2 Key Components to Selling Your Home

February 12th, 2008 categories: Real Estate News, Real Estate Selling, Relocation

Sellers are calling with questions about the current market and how to price their homes.

There are 2 components to pricing and your agent will review all the details with you.

The one you are most familiar with is the CMA (Competitive Market Analysis) a canned report available from the MLS (Multiple Listing Service) which provides details about homes currently on the market (actives), homes with contracts that have not closed (pendings), closed deals and usually expired listings- houses on the market that did not sell.

The CMA is only one component used to correctly price your property. The second, and I feel the most important component is reviewing the absorption rate.

Absorption Rate is a calculation of how long it will take for all the homes to sell (absorbed) based on the number of properties available divided by the number sold in the last twelve months. The number is important to sellers because you want to price your house correctly in order to attract the next buyer in the marketplace.

The current absorption rate (in months):

Hamilton County 8.5
Clermont County 8.3
Butler County 7.75
Warren County 8.45

The next time you walk into the grocery store and try to imagine your house as a product on the shelf!

Think about how would you price and position your “product” to grab the buyer’s eye?

Call or send an email if you need detailed on absorption rates for your neighborhood.

Posted by Kathy Koops | Discussion:

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Rob at Real Estate Chocolate - Ridgefield CT said at February 26th, 2008 at 2:08 am
Great post Kathy! Absorption rate is so important in understanding inventory levels relative to sales activity. Most agents have limited understanding about how important this is or how to explain it to their clients.
Kathy said at February 26th, 2008 at 8:28 am
Rob,
Thanks-good to hear from a professional who understands the importance of “the numbers”.
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