Minnesota Real Estate Podcast With Chad and Sara Huebener

With a seller contingency, buyers agree to purchase your home while giving you time to find your next home, easing the pressure of selling and buying simultaneously. If you're planning to sell your home, you might be wondering how to make the process as smooth as possible. One option you should know about is the seller contingency. While you may be familiar with the home sale contingency, which requires a buyer to sell their home before they can purchase yours, a seller contingency works a bit differently. This strategy could be exactly what you need to make your move easier. Here's what you need to know about it: What is a seller contingency? A seller contingency is when a buyer agrees to purchase your home with the condition that you find a new home within a certain time frame. This gives you the flexibility to sell your current property without worrying about not having a place to move. You can list your home and accept an offer, but the deal won't close until you've found your next home. This can be a big relief, especially in a competitive market where finding the right house can take time. Why is this important in today's market? In many areas, inventory is low, and many sellers hesitate to list their homes because they're worried they won't find another one. A seller contingency gives you the time and flexibility to search for your next home without the pressure of being stuck. This contingency is especially helpful in markets where homes are selling quickly and buyers are often competing for limited properties. With this arrangement, you can take your time to find the right property before finalizing the sale. How does it work for buyers and sellers? For buyers, a seller contingency may seem like an extra step, but it can be a great way to keep the process moving in a market where sellers are reluctant to list. Buyers might agree to this contingency in exchange for the chance to purchase a home they love. In many cases, it's a win-win for both parties: the seller gets the time they need, and the buyer secures the home they want. “In low-inventory markets, a seller contingency provides the breathing room to sell your current home while searching for your next one.” The inspection process. With a seller contingency, there's also flexibility around the inspection. Buyers can choose to do their home inspection before the seller has found their next home, or they might agree to do it after. This is something that's negotiated in the purchase agreement and can vary based on different factors. It's important to understand this detail, as it can impact how quickly the deal progresses once the seller finds their new home. Why should you consider a seller contingency? In today's housing market, where inventory is tight and sellers are often hesitant to list their homes, a seller contingency could be just the solution you need. It gives you peace of mind knowing you won't be rushed into a purchase you're not ready for. Plus, it can make your home more attractive to potential buyers, as they know you're serious about selling and willing to work with them on a flexible timeline. If you're ready to sell but have concerns about finding your next home, a seller contingency might be exactly what you need. If you have questions or need help navigating this process, feel free to call or text us at 952-212-3597 or email us at ChadandSara@edinarealty.com. We're happy to guide you through every step of the way.

Measuring square footage gives you control over listing accuracy, allowing you to prevent misrepresentation and improve buyer confidence. Every detail matters when buying or selling a home. However, one of the most important yet often overlooked details is the square footage. You might be surprised to learn that the square footage listed for a home could be completely off if you did not check it thoroughly. Accurate square footage is crucial for both buyers and sellers, and getting it wrong can cause a lot of headaches. The problem with inaccurate square footage. You might think the square footage listed on a real estate website or MLS is spot on, but that's not always the case. Discrepancies happen more often than you might think. Sometimes, county records or old listings have outdated or incorrect numbers. National websites may pull their data from estimates, which can miss key details, like unfinished rooms or spaces that aren't part of the livable area. This can lead to confusion or even problems down the road. For example, if square footage is misrepresented, it could cause issues with pricing or even legal disputes. That's why it's essential for agents to take their own measurements when listing a home. Why should agents measure square footage themselves? As a real estate agent, relying on existing data isn't always enough. There's a lot of information out there, like builder specs and blueprints, but they can vary. A builder's floor plan might include areas that aren't actually finished living space, and you can't always trust that the numbers are correct. “Accurate square footage protects sellers from potential complaints or disputes.” Homes built between 1997 and 2008 often have the biggest discrepancies. Many of these homes had two-story great rooms or vaulted ceilings, and back then, builders sometimes included that upper-level airspace as finished square footage. But when listing a home on the MLS, we have to report only the true livable space. That means any airspace needs to be excluded from the total square footage. Accuracy matters. The best way to avoid these issues is simple: measure the space yourself. By doing this, you ensure the square footage you're providing is accurate and transparent. This benefits both the seller and the buyer. It eliminates confusion and builds trust between everyone involved. For sellers, accurate square footage protects them from any future complaints or pricing problems. And for buyers, knowing exactly what they're getting in terms of space helps them make informed decisions.The next time you're listing a home, don't rely solely on old records or estimates. Take the time to measure the space yourself. It's a small step that can make a big difference in your real estate transactions. If you have any questions, feel free to call or text us at 952-212-3597 or email us at ChadandSara@edinarealty.com. We'll be happy to help you out.

We're answering the top three most-asked questions from sellers on pricing, pre-listing preparations, and more. Selling your home is a big decision, and it often comes with a lot of uncertainty. Whether you're relocating, upgrading, or downsizing, the process can feel overwhelming. To help you navigate through it, we'll share the three most common questions we get from sellers so you know exactly what to expect. Question #1: What do I need to do to get my house ready to sell? When preparing your home for sale, the goal is to make it as appealing as possible to potential buyers. Right now, homes that are selling are clean, well-maintained, and staged thoughtfully. You don't need to do major renovations, but small updates can make a big difference. Freshly painted high-traffic areas and replacing worn fixtures or finishes can have a huge impact. These simple steps can help your home stand out and attract serious buyers. Question #2: What is my home's worth? Knowing your home's current value is one of the most important steps in selling. Right now, it's a strong market for sellers, but market conditions can change. Pricing your home correctly is key. Factors like your home's condition, local market trends, and buyer demand all play a role in determining its value. Getting an accurate, up-to-date market analysis can help you understand your home's worth and guide your pricing strategy. “Access to off-market listings gives you an edge in finding your next home.” Question #3: Do you know any homes that meet what I'm looking for? Finding your next home is just as important as selling your current one. The market can make it challenging to find the right property, especially with low inventory. However, there is a solution: off-market properties. These homes haven't been listed yet but might meet your needs. Having access to off-market listings gives you an advantage by letting you explore options other buyers don't know about yet. Additional question: Do you know anyone looking to purchase my home? Sellers often ask if it's possible to find a buyer before listing their property. With the right connections, it's possible to find a buyer even before your home hits the market. Access to a broad network of potential buyers can help you sell your home quickly without waiting. This can be a great option for those looking for a faster, smoother sale. As you move forward with selling your home, keep these questions in mind. Understanding how to prepare your home, determine its value, and find your next place will help you make informed decisions. If you have any questions about the selling process or want to discuss your options further, feel free to call or text us at 952-212-3597 or email us at ChadandSara@edinarealty.com. We're here to guide and support you every step of the way.

Learn three key strategies to respond to lowball offers and negotiate a better deal on your home sale. Dear friends and clients, Getting a lowball offer on a home can feel like a punch in the gut, but before rejecting it outright, it is important to consider a strategic approach. The housing market in 2025 has seen some shifts, with home prices still high and interest rates hovering around 7%. So, how should a seller respond to a low offer while still maximizing their sale? Let's explore your options. 1. Recheck the market comps. Before you react, double-check that the offer is actually low. The market moves fast, and home values can shift in just a few weeks. Some experts predict a 5% price increase this spring, so make sure your pricing is still accurate. You should also look at recent sales of comparable homes in your area. You can also ask the buyer's agent where they got their numbers—sometimes, they're just misinformed. If you can show them stronger comps, they may be willing to adjust their offer without much negotiation. 2. (Almost) Always counteroffer. Once you've confirmed your home's value, don't walk away too fast. It's usually worth countering unless the buyer isn't serious. Some buyers start low just to see if they can get a deal. If they refuse to negotiate or immediately shut down your counter, they probably weren't serious to begin with. But in most cases, a counteroffer keeps the conversation going and gets you closer to your goal. “Rechecking comparable sales in your area can help determine if an offer is truly low.” 3. Find a middle ground with better terms. Price isn't the only thing up for negotiation. Some buyers submit low offers because they're short on cash, not because they're trying to take advantage of you. Instead of lowering your price, consider asking for better terms—like a shorter inspection period, a rent-back agreement, or fewer contingencies. If price is the sticking point, offering to cover some closing costs or buying down their interest rate might help bridge the gap without sacrificing your bottom line. Lowball offers aren't fun, but they don't have to be deal-breakers. If you're selling this spring and want expert advice on pricing, negotiating, or market trends, let's talk. Call or email me today—I'm here to help you get the best deal possible!

