Tag Archives: home buying/selling process

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

 

Funny Business

realtor-sign-doritoWe all know that there is a lot of competition when it comes to the real estate game. There are always new homes going up for sale, buyers looking to find themselves a new place to live and plenty of agents working hard to land some of that business. As a buyer/seller, where do you even begin? All of these decisions make the process not only overwhelming, but extremely stressful. As an agent, it is your job to help alleviate these worries. So ask yourself…what do you do to stand out from the sea of agents ready to help? And once you get the business, what do you do to help your clients rest at ease during this tumultuous time? Lots of agents use their arsenal of knowledge to navigate thru these stormy seas. Sure, it’s incredibly helpful; everyone needs information and knowing what you’re doing is always necessary. But is it really the most ideal approach? Studies have said not quite.

There is an age-old adage: laughter is the best medicine. Apparently, this doesn’t just pertain to doctors. According to a study conducted by Baylor University’s Keller Center, when asked to choose a real estate agent, clients were more likely to choose the agent with a sense of humor. You heard it right…in a day and age where society is looking for humor in their news (ala Jon Stewart & Steven Colbert), people are asking for someone to lighten up stressful situations with a bit of humor, not just facts and statistics. And the benefits are two-fold; not only do you help your client calm their nerves, but you also build a reputation for being a well-rounded agent, thus bringing in more business. It’s a win-win!

But is real estate a funny business? From the surface, one would say no. There’s nothing all that hilarious about the process required to turn structures into homes. The key is to look deeper into the industry and process itself. It’s not about turning into a clown. It’s all about the subtlety of the delivery. Throw a pun or two into your marketing tactics and listings. Add some funny cartoons or YouTube videos to your social media pages. Make light of a tough situation by spinning a whopper of a tale to relax a stressed out client. Keeping things short and sweet for a quick chuckle is always going to bring a positive result. It’s all about building a rapport and making yourself relatable. You don’t need to be a comedic genius, you just need to be able to make a client feel comfortable in your hands. Keeping a smile on your clients’ faces will not only help the homebuying/homeselling process, but chances are, you will have a client for life.

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