@OPRFRealEstate Blog

3/4/2019 0 Comments

Micro-Marketing Gives Macro Benefits!

“It’s a buyer’s market!”— Those words strike fear in the heart of all home sellers unless you understand how the laws of supply and demand affect your specific micro-market.

Micro-markets have their own supply and demand profile. Knowing the supply and demand (“absorption rate”) in your particular micro-market will tell you if you’re in a buyer’s or seller’s market.

Your micro-market is the little slice of similar properties within the market for all homes.  At a minimum, micro-markets are defined by location, price, number of bedrooms and bathrooms, square footage, newly built or existing properties, and mortgage type.

Recently I evaluated two homes in two very different micro-markets.

Home #1:
Micro-market:  Oak Park:  3BR/2BA, traditional mortgage, resale, single-family detached, $273K-$423K, 1001 to 2000 sqft
Absorption rate:  2.75 months (Seller’s Market)

Home #2:
Micro-market:  Oak Park: 4BR/4BA, traditional mortgage, resale, single-family detached, $450K+, over 3001sqft
Absorption rate:  15.4 months (Buyer’s Market)

Six months is considered to be a balanced market— there are as many buyers as there are sellers.   Less than six months it’s a seller’s market where buyer’s outnumber sellers.  More than six months it’s a buyer’s market where sellers exceed buyers.

How to calculate your absorption rate:  This is where I come in because you need to have access to the Multiple Listing Service to get accurate numbers.

Interested in buying or selling?  Want to make home improvements and need a baseline on your home’s current market value?  Or are you just curious?   For any and all of those reasons I’m happy to help!

Contact me at KCrowell@KoenigRubloff.com or at (708) 488-9280.

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Kevin C. Crowell: #Determined!

For over 25 years I worked at the company I built, successfully selling high-tech products in Japan, the world’s most demanding market. My work there required a: close attention to detail, superior customer service, exacting quality, and continuous improvement.

Working in Japan taught me the importance of target marketing and the value of product differentiation which is essential for standing out in a crowded marketplace.

To build a thriving business I developed lasting relationships with my clients. I listened to them. I asked questions until I could negotiate and effectively communicate their needs to their business partners in a way that would be understood and ultimately accepted.

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