WE'RE IN THE HOTTEST MARKET IN YEARS. Even so, right now in North Port: 26% of Single Family Homes Listed for Sale are sitting on the market unsold way beyond the normal timeframe, or have expired within the last 180-days!
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USING YOUR AREA'S ABSORPTION RATE TO SET PRICE
This is the fun part of pinning down your price. It's not just that the house down the block sold for X. It's understanding the activity in your area and how your price fits in.
If there are 124 homes for sale like yours, and there are only 27 buyers a month on average buying a home like yours, it would take 4 1/2 months (the Absorption Rate) to sell all listed homes. Even worse, the odds are in fact, 79% AGAINST selling in 30 days. This doesn't account for new homes entering the market.
If you're around a two month supply of homes (enough buyers per month to purchase all currently available homes, then you will see more buyers willing to pay a higher price. This is the point that homes increase the most. If the Absorption Rate is around 4 1/2 months, you're technically in a seller's market, but it is still highly competitive. In this Absorption Rate range, you need to offer more value in either finishes, additional feature(s), or price.
Once you know the activity and odds of selling, you'll need the full list of Sold & Active homes (like the description of yours) to get a good look at price ranges for your house. Then it's simple. You decide if you want to accelerate the sale of your home by entering the market at a lower price point than the condition of your home warrants, or go for the high price taking into account how many buyers per month are willing to pay your price vervus other properties. If the Absorption Rate is 2 months, lean toward the high end of your properties price range.
Using your area’s Absorption Rate correctly, you’ll know with 100% confidence that you're priced right from the get go! You may choose to price your home higher or lower than what the data tells you, but you'll be doing it understanding exactly your position in the market related to price.
If you want to sell your property, and want to know the Absorption Rate as it pertains to your property, call Scott to discuss your property - Phone: 941-882-5494 Ext 701
COMPARATIVE MARKET ANALYSIS ISN'T ENOUGH
Everyone uses a CMA (Comparative Market Analysis) to find a few homes that are similar enough to theirs and then they decide "my house is worth X"
The problem with only using a CMA is that you'll statistically get price wrong 24-to-48% of the time. It's like having blurry vision instead of 20/20.
Market Activity & Price:
Some Houses Seem To Fly Off The Market But In Realtiy, Most Don't.
ABSORPTION RATE AND THE BIG PICTURE - DOES THE BIG PICTURE MATTER?
Ask the seller whose property has been on the market for 5 months with no offers. It’s likely they don’t understand how they fit in the market. Yes it matters!
Avoid the “let’s set the price at X and see what happens” approach to listing your home.