Get prepared to buy or sell with two essential tips that cover financing, competition, market timing, and how to make your home ready for sale. Are you thinking about buying or selling a home? The real estate market is heating up, and you need to be prepared. Whether you're buying or selling, here are the key tips to know. Let's start with the tips for buyers: For buyers, here are two expert tips to ensure a smooth home-buying process: Get your finances ready. Before you start looking at homes, make sure your financing is in place. Talk to a local lender and get pre-approved for a loan. A pre-approval shows sellers that you're serious and gives you a clear budget. Your lender should be available when you need them, especially on weekends. Homes are selling fast, so being able to act quickly is crucial. Be prepared to compete. The market is competitive, even though it's not as crazy as it was a few years ago. Buyers can still find themselves in bidding wars. To compete, you need to be ready to make a quick offer. A lender who's available at any time can help you stand out in a competitive market. If you're planning to sell your home, timing and preparation are just as important. Here are a few tips to help you succeed in today's market. “It's essential for buyers and sellers to prepare in advance to get the most out of their home purchase or sale.” For sellers, these two expert tips will help you maximize your home sale: Understand the spring market. Spring market starts earlier than you think. It's not just April and May. Listings in February and March close in April and May. If you're waiting for warmer weather, you could miss out on the best timing. Get your home ready to sell. When selling, your home must be clean, staged, and in good condition. Small updates, like new paint or carpet, can make a big difference. If your home isn't updated, make sure it's priced competitively. Homes that are well-priced and in good condition sell faster, but overpricing could keep buyers away. Whether you're buying or selling, the key to success is preparation. Get your financing ready, be prepared to compete, and make sure your home is in good shape. If you have questions or need help, you can call or text me at 952-212-3597. I'm here to guide you through every step of the process.

Going over everything you need to disclose when selling your home, from location-specific information, material defects, and more. Are you selling your home this year? If so, you've probably wondered what exactly you need to disclose to potential buyers. Seller disclosures are more important than ever in 2025, and understanding them is key to avoiding legal headaches and closing deals quickly. Transparency isn't just a courtesy—it's a necessity if you want to be legally protected. Here's a breakdown of what you need to know about seller disclosures to ensure a smooth and successful home sale: 1. Material defects. As a seller, you're required to disclose any known material defects that could impact your property's value or safety. This includes issues like foundational cracks, roof leaks, or pest infestations. Even if you've repaired these problems, it's essential to disclose them. Buyers need a full picture of the property's history so they can make informed decisions. Transparency builds trust with buyers and helps prevent disputes later on. If they discover hidden issues after the sale, it could lead to legal challenges that no one wants. 2. Repairs and property condition. Whether it's structural problems, plumbing repairs, or past flooding, sellers must document and disclose these issues even if they've already been resolved. Buyers have a right to know what they're walking into. By being upfront about the property's condition and repair history, you're not just protecting yourself from future complications; you're also showing buyers that you've taken proper care of the home. Honesty here can go a long way in building trust and confidence. “The golden rule of seller disclosures is simple: when in doubt, disclose.” 3. Environmental and neighborhood factors. Disclosures go beyond your home's four walls. Sellers are also responsible for sharing information about the surrounding environment. This could include things like being in a flood zone, nearby industrial activity, or contaminated soil. It's also a good idea to let buyers know about neighborhood-specific concerns. Providing this context allows buyers to make an informed decision and shows that you're committed to transparency, which can set the tone for a positive and cooperative transaction. The golden rule of seller disclosures is simple: when in doubt, disclose. Failing to do so could result in costly legal issues that are both time-consuming and stressful. If you're unsure about what needs to be disclosed or have other questions about selling your home, I'm here to help. Feel free to reach out by phone or email to make your selling process smooth and stress-free. Transparency is the foundation of a successful sale, and I'm here to guide you every step of the way.

How low inventory, multiple offers, and more are shaping our market. Are you thinking about buying or selling a home this year? The spring market is already here, and things are moving fast. With the changes in the market this 2025, it's important to understand what's happening before making a move. Today, I'll break down the key trends shaping today's market: Low inventory remains a challenge. Housing supply is still very limited, continuing a trend we've seen for a while. Normally, winter weather keeps listings low. However, even with a mild season this spring, the inventory hasn't picked up. This means buyers have fewer choices, and sellers have less competition. Serious buyers are driving quick sales. Homes aren't getting tons of showings, but they are selling fast. The buyers in today's market are pre-approved, motivated, and ready to purchase. If a home is priced well and in good condition, it's likely to move quickly. “Low inventory means sellers have a great opportunity, while buyers need to act quickly.” Multiple offers are back. Low supply is leading to more multiple-offer situations. While rising interest rates have kept home prices from climbing too high, demand is still strong. Prices aren't dropping, and competition remains steady. Sellers must be market-ready. A few years ago, sellers could list a home in any condition and get offers. That's not the case anymore. Buyers now expect move-in ready homes. If you're selling, clean, stage, and prepare your home to stand out. The spring market is moving fast, and the right strategy can make all the difference. Low inventory means sellers have a great opportunity, while buyers need to act quickly. If you're thinking about buying or selling, you don't have to do it alone. Call or text us at 952-212-3597 or email us at ChadandSara@edinarealty.com. We'll help you navigate the market and make the best move for your goals.

Enhance your curb appeal, declutter and depersonalize, and highlight your home's key features to have a faster and more profitable home sale. Looking to sell your house soon but don't know how to get it ready for the market? Selling your home can feel like a big undertaking, but with the right preparation, you can make it stand out and attract the perfect buyer. These three essential tips will help you get your home ready for a successful sale and leave buyers impressed from the moment they arrive: 1. Enhance curb appeal. First impressions matter, and curb appeal is where it all begins. When potential buyers pull up to your home, the exterior sets the tone for their entire visit. Even small details work together to create an inviting first impression. You don't need to go all out—simple updates can make a big impact. Mow the lawn, plant some vibrant flowers, or touch up peeling paint on the front door. If it's winter, keep walkways clear and add cozy seasonal touches like a wreath or warm lighting. The goal is to show buyers that your home is well-loved and ready to welcome its next owner. 2. Declutter and depersonalize. Your goal should be to make it as easy as possible for buyers to envision themselves living in your space when they walk inside. but that's hard to do if rooms feel crowded or overly personal. Start decluttering by removing extra furniture and boxing up items you don't use often. Less is more when it comes to preparing your home for sale—you want it to feel spacious and inviting, not cramped. Next, depersonalize the space and take down family photos, bold artwork, or unique collections. This doesn't mean erasing your personality—it's about creating a blank canvas where buyers can imagine their own lives. Finally, take time for a deep clean. Pay special attention to kitchens and bathrooms, as these high-traffic areas often leave the biggest impression. A spotless home signals that it's been well-maintained and move-in ready for your buyers. “Good lighting creates a cozy atmosphere and lets the best features of your house shine.” 3. Highlight key features. Think about what makes your property special—whether it's a spacious kitchen, a cozy living room, or beautiful natural light streaming through large windows. It might be worth it to consider some light staging to get your house in the best shape possible. Rearrange furniture to improve flow and maximize space, even if it's as simple as moving a couch or removing an extra chair. Lighting is also critical; it creates a cozy atmosphere and lets the best features of your house shine. Even small updates, like fresh neutral paint or modern cabinet handles, can make your home feel updated and move-in ready. At the end of the day, selling your home doesn't have to be overwhelming. By enhancing curb appeal, decluttering and depersonalizing, and highlighting your home's key features, you can create a space that buyers will fall in love with. If you have questions about getting your home ready for the market or anything else, please call or email us. We are always willing to help!

What you need to know about our normalizing real estate market, including home prices, supply, and more. “How is the housing market right now?” I've been getting this question a lot recently, and I understand why. This is the time of year when people plan their moves for 2025, but it's difficult to know what you should do without understanding where the market is at. The truth is that our market can be summed up in one word: Normalization. While the red-hot market of the pandemic is far behind us, the market isn't heading for a crash anytime soon. Instead, things are balancing out. Here are three things you need to know about our normalizing housing market: 1. Competition is increasing. There are more homes for sale in the U.S. than there have been since before the pandemic. For buyers, this means more options For buyers, this means more options. If you've been frustrated by the lack of options, now might be the time to reenter the market. Meanwhile, sellers need to reset expectations about how long it will take to sell. You can still get a great deal in this market, but your home probably won't fly off the market like it would have a few years ago. 2. Prices are increasing slowly but steadily. In most markets around the country, prices are still increasing, although it's at a modest pace. Redfin expects prices to increase by 4% in 2025, which means sellers need to be careful about not overpricing their properties. Prices are increasing, but buyers are savvy enough to know when a property isn't worth what you're asking. Meanwhile, buyers can be confident that they will start building equity as soon as they close. “Prices will increase steadily but slowly in 2025.” 3. Condition matters. Right now, there is a large gap between homes that need a little work and homes that are in pristine condition. Good-quality homes still sell quickly and for top dollar; they might even create a bidding war among buyers. On the other hand, homes in need of repairs could sit on the market for a long time. Buyers don't have a ton of extra cash on hand for repairs after closing, so small investments upfront could make it much easier to sell your house. These points are broad strokes that are generally true for most markets across the country. However, you should know that real estate is hyper-local. What's happening in your neighborhood might not be true for your area in general. If you want to learn more about your local market, call or email me for more details. I'd love to share more information with you.

