Our initial and crucial step is to provide you with a fundamental understanding of the current market conditions. We meticulously research and analyze the local landscape, taking into account factors such as supply and demand, interest rates, and economic indicators.

The absorption rate, a market key statistic, provides valuable insights into the current supply and demand dynamics. By calculating how quickly properties are being sold relative to the total inventory, it buyers and sellers understand whether the market is favoring one side over the other. A high absorption rate indicates a seller’s market with limited inventory, potentially leading to higher prices, while a low absorption rate suggests a buyer’s market with an excess of available properties.

Automated Valuation Models (AVMs) play a significant role in real estate analysis, especially when it comes to assisting in the determination property values. AVMs rely on large datasets, including recent sales data, property characteristics, and market trends. These models use statistical methods and mathematical algorithms to generate property valuations. As such, they can provide a data-driven estimate of a property’s market value, which can then be used to supplement the experience of our professional agents or serve as a baseline from which adjustments can be made.

AVMs can be used as a starting point for comparative analysis. Real estate professionals often use AVM estimates as a baseline and then adjust them based on local market knowledge, property condition, and unique features that may not be captured by the algorithm. This comparative approach helps refine property valuations.