How to Determine an Offer Price When Buying a House in MN
The moment you have been waiting for has arrived. The home you want to buy has come on the market. You feel like Goldilocks when she lays in the baby bear’s bed that felt just right. Unlike Goldy, who proceeded to take a nap, you are ready to rock and roll. It’s time to write an offer, also know as writing a purchase agreement.
The central theme of the offer is the amount you agree to pay to the seller for the property. Your goal is to reach that magical place where deals come together. It’s that sweet price point where the seller receives the amount he wants, and the buyer knows she is not paying too much.
The starting point is the seller’s asking price. Your real estate agent’s job is to help you decide if it is reasonable or too high. Several factors to consider that will affect your offer price include a comparable market analysis of homes that have recently sold, market conditions, property condition and updates, length of time on the market, and seller motivation.
The Comparative Market Analysis or CMA
Your buyers’ agent will pull several months of data on homes that have sold in the same general location to help you determine a range where your offer price should...
Twin Cities Real Estate Review
Even as we advance into the new year, we have one piece of unfinished business to conclude in 2019 before closing the books. The Twin Cities housing market numbers are out for December, and here is the story they told.
It’s a tale that is long in the tooth by now about a market that is struggling to find balance. Limited inventory at lower price points makes the real estate market in the Twin Cities a seller’s dream. Even in the face of strong demand and insufficient inventory, millennial buyers are achieving the dream of buying their first home.
While new listings for December saw a gain of 3.9%, overall inventory levels were down 19.6% compared to December of 2018. The townhouse segment, down 12%, lost the least inventory, while single-family homes were down 20.8% and condos lost 14.2 percent. The month’s supply of inventory for December was dipped 21.2% overall. In the Twin Cities metro, we saw 1.6 months of supply for single-family homes (down 20%), 1.1 months for townhomes (down 8.3%), and 1.5 months of condos (down 11.8%).
Real Estate Sales
Closed sales in the Twin Cities were up 13% in December, and pending sales were up 8.2% when compared to the same time from the previous year. The category with the most significant gain in sales was single-family homes, with the most robust sales falling in $500,001 to $1,000,000 pricing tier, up 17.2%
Homeownership in Minnesota
With interest rates low and predicted to go lower this year, many of you are thinking seriously about buying a home. Am I right? Don’t be shy. Raise your hand if you want to buy a home this year. Wow, look at all the potential homeowners!
Your enthusiasm is inspiring! Buying a home in Minnesota is an adventure. However, before you dive into the housing market, you need a plan. Buying real estate is a journey, and the road to homeownership is rarely a straight line from point A to point B. Often the route is a winding mountain road with hills and valleys, twists and turns but worth the effort to reach the top.
Buying a home in today’s market, especially for first-time home buyers, is challenging. But having your path mapped out from start to finish will help you avoid obstacles and delays. Completing each portion of the journey before proceeding to the next will build confidence in the process. Here are my 7 Steps for a successful home buying experience.
1. Organize Your Finances
2. Shop For a Mortgage and Obtain a Pre-Approval
Now it’s time to find a lender. Of course, your first instinct is to secure a mortgage at the lowest possible rate. Don’t get me wrong that is extremely important. But customer service also matters. The variety of programs offered will...