Understand how rising rates shape buyer behavior in 2025's housing market. You might've heard ads or people saying we're in a “buyer's market.” That couldn't be further from the truth. We're 100% in a seller's market. If you've been sitting on the fence about buying or selling, it's time to pay attention. But what does a seller's market mean for you? Let's get real: a seller's market means homes fly off the market faster than ever. The National Association of Realtors defines a seller's market as a market with fewer than five months of inventory. In our area, we currently have less than one month of homes available. That's a big deal. If you're a seller, this is your moment. However, with higher interest rates, some buyers are cautious. What does that mean for you as a buyer? It means you're not alone in this. The market is active, and buyers are still making moves. Why are homes still selling fast? Life happens. We call it the “5 Ds”: death, divorce, degrees, diapers, and diplomas. These life changes don't wait for perfect interest rates. Families grow. People downsize. Jobs relocate. That's why sellers still list, even if they hold onto those low 3% mortgage rates. “Buyers are making moves, and sellers are ready to list for the right reasons.” If you're thinking about selling, you're probably wondering, “Should I wait?” Here's the truth—buyers are already waiting for new inventory. That's why December 2024 was one of the busiest Decembers we've seen in years. The market is hot, and it's not slowing down. For many buyers, these interest rates (6%–8%) are the only ones they've ever known. If you're a first-time buyer, this feels normal, and you're not wrong. We're almost three years into this higher-rate environment, and the market has adjusted. If you're waiting for rates to drop, you could miss out. The reality is, homes are still in demand. Buyers are making moves, and sellers are ready to list for the right reasons. Whether buying or selling, this market has opportunities. If you're ready to act, let's talk about your next steps. Don't hesitate to call us at 952-212-3597 or email us at ChadandSara@edinarealty.com. We'd love to answer your questions, share market insights, and help you navigate this unique time. Don't wait for the perfect moment—it's already here. Call or email us today, and let's get started!

Here's what's happening in our market as we head into spring. Let's talk today about the early spring market. Our state association of Realtors says that the number of closed sales fell by 50% compared to March 2021. If the market is so hot, how can we sell fewer homes? It's just because we don't have enough homes. It's hard to sell properties when there are none available. The new listings in March of this year were down 45% compared to last year. Statewide, our inventory shrank by 25% down to one month of supply. Our inventory crunch is just continuing to build. What does this mean for sellers and buyers? One topic we've covered in our office for a few weeks now is buying power, or a buyer's ability to purchase a home. Obviously, this impacts buyers, but it can also affect sellers. “These rising interest rates affect both buyers and sellers.” Right now, rates are around 5%. Two months ago, they were around 4%. If you were an entry-level buyer looking at a $450,000 home two months ago, you could only afford a $400,000 house now. That's a big decrease in the type of home you can afford. For sellers, that means that your buyer pool has shifted. If you're selling a $400,000 house, you're now marketing to buyers who were looking at $450,000 properties not too long ago. That takes a different strategy. You have to understand what that means for you. These interest rates are very fluid right now, especially since we're entering the spring market. Even with the inventory shortage, we're still seeing a lot of interesting offers and strategies.  If you have any questions about our local market or real estate in general, please call or email us. We would love to hear from you.

Please take a close look at your valuation notice when you receive it. Today we'll talk about the property tax valuation notices for Scott County that were recently sent out. It's no surprise property values increased last year, but is the county's valuation accurate? We've been talking to past clients about the valuations, and we're seeing a fairly consistent 20% increase in taxable value from 2022. We ran some reports on Scott County to see how much the median sales price increased over the past year. Across the board, Scott County is fairly consistent at 10.1%. The average sales price increase wasn't much higher at 10.9%. The different cities within the county all hover right around that same amount, with the exception of Prior Lake. Some of the increased values we've seen seem to be accurate, and some are noticeably higher, so be aware of that when you get your valuation and take a look at it. Make sure they make sense to you. If we can help answer any questions for you, reach out to us at any time by phone or email. We look forward to hearing from you. 

Here's how sellers can prepare for our spring market in Minnesota. When we meet with sellers this time of year, we usually advise that they have their homes ready for the spring market around the time of the Super Bowl. It still feels like winter, but about that time is the opening of our Minnesota real estate market. This year we're seeing more historically low inventory levels than ever before; in some price points, there are almost no homes for sale. On New Year's Eve, Sara showed a $400,000 home in the South Metro, and it was crawling with people. There was nowhere to park, people were all over the back and side yards, and though they were respectful of others' space in the home, it was chock full of people. That proves how active this price point is and that there aren't enough homes to see. “In some price points, there are almost no homes for sale. ” One of the most frequent questions we hear is how sellers can prepare their homes for sale when they have no competing inventory. We address that valid question on a case-by-case basis because, in this environment, some things you would have had to do in the past aren't needed now. We're also commonly asked how to begin the process of selling in this fast-paced market. That starts with you giving us a call; we'll come out to see your home, discuss the market, what needs to be done to prepare, and make a plan for your goals. If you have questions about preparing for the spring market or any other real estate matter, please give us a call or visit our website. Also, if you have a topic you'd like us to discuss in a future blog, please let us know. We'd love to help you.

What trends emerged from 2021 that will predict the market next year? It's hard to believe, but we're nearing the end of 2021. This has been a pretty crazy year in real estate, so today we want to take a look back and wrap up 2021's market for you.  It's hard to remember at this point, but even before COVID in 2020, we had low inventory. Once the pandemic started, inventory dropped even lower, leading to one of the craziest seller's markets we've ever seen. This trend continued in 2021, and we saw a very busy spring and summer season.  If you've watched our videos before, you know that 2021 was what we call seasonally normal. This means the market tends to be more active in the spring and summer, and it cools off as we head into the fall and winter. Besides our low inventory, you could say this market is fairly average.  “ The story of 2021 was low inventory. ” However, the low inventory changes everything. Even during the holiday season, buyer demand is unsatisfied. Because more people are working from home, we've seen many people moving. This could mean they're moving out of the city or out of the state, but it seems like a lot of people are taking the work-from-home opportunity to make a move.  We've also seen folks take advantage of our low interest rates and try to upgrade their living situation. A lot of people moved from their starter home into a nicer one this year. Meanwhile, single-floor townhouses didn't see much activity. There was demand, just not at the price point sellers were asking.  This puts a bow on 2021, but that just means it's time to start looking forward to 2022. We don't know what the future holds, but if you're looking to make a move, now is the time to start planning. If you want to discuss your plans for next year, please call or email us. We'd love to help in any way we can. 

Here's everything you need to know about rentback agreements. In our last video blog, we talked about the possession date, and today we want to discuss a closely related topic: rentback agreements.  A rentback is an agreement between the buyer and the seller that can be done before or after the final acceptance. It states that the seller can lease back the home from the buyer for a specified amount of time. The seller is essentially renting their old home from the buyer for a brief period.  When a rentback agreement is in place, there are typically two final walk-throughs. One takes place right before the buyer closes on the property, and the other takes place right before the buyer takes possession of the property. It's similar to the walk-through a landlord would do on a rental unit.  “Rent-back agreements are a good way for both parties to navigate our hot market.” When do people use a rentback agreement? In years past, we would see only one or two per year, but they've become much more common. This is due to our low inventory. If someone sells their home, they want to make sure they have time to buy another house before they have to move out. In our hot market, it's much easier to sell than buy, so giving yourself extra time to shop for a home is attractive to a lot of sellers. Because it's hard to find a home, buyers are more likely to agree as well.  If the seller needs time to find a home, and the buyer is flexible, rent-back agreements are a good way for both parties to navigate our hot market. If you have any specific questions about rent-back agreements, or if you have any other questions, please reach out to us. We are always willing to talk. 

