This is a question that is asked over and over…When Will My House Sell?

If I had a crystal ball; it would be so much easier to predict.   Since this is not the case, many factors come into place and the “biggest” is to price it right.  In doing this you will want to consider the Absorption Rate along with the location, condition, etc.

What is the Absorption Rate your ask?  Glad you asked the question! The Absorption Rate is the ability of the real estate market to absorb or sell all of the houses for sale in a given amount of time. For example, if 100 homes are sold every month and there are 1200 homes for sale, it will take 12 months to sell all of the homes currently for sale. If there are 2400 homes for sale, the absorption rate will be 24 months or 2 years for all of the homes to sell, this does not take into count the number of houses which will eventually come on the market in addition to those already for sale.

If you would like to sell in 12 months, you need to take the absorption rate into account. In the above scenario with 2400 homes for sale, we know that only 1/2 of them will sell in the next 12 months. If you need to sell within the next 12 months you need to price the property in the lower 50% of the price range for similar properties in order for it to sell in the next 12 months. To sell in the next 6 months it would have to be priced in the lower 25% of the competition.

The above numbers are fantasy numbers; however it gives you an idea of what is taken into consideration when pricing a house to sell.  Numbers are just not pulled from the sky.  Wouldn’t that be just too easy.

Till next time~