Home for sale signs by Teri Eckholm RealtorTraditional home sellers are cautiously entering the market again. They have heard the recent news that home sales have rebounded in the Twin Cities area. True, the number of homes sold is up this is a good thing. Homes are selling again in Minnesota.

I have noticed an uptick on the number of requests for market analyses in the past few weeks. Many sellers are realistic about the housing market and realize that they will not get the price they could have sold for a few years ago. They have witnessed what neighboring foreclosed and short sale properties have sold for. They have received their tax assessed valuation in the mail and know it is 20-40% less than a few years ago. But still some would-be spring home sellers are looking at the recent news reports through rose-colored glasses, forgetting that the average price of a home is still down considerably.

The internet has changed things. Homebuyers have an abundance of information at their fingertips these days. With a click or two of a mouse, they can discover when a home was last sold, what price it sold for, what the current assessed value is and more. They know what other homes in the neighborhood sold for too. There are websites that will analyze the cost per square foot of all homes currently active on the market in a particular area—Today it doesn’t take a rocket scientist to tell if your home is over priced. Buyers just won’t consider it at all!

It is always a tough conversation to have with a seller. They made an investment by when they purchased their home. They worked hard and spend additional money to fix up their property inside and out. And now it is often worth less than the initial investment that they made. To sell for less than what they paid for the home leads some to think, I'm giving my home away.

But are they really? No buyer wants to overpay for a home. No professional appraiser will overvalue a home. No bank will give a loan to a borrower for more than a home appraises for today. Sadly, traditional sellers that have to sell at these lower values are not giving away their homes; they are starting over and moving on.

One of the testimonials I recently received for a townhome sold in this market gives an optimistic way to view the market. "We couldn’t have asked for a better person to work with. We were very pleased with the attention and effort you put into selling our townhome. The fact that we were able to sell our home in the worst market decades speaks volumes about the way it was marketed." Here is a family that lost tens of thousand dollars on the sale, but was elated with my work as they had to relocate. They priced their house correctly, even though it meant that they would lose money and it sold.

The truth is homes are selling again, but at much lower prices. A home is only worth what someone wants to pay for it today. Unfortunately, homeowners must choose whether to take a loss now and move on or stay put until values increase. And even a cloudy crystal ball indicates that could be a long wait indeed.

 

More Articles on the Twin Cities Real Estate Market

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Theresa "Teri" Eckholm, a call or visit my website for a FREE Relocation Packet or FREE Homebuyers Success Packet.   I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

 

Buying a Home? Check out my HOME BUYER'S BLOG!

Copyright 2013 Teri Eckholm http://www.terieckholm.com/

 

******************************************************************************************************

LIKE MY BLOG? Subscribe, Follow or Like...It's your choice!

 

 

 
This post has been included in Minnesota Real Estate News Anoka County, MN Real Estate News
Post is included in group: BananaTude
Post is included in group: Internet Empowered Consumer
Post is included in group: Posts to Localism
Post is included in group: Bloggers Choice Selections

13 Comments on For Sale (Someday)--Traditional Sellers Have a Tough Choice!

APR
01
2010
318,702 Points

You are right traditional sellers are in a tough market now-most of them realize this and choose not to sale. Great post.
11:14am • #1
1,262,536 Points 2 Featured Posts Outside Blog Hit Router

Teri

There are always unrealistic sellers; if someone is selling there is a pretty good chance they are going to get a good deal on their next one. Happy Easter.
11:14am • #2
906,349 Points 21 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Teri, indeed it can be a long wait, yet there are still plenty of homeowners who would rather wait "for the market to improve" and forget that once it improves for them as sellers, it's going to cost them more as buyers.
5:18pm • #3
1,117,333 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Teri we've been dealing with this for 3 years now.  Most of our 'normal' sellers are still waiting out the market.  Only the ones who really need to sell have done so or will do so at some point.  WE''re pretty muck focused oh short sales and reo's - and most likely that will be the case the next few years.  Differnent times.......

 
8:06pm • #4
367,616 Points 145 Featured Posts Localism Sponsor Outside Blog

In our market (West Michigan) we have seen an increase in prices.  But this must be tempered by the realization that prices dropped dramatically, so it's still an upward climb.  At least it's in the right direction.
8:31pm • #5
367,616 Points 145 Featured Posts Localism Sponsor Outside Blog

In our market (West Michigan) we have seen an increase in prices.  But this must be tempered by the realization that prices dropped dramatically, so it's still an upward climb.  At least it's in the right direction.
8:40pm • #6
294,780 Points 11 Featured Posts Outside Blog Attended Rain Camp

Teri,
Right ! traditional sellers right now they don't have a good time to sell especially when there are many short sales / foreclosures out there !

 
11:44pm • #7
APR
02
2010
1,311,629 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Traditional sellers have delayed for several years - they are slowly realizing the increases are not going to be substantial for some time to come and are getting tired of waiting
5:07pm • #8
APR
03
2010
878,969 Points 75 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

The reality is that short sales and foreclosures do have an impact on everyones values like it or not!
2:21pm • #9
655,247 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Teri, We are finding that even if someone is willing to pay a certain amount for a home it often still does not appraise for that value.
9:59pm • #10
APR
06
2010
565,074 Points 75 Featured Posts Outside Blog Called Shot Master

Pat--Thanks! Unfortunately some sellers have no choice but to sell now as jobs and family situations change but they have to be realistic with pricing or their homes will not sell.

Tom--I think those who need to sell realize they will get a good deal on their buy which makes the move easier. Hope you had a great Easter too!

Sylvia--You are correct...there are costs to waiting too! I have sellers now that wished they hadn't waited two years ago as things have gotten worse rather than better.

Anna--There is no telling when things will get better and some people cannot wait when there is no exact timeframe as to when things will improve...That dang cloudy crystal ball!
6:45pm • #11
565,074 Points 75 Featured Posts Outside Blog Called Shot Master

Lola--Prices did go up a bit in some areas in the Twin Cities but they are still down considerably from a few years ago...but as you say...any upward trend is an improvement.

Ray--It is so difficult for traditional sellers to compete with the lender-mediated pricing.

Karen--That's what I am seeing now...people tired of waiting and needing to move. If they are realistic, it might work but if not, they won't sell. Buyers will not overpay and appraisers are very cautious about overvaluing properties.

Bill--Exactly! No one can put their house on the market with blinders on...the market has changed.

Marchel--Right! Appraisers are doing their job to protect the lenders and buyers from over valued sales. Even if someone writes an acceptible, but over priced offer, unless it is cash, there will be an appraisal of the property based on current comps!
6:52pm • #12
FEB
01
2012
330,867 Points Outside Blog

thank you very much for the informative and interesting post. I get so much out of the active rain network.
11:33pm • #13

Login or register to leave a comment
 
Terismsq Rainmaker_large

Teri Eckholm, REALTOR® Anoka&Washington Counties Acreage & Lakeshore Homes

Ham Lake, MN

More about me…

REMAX Specialists

Address: 4910 Highway 61 N, White Bear Lake , MN, 55110

Cell Phone: (651) 336-7073

Email Me

Theresa "Teri" Eckholm/REMAX Specialists assists Minnesotans to find their way home with helpful tips and quality service. Dedication to customer service has made Teri the REALTOR® of choice for families in Blaine, Forest Lake, Ham Lake, Lino Lakes and Wyoming areas. Licensed in MN.


Page copy protected against web site content infringement by Copyscape







Listings

Links

Archives

RSS 2.0 Feed for this blog