Here’s an overview of what it’s like to be a buyer or seller in this market. What are we seeing when homes go live on our market? First, most listings coming onto the market are doing so under the ‘coming soon’ status. We’ve done a few videos that delved into this topic, so be sure to explore our website to learn more about what ‘coming soon’ means. Second, a lot of agents are setting timelines for offers received in the lower price points before their homes accept showings or can be classified as ‘active status.’ The fact that sellers are confident enough to set offer deadlines before they schedule any showings points to how confident they are that they’ll receive multiple offers. It’s like we always say when we’re out on showings: You don’t even need to look for the sign anymore—look for the cars and the people. When a home gets listed, especially if it’s under $450,000, it’ll get bombarded with prospective buyers. Maybe not all at once, but you’ll see people waiting to check in when you pull up to the curb and when you leave. Traffic is high, and buyers are very much aware of this.  In a lot of ways, this has created pressure for buyers to figure out how to make their offers stand out when so many others are interested in buying the same homes as them. Thus, we’re seeing a lot of creativity in the offers we’re getting for our listings, and the highest offer doesn’t always win. Some sellers are looking at how much buyers are willing to pay for their homes and noticing that there aren’t any comparables that are even close to justifying those high sales prices.  “Most things happen for a reason, so if you don’t get the house you wanted, the perfect one may still be out there waiting for you.” These same sellers, then, will look at things like contract terms—sometimes there just has to be a happy medium between a nice price and comfortable terms. Inspections are often being waived as well, and cash offers are coming into play too. If you’re a seller, picking the best offer usually requires having a lot of discussions about them. More than anything, we want to highlight the fact that buyers must achieve a certain mental state to compete in this market. To sit down with a buyer and have a conversation about what’s happening is one thing, but once they start looking at properties and seeing other buyers writing offers, the realization that now’s a crazy time with a lot of activity and competition really sinks in. Even if you don’t want to enter into a bidding war, practically every listing gets multiple offers, so you have to be able to put your best foot forward and be comfortable with your offer.  You also have to be patient. Most things happen for a reason, so if you don’t get the house you wanted, the perfect one may still be out there waiting for you. It’s always a good idea to have backup plans in place. Your home purchase may not happen when you hope it does, but it will happen with a little patience.  If you have questions about this market or want our help in buying or selling a home, don’t hesitate to call us anytime. We’d love to speak with you.

Here's an on-the-ground perspective of our wild spring market thus far. 2021 is the third straight year of low inventory in our market. Here in early spring, we’re already seeing an extreme amount of buyer demand. Given these low interest rates and a lack of new construction, this should come as no surprise. Not enough homes are hitting the market to match this degree of demand.  On March 15, 2019, there were 87 homes for sale in Savage. At the time, that was considered historically low. On that same day in 2020, there were 67 homes for sale. As of March 15, 2021, there are just 16 active homes for sale. When you consider that 12 of those 16 homes are already under contract, you begin to understand that buyers who need to purchase today are working with virtually zero inventory.  On top of that, many sellers have put showing restrictions in place due to the pandemic, so there are no overlapping showings. The result is that plenty of buyers are finding it near impossible to even get into a house that they’re interested in.  “The last thing you want is to enter a torrential market with the wrong expectations.” Whether you plan on buying or selling this year, know that this crazy market of ours demands special levels of preparation. Have several in-depth conversations with your agent and your lender before you even start the process. We’ve already found ourselves in multiple-offer situations this spring, and new challenges continue to crop up.  The last thing you want is to enter a torrential market with the wrong expectations. You need to be working with experienced professionals who are well-resourced. Whereas the buyer’s agents of yesteryear would try to source the best deal for their clients, today’s buyer’s agents are only focused on doing whatever it takes to get their clients into new homes.  If you have further questions about this or any other real estate topic, don’t hesitate to reach out to us. It’s our pleasure to be your go-to resource, and we hope to hear from you soon.

Here’s how the beginning of the spring 2021 market has been faring. Today we’re sharing how the early spring market is doing. We are assuredly in a seller’s market; we’re seeing unprecedented shortages of inventory. Usually, we’d be seeing many more homes coming onto the market by this time in the season; it hasn’t happened yet, but we’re hoping it still will. On the flip side, we’re seeing much more buyer demand than we’ve ever seen this early in the season, and a lot of that is being driven by the very low interest rates. We’re seeing multiple offers on the majority of houses; the most we’ve seen is 62 offers come in for a townhome recently. Nearly all properties are selling within days, if not hours, which means we’re seeing buyer’s creativity increase in their offers. However, some sellers are placing rigid guidelines on what they will and won’t consider in an offer, and some prefer a cleaner offer without all the layers of complexity. “Nearly all properties are selling within days, if not hours.” Just because sellers are receiving so many offers doesn’t mean it’s an easy sale; if you’re getting 62 offers for your home, where do you even start when trying to choose just one? You still need to prepare your house for sale—in that regard, you need to treat this like a typical market. We’re seeing many sellers feel the need to rush their listing, but it’s still crucial for the property to be ready and for you to be mentally ready for the market because things move extremely quickly. If we can answer any questions or you want to discuss a possible move in your future, feel free to give us a call or send an email. Also, let us know if you have a blog topic you’d like us to cover. We look forward to hearing from you.

Our Real Estate Review will let you know what your home is worth. If you’ve ever wondered what your home is worth, that’s a perfectly reasonable question to ask.  We get asked this question a lot, and not always from prospective sellers. Sometimes people want to know what their home is worth to understand their equity position. Others are looking to refinance their mortgage. Some are thinking about remodeling and know there will be some investment required; thus, they’re interested to see what kind of return they can get.  “If you’re interested in taking advantage of this offer, give us a call or send us an email.” In any case, we can help you understand your home’s worth in a virtual sense with our Real Estate Review. It’s a simple process that follows a few easy steps. First, we’ll have a quick conversation (e.g., five to 10 minutes) about your home and situation. Then we’ll put together a market analysis with some basic market statistics. After that, we’ll follow up with you about our findings.  If you’re interested in taking advantage of this offer, give us a call or send us an email. As always, if you have any other real estate questions, feel free to reach out to us as well. We’d love to help you.

Here’s where the ‘coming soon’ and ‘pre-marketing’ statuses differ. Many people assume “coming soon” status and “pre-marketing” status are the same thing, but they’re not.  The coming soon status is for sellers who are preparing to put their homes on the market. It’s a status the general public can find and see online. It’s searchable and the home doesn’t accumulate marketing time in this status, but the seller has 21 days to officially list the home once it’s been categorized thus. While the home is in “coming soon” status, no showings can occur, but it can be marketed. A seller whose home is in “coming soon” status may notice many people driving by the property—we’ve even heard of curious buyers wandering through backyards.  “What’s the best fit in your case? It all depends on your situation.” The pre-marketing status means that the property is not displayed publicly, but its listing agent can advertise it within their internal brokerage, and that brokerage can show the home. This is great for sellers who may not want the public to know their house is available but still want the opportunity to show and sell the house before putting it on the MLS. We see this a lot in cases where the seller wants to maintain a degree of privacy. This option also allows sellers some flexibility, and it gives companies like Edina Realty an opportunity to pre-market properties to thousands of agents.  What’s the best fit in your case? It all depends on your situation, meaning your timeline and how you want to advertise your property. Neither status perfectly suits any particular client. When you think the time is right to sell, we’d be happy to sit down with you and talk about your best course of action.  As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to us. We’re happy to help.

January and February are great months to put your home on the market. If you need to sell your home in January or February, we have good news: Now is a great time to put your home on the market, and there are several reasons why.  For one thing, inventory is low. It’s been low for a couple of years, but it’s really low at the moment. Interest rates are also extremely low, which means there’s a pent-up demand from buyers that’s still carrying over from 2020. Many of them who perhaps lost a bidding war for the home they wanted or decided to wait to buy are ready to buy now. Additionally, now’s a great time to focus on the interior aspects of your home, which is what a lot of buyers are focusing on.  Speaking of which, if you’re thinking of listing in the spring, there are several things you can do to your home to make it look fresh and show-ready. First, take a walk around the house with a discerning eye. Let’s use the woodwork as an example. If you walk around your house and see any trim, solid wood doors, or cabinetry that looks dry or faded, moisturize and stain that area so it looks new again. After that, spackle over any nicks or holes in the walls. If you have to repaint, it’s always a good idea to use the same color for an entire floor. It might not look how you want it to look, but it helps the home look bright and open for showing purposes.  “There’s a pent-up demand from buyers that’s still carrying over from 2020.” Another thing to consider is taking a look at the hardware. Is there any outdated brass from the ’80s or ’90s? If so, give it a facelift. Hardware is the jewelry of your home, so giving it a fresh look is a simple and inexpensive way to make your home look better.  Lastly, turn your attention to the home’s lighting. If, for example, you have a dinette light that’s visible from the foyer or other areas of the house, replace any dated fixtures and turn it into a fun statement light since that’s a key focal point.  As always, if you have questions about this or any real estate topic, feel free to call or email us anytime. We’d love to speak with you.

