RSS Feed
Selling Your Home in Southeastern MN – Process and Pricing
Simplifying the Selling Process
From preparing/staging your home for the market, to determining the correct listing price, to final contract negotiations and inspections, your home-selling experience in Southeastern Minnesota should be a smooth and uncomplicated process. Keep in mind, the right Real Estate Agent is the key to a successful real estate transaction. They will guide you through the entire selling process from installation of the sign, to the signing of your final papers. The key to a successful relationship with your Realtor is communication, and knowledge of the market area by both you and the Realtor.
Pricing Your Home
One of the most critical elements in selling your home is correctly pricing the home for the market conditions. An experienced Realtor will be knowledgeable of what the conditions of the present market are in your area, and provide you with a Comparable Market Analysis of your home. The Market Analysis will show neighboring properties that are actively for sale, homes that recently sold (pending), and homes that are sold (closed). This process is accurate, however, experienced Real Estate Agents will be able to provide you with additional formulas to determine the listing price such as the Absorption Rate of your home into the current market, average market time, and average list price. Try to find an expert to help you determine a price for your home, with a minimum success rate of 98% list price to sales price percentage.
The “Mortgage Side” of Selling Your Home
Most Sellers do not take into consideration the fact that current interest rates, loan programs offered, and appraisals can affect the successful marketing and sale of your home. When interest rates increase, buyers experience “decreased buying power”, which means the buyer may no longer qualify to purchase your home, but will need to purchase in a lower price range. You may want to have this conversation with your Realtor in an “increasing interest rate” market when listing your home.
The Appraisal Process is critical to the sale of your home. If you sell your home above market value, remember that your home will still need to appraise at the agreed upon sales price. If the home does not appraise, or appraises lower than the agreed upon sales price between buyer and seller, the price may have to be re-negotiated to match the appraised value, or the buyer will not be able to obtain a mortgage/loan for the home. The Appraiser is hired by the Buyer’s Loan Officer.
Seeking further information, and taking these points into consideration, will help you get well on your way to a successful home sale in the Southeast Minnesota real estate market.
Copyright © Tim Williams
