Sunday, February 10, 2013

Rebounds Not Exclusive to Basketball—Housing Prices have Bounced Back!

I have no ability when it comes to basketball but as a REALTOR® with well over a decade of experience in the Twin Cities north and east metro, I do know a housing rebound when I see it. Since last fall there has significant activity in the Minneapolis/St. Paul housing market. In the north and east metro, I have witnessed the market turn. The extreme low interest rates have brought out the first time buyers who have literally bought up almost all the listed houses. This is good news…unless you are a first time buyer.

Once again, there are multiple offers on home. In one situation I was in this past fall, there were 12 offers by the time the highest & best deadline arrived. Not familiar with the term highest & best? When there are multiple offers on a home, the seller’s agent notify all interested buyers to submit their highest and best offer so the seller can choose which one to work with. In this situation the seller’s agent said she had another dozen buyer’s agents contact her AFTER the deadline. More than 2 DOZEN interested parties on one home! This is driving prices up again.

 The real estate market has seen a rebound this market and it is good news for any seller that has been waiting for the right moment to sell.

Before the holidays, I was asked by a number of clients what they should do to do to get their home ready for selling in the spring. My advice was, “If you are ready now, go for it! Don’t wait until spring!” There is no reason to wait out the winter. Buyers are looking now and writing offers now as there are very few good homes on the market. The clients who took my advice saw their homes sell quickly…in many cases in just days.

Tips for Sellers in this Rebound Market:

  • Get your home picture-perfect ready and on the market as soon as possible. Don’t wait as there will be more sellers competing in the spring.
  • Stage your home. It will stand out compared to foreclosures.
  • Price it right from the start. Just because pricing is up, doesn’t mean the sky is the limit on pricing. Buyers are too savvy…and so are appraisers! Trust your REALTOR® to help you find a realistic listing price.

  Tips for Buyers in this Rebound Market:

  • Work with a REALTOR® from the start. I am able to find homes for my buyer clients and get them out to see them within hours of hitting the market.
  • Get Pre-approved for a home loan. Sellers will not consider an offer without a pre-approval letter or proof of funds if it is a cash offer.
  • Educate yourself on the market and work with an agent that knows the area so you won’t have to hesitate to write an offer. Waiting a few days to think about it may not work in this fast paced market.

Copyright 2013