Prior to becoming a Realtor I was a manager. A key part of my job was facilitating meetings. I got pretty good at it over the years. I read books like “Death by Meeting” and took it to heart that time is valuable. I have transferred my management skills to real estate. Specifically, I do a lot of preparation prior to meetings with prospective clients for a listing appointment.
I can share in studying NE Mpls the competition includes short sales, foreclosures and auction properties. It also includes investors who have remodeled homes and are selling at very competitive prices and traditional sellers. The traditional sellers are a mix of those who have made nice updates and those who haven’t updated.
Given the competition I can share a few recommendations to sellers:
- Work with your Realtor to identify and promote key elements of your home. Proximity to parks, shops, dining, schools, main roads etc.
- Put some time into your home prior to listing, and maybe some money too if you can manage it. Make it look as move in ready as you can – both on the outside and inside. Declutter, remove wallpaper/paint, clean carpets, furnish appropriately (avoid the huge couch in the small LRoom), nice window treatments, trim shrubs (yes, it is almost that time) etc.
- Continue to live in your home while listed. With the number of vacant properties it is refreshing to walk into a lived in home. Bake cookies and leave on the counter if you have time. Write a short note to potential buyers about your home and what you like about living in it.
- Work with your Realtor on setting the list price. Be realistic about the market vs focused on what you “hope to get out of the sale”. Of course you may need to hold off on selling in some situations but be mindful of the market. Listing above market is a waste of time.
Big Picture on NE Mpls for a single family home – year over year*
Feb 2010 vs Feb 2011:
*pulled from “THE THING” – MAAR
More homes are on the market – traditional listings were up 53% to 125 which is back to 2009 numbers; short sales up 29% to 41; foreclosures up 4% to 27. Perhaps an indication that sellers tried to sit on the sidelines in 2010 and are trying to sell in 2011.
Number of closings dropped 25% to 360 properties
- Traditional: showed a decline of 15% to 248 closings
- Foreclosures: showed a decline of 45% to 88 closings
- Short sales: showed a decline of 27% to 25 closings
Average sale price dropped only slightly, 1% to $148K – for single family homes overall.
- Traditional property average sale price was down 8% to $165K
- Foreclosure property average sale price was up 2% to $82K
- Short sale property average sale price was up 21% to $138K
Average days on market down 13% to 89 days – a positive sign!
- Traditional: showed a decline of 8% to 78 days
- Foreclosures: showed a decline of 10% to 106 days
- Short sales: showed a decline of 29% to 129 days
Percent of Orig List Price Rec’d – 96% vs 92% (traditional); 95% vs 92% (foreclosures); 82% vs 84% (short sales). Decline with traditional and foreclosure related to federal tax credit.
Summary of market analysis data for a single family home in northeast Minneapolis — 3 bedroom/1+ bath, story-and-a-half (1200-1800 Total fin sq ft).
Comparables specific to property I was analyzing, let me know if you want a virtual CMA specific to your home.
- List price = $182,830 on average ($148K-$200K)
- $/SQ = $137 on average ($106-$171)
- Cum Days on Mkt = 149 on avg (1-450 days)
Sold listings (off market 8/1/2010+)
- Sale price = $140,598 on average ($58K-$224K)
- $/SQ = $98 on average ($41-$130)
- Cum Days on Mkt = 199 on avg (1-461 days)
Contact me for an analysis of your neighborhood or home.