What is a market absorption analysis?
A market absorption analysis is one of the best indicator of the local real estate landscape.
Based upon historical facts, it allows us to determine the market type, seller, buyer or neutral. A market absorption analysis is an essential tool for every real estate consultant, buyer and seller, ensuring that a buying or selling strategy is aligned with the market landscape. Simply looking at past sales and current inventory as a basis of your real estate strategy does not provide the necessary insight of the market.
At a high level (Click here for more detail)
For Sellers. A market absorption analysis is an essential tool to help sellers determine the appropriate asking price for their home, and allows the seller to align asking price with the required timeframe within which to sell the property. An example.
For buyers. The absorption analysis helps buyers position a low purchase offer in a buyers market.
For real estate agents. knowing the real estate market landscape positions you as the real estate market expert, and gives your buyers the negotiating edge. Sellers do not have easy access to this factual data to help them in best pricing their property to sell within their required timeframe.
Market knowledge is one of the keys to sucess in real estate. Understanding the absorption rate and being able to create an accurate and meaningful absorption analysis is the best way to quickly demonstrate market knowledge, serve clients and attract more clients.
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