Phoenix Total Market Overview Reports:

Why Use The TMO Report?

An excellent report can be a great marketing tool for your business! Real Estate professionals from coast to coast are using the TMO Report to explain and set the tone of the market to current buyers and sellers alike.  Agents are also using the report to keep in contact and show value to past clients to keep them informed about the real estate market.  The internet has changed the way real estate agents do business.  98% of consumers start their search online! What better way is there to provide value to a new buyer when every website out there has all the listings you do? Our report is a great way to provide an answer to one of the biggest questions on everybody's mind, especially in recent years..."how is the real estate market doing?"

Imagine two agents in the same area. Agent "A" relies on a traditional postcard campaign with a friendly "hello" to the neighborhood on the front and contact information on the back. Postcards can be expensive to print and mail, and unfortunately, most agents no longer mail to neighborhoods any longer.  Although home owners do not get personalized mail as much as they used to, this agent is not providing any value by just saying “hello!”

Now consider Agent "B" mails a letter to the neighborhood, along with the TMO Report.  This is more effective and engages the home owner. Home owners are very interested in their local market, even if they do not want to sell right now. The difference is that this strategy offers useful and relevant market information that people actually WANT to read regardless of whether they are selling or not!

Which agent do you think they will call when they finally ARE ready to sell? (HINT: The one who shows market mastery)

 Absorption Rate - A Market Thermometer

A thermometer tells you how hot or cold something is. The pending ratio can show you the same thing in Phoenix's real estate market. The pending ratio can show you how fast or slow homes in an area are selling. Using the TMO Report and showing your clients the pending ratio can be an easy way to set their expectations when trying to buy or sell a home.

The same can be said with the Absorption Rate, or Month's of Inventory. High months of inventory, a buyers market, means that homes are selling slowly and buyers have the upper hand and have lots of homes to choose from. On the flip side, low months of inventory or a seller's market gives sellers the upper hand. When there is low inventory there is high demand, and sellers are more able to call the shots.

The absorption rate is determined buy a calculation of active listings (homes still available for sale) and the total number of homes sold over six months. Some companies use a 12 month cycle, but we use a 6 month cycle to create a more accurate picture of the current market. If you divide the active number by 6 and you have the average number of sales per month.

Now, you can divide the total number of active listings by the average number of sales per month. This is the estimated number of months it will take if no other homes come on the market.

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