Today I want to show you some of the methods my team uses so you can become a marketplace expert.
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Today we’re starting our training series by talking about how you can become a marketplace expert. Our team’s expertise involves several tricks of the trade I want to share with you.
One of the things we do is look at our MLS and how it’s divided among the areas in town to determine all of the available inventory. In most parts of the country right now, it takes 55 to 60 days to sell a home, and 55% to 60% of the listings will sell in that time frame. Our days on market may fluctuate, but that’s how many end up selling, and there are a great deal that don’t end up selling the first time they’re listed.
To be able to keep up with what’s trending and what the days on the market are, we typically watch pending transactions. A lot of people prefer to look at what’s already sold on the market, but if you think about it, data of listings that have already closed can be 30, 60, 90, or even 120 days old. That’s too late to become a marketplace expert.
To know how many homes are moving, we calculate an absorption rate. To do this, you simply divide the number of homes for sale by the number of pending listings. For example, if we had 250 homes for sale and 40 that were pending, we’d divide 250 by 40 to get 6.25 months of inventory.
This information is valuable to be able to present to buyers and sellers.
We use all this information as great scripts for our buyers and sellers to help them know the marketplace. If you’d like more information or training, feel free to give me a call or send me an email. I’d be happy to help you.
