $160,000 – $180,000 price range. In the past 12 months in this price range 133 homes have sold. This tells us that there are 101 for sale, and 11 sales a month (133/12=11)
What does this absorption rate information tell you as a seller in this market? Let’s assume you have a home on the market priced at $175,000. In this price range you are competing with 101 properties, with 11 of these selling each month, and of course, with other homes constantly coming on the market.
What will you need to do to win? Be in the top 11 out of 101 in terms of price, location, and condition. How do you achieve this? Ask your realtor to show you the homes on the market you are competing with. Agents in our office would sit down with you in a conference area and show you exterior and interior pictures of the competing homes on a flat screen TV. You just need to be open to seeing your home as a commodity that competes with other homes instead of a home with family memories. Take it from me, that is not always the easiest thing to do.