How Long Will It Take To Sell Your Home?

Some realtors think that by telling sellers the price they want to hear, they will get the listing. But unfortunately it won’t sell your home. Only pricing your home right will do that. The right price depends on the current absorption rate in your market. Here’s how we find that:

• First, we determine the number of homes that have closed in your market over a specific period — say, 12 months. We can get this data from our local MLS and tax records.
• Next, we divide the number of homes by the number of months in the period — in this case, 12. This calculation gives a per month absorption rate.
• Last, we divide the rate into the number of current listings. This yields the months’ supply of homes.
• Six months’ supply is considered a balanced market. When the numbers exceed six months we are in a buyers’ market. When the number of homes on the market are under a six month's supply, it indicates a sellers’ market.

Once we have these basic calculations, we can focus on absorption in particular neighborhoods or price ranges.

To find out what your neighborhood "absorption rate" is, call or email us for the most recent statistics.

Armed with this valuable information, we will be able to advise you (our seller) on the proper pricing of your home.  Once we’ve arrived at a price, you can decide whether now is the right time for you to sell given your financial needs and goals. 

See the chart below to gage your home sale (when your home is priced competitively).