This is the first installment of a six-part series on Selling Your Home in a Buyer's Market.
What is a Buyer's Market?
A buyer's market is one in which there are more sellers than buyers. Nationwide we are in a real estate buyer's market, which means according to the National Association of REALTORS (NAR) that there is more than six month's worth of inventory (homes for sale). However, if you look at different locations, neighborhoods, price ranges, and even home styles, some niche markets are doing better than others. The $8,000 First-Time Homebuyer Tax Credit has encouraged some sales at the low end, Baby-boom downsizers are spurring sales in the mid-range, and even at the high end, there are buying niches, such as waterfront and water-view homes.
The real estate industry uses a statistic to determine whether your area is a buyer's market. This statistic is called the Absorption Rate. The Absorption Rate is the number of homes sold in your market area for the past 12 months divided by 12. This tells us how many homes sell per month. As of today, 8/15/09, 20 single family homes sold in the 12 months in Black Rock, that's an absorption rate of 1.7 or another way to think of it is that just under two homes a month sell in Black Rock.
With 30 listings on the market (8/15/09) at the current absorption rate, most of these homes will expire without selling during the next six months. How can you make sure that your home isn't one of them?
That will be the focus of this six part series:
2. Pricing Your Home to Sell
3. Staging Your Home
4. Marketing Your Home
5. Showing Your Home
6. Negotiating Offers
Of the ten homes sold so far this year in Black Rock, I was the listing of 4 of them and the selling agent on 3 of them. My experience in selling homes in a tough market can help you sell yours. Coming up next, "Pricing Your Home to Sell".