4th Quarter = Buyers Market

It is that time of year again...winter.  This is the time of year that everyone wants to take their house off the market and wait until the spring market.  Why?  Do buyers stop buying in the winter? No, they continue to buy all year round although they do get frustrated with the lack of good inventory.

The truth is the prices have gone up since last spring.  The median sale price for a home in April, the height of the spring season, was $233,000 and in September it is $239,000.  During this same time period there were 9,718 homes for sale in April 2015 and only 9,313 in September 2015.  The average days on market is the same about 43 days.

Now is the time to put your home on the market and sell it in time to go to your favorite warm weather spot for the winter!

Scarcity = Demand

If you like numbers then today is your lucky day!  Pricing and real estate are always changing. Today my discussion is to bring awareness to these towns and their prices.  Are there opportunities?

1.  Here are the median prices for new construction in these towns:
Bloomington  - $896, 275; number for sale 4, Days on Market 2
Eden Prairie - $827,495; number for sale 55, Days on Market 1
Edina - $950,470; number for sale 55, Days on Market 110

2. How long would it take at the rate the market is going today to absorb this inventory?
Bloomington 0
Eden Prairie 6.5 months
Edina 15.5 months

3. Homes for sale that are previously owned and over $900,000
Bloomington - 3
Eden Prairie - 53
Edina - 46

4. Homes for sale over $650,000 that were previously owned
Bloomington - 26, Absorption rate (months supply) 7.6 months
Eden Prairie - 132, Absorption rate 11.6 months
Edina - 282, Absorption rate 8.7 months


What are all these numbers telling us?
I think it is pointing to a need for new builds in Bloomington and a potential uptick in sales of higher priced homes.  If you are going to put your home on the market and it is over $500,000 please stage and update the kitchen.

Listing your home = wearing a hair shirt (sack cloth)

I was thinking about the Renaissance festival and how strange that time was in history. Sure jousting or eating a turkey leg like a barbarian are cute but then there is the really strange stuff. The weirdest for me is the hair shirt. Per my understanding it was originally a garment or undergarment made of coarse cloth (sackcloth) or animal hair (hair shirt) worn close to the skin to cause irritation. To bump up the discomfort they would add twigs or thin wires! It was used in some religious traditions to induce discomfort or pain as a sign of repentance and atonement.

  Well to put it simply, listing your home is like wearing a hair shirt! It is perpetually uncomfortable and nobody really looks forward to the process of preparing their home. It is not natural to stage your home with rented furniture and paint it colors that other people would like instead of your color taste. It feels like it would be itchy and uncomfortable all of the time. Hence the hair shirt analogy.

It doesn't have to be this stressful and uncomfortable!

 1. Use professionals to break down the process: a stager, de-clutter professional, moving company, checklists and handymen.

 2. Realtor - Know your numbers, how much it will cost to sell your home? Net sheet, market analysis 

3. Put a deadline to the process, decide what needs to be done and then put the resources you have available to get it done. This way you will be ready faster and the market should be about the same as it was when you started the process. The market changes so ask your Realtor to update your numbers as the market changes. 

4. Depend on worse case scenario. It is always best to prepare like it has to sell. 

5. Focus on the outcome and the direction that you, your family or whatever the scenario, are trying to accomplish. It will be a wonderful future ahead!

6.Keep a positive attitude, it always attracts the best results. You may even see the hairshirt as funny?

Paint color = Emotion

Recently I went on a listing appointment and the family walked me through the house.  We came to the teenage daughters room and it was crimson red. The daughter laughed and said this is the "murder room" and the mother and I said, "redrum" and shivered.  There is a famous scene from the movie The  Shining that we both related to this bedroom?

If children are present please do not open the link, it still scares me after 30 years.

When listing it is important to neutralize the colors so that the buyers can visualize themselves living in that space. Strong or dark paint color minimizes the number of buyers that would be attracted to that space. Paint is the least expensive way to freshen a space, it will reduce smells, brighten the room and clean all in a few brush strokes. 

Take your stagers and Realtors advice and paint as much as possible before listing a home.

By the way, they did paint the red room to a very light grey, perfect for resale!

Staging = Cleanliness

Staging = Cleanliness

So many times I talk to clients and they are irritated that they have so much work to do before it goes on the market. Why?  In a few words, it must be done! Everyone wants to get the best possible price so in order to get the best price the house must feel like the potential buyer can move in tomorrow. If a house is staged beautifully but it smells like Sylvester the cat, you as a seller, lost all possible buyers with the exception of cat lovers or or more specifically, cat lovers that don't mind kitty smells.

Cleaning happens before staging and it would include deep cleaning such as closets, drawers and kitchen cabinets. These items can either be put it in a mobile storage unit like a POD or give it away. You would be surprised how wonderful it feels to get rid of things you no longer use.  

A stager or Realtor will also ask the seller to take most of the furniture out of the house to create space and reduce the appearance of clutter.

Final step before staging is to have all the floors and carpets cleaned and wash all the windows. This will brighten the house up and it smells great!