Category Archives: Real Estate Market

Fall Housing Market Predictions

fall housing

We are fully engulfed in pumpkin spice, football, and everything that makes fall nice. But what does the fall season bring to the real estate market as we run up to the end of the year?

INTEREST RATES: It is anticipated that interest rates will remain steady but increase slowly throughout the rest of the year.

INVENTORY: In most of the country inventory is holding steady, but is lower than ideal. November is the end of the second busiest inventory season of the year: if a move is in your future, it is time to put your moving plan into action now.

DAYS ON MARKET: When inventory is low, it typically leads to a correspondingly low number of days on market. That happens because buyers are waiting and watching for properties in good condition that are priced well. The more repairs the home requires or higher the price point, the days on market can creep up.

Typically, if homes do not sell within the first 10 days on the market, it can take 45 days to grab the attention of an interested buyer. It is critical to price your home appropriately from the start. You want to avoid having your property sit on the market over the holidays when buyer traffic slows considerably.

The fall market is a great time to make a move and this year it may be a particularly good time for both buyers and sellers.

Is Selling in the Fall a Good Idea?

_FALL-570It is no secret that homes sell throughout the year and in all twelve months. It is also no secret that the largest percentage of homes sell in the Spring. In fact, for many years you could look at a line that went from January through December on a line graph and it would look like the back of a double hump camel.

The first hump would occur in May each year. More homes sell in that month than any other month of the year. Then there would be a bit of a pullback in July as people took vacations and enjoyed the summer. Then the second (smaller) hump would occur in August and September where there would be a bit of a resurgence in sales and then things would tail off into the holidays.

About 7 years ago however, a new trend started to take place in the twin cities and it has not changed over that period of time. Now, what we see is that the early Spring market is even more robust than in past decades. May is still the top month of the year for home sales. However, there is no trough in July or second hump in August and September any longer. Instead, once May sales are complete there is just a slow descent into the holidays over the rest of the year.

Now, please understand that we still sell MANY homes after May. However, it is apparent that the buying habits of consumers, at least here in the twin cities, has caused a “front loading” of sales early in the year. In fact, by the end of June almost 2/3 of all sales for the year have taken place.

So, what does this mean for home sellers in the Fall? There are two variables to pay attention to. The first is the level of inventory that is available. It is widely known that over the last few years the demand for housing has far outpaced the available inventory. This has been especially true in the first tier move up buyer range of $250-400,000. In the Spring when the largest number of buyers are in the marketplace, there are multiple offers competing for the same property. You’ve seen the news stories which are becoming a yearly ritual. Generally speaking the most activity for multiple offers has been in the first time buyer range up to $250,000. And, there are always some neighborhoods that enjoy heavy demand regardless of time of year like Linden Hills, Wayzata, Kenwood, Crocus Hill Highland Park, and Mounds Park to name a few.

The second variable is that in the Fall, the market is still active but, there are fewer buyers, so sellers have to be priced more competitively than in the Spring. You can still make record profits as a seller this time of year. You just have to know how to position your home correctly in the marketplace.

Lastly, the Fall is the best time of year to contact me if you are also thinking of taking advantage of the hot Spring market. The reason is I can give you great advice on what to do over the winter to prepare your home for the coming Spring. You won’t have to rush to get things done and you will be in great shape come Spring when you open your doors to all of the interested buyers who will be looking for that perfect home. Yours.

article contributed by:
Mike Vanderheyden
RE/MAX Specialists
8400 Adair Avenue N 
Brooklyn Park, MN 55443

http://www.mike.remax-northcentral.com/

6 Tips for Buying in a Seller’s Market

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Buying a home in a seller’s market doesn’t necessarily have to mean paying too much, giving in to seller demands, or difficult negotiations. Even when sellers have the advantage, they may still need to work with a buyer to sell their home.

Some homes will often get plenty of attention while other homes may sit because they are priced too high or because of any number of factors that are undesirable to buyers in their market. With this in mind, it’s possible to make buying easier, even when the market favors the seller.

1) Be Firm but Fair in Negotiations

No matter what the seller may be asking for their home, the home still has a fair market value. While the amount the seller may be asking for a home could be a little bit higher in a seller’s market, that doesn’t mean a buyer can’t negotiate the price. Remain firm in negotiating, but also be fair based on the market conditions. A real estate agent can be your best resource to help you determine what your options are when it comes to making an offer.

