Tough Markets Call for Tough Marketing. . . .
October 20, 2008
In a Perfect World of Real Estate, a house that is priced incorrectly or is not in the best condition can seriously reduce your chance of selling at the price or time frame that you desire! Throw in a financial meltdown and you have to be ready to “Play Ball” if you want to sell.
In order to “Play Ball” in this market you will need the following things:
1) Know your Absorption Rate for Homes in your area and price range
2) Pricing that reflects the above Absorption Rates
3) House must be in a Condition that reflects the Pricing
4) Flexible Terms
5) Patience
If you are not ready to do the things to get your house ready to market or are not willing to not get Top Dollar — then you are not ready to sell and you should sit back and wait for the market to change . . . Which it will! . . . We just don’t know when.
So you ask: “What is an Absorption Rate? and How do I find mine out? and what will it mean?”
Well, the Absorption Rate takes all of the houses sold in your area (neighborhood, town, etc) within 10% plus and minus of your asking price for the last 6 months, then you get the number of houses currently on the market in that same area and 10% range. Then you take the number sold over the last 6 months and divide it by six (ie: 4 houses sold in 6 months = .67 Absorption Rate) Then you take the Current number for Sale and divide that number by the absorption rate (ie: 8 houses for sale divided by .67 = 12) and this figure (12) is the supply of houses on the market in your area and price. So in this example, there is a 12 month supply of inventory at the current market conditions. So if you are patient enough to realize that 12 months on the market might not be unreasonable or if you are willing to put the time and money in to your home to make it in “Move in Condition” and stand out from the others — you are good to go ahead and market your home.
You can even use these figures to find the Probability of selling your home in 1,3,6,9 and 12 months. And the probability figure for month one also tells you the position/condition your house must be in to sell quicker than the competition.
To find out how long it might take to sell your house — give me a call and I will do an in depth analysis of your house! Or if you know of someone who is struggling with whether to put their home on the market, have them give me a call at 704-641-8973!