As 2020 finally draws to a close, we wish you a happy holiday season. We wanted to take a moment today to extend a happy holiday greeting. As 2020 winds down (which we’re willing to bet a lot of people are excited about), we hope your year has gone well. We’ve seen first hand how the pandemic has affected people’s lives, especially as it relates to housing. From our family to yours, we hope you have a great rest of the holiday season and an even better 2021. To see our full holiday greeting, watch the short video above.

Here are three vital mistakes to avoid when preparing your home for sale. Unfortunately, some people make mistakes while preparing their homes for sale. Here are the three main things to avoid when getting your house ready for the market: 1. Updating multiple levels. If you’ve done a dramatic upgrade somewhere in your home, such as in the kitchen, you can usually forego a few other areas that are less crucial. However, if something looks worn out, such as nicks in the paint, that needs to be improved. “Crown molding and wainscotting are not needed to sell a house.” 2. Getting carried away with home improvements. For example, if the carpet needs to be replaced, many people think they should get a top-of-the-line product, but that’s not usually necessary for resale. The kitchen backsplash is another area not to overdo and may be unnecessary altogether depending on your price point. Additionally, crown molding and wainscotting are not needed to sell a house. These are all great things you would do to a home you’ll be living in for a while, not the house you’re selling soon. 3. Replacing mechanicals. A furnace or water heater, for example, doesn’t need to be replaced unless it’s not working or damaged. If the item is just old, there’s no need to replace it just to sell.  If we can answer any additional questions about preparing your property for sale or what to avoid, give us a call or shoot us an email. We’d love to have a conversation with you. Also, if you have any topics you’d like us to discuss in a future video, let us know about those as well.

Let’s compare the market conditions from August 2020 to those of August 2019. Both last August and this August, we witnessed relentless buyer demand. Let’s take a look at how those numbers compare: So far, buyers have signed 19.7% more purchase agreements in August 2020 than they did the previous year. That’s evidence of strong buyer activity in our market. Meanwhile, the inventory levels in our market have dropped by 32.4% year over year. With the increase in buyer demand and the reduction in inventory, we’re seeing home prices rise due to more and more multiple-offer situations on the available homes. “We’ve seen homes with as many as 12 or 15 offers on them!” Another interesting fact is that the median sales price rose by 9.8% year over year. Currently, the median price is $315,000, which is the highest it’s been in many years. Single-family home sales are up by 23%. Townhome sales rose by 14.8%, and even condominium sales went up by 1.4%. There have also been a lot of new construction homes going up in the area, and those sales rose by 46% between August 2019 and August 2020. We’re also seeing buyers make quite a few concessions when writing offers due to the fact that many homes are generating bidding wars—we’ve seen homes with as many as 12 or 15 offers on them! We normally see a bit of a slowdown at this time of year as school begins, but we didn’t get that in 2020. Market activity continued throughout August and September. If you have any other questions about the market as we head deeper into the fall season or if you’re preparing for a home sale in 2021, don’t hesitate to reach out to us. We’d love to help you.

Here are a few reasons to pay attention to this fall’s Parade of Homes. We’re in the middle of the fall Parade of Homes, which runs through Sunday, October 4, and many people are asking themselves why they would even go to such a thing. Well, there are actually a number of reasons. If you’re thinking about buying a home, you might want to do some cross-comparison between the existing home market and the new home market. Those who are looking for existing homes will find that inventory is very low, so they might gravitate toward new construction for the wider range of choices, as well as the new features like smart home technology that make new homes so attractive. New homes also have special energy-efficiency ratings, which are measured and often given to the buyer in the form of a report at the time of the purchase. A lot of people just like buying new in general. They look at the existing inventory of homes with things like older roofs and furnaces and they just think it’s too risky for their investment or they simply don’t want to do the work to update it. “New construction purchase agreements are lengthy contracts that require a lot of attention to detail.” Builders also have their own lots, so if you want a specific property in a specific neighborhood, you might have to select the builder(s) working there. If you’re going to write a purchase agreement with a builder, keep in mind that there are a lot of different components that go into new construction compared to the existing market. For example, we wrote an offer recently on a new construction property, and the purchase agreement alone was 96 pages long! They’re lengthy contracts that require a lot of attention to detail. But don’t worry! We’ve worked with many builders who are featured in this fall’s Parade of Homes. We’re even working with builders who currently have active projects. By working with us, we can help you analyze the situation and find the builders who offer incentives to use their title and mortgage companies. If we can help answer any questions you have about new construction, including the process, timing, contracts, and so on, give us a call or send an email anytime. We’d love to help you.

What’s the latest news from our real estate market as the summer winds down? July was a boom month for our market. Normally, the activity we saw would’ve been spread out across the spring market, but the shutdown pushed everything back a couple of months. As a result, we’re seeing some interesting trends emerge. The first involves closing dates. Ordinarily, buyers allow themselves a cushion of time to get settled before the school year starts, but now closing dates are happening right as school start again. It’s also taking buyers longer to get into homes due to low inventory. The Prior Lake and Spring Lake markets, in particular, have low inventory and soaring prices. Demand is high for lakeside homes, but there aren’t a ton of properties available.  “July was a boom month for our market.” This type of activity has had a big impact on appraisals. Typically, we see a one-week interlude between the inspection and appraisal for a home that’s under contract, but that period has been stretched to two or three weeks. This means more communication with lenders and more pressure on appraisers, whose ranks are already lower due to COVID.  The last noteworthy trend involves personal property and seller furnishings. It’s common for sellers to offer furniture to buyers as part of the sale, and buyers to request to purchase furniture inside the house. Now, though, sellers just want to walk out of the house, hand over the keys, and be done with the sale. Some are advertising their homes as fully furnished, while some buyers are notifying their sellers that they can leave whatever they want in the house and they’ll deal with it. If you’d like to know more about what’s happening in our market or are thinking of buying or selling soon, don’t hesitate to reach out to us. We’d love to be of service. 

What’s going on in the market as we reach the midway point of 2020? In terms of showing activity, things are pretty consistent across the board. When a home first comes on the market, we’re seeing an initial surge of showing activity due to our low inventory. What’s interesting, though, is that as showing activity returns to normal, it can feel a bit deflating—even though it’s what we usually see in a regular market.  In general, homes are selling at a very nice rate, but the speed at which they sell differs slightly. Some sell the very first day they’re listed, some snag multiple offers after the initial surge of showings, while others revert to a more normal selling timeline if they don’t sell during the initial surge.  “In terms of showing activity, things are pretty consistent across the board.” Inspections are a particularly important point to be aware of in our current market if you’re a seller. Some are going off without a hitch because the buyers are asking for minimal repairs, but others are almost derailing transactions because the buyers are requesting much larger repairs (e.g., fixing the roof or deck). A lot of this depends on the comfort level of the buyer, but in most cases, we’re seeing one end of the extreme or the other.  Lastly, in addition to low inventory, we continue to see incredibly low interest rates that are driving buyer activity. These two factors are keeping prices stable (if not causing them to increase).  As always, if you’d like to know more about our real estate market or you’re thinking about buying or selling a home soon, don’t hesitate to reach out to us. We’re here to help.

How is our market doing amid the COVID-19 pandemic? Now that we’re in the first part of summer 2020, we can all look back and say it’s already been quite a year. Obviously, there has been the issue of COVID-19 shutting down the country (and the world) for a while, but our real estate market has been humming along. Most people are still buying and selling homes, so our market wasn’t really affected all that much. Single-family homes between $300,000 and $500,000 are still selling very quickly, but one thing that has changed in the Twin Cities market is that lower-end properties are selling slower than normal—especially townhomes.  Our absorption rate, or how quickly homes come on and off the market, is currently under two months. Given that six months is a balanced market, we’re in a pretty extreme seller’s market. “Our market wasn’t affected all that much.” This past week, we had scheduled six showings for an out-of-state buyer, but by the time they got into town, there were only two properties left—everything else had sold.  We’re even seeing some multiple-offer situations, which raises the question of why some properties sell in a day and some don’t. As always in real estate, location is a big factor in a home’s sale. Condition and price matter too of course, and usually, a good-looking home with a competitive price can overcome other unchangeable issues the home has, like its location. If you have any questions about the market and how it affects your situation, don’t hesitate to give us a call or shoot us an email. We’d be glad to help you.

