Absorption Rate of Bonita Springs Homes For Sale
Yesterday, I taught a brief class on Absorption Rates at a local real estate office. The long story shot is that I was teaching real estate agents how best to show their buyers and sellers the reality of their real estate situation. Remember, real estate is local and even hyper-local. Every neighborhood is different, so by all means do not panic when you read the sample equation. This is a snapshot in time. The numbers that apply to your community will always be different. Inventory influxes and real estate sales also alter the data.
Telling a seller what their rate of sale is sounds simple enough, doesn't it? Unfortunately, many sellers of Bonita Springs real estate have no idea what the Absorption Rate is for their style of home or their Bonita Springs community.
This is why you need to know the Absorption Rate of your home before you even list your home for sale. You should also know the absorption rate before you write a contract for a home or condo in Southwest Florida.
My example is for an Oakmont Model at Village Walk of Bonita Springs. Village Walk had only four floor plans (at the time) from which to choose so this is an easy exercise. Keep in mind that the figures used are for MLS properties and excluded builder inventory. It is simply a snapshot in time guideline of listings that were on the market and sold within one year of MLS of Southwest Florida.
Current active listings of Oakmont floor plans in Village Walk - 13 units
Closed sale listings of Oakmont floor plans in Village Walk - 6 units
6 Closed sales divided by 12 (months) = .5 (the rate of absorption)
13 Active listings divided by .5 (the rate) = 26 months
26 months divided by 12 = 2.16 years
Not know how long it could take to sell off existing inventory is in Bonita Springs Florida, or a specific neighborhood, is a costly mistake. There is no way to effectively price your Bonita Springs homes for sale for the real estate market without knowing the absorption rate for your community or particular style of home.
The same rings true for home buyers. If you’re purchasing a home in Bonita Springs and you do not know the absorption rate how are you able to negotiate and get the best price and terms. You will leave money on the table if you don’t know the numbers inside and out.
Our team of buyer’s agents and listing specialists at The Griffith Group can help you properly negotiate your next real estate transaction. The Bonita Springs real estate market is always changing. Call or text us today to get the latest information so that you can take the next best steps to buying and selling homes in SWFL. 239-273-7430