Home Buying in Minneapolis>Question Details

Brie, Home Buyer in San Francisco, CA

In general, are single family homes in MSP selling for the asking price?

Asked by Brie, San Francisco, CA Sat Mar 23, 2013

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Currently the average in the metro area is 97% list to sale price. However that is not exactly accurate because it does not account for cancelled or expired homes that are relisted at a different price.
0 votes Thank Flag Link Thu Dec 5, 2013
Yes, and no. The exact location of the home matters. The condition, size, and every other detail of the home matters. Whether or not the asking price is a fair and accurate reflection of it's true market value also matters. However, since you used the word "general", homes generally sell at about 97% of the asking price....but that's just a numerical average of all the homes sold withing a certain period.

Bank-owned homes and HUD homes seem to be selling below market value at about 85% -90 of the asking price.

The terms that a seller is willing to accept also is a consideration. A seller willing to accept a contract for deed without a huge interest rate or huge down-payment can sell a home for considerably more than a comparable home with different terms.

If you are looking for a "bargain" they are out there, but you'll likely benefit from the help of a Realtor. I can help with that part...to contact me, just click on the photo of the ugly fellow in my post here.
0 votes Thank Flag Link Thu Dec 5, 2013
Here is a video blog from the Minneapolis Area Association of Realtors. http://mplsrealtor.com/

http://youtu.be/1C_Fs7YWcQE

For the month of October:

• Median Sales Price increased 11.4% to $194,900 • Days on Market decreased 27.2% to 75 • Percent of Original List Price Received increased 1.4% to 95.8% • Months Supply of Inventory decreased 12.5% to 3.5
0 votes Thank Flag Link Thu Dec 5, 2013
Right now they are selling for 97.2% of asking price.
0 votes Thank Flag Link Fri Nov 29, 2013
Hi, Brie!

I see someone has already posted here about THE THING!!! That's a great tool to let YOU find just the information you want.

I can also dig up some other specific reports for you if you wish.

Take care!!!
0 votes Thank Flag Link Mon Apr 8, 2013
In a very general sense? Yes. From the question you asked previously most of us gave you the top neighborhoods and what buyers usually consider "the best". In a lot of those areas it is almost full list price and even over list price at this point. Homes selling in weeks now instead of month's.

I think you already probably know real estate is a little more complicated than that so I won't state the obvious. What I would recommend is to still start researching realtors on Trulia and looking at the recommendations. Feel free to interview a couple of us and then just see how it goes. I have a big feeling that communication is going to be a must with you. That goes for any relocation type client. Finding out if your Realtor is going to be a good fit now is probably a good idea versus waiting until you start writing offers.

Once you get put on our MLS property search you will get a very good feel of the market. Just as far as DOM (days on market) and how quickly properties are moving. Once you start seeing properties go pending within 15 days you know it is going to be close to list price. A good realtor will confirm this with Sold comps.

The planning stage of buying is gathering a lot of information. For out-of-state buyers this is daunting, because you don't have the reference points us locals do. To me it just makes sense to get some help.

Chris Block
Realtor North/NE suburbs
651-307-7663
chrisblock@thebridgerealty.com
0 votes Thank Flag Link Mon Mar 25, 2013
Hi Brie,
Looks like you are finding out quite a bit about the MSP market. The Thing http://thething.mplsrealtor.com/interactive is a cool tool to use. You can search by zip code, city, etc. Keep in mind that the data is behind the market by about 35 days. In most areas of the MSP market homes are selling for close to list or more. As you know we have half the inventory to sell that we normally do, buyer's interest in is increasing, and mortgage rates are low. With any type of market this leads to higher prices and, probably, to slightly higher mortgage rates as well. If you are considering buying in this market sooner might be better for you than later.
Web Reference: http://www.mywra.net
0 votes Thank Flag Link Sun Mar 24, 2013
Hello Brie,

On average sellers are getting upwards of 93% of the asking price for their homes, however it's all relative to neighborhood and the home's pricing as well as the seller situation on whether they get close to asking price. Also, we have reduced inventory which is also bringing about a gradual increase in home prices and, in some cases, multiple offers at this time, so this requires alternative strategies on buyer offers to overcome the competition in some areas.