We’ve been getting a lot of questions lately about the real estate market.   Today, we are answering some of the most common questions. One thing a lot of people want to know is, “Are people still buying and selling houses?” Although we saw a slowdown after the Stay-at-Home Order, we have started to see our activity pick up in recent weeks. Most of it is occurring in the $400,000 to $500,000 price range. In the entry-level market, activity has cooled somewhat, likely due to unemployment levels. To hear the answers to all of your questions about our market, watch this short video above.

This pandemic has certainly affected our real estate market in terms of volume, but it’s interesting to note the different mindsets of the buyers and sellers who are out in the market right now. Here’s what we’ve been seeing lately. As we’ve continued to navigate the real estate market during the COVID-19 pandemic, we’ve been keeping a close eye on the psyche of the buyers and sellers that we’re working with right now. For sellers, some are business as usual, while others are deciding to pull back for the time being. Many buyers are ready to go, especially with the low interest rates that we have right now. To learn more about how buyers and sellers are responding to this pandemic and what that means for our real estate market going forward, watch this short video above.

In a previous video, we talked about what was happening in the real estate business and how we were adapting to the coronavirus pandemic. Since then, we’ve seen inventory levels and showing traffic drop. Make no mistake though, there are still serious buyers out there right now, but an increasing number of them are utilizing virtual showings. Interest rates remain low, so demand from buyers is still there.

We are in the very early stages of the stay-at-home order issued by Governor Walz, and naturally, we’re getting so many calls, texts, and emails from folks asking us if the real estate market has shut down. The answer is no, we’re up and running; real estate is considered an essential service. We’re helping buyers and sellers with every step of the process, and mortgage and title companies are fully operational. As you can imagine, however, it’s not quite business as usual—many parts of the lending, home selling, and buying processes have been altered to accommodate sanitation and the recommended separation of parties. If you have further questions for us, or if we can offer our assistance in any way, please reach out by phone or email. We’re here for you. It doesn’t have to necessarily be real estate related—if we can help in these times, we will. 

Whether you’re coming on your own or working with a company, if you’re thinking about relocating to the Twin Cities area, you’ll want to begin planning far in advance. Luckily for you, Edina Realty is relocation-certified—we can help make your relocation process easier, especially for those who don’t know the area well. Here’s how we do it: First, we’ll have a consultation with you in person or by phone where we’ll discuss where you’ll be working, what your timetable is like, and what your approved budget is like so that we know what price point and neighborhood you’ll be looking in. “Edina Realty is relocation-certified—we can help make your relocation process easier.” We’ll also want to learn a bit more about you and your family. Are you going to be enrolling kids in school? What do you want your commute to be? What is your desired lifestyle?  Once we’ve discussed those items, the next step is to identify some of the neighborhoods that work for you. We can take you on a tour to see the area, meet with school districts, and so on. We have many resources and maps that we can provide to help you understand the different things the Twin Cities have to offer. After we’ve covered all that and narrowed down your mortgage options, the fun part begins—searching for a home you love. If we can answer any of your questions about relocating to the Twin Cities area, please reach out to us. Let’s have a conversation so we can start the plan for your transition.

We’re expecting 2020 to bring us more of a balanced market, as we’re already seeing some inventory levels rise and more sellers prepare their homes for sale—more so than last year at this time.  There have been three straight years of a low inventory market, but with the number of sellers that we’re seeing prepare for this year’s spring, things may be slightly different.  The prediction for 2020 (especially as we were heading into the 2019 holidays) was that there would be higher sales and lower interest rates. Of course, economic conditions always play a factor, so we can never be certain, but so far low rates and higher sales remain in the forecast.  “We expect 2020 to be a strong, positive year.” The most active price points are always the entry-level homes. Whether it’s townhomes or single-family homes, this bracket sells quickly; it’s our lowest inventory product, so prices continue to rise.  We’re also going to see a continuance of seniors moving into one-level living situations, though there are fewer one-level spaces available at an affordable price. Overall, we expect 2020 to be a strong, positive year; we’re excited to see how everything goes. We hope you have a great start to the new year and, as always, reach out to us if you have any questions. We would love to help you. 

If you’re thinking about listing your home in the spring of 2020, here’s what you need to do. If you plan on selling your home in the spring of 2020, now is the time to start thinking about what you must do to prepare it for the market. Winter in Minnesota is a great time to get any indoor projects done because we spend much of our time indoors anyway.  Start with a timeline in mind. December and January are good months to do an initial consultation with your Realtor. If you call us, we’ll come out to your home, give it a quick walk-through, and provide a list of things you should do to your home to get it market-ready. These tasks can include cleaning, decluttering, painting, and staging. “Listing in spring means you should fine-tune your home’s price according to its listing date.” Generally speaking, the spring market in Minnesota starts after the Super Bowl, or early-to-mid February. This isn’t a hard and fast rule, though—things can change depending on the weather, inventory levels, etc. That being said, you should still be ready to list by that date.  If you’re curious about what your home is worth right now, we can certainly run the numbers and give you an accurate estimate, but listing in spring means you should fine-tune your home’s price according to its listing date.  If you have specific questions about what you must do to prepare for the spring market or there’s anything else we can help you with, don’t hesitate to call or email us. We’d love to speak with you.

As we head into the holiday season, we just wanted to express our gratitude for all the support you’ve shown our team. Here’s our full holiday message. We wanted to take a minute to wish everyone a very Merry Christmas, happy holidays, and a happy new year. We hope you have had a great 2019 and are looking forward to 2020 as well. Last but not least, we would like to extend a thank you to all who chose to work with us this year. We appreciate your business and we hope to stay in touch for years to come.

Let’s jump right into the numbers, starting by comparing the stats from Scott County from December 2018 to December 2017. For the price range at and under $250,000, the market was extremely hot in 2018; homes were flying off the market right and left, selling very quickly. Last year at this time, we had 48 active listings; this decreased in 2018 to 24 active listings. Considering that 2018 was such a low-inventory year, that’s a startling number—we’re down almost 100% in inventory at that price point. The price range between $250,000 and $400,000 was also very hot in 2018 for move-up buyers and sellers. In 2017, this range saw 172 active listings, compared to 2018’s 126. That’s about a 15% decrease, signaling a lot of activity. Part of the reason that inventory is slightly higher in this price point is that there is a lot of new construction inventory. Of the current 126 active listings, 58 of those are new construction, which is almost half the market. “I think it will be interesting to see what happens with inventory levels and the market in general as we head into the new year.” For the $400,000 to $600,000 range, which is also a popular price point in Scott County due to new construction, there were 147 active listings on the market in 2017. As of 2018, there are 152 active listings, constituting around a 5% increase. Here, 61% of the active listings are new construction. In the price point above $600,000, there were 120 active listings in 2017, and 79 this year. That’s a 50% drop, and a third of that inventory is new construction.  We continue to see contingent offers, and considering the season we’re in, we’ve actually seen a relatively busy end of December. We have been keeping an eye on the political climate; right now, interest rates have held pretty steady, and we don’t expect any major changes to those at the beginning of 2019, but one can never really know. I think it will be interesting to see what happens with inventory levels and the market in general as we head into the new year. If you have any questions or ideas about topics for us to cover in future posts, absolutely feel free to reach out to us. We’d love to hear from you.

Hello! We’d like to wish you all a Merry Christmas, happy holiday season, and a happy new year! We hope 2018 was as great for you as it was for us, as we gear up for an exciting 2019. Whether you have any questions about the real estate market, real estate needs we can assist with, or video ideas for us, we would love to hear from you. To see our full holiday message, watch this short video.

