Sellers and potential sellers have questions about the current market and how to price their homes.
Probably the one pricing tool most sellers know is the CMA (Competitive Market Analysis). The report is available from the MLS (Multiple Listing Service) and 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 and price trends.
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 six 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. And if not many homes are selling in a particular neighborhood sellers may be reducing the list price. And lower list prices lead to lower sale prices which impact pricing trends.
It’s good to know the details about your area. For example, the absorption rate for Butler County single-family homes is 2.1 months. That sounds great until you dig deeper and discover there are enough homes priced $400,000 and above in Liberty Township that the absorption rate is 5 months. More than twice as long as Butler County in general. The same s true in Mason and Wyoming to name a few communities with a large inventory of higher priced homes for sale.
Sometimes it’s hard to hear the real numbers about the housing market but pricing your home is probably the most critical step in selling. Think about it the next time you’re shopping on Amazon or s store and try to imagine your house as a product for sale! Think about how would you price and position your “product” to grab the next buyer’s eye?
Sales in the real estate market in greater Cincinnati slowed down in certain price ranges. The areas and prices affected are different by neighborhood and areas. Sellers need to understand and adjust to the 2 key points when it comes to selling their house quickly and for the highest dollar amount.
To obtain the absorption rate and pricing for your neighborhood Call/Text