How long will it take to sell my home?
The best indicator of whether a real estate market is a seller's market, a buyer's market, or even a neutral market, is something called an "Absorption Rate". Here are the nationally accepted breakouts:
Seller's market - Absorption rate is 1 -4 months
Normal Market - Absorption rate is 5 - 6 months
Buyer's Market - Absorption rate is 7 + months
Whenever you decide to put your home on market, ask your Realtor for the current absorption rate. This rate is arrived at by dividing the total number of available properties in your community/city/area by the total number of properties sold in the previous month. The resulting number represents the number of months it would take to sell the entire inventory.
The absorption rate helps to analyze supply and demand for any given area. It will also help you as a seller to understand current market expectations for length of time your home may be on market. If for some reason your home does not sell within the expected amount of time, then one usually looks at price or condition as a contributing factor that is extending your time on market. The key point here is to price your home right when you enter the market and to take time to address any adverse property conditions before listing your property. Your Realtor can help you on both accounts. Remember that your first few days on market are the most important days on market you will have.