Market conditions/Absorption Rate/Pricing -Why they Matter?

All real estate markets are local.  There are many different variables which can determine

how long a property stays on the market.  When you first meet with your Realtor,

they will give you a CMA, (comparative market analysis), which is an opinion of value as to

your properties worth.  A Realtor will look at sq. footage, bdrms, ba, condition of property, location  etc.

and compare your home to other similar homes which have sold.  Absorption rate looks

at in a particular price range, for a particular time period, how many properties have sold.

Then your Realtor will look at the number of active listings in that price range.  This

will give you the supply of inventory in your price range.  Why is this important?  If you would like to sell your home

fairly quickly, you might consider pricing it more aggressively.  A typical buyer will have

a certain price range in mind when they are looking at properties.  They are going to look

at many homes before they purchase.  If your property has a lot of unique features

that are more attractive to buyers, you might be ok at the upper part of that price range.

Conversely, if your property is similar to all of the other homes, price accordingly.

4:55 PM - Jul. 14, 2009 - comments {0} - post comment
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