Anderson Group: How to Use Absorption Rates to Sell for Top Dollar



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Today I'd like to explain a concept that can sometimes be confusing to people. I'm talking about absorption rates, and they are a very important metric in the real estate industry. 

In a buyer's market in real estate, there are a lot of homes for sale, so this means that the buyers can pick and choose what homes they would like to buy. In a seller's market, you have a low inventory of homes, so sellers can really get what they ask for because buyers don't have a lot to choose from. In a neutral market, there is an even amount of sellers and buyers, and nobody is in an advantageous position. 

So, the absorption rate is a measure of how quickly homes are getting bought up by buyers. This is the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month. This helps us to gauge how quickly we can sell your home and it's also beneficial when we come to price your home attractively. 

If you ever need any help buying or selling real estate in Denver, please don't hesitate to contact me or my team. The market in Denver is absolutely on fire right now, so please contact us and we'd be glad to assist you!

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