We continue to talk about absorption rate. In June, the absorption rate for single family homes was 12.4% and for condos was 7.9%... which basically means if you are selling a home, there was an 87.6% chance you did not sell your home in June. For condo sellers, the rate was even higher at a 92.1% chance your condo didn't sell.
The best counsel we can give our sellers is to look at the likelihood of their property selling, then calculate the costs of carrying the property each month. (That includes paying the mortgage, insurance, utilities, etc., plus the cost of any further price declines.) We do a comparative market analysis as we list a property, as well as periodically during the course of the listing. This is a report that takes recent sales of similar properties and breaks them down into a selling price per square foot. This is the best indicator of what our selling price suggestion should be. This is also the same tool mortgage lenders use in order to determine value for loan purposes. For example, if a property is priced too high, lenders simply will not loan on the property at that price. With lending institutions tightening their lending policies anyway, the wrong price can create yet another stumbling block.
Cash buyers are out there, but they are driving hard bargains and looking for extraordinary value. Sellers who are upside down in the value of their property and do not qualify for lender support in a short sale could face bringing serious $$$ to the closing table. As we give our listing prospects the very best advice we can... along with strong marketing muscle, The PURTEE Team never hesitate to go the distance for their sellers!
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