2) Take a Look at Homes on the Market For a Long Time

Even in a seller’s market, there will be homes that just aren’t as popular as others. These homes will stay on the market longer, and finding out why this is the case, might be the beginnings of a great deal. If a home has a characteristic that isn’t popular with many buyers in the area, but it doesn’t bother you, it may be possible to buy a home in a seller’s market for less than you might expect.

3) Remember, There’s More Than one Location

Location is very important, but there’s generally more than one specific street or area where a buyer might want to live. By looking in several different places you might find the home that’s right for your needs without being completely tied to a location where the sellers may be less willing to negotiate and the prices might be above budget.

4) Find the Motivated Sellers

There will always be some sellers that are more motivated than others. No matter the reason for their motivation, the opportunity exists for buyers to get a good deal on a home they love. It may not always be easy to find sellers that are highly-motivated, but an agent can often help locate sellers who are looking to move their properties faster, and for a lower price.

5) Be Prepared and Ready to Negotiate

One of the ways to get ahead as a buyer in a seller’s market is to make sure your finances are ready. By having a mortgage pre-approval letter and a strong down payment, it’s possible to get ahead of other buyers who may not be as prepared. Sellers want to work with buyers who are serious and have a high probability of completing the transaction without delays.

Not being ready before making offers could mean missing out on a home that would be just right.

6) Don’t Underestimate the Power of Cash

Buyers who pay in cash and don’t need a mortgage to purchase a home often have a better chance being ahead of other buyers in a sellers market. Cash can be very attractive to some buyers, because when it comes to buying a home, it shows a seller that they don’t have to worry as much about a deal falling through because of mortgage finance issues.

When buyers don’t need mortgages, the transaction may be completed a lot faster, too, making it easier for everyone to moving on to the next phase of their lives. Speak to a financial professional to see if this would be a prudent move for your long-term financial health.

While a seller’s market can be a bit tricky to navigate, home buyers should know that with enough preparation and effort, they can find and purchase their dream home without adding additional stress to the process.

By our guest blogger,_KrisLindahl_481224369

Kris Lindahl REALTOR® CRS CLHMS
The Kris Lindahl Team at RE/MAX Results
2407 109th Ave NE Suite 110
Blaine, MN 55449

www.krislindahl.com
twitter.com/krislindahl
linkedin.com/in/krislindahl
www.minnesotacommercial.com

 

Mr. DeMille, I’m Ready for My Close Up

closeupThere is an idiom that has stood the test of time: seeing is believing. And when it comes to spending money, it is a rarity that we ever purchase something based on description alone. Not only do we check on the product reviews of others, but we rely on a visual picture in order to be fully convinced to part with our hard-earned cash. Nothing proves this truer than when it comes to buying property. According to the 2014 NAR® Home Buyers and Sellers profile, buyers rank listing photos as the number 1 most valuable website feature – even higher than the listing’s description! These days, 92% of people looking for a new home rely on the internet to begin their process so it seem only natural that photos are preferred over just a written description. And now that you have found yourself a home to sell, it’s time to get it ready for that photo shoot.

First, you need to speak with your home-owning clients. You have already walked through the home with them, giving suggestions to make things ready for the future showings. Now it is time to give everything some final touches so that the photo shoot goes smoothly. A great tip is to ask your professional photographer (because you shouldn’t be taking the photos on your own) for a checklist your clients can reference in order to get things camera-ready. In fact, this list can also work double-time as a handy tool for those upcoming showing days.

When it comes to the interior of the home, the added touches are all pretty simple. Keep the toilet seat down, clothes in the hamper, toiletries and other personal products hidden from view. One way to give your clients a point of reference is to have a quick tour once a housecleaner professionally cleans the place so everything has a place and the home is picture perfect. As for the exterior, you should have your clients keep the yard clean as a whistle. Keep cars in the garage and/or parked from view, landscaping tidy and trash cans & toys picked up and out of the way. The cleaner the property is kept, the easier it will be for you to photograph and show to prospective buyers.

When it comes to the actual photo shoot, the only proper way to go is with a professional photographer. Find one that understands the business and express exactly what it is that you’re looking for. Before each shoot, show the photographer certain aspects of the home that should be featured in the photos. The more you can show these special features to your prospective buyers, the easier it will be to book showings and, ultimately, sell the home. Build a relationship with them so that you can move through these shoots like a team and make the photos the very best they can be.

After all, a picture is worth a thousand words…

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