Welcome to Part 2 of my series about pricing strategies for sellers. Today we’re going to talk about what’s called an “absorption analysis.” A home’s absorption analysis is calculated by looking at what properties have sold the previous year that are similar to the home and projecting how many properties are on the market that are similar to the home now. An absorption analysis acts as a guide to how home sellers should proceed in pricing their home. To see examples of how their recommendations can vary according to their results, watch this short video.
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