This fall, we’ve seen a lot of contingent purchase agreements. While most purchase agreements have built-in contingencies for financing and inspections, the contingency we’re referring to here is the home sale contingency.  While not unheard of, contingent offers in a hot market are not the norm, simply because a seller is more apt to roll the dice and wait for a non-contingent offer instead. With the market shift taking place this fall, however, we have noticed a common theme in the type of purchase agreements coming in. The past (now) seven purchase agreements we’ve received this fall have contained a home sale contingency. One of the reasons we believe this is happening so late in the market is that buyers have a strong desire to secure a home before sellers begin to pull their homes off the market for the holidays. “Now that things have cooled down a bit, contingent offers have a far better chance of succeeding.” The increased frequency of contingent offers may also have something to do with the low inventory we were seeing in the very recent past. While supply was depleted, it was difficult for contingent buyers to compete. Now that the market has cooled, contingent offers have a far better chance of becoming accepted by a seller.  From a seller’s perspective, though, the question remains as to whether such offers should be considered. As REALTORS®, we believe that at this time of year, accepting a contingent offer can be a good idea, with other considerations in mind.  Ultimately, though, it will depend on the time of year you’re selling and the specific market conditions for both the seller’s home and the buyer’s backup home. Sellers should also remember that when it comes to accepting a contingent offer, they are driving the bus in terms of the length of the contingency. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Are we on the verge of a bubble? A shift? A crash? A market correction? We’ve been hearing questions about all of these possibilities frequently as we’ve entered the fall season. People want to know if they should be concerned or not. The best way to answer these questions is to simply give the facts we can see about the current market. It’s pretty clear that our local market is undergoing a shift, especially in contrast to what we saw in the spring. In 2018, we’ve been in a very low inventory market. There were high amounts of showing activities in the lower price points, leading to tons of showings and multiple offer situations. “It’s pretty clear that our local market is undergoing a shift.” We also saw an average appreciation of about 5% to 8% this year, which is above the norm of the last few years. Experts say that is likely going to transition into an average appreciation of around 2% or 3%. Moving forward, we’re seeing that showing activity is definitely down in most price ranges, and the inventory is balancing a little bit. It’s still on the low side, but things are changing as we move into fall.  We’ll continue to monitor these trends, but overall, there’s no need to panic. Despite the inevitable slowing down of the market, we do tend to stay relatively busy throughout the fall season up to Thanksgiving. Depending on the weather, we may still see a good amount of activity even into December. If you have any questions about the local market or real estate in general, don’t hesitate to reach out to us. We’d love to hear from you.

Believe it or not, there are quite a few cash buyers in our market. Cash offers can be very attractive for sellers, but there are certain things buyers must be able to provide before proceeding with an all-cash deal. Proof of funds is one key example of this. Also, sellers often expect higher offers from buyers willing to make a cash purchase, but buyers have a different perspective. Cash buyers believe that because they are eliminating a lot of hassle and headaches for the seller, they should be offered a discounted price. “Cash offers can make a transaction more convenient for the buyer and seller alike.” However, while cash offers eliminate the need for an appraisal, many buyers may still elect to order one to ensure that they’re paying a fair price.   In summary, cash offers can make a transaction more convenient for the buyer and seller alike, so long as each party is willing to negotiate a fair and reasonable deal.  If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

If you’re thinking about selling your home in the near future, here are some things that you can do this fall to prepare your home for sale in the next six months. When it comes to preparing your home in the fall, the things that should be looked at most closely are the exterior items. Once the cold and snow set in, many of these things can’t be done. Look for areas of paint on the home’s exterior and trim that need to be touched up. Examine any uneven concrete on your driveway or sidewalk. If you see any windows that might need to be replaced, the fall is a great time to do that as well. Fall is also the best time of year to plant shrubbery. “Taking some photos while the grass is green is a great idea.” A common question we hear in the fall is “What is my home worth right now?” The answer to this question will often determine whether homeowners decide to sell right away or wait until spring. When a home is priced in a fall market, the data used is often from the spring. In the spring, those numbers are completely outdated and the market may have changed drastically by that point. When looking at pricing a home in the fall for a spring market, it’s very important that it’s evaluated based on the current conditions. Another great thing you can do right now is take some photos. If you do end up listing in the winter, these green photos will be used as supplements to the winter photos. It gives buyers a better idea of what they’re getting into. If you have any other questions about getting your home ready for sale or anything else related to real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Today we are going to be talking about the state of the multiple offer market. We seem to be seeing a lot of them this summer, especially in the under $350,000 market. As a seller, when you’re evaluating multiple offers, the highest offer isn’t always the best. There are plenty of terms to consider as well, including earnest money, closing date, and inspection contingencies.  Some buyers are removing the inspection contingency altogether, which really sweetens the pot for the seller. It’s really not advisable for most buyers, but it is an option that will set you apart from others in a competitive situation. We’re also seeing buyers write offers on properties that they haven’t seen in person. This has already happened three times this summer. There’s a sense of urgency for buyers to get into the property. “You have to take all the terms into mind when evaluating multiple offers.” An important thing to note is that the buyer can pull their offer at any time during the inspection contingency. You want to make sure the buyer has a valid interest in the property before you go ahead and accept their offer. Once a buyer does go through the inspection process, they might pull back a little. In reality, they don’t need a reason to back out during the inspection contingency, but we’ve been seeing some crazy reasons for buyers backing out on inspections lately. One buyer didn’t want the ash tree that was on the property after they had already paid $1,000 in inspections. We are seeing some very interesting things happen in this market where buyers feel pressured to make offers right away. When it comes down to it, you have to take all the terms into mind when evaluating multiple offers. If you’re looking to sell your home any time in the near future, please feel free to give us a call or send us an email. We look forward to hearing from you.

Why is it important to use an experienced, local agent in your next home sale? Truthfully, all agents use the MLS for comparable data. It’s a really great source; however, there are a number of other factors that homeowners should consider when pricing their home for the market. One of these factors includes the homes that sold which weren’t actually on the market. To find out that information, you’d need to use an agent who knows the local market, who’s moving in and out, and what those homes were sold for. That data won’t be found on the MLS. You should also keep in mind that an agent who is familiar with the area has an intimate knowledge of the market inventory—both active inventory and inventory that has closed. Even though it might seem counterintuitive to you, you need to understand why one home that has similar stats to another might sell for much more or less. A local agent with strong market knowledge will be able to communicate that to you. “You should also keep in mind that an agent who is familiar with the area has an intimate knowledge of the market inventory.” This intimate market knowledge also applies to those buying a home. A buyer might want to know what is around the home they’re looking to buy, and what features in the neighborhood might make that home more appealing. They might also want to know why a similar home just a few doors down sold six months ago for much more than this home. A local agent who has looked into those properties would be able to give a much clearer answer than an agent who lives significantly far out of the market area. Additionally, a local agent will tend to have many more connections in terms of homes that are coming onto the market soon, which would help someone living in a low-inventory market find something that is upcoming or not on the market at all. When interviewing an agent, you should ask them three questions before you hire them: “How long have you been a full-time agent working in the immediate area?”2. “How many properties have you sold in the area?”3. “What marketing strategies do you use to help buyers/sellers?” The answers to these questions will demonstrate their market knowledge and experience and therefore, whether or not they’ll be well-suited to help you with your transaction. If you have any questions about hiring an agent or about real estate in general, reach out to us. We’d love to be your resource.

Today we have a summer market update for you. One of the biggest things we are noticing right now is a balancing act in certain price points. Underneath $350,000, it is still very much a seller’s market, especially in the Prior Lake School District. However, once you get between $375,000 and $425,000, we’re starting to see a bit more balance. The inventory here was very low earlier this spring, but right now we are seeing 35 total active listings in this price range. Those listings are pretty much split between resale and new construction homes. The same goes with pending homes. Once we get above $425,000, the inventory really shifts upward. There are 151 active listings in the Prior Lake School District in this price range. Much like the $375,000 price range, these listings are equally divided between resale homes and new construction. We are also seeing some unique homebuyer trends in this market that we do not see most of the time. The first is multiple showings by the same buyer. Buyers are looking at properties three or four times before buying instead of just once or twice. This could mean a few different things. This could mean a few different things. Buyers could feel uncertain about whether they’re making the right decision, or feel nervous about the prospect of overpaying.  “We have seen a number of buyers writing an offer, withdrawing it, then coming back to the table weeks later.” A few other trends that we have noticed have to do with inspections. First, some buyers are going through the inspection period, and then backing out of the contract later. Some are having second thoughts that they paid too much and some are realizing that they rushed into the decision. Another trend is buyers not asking for an inspection when writing an offer. That certainly comes with some challenges for buyers, but it is very appealing for sellers to get to a smoother closing. We have seen a number of cases of buyers writing an offer, withdrawing the offer, then coming back to the table weeks later. We know we just threw a lot of information at you, but we hope it was helpful nevertheless. If you have any questions in the meantime about buying or selling a home or about the real estate market in general, please feel free to give us a call or send us an email. We would love to hear from you soon.

