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Absorption Rate

Today, at Lezamiz Real Estate, we are discussing absorption rates in the Twin Falls and Jerome, Idaho real estate markets. We will define absorption rate, give you the formula used to find absorption rates, and provide you an example of absorption rates for properties in the Magic Valley market.
Definition
In real estate, we define “absorption rate” as the amount of time, a group of homes, listed in a specific price range, will take to sell.
Formula
The formula used to find the absorption rate in real estate is:

 Number of homes listed in specific price range
(Number of homes sold       Number of Months)
 We realize this can be very confusing, so here is an example of how we figure absorption rates with our data at Lezamiz Real Estate.

 
Example
 
Twin Falls County: March- October 2008
Real Estate Listing Price Range: $160-199,999
Time Period: 6 months
Number of houses sold: 104
Number of properties currently listed: 184
 
1.      Divide (number of homes sold in Twin Falls) by (time period- 6 months): 104/6= 17.33—This is the average number of homes sold each month.
2.      Divide (number of properties listed) by (17.33): 184/17.33= 10.6 months.
3.      Based upon this six month average, it would take almost 11 months to sell all 184 homes listed in this price range in Twin Falls County if no other homes entered the market.
 
If you are still feeling confused, don’t worry! Next week we will continue to discuss absorption rates, focusing on how they affect your decision when buying or selling real estate. Knowing how to apply the absorption rate to your situation will help it make better sense! -Lezamiz Real Estate Company

Avoid Surprises: Know Your Homeowner’s Coverage

 

            The typical homeowner’s policy includes coverage for perils and losses due to fire, lightning, tornadoes, windstorms, hail, explosions, smoke, vandalism, and theft. Just as you would scrutinize the terms of your medical insurance, the nuances and details of your homeowner’s policy should be examined seriously. Too often, homeowners sign up for a policy and go on autopilot regarding its terms and coverage without taking new acquisitions, risks, and increasing value of their homes into consideration. Most insurance agents recommend a regular “check-up” for consumers, so that homeowners are not left “high and dry” when disasters and losses strike.-Lezamiz Real Estate Co.

Don't follow the Leader

If we stop and think through the process we tend to buy homes when everyone else is.  That also happens to be when sellers can ask more for their homes because of demand.  On the opposite side when we hear in the media that houses are not selling we tend to not purchase because “no one else is”.  For many buyers, now is the perfect time to buy.  Home prices are lower, mortgage interest rates are low and there are more residential homes to choose from.  Buyers need to be ahead of the crowd and access their own situation to see if they are just frozen in place out of fear.  I encourage buyers to get educated about their current situation.  Talk to your banker to find out what your credit score is.  Find out what incentives are available for homebuyers and take advantage of them.  Talk to a Real Estate agent to find out what is happening in the Twin Falls market rather than the national market.  Get to know what new “green” products are available to make your home more energy efficient.

We cannot predict when the housing market will change.  However, when it does it will have seemed to have happened overnight and we will all be wondering how we missed the opportunity. Kym Lott

New to Real Estate

I recently joined Lezamiz Real Estate Company not quite understanding how Real Estate works. By the end of my first week I realized what a huge importance a Real Estate office is. I worked for a nation wide Pizza Chain in Twin Falls for 10 yeas, in those 10 years I learned that customers are the most important thing when it comes to being successful, with out customers and return customers staying open every day is kind of tough. Understanding that customers expect us to give them a result for what they have paid for and that seeing things from their end is even more important. I also spent 3 years in the wireless industry in sales, I learned so much about making the sale and informing the customer of every detail about their service. What I have learned here so far is how much goes into selling or buying a home from listing to closing every person here is key for all of the tough questions. I realize how many people it takes to sell your home and what a challenge it is to try to buy one. All of the people here at Lezamiz Real Estate Company have shown their commitment and skills in making Real Estate a wonderful experience and I would not want to venture into buying or selling a home with out them. You need an agent to make sure your future home is purchased right and the laws of land ownership are told to you so in the future there are no mistakes in the home buying/ selling process. Josh/Sales Manager/Lezamiz Real Estate Company

We Will Help

I don’t think there is anyone that hasn’t felt like they were tapping into their children’s college fund just to fill up their gas tank over the last 6 months.  It seems that we are seeing price increases on all of our necessities from gas to groceries all over the Twin Falls and the Magic Valley. We have had to make adjustments to family budgets and start thinking about conservation on a new level.  Is this a good time to buy a new home or put your current home on the market? This might be your next financial decision.

Now that we are seeing fuel prices start to decrease will we continue to conserve in anticipation of what will rise next?  What can we do to prepare for rising costs in the future?   And how do we know what to think of this Real Estate Market?  How do you know when to buy or not a buy a home?  Lezamiz Real Estate Company will help you with theses tough questions. We need to stay focused on the future rather than the past. -Kym Lott

The Importance of Title Insurance

When purchasing real estate in Twin Falls the Magic Valley, the buyer wants concrete evidence that their new home is free of title defects. Generally, the contract of sale requires the seller to provide the buyer a guarantee that the property is unencumbered by any legal attachments that might limit or jeopardize ownership. 

If you are relocating, or moving to a new home in Twin Falls, it is imperative as one would not know the history of the home you are purchasing. At Lezamiz Real Estate Company, we know how important this is for the buyer.  One wants to be certain that they are fully protected against errors in public records, hidden defects not disclosed by public records, or mistakes in examination of the title, fraud or forgery.- Scott/Alliance Title Company

Contact Information

Lezamiz Team
Lezamiz Real Estate Co.
705 Fillmore, Suite 1
Twin Falls ID 83301
Office: 208-734-7007
Fax: 208-732-5384