Does Absorption Rate Really Matter?
Q. My Realtor said my absorption rate is 2 months. Well it's 5 months later and still no sale. What can I do?
A. The absorption rate is one of the most misunderstood terms in our industry and in my opinion is way over used. For those who are not familiar, the absorption rate shows the rate at which the inventory of homes for sale are being sold. Although the absorption rate works well for new construction, it has less of a success rate in predicting resale. So rather than focus on the absorption rate, look at your Realtor's marketing plan, number of showings, and open houses. Ask your Realtor to provide the buyer feedback, days on market and analysis of what homes sold since you were listed. Also look closely at the expired listings, which are the homes that were listed but did not sell. This will provide the most valuable data. Good luck.
Have a real estate question or need some sound advice? Call or text Phyllis at (904) 476-7653 or email firstname.lastname@example.org. Every question will receive a response and may be chosen to appear in Saturday's Times Union newspaper.