Dan Patch Days is coming up here in Savage, and we wanted to fill you in on all the details. The festival starts on Thursday, June 21 and runs until Sunday, June 24. There will be plenty of food, live bands, and lots of entertainment.  On Saturday, there will be a parade in downtown Savage at 11 a.m., and we’ll be in attendance. On Sunday, the festival will wrap things up with a pancake breakfast at the Savage Fire Station, which is one of our favorite events.  “We hope to see you there!” Hopefully we have some great weather so we can all have a great time visiting with our friends and neighbors. For more information about Dan Patch Days, including a calendar of events, click on this link.  If you have any questions for us in the meantime, don’t hesitate to reach out to us. We’d be happy to hear from you, and we hope to see you there.

What remodeling projects should you do this year? Today we have a few suggestions for projects that will improve your home’s value whether you’re selling or staying put. Let’s start with kitchens. Some very common, simple things you hear of people doing include adding granite and stainless-steel appliances. But, there are other options as well including adding a backsplash on your wall, adding interesting hardware to your cabinetry, or changing a light fixture to a conversation piece. It does not have to be anything overly dramatic, but it is amazing how a light fixture can add some pop of wow to your kitchen. Also, improving functionality is key. You could add a trash pullout to one of your cabinet spaces, a tip out drawer below your sink for sponges and drain stoppers, or pull out shelves in the pantry. They all improve functionality and help you enjoy your kitchen more. Another room you can consider making changes to is the master bathroom. Many people ask if they should remove the master bathtub. Before you do this, you should consider if there is another bathtub in the home and if not, you may want to keep the master bath in place for resale. “Updates can be done inexpensively if you are able to complete the task without paying someone else.” You can dress up your bathroom by changing the mirrors, the lighting, or updating the color of the paint and linens. This can change the look of your bathroom in a huge way. You could also add granite countertops in the bathroom inexpensively by finding remnant pieces. This can be done inexpensively if you are able to do it yourself and can update your home and improve the feel of the space. You should also consider updating an area that often gets neglected unintentionally—the front entry. Fixing the rotten, sunken apron along the garage or the wood frame will help make a good first impression for those walking up to your home. Whether you are selling or staying, you may want to consider taking a good look at the front entry and see what can be done to spruce it up. The driveway and the sidewalk are great places to improve if you are thinking about selling. Adding a sealcoat to your driveway or sidewalk will make it pop photographically. Or, you could add a new blacktop to make it look very appealing to potential buyers. If you have any questions or are interested in buying or selling, please feel free to contact us. We would be happy to help in any way that we can.

Have you ever encountered a “Coming Soon” listing during your home search? Whether you have or this is your first time hearing this term, allow me to explain. When a home is described as a Coming Soon listing, this means that the seller has begun marketing their property prior to listing it on the MLS. Sellers may choose this option if they still need time to declutter, update, or clean the home, or simply because they want to generate interest. This marketing technique is fairly new, having come into popular use sometime last autumn, and is most definitely a result of recent low inventory. “Marketing your home as a Coming Soon listing will only reach around 10% of prospective buyers.” Of course, sellers should realize that marketing your home this way will only reach around 10% of prospective buyers. A full MLS listing allows you to achieve a more far-reaching level of exposure for your property. Listing your home as Coming Soon can be a good strategy, but it isn’t the best option for getting ideal terms and netting top dollar. The likelihood of striking a better deal is much more likely when you reach a broader portion of the market. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon. 

We’ve got a mid-spring real estate market update for you today. We’re also going to talk a little bit about multiple offers. As far as our market is concerned, the big topic of conversation is inventory. We pulled some numbers for specific areas that we want to talk about today. First, let’s look at 719 area codes and 720 area codes because they kind of mirror each other. For 719 area codes specifically, we are seeing extremely low inventory in the lower markets. In the $250,000 and under market, there are three active properties. This can be a struggle for first-time buyers, but it’s great news for sellers. In the $250,000 to $400,000 price bracket, there are just 38 active properties right now. 10 of them are already sold, and about half of the remaining inventory is new construction. There are some split-entry houses, as well as some two-story homes available. “The actual number of homes for buyers to look at is a very low number.” Once we get to the $400,000 to $600,000 range, things get a little deceiving. There are 85 active properties, 22 of which are existing homes. The rest are new construction. Those new construction homes don’t technically exist yet, so it’s kind of a shadow inventory. As for the existing homes in this price range, seven of them are under contract. This leaves the actual number of homes for buyers to look at very low in number. Because of this, more buyers are coming into the market and we’re seeing multiple offers. Multiple offers is a completely different discussion for buyers and sellers. From a seller’s perspective, it’s very exciting to have the prospect of multiple offers. The highest price isn’t always the best offer, however. A seller may choose an offer that’s slightly lower, but the strength of the buyer and their terms is what they’re looking for. Another thing sellers need to think about is the fact that buyer’s remorse exists, and the buyer can always back out of the deal before they have their inspection. As a buyer in a multiple offer situation, it can be tough. To make your purchase agreement stand out, you’ll need to add a human touch. Having a great lender doesn’t hurt, as well as an experienced agent. There’s a quick rundown for you on the market and how to deal with multiple offer situations. If you have any questions for us in the meantime, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Today, I’m joined by a special guest, Kim Lindquist from Edina Realty Home Warranties. Kim has been in real estate for over 25 years. She started on the warranty side about four years ago. We’re going to discuss what a warranty is and a few of the benefits of home warranties. What is a home warranty? A home warranty is a one-year service agreement that covers repairs and replacement of items due to normal wear and tear. One benefit for a buyer would be budget protection after you’ve purchased a home and maybe spent a lot of your savings to do so. How does a home warranty benefit a seller? There are three main benefits for sellers. The first is that the home warranty is not due until it closes, so it’s free during the listing period. The second is that the warranty offers peace of mind for the seller (and for the buyer when they move in). Finally, home warranties help prevent wholesale disputes. What happens if there is a claim? What does the process look like? “Filing a home warranty claim is very simple and easy.” Let’s say you have a leaky pipe underneath your kitchen or bathroom sink. You would simply go to www.onlineHSA.com and click “Register Claim.” You can also call us at 1-800-367-1408. Say, “Service,” and then “Customer service” to speak with a live rep that will help you file your claim. It is very simple and very easy. We are open 24 hours a day, seven days a week, 365 days a year. Are there different coverage options for buyers and sellers? Absolutely. For sellers, we have an option for single-family properties at $485 with a $75 deductible or $465 with a $100 deductible. The seller can also add heating and air coverage for an extra $60. When a buyer closes on the home and moves in, there are other options we can add as well. We offer a 7-star buyer upgrade and many other options to add on. If you have an extra freezer or refrigerator, you can add that coverage. You have 30 to 60 days after you close to add coverage. If you have any other questions about home warranties, you can contact Kim Lindquist at 952-210-9809 or KimLindquist@EdinaRealty.com. As always, you can contact Sara and me with any real estate questions. We would be happy to help you!

Today, we’re going to be talking about repairs in the inspection contingency period. It’s pretty common for buyers and sellers to have two very different ideas of what the repairs are intended to be, or what is actually asked for. It is important for a buyer to be very clear when asking for repairs on their inspection amendment. The seller would need to know what repair the buyer is asking for, if they’re asking for a licensed contractor to do it, or if the repair is something that the seller themselves could do. Additionally, the seller will want to know whether a paid receipt or photograph is required to verify that the repair has been completed, as well as whether or not other specific items are necessary. For example, just a simple amendment saying to repair the roof wouldn’t be very clear. We would need something more specific like what about the roof needs repairing and if a roofing contractor is required for that task. On the seller’s side, when you receive an inspection amendment request, you want to be sure to take that request literally. Do what the buyer asks for, not what you think they’re asking for. As an example, suppose that you have a leaky pipe under a sink which the buyer specifically asks you to fix. That doesn’t mean that you have to hire a plumber to do it; you could ask your dad or a handyman since they never specified who needs to make the repair. If they ask for a radon system to be installed by a licensed professional, you have to have said professional do it. “It is important for a buyer to be very clear when asking for repairs on their inspection amendment.” Sellers should make sure they get paid receipts, lien waivers, and photographs when they’re applicable so that there are no doubts on final walkthroughs. Once the buyer closes on the property, it means that they have accepted the property in its current condition, so it’s important for the buyer to ensure that they’re satisfied with the repairs that were made. We are strong at dealing with inspection negotiations because these types of issues come up in all sorts of ways. If you have any questions about this, feel free to give us a call anytime. We look forward to hearing from you.