An Exclusive Buyers Agent can help you clarify with more information, comparable listings and recent solds how to strategize your offer and help you wade through the information necessary to making an informed offer and identify which properties might be the best investment for your needs.
At the same time you would get the highest level of disclosure and loyalty from your agent, disclosure you may not receive unless you use an Exclusive Buyers Agent to purchase because all deals are skewed toward the seller otherwise.

Please view the video on my website at http://www.FindYourMinnesotaHome.com for more information about agency which most agents will not clarify for you, what Exclusive Buyer Agency is, and how to protect your position in the housing market. My website also offers a multitude of information on home pricing, and other information you may find of interest.

Let me know if I can answer other questions for you going forward. You can also check out the Minneapolis Area Realtors Association information on my website on the community page for Minneapolis.

Happy Hunting and let me know if I can help!
0 votes Thank Flag Link Sun Mar 24, 2013
Brie,

This link might help. http://www.spaar.com/member/index.php?strWebAction=the_200
Each area has separate statistics. One of the statistics is "Percent of Original List Price Received". This percentage does not include any "concessions" made by the seller(s), like contributions to the buyers closing costs, etc.

As you can see, each area differs slightly from the others.
0 votes Thank Flag Link Sat Mar 23, 2013
It really depends on the particular home and the position of the seller(s). In some cases, the home is overpriced, so then, no. In other instances, some homes (many more than a year or so ago), are going into multiple offers and then the sales price is usually above the asking price. In general though, there's usually a little "wiggle room" built into the asking price.

The sales price is often only part of the story. Often, sellers will contribute to the buyers' costs at closing which makes the "real" sales price a bit blurry.

The price a buyer can get a home for depends on a number of things. Usually, if the buyers' desired closing date, finance terms, etc. are exactly what the seller was hoping for, the price can possibly go lower since the seller(s) is/are getting exactly what they want/need.

Regardless of the asking price, a good Realtor can make sure you don't overpay for a home and can assist in negotiations. Compared to San Francisco, I think you'll like the way real estate transactions work here. It's different, and many would say "better". Due to the differences, it's important that you understand the procedures here. A good Realtor can help you gain that understanding. If I can help,. let me know.

Mike Kelcher
763-228-2967
0 votes Thank Flag Link Sat Mar 23, 2013
Hi Brie,

It will vary from neighborhood to neighborhood but as of 3/1/13 the over all on average single family home selling price is about 1.15% below the list price. Feel free to contact me for any other information and have a great night!

MATT BROWN
Keller Williams Integrity
2680 Snelling Ave N, #100
Roseville, MN 55113
Office: 651-203-1700
Cell: 651-343-3304
E-Fax: 651-340-4072

Visit my website below or see me at: http://www.trulia.com/profile/mattbrownrealtor/

http://mattbrownrealtor.us
0 votes Thank Flag Link Sat Mar 23, 2013
Brian, what a "cool tool" and a VERY interesting information on our local market.

Minneapolis is commanding 94.2% of list price.
Home prices have gone up very nicely. Could we really be getting some equity back?
Months supply....Wow! Low, low, low.

What a great time to sell! And for buyers, it's time to get strategic about those home shopping efforts and be prepared to put in very strong offers.
0 votes Thank Flag Link Sat Mar 23, 2013
Yes! In general the market is getting about 95% of list price. In very hot, high demand areas, it is not unusual for there to be multiple offers resulting in a purchase price higher than list. There is much buyer demand, and while inventory is picking up, it is still lower relative to buyer demand. Hope that helps!
0 votes Thank Flag Link Sat Mar 23, 2013
Here is a great website for statistics. You can look at the percentage of original price by city, zip, etc. Plus a whole lot more!
http://thething.mplsrealtor.com/interactive
0 votes Thank Flag Link Sat Mar 23, 2013
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