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How to price a home in Minnesota when the market is slowing

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With mortgage rates rising and home sales slowing, it’s a particularly confusing and volatile time to be a seller in Minnesota.

Here’s what’s happening:

  • Price increases have slowed, but on average, sellers are still getting close to the asking price.
  • There are fewer buyers, but the list is still short.
  • Although price cuts are on the rise, homes are still selling faster than usual.

Now that we’re heading into fall and winter, what’s important in home pricing?

The object of comparison has changed. Ignore your neighbors selling their homes this summer or what prospective realtors might say about their records this spring and summer.

Instead, focus on the items sold in the last few weeks and their value.

“The focus should be on where the market is going, not where it was,” said Kat Papp, vice president of strategic operations at Chris Lindahl Real Estate. We’re looking at two weeks of sales.”

Her advice is a reminder that the housing market is changing so quickly that even experts have trouble predicting the next move in housing.

Fannie Mae recently lowered its sales and pricing forecasts for this year and next year. The company now expects prices to fall across the country in 2023, and changed its forecast after lowering its outlook for price increases this year.

adjust expectations

The twin cities and much of Minnesota are still considered a seller’s market. This is because home listings are in short supply and homes are selling rapidly. But buyers are spending more time.

Minneapolis Area Realtors (MAR) and Twin President Dennis Mazon said: city ​​agent. “As always, the truth lies somewhere in the middle.”

Beyond the hype and headlines about changes in the housing market, REMAX Professionals distributor Jonathan Lindstrom said many homes are still selling fast, but not as fast as earlier this year. rice field.

“Sellers are nervous because they don’t get offers within the first four hours of being on the market,” Lindstrom said. “The only thing that needs to be worked on is that after three to four weeks the market will be stagnant and the price will have to come down.”

He noted that over a recent weekend, he had six offers, a listing that sold for $50,000 more than the list price, and wrote an offer to a client at the Woodbury home. His clients were willing to pay him $45,000 more than the asking price, but they didn’t take it.

Still, the market has changed, he said. Lindstrom said the pandemic has upended the normal seasonal trading cycle. Rising mortgage rates only add to the confusion. The normal seasonal variations seem to be returning.

“The last few years we forgot about normal,” he said. “We’re in that normal fall slowdown right now.”

think competition

Before you price your home, you or your real estate agent should evaluate similar properties that have recently been sold and closed. In general, it’s a good idea to get market analysis from a handful of agents (preferably he’s three) so you can compare them. It’s not always best to ask the agent who offers the best price. Some agents convince clients with pie-in-the-sky market analysis.

There were 9,002 homes on sale at the end of last month, about the same as last year, but fewer buyers, according to the MAR. Last month, a trade group said he had a nearly 30% drop in pending sales compared to last year.

That means sellers need to be more competitive than ever before so they can be sure their homes are competitively priced. That means comparing the size, condition, and location of your home to other homes on the market that have recently sold.

As well as using the search function of numerous real estate websites operated by individual brokers without an agent, Zillow.com.

Many of these websites contain home value/price estimates based on proprietary algorithms. Note, however, that these estimates are not obtained from local experts.

Pigs eat well, pigs are slaughtered

The importance of these four words cannot be overemphasized.

Autumn and winter are usually the dullest buying seasons of the year, but many agents consider them the best time to trade because the people in the market are serious.

“People don’t move to move,” Pup said. “They move because they have to move.”

Still, these buyers don’t want to overpay.

Earlier this year, Metro sellers earned on average more than 101% of the asking price. However, in September the seller earned on average his 98.3% of the asking price.

And for the past few years, monthly sales reports have regularly shown price increases in double-digit percentage ranges. However, the median total sales in September he rose 6.3%.

Coldwell Banker Burnet’s Krista Wolter says that as long as the property is priced appropriately, professionally staged and in top condition, it will sell quickly.

She recently received an offer for a $1.65 million home in North Oaks that had been on the market for two months. The offer was made shortly after the price cut.

“Some sellers are priced too high,” Wolter said. “Pricing and preparation is something that needs to be done right in this market and will still be successful.”

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