Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png What Is A Market Absorption Rate In Real Estate? – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 19 Jan 2016 12:30:19 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 Real Estate Market Absorption Rate - What Does It Mean & How Does It Affect Me? [caption id="attachment_3623" align="aligncenter" width="450"]What Is A Market Absorption Rate In Real Estate? What Is A Market Absorption Rate In Real Estate?[/caption] One real estate term that is often thrown around by real estate professionals that many buyers and sellers are confused about is market absorption.  In fact, what is market absorption, is one of the most common FAQs from home sellers. Market absorption in real estate is actually a very important statistic, both for buyers and sellers, for a number of reasons.  It's important that buyers and sellers understand fully what market absorption is, how it's calculated, and how it can impact them. If you'll be buying or selling a home, make sure you read on to find out what market absorption is, how it's calculated, and the potential affects it can have on your real estate transaction.

What Is Market Absorption Rate?

The number of months it would take to sell the homes that are currently listed for sale if no other homes were listed for sale in the interim.  This is the easiest way to define what market absorption is in real estate. For example, if the current market absorption rate in the Rochester real estate market is 4.5, this means it would take four and a half months to sell all the remaining homes that are listed for sale assuming no other properties were listed. Some sellers could careless about their current local market absorption, which is actually a mistake.  A highly recommended real estate interview question to ask prospective real estate agents when hiring an agent relates to the current market absorption.  A top producing Realtor® who has experience in the local market will have a strong grasp of what the current market absorption is at all times.

How Is Market Absorption Calculated?

[caption id="attachment_3624" align="aligncenter" width="450"]How Is Market Absorption Calculated In Real Estate? How Is Market Absorption Calculated In Real Estate?[/caption] While some buyers and sellers don't care to know how market absorption is calculated, there are a lot that do care.  Below is a detailed explanation on how market absorption is calculated in real estate. To calculate market absorption in real estate it is pretty simple.  There are two pieces of data that are needed.  The first piece of data that is needed to calculate market absorption is the number of homes sold in a specified area in a month.  The final piece of data that is needed is the number of active homes that are for sale in a specified area. Below is an example of how to calculate market absorption for the Webster NY real estate market.
  • Number of homes sold in Webster NY during December 2015 = 35 homes
  • Number of active homes for sale in Webster NY = 124 homes
  To find out what the market absorption rate in Webster NY is, simply divide the number number of active homes in Webster (124) by the number of sold homes in Webster during December (35). The calculation looks as follows: 124 / 35 = 3.54 - The current market absorption rate in the Webster NY real estate market is 3.54, which means if no other homes were listed for sale in Webster NY, it would take about three and a half months to sell all the remaining homes for sale.

How Does Market Absorption Affect Home Buyers?

It's pretty well known that market absorption affects home sellers, but it's rarely discussed how the market absorption rate affects buyers.  There are a handful of ways that market absorption affects buyers. If a specific area or neighborhood that a buyer is attempting to purchase a home in is experiencing a low market absorption rate, it can be difficult for a buyer to find a suitable property.  If an area or neighborhood is experiencing low market absorption rates, the market is sometimes referred to a sellers market. It can be tricky for a buyer to successfully buy a home in a sellers market.  A few of the best tips for buying a home in a sellers market include;   Another potential impact that the market absorption rate can have on a buyer relates to the price they will pay for a home.  If a buyer is searching for a home in an area that has a low market absorption rate, the chances they will be in a multiple offer scenario increase which typically will lead to a buyer paying more for a home. A buyer who is aware of what the market absorption rate is in the market they are looking to purchase a home in gives themselves an advantage over other buyers.  For example, if a buyer knows that the market absorption rate is indicating a buyers market, it's possible they will be able to request additional items in their offer such as requesting seller concessions from a homeowner.

How Does Market Absorption Affect Home Sellers?

[caption id="attachment_3625" align="aligncenter" width="450"]Find Out How Market Absorption Rate Affects Home Sellers Find Out How Market Absorption Rate Affects Home Sellers[/caption] As mentioned above, market absorption can have a large impact on home sellers.  The market absorption rate in a market is a great indicator to help a real estate agent as well as a seller determine the current state of a real estate market. There are three different states that a real estate market can experience, a buyers market, a sellers market, or a balanced market.  Below are brief explanations on the different states that a real estate market can experience.
  • Balanced Real Estate Market - A balanced real estate market can easily be defined as a market that has a similar number of homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Buyers Market - A buyers real estate market can easily be defined as a market that has more homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  • Sellers Market - A sellers real estate market can easily be defined as a market that has fewer homes for sale in comparison to the number of ready, willing, and able buyers looking to purchase a home.
  Depending on the market absorption rate a real estate agent can determine if what state the market is experiencing currently.  It will vary from market to market, however, below are some general market absorption rate ranges to help sellers determine what the state of their market is.
  • If the market absorption rate falls between 0 months and 5 months, generally speaking, the market is currently experiencing a sellers market.  It's common in many real estate markets that the absorption rate is lower during the spring real estate market since the highest number of homes are being sold during this time of year.  It's critical that sellers know how to prepare for the spring real estate market since chances are they will be in the midst of a sellers market.
  • If the market absorption rate falls between 5 and 6 months, typically the market is experiencing a balanced market.
  • If the market absorption rate is more than 6 months, there is a good chance the market is experiencing a buyers market.  If a seller is on the fence about selling their home and the market is in the midst of a buyers market, it may not be a terrible idea to wait until the market begins shifting back towards a balanced or sellers market.
  When selling a home, one of the most important decisions that homeowners have to make is when to list their home.  The market absorption rate can play a large part in helping a seller determine if they should list their home now or wait.

How Market Absorption Affects Appraisals

One of the top challenges to selling a home is receiving an acceptable appraisal if the buyer is obtaining a mortgage.  Market absorption rates can affect bank appraisals.  If a home is sold close to the asking price or possibly over the asking price, an appraiser will look at the current market absorption rate. If a market is experiencing low absorption rates and there were multiple offers received on a property that sold for over the asking price, an appraiser can potentially use this as reason for the homes sale price.  This can eliminate problems resulting from a bank appraisal which are frustrating to not only sellers but buyers as well.

Final Thoughts

Market absorption rate is an important real estate term that both buyers and sellers should be aware of.  As you can see from the above information, the market absorption rate can impact the buying and selling experience. If you're thinking of buying a home, knowing what the market absorption rate is can help you better understand what you'll be up against.  Knowing whether or not you should request seller concessions or home warranties in your offer is important. If you're thinking of selling a home, knowing the absorption rate can help you hone in on a specific time to list your home for sale.  In addition, it can help you understand whether you will likely be seeing a large amount of buyers inquiring on your home or not.

Other Top Real Estate Resources

Are you thinking about buying or selling a home in Rochester NY?  If so, understanding what the local real estate market is currently doing is critical!  It's important that if you're looking to buy or sell a home in Rochester that you hire a top Rochester real estate agent who is familiar with the market absorption rates in the various communities.  If you haven't selected a Rochester real estate agent, call me at 585-704-7095 so we can discuss your real estate needs!  If you happen to be moving to Rochester NY, understanding the local market can be tricky and I'd love to provide you information on the variety of communities in this great city!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What Is Market Absorption Rate In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]>