Just like any other product that is bought and sold, real estate is affected by supply and demand. By determining the absorption rate we can tell what you should realistically expect to pay for your home purchase. Lets look at the below example, it is a sample of homes priced between $150,000 to $175,000.
Statistically homes that dont sell 90 days or less sell at or slightly below list price. Homes in the $150K-175K price range that are on the market longer than 90 days have a 74.9% chance of not selling at all!
For Dallas Georgia Homes, here is the March 2011 Market Absorption for homes ranging from $150K-$175K.
Current number of homes on the market _____59 _________
Number of homes that failed to sell in the past 12 months _____212_________
Number of homes that Sold in past 12 months _____74_________
Total number of homes sold per month _____6.17_______
Total Months worth of Inventory _____9.56 _______
Current number of homes on the market ______59 ________
Number of new inventory for this period ______14.75_______
Total Inventory ______73.75______
Number of Homes that will sell ______18.51 ______ ___25.1%____
Number of Homes that will not sell ______55.24 ______ ___74.9%____
Average Sold Price during the last 12 months _$156,229_
You will lose money by staying in your home longer, making additional mortgage payments. You will lose home value, because your home will be on the market longer and you will have to reduce your price further than you orginally wanted to get sold. You will lose perceived value. Once your home goes on the market and does not sell and you put it back on the market, agents and their buyers will see that it did not sell and say, “obviously that is not a good price, let’s offer much less.” Based on all this information, we believe if you want your home to sell in under 90 days you should price it at $140,500.
For a FREE List of 3 Plus Bedroom Dallas Georgia Homes under $100,000 click the link or fill out the form below.