Tag Archives: real estate market

PRICING YOUR HOME CORRECTLY IN A COMPETITIVE MARKET

PRICING YOUR HOME CORRECTLY IN A COMPETITIVE MARKET

Imagine you want to buy a banana. You eye the produce section, shelves stocked with dozens of choices, but they are really all the same. A banana is a banana, and which one you select is not significant because they are all identical, and they are all priced the same.

What if each identical offering was priced differently? Odds are you have set aside ample time for your shopping trip to carefully check the prices and go for the best deal. Or maybe you are drawn to the more attractive packaging.

When selling your home, attractive pricing and packaging are arguably the two most basic essentials. In our current real estate market, the buyers have a lot of choices. In many areas, the shelves are simply overstocked. And since no two homes are the same, making that distinction between your home and the dozens of others is key.
Where pricing is concerned, establishing that all-important asking price is part science and part art, and there are several things you should consider.

Study past sales. This is the starting point for any thoughtful and successful pricing strategy; think of it as the research portion of your home selling experience. Take the time to study past sale statistics for homes in your area and areas like yours. None will be identical, of course, but having a clear understanding of true market value is the first step in establishing your list price.

Do not confuse active listings with past sales. Active listings have not sold. They are just your competition. It is important to be aware of your competition’s pricing, but this is often an indication of what your home will not sell for. Leave some room for negotiation, but do not overreach. No seller wants to feel he left money on the table, and no buyer wants to overpay. Your price should give both parties room to maneuver, but if it is too high, you risk being perceived as unrealistic, and buyers will pass over your home.

Think like a buyer. What are the things that you value in a home? Is it a large yard, an updated kitchen or a view? These are likely the same things that your buyer values as well. Talk to your real estate professional about current buyer trends. Your price should reflect how your home compares to the others offered for sale. Buyers will find objections to any home, as no home is perfect, but it is curious how quickly objections disappear when the price is compelling.

React swiftly and decisively. If your home is on the market and is not being shown or if you receive feedback that you priced it too aggressively, do not hesitate to adjust your price. Bad news, like a rotten banana, it does not get better with time.
First impressions are everything when selling your home. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers. If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and your price has an expiration date. You have one chance to grab attention. Make sure your pricing helps you stand out on the shelf — in a positive way.  ***

Are You Ready To Sell?

ready to sell

The reasons for selling are not the same for every homeowner. What is the same are the issues and decisions facing sellers when they decide to put their house on the market or not.

Making a decision if you are ready to sell will depend on how you can answer some leading questions, such as: “Is now a good time to sell? If I sell my primary dwelling, where will I live? Do I know what my property is worth? Where do I begin?”

Your answers to these questions will be unique to your situation, your goals, the current market, and your property, but the following insights into each of the five questions reveal what your answers might involve:

#1. Why now? What is driving you to feel you “must” sell now, not in a few months or next year? What problems or inconveniences could arise if you don’t sell now?
Is there one main reason you are considering a sale now? Need the money? Is it the benefits of selling in a hot sellers’ market to lock-in the profit? Is it a new job or relationship that drives the selling decision? Or, have you lost your job or do you face a divorce? Are other circumstances, like escalating costs, including taxes, or the necessity for major repairs making the property too expensive to keep?
As your real estate professional, I will be able to help you arrive at an accurate market value determination. Real estate professionals can offer practical suggestions and alternatives. Weigh expert input in view of your priorities to resolve issues and identify ideal alternatives. Add to this analysis a brutally-honest assessment of what you love about your current real estate and what you do not truly care for.

#2. What is next? Where will you move to? Do you have the next step figured out – smaller residence, larger home, cross-town shift, cross-state move, cross-country leap, switch to condominium lifestyle, or cash out and move to a rental property? Are you aiming for a mortgage-free lifestyle?

Who is directly involved in the move? Decisions should be made by those who will use the property and shoulder costs. For instance, parents may decide to sell the family home and downsize when their grown children leave ‘the nest’, but this is no longer an automatic logical step for everyone. What if children return home after college to enroll in graduate school in hometown? Also, parents may choose to grow old in their home instead of moving into an institution.

#3. What would a “successful sale” include? How much do you need to net from the sale of your real estate? It’s not unusual for owners to have inflated views of the value of their home that are tied to the pride of ownership. If you are planning to purchase real estate with the proceeds of this sale, do you know how much you will need to sell for to buy that next property? Will you need to sell your current property first to be sure exactly how much you have for the next step? Or, can you accept the risk of temporarily owning two properties or needing outside funding to purchase the next property before you sell the current one?

What do you need to achieve through the sale of your real estate? Beyond financial concerns, what other factors will make this a successful sale? For instance, is there a moving date that holds value for you because an earlier closing and moving date would represent additional expenses? Do you want to sell all furniture and appliances or take them with you?

#4. Who will help you achieve this success? As your real estate professional, I have the expert knowledge and skills necessary to successfully list your property, attract ideal buyers, complete the transaction with your best interest in mind, and finalize the sale as quickly as possible and with little or no hassle. I am trained to provide real market data that will put your expectations in the context of current market conditions and buyer alternatives. xxx

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
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www.minnesotacommercial.com