Home Buying in 55106>Question Details

Mom, Home Buyer in Two Harbors, MN

We are looking to downsize, how do we get a good price for our home when the neighborhood is bringing prices down

Asked by Mom, Two Harbors, MN Sat May 25, 2013

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9
Kim M. Eisen’s answer
Hi Mom - The first place to start is getting a market analysis so you know what the price range might be and additional info on how to get the best price. Then take that information and make a choice on what you want to do and where you want to go and when.

If you like this answer or if it was useful to you, a quick click on the green 'thumbs up' would be appreciated.

Kim Eisen
"Helping People Make Smart Real Estate Decisions since 1980 in the Twin Cities"
(651) 457-HOME (4663)

http://www.QuickHomesSearch.com
0 votes Thank Flag Link Sun Jun 9, 2013
I guess my first question to you would be how do you know the neighborhood is bringing down the prices of the homes? Is this something you been told by someone that is not in real estate? Or perhaps something you've read? Before you make a decision about what you should do the very first thing you should do is have a couple of different real estate agents out to your home to do a full market analysis for you. I can't speak for two harbors but I can tell you in the Minneapolis-St. Paul area where I work I've seen a minimum of a 10% increase in value overall in the last 4 to 5 months. You may be pleasantly surprised by what you find what you speak to a professional. To me that's the best place to start

Best of luck,
Tom
1 vote Thank Flag Link Mon May 27, 2013
Hi, Mom!!

Oh, dear, there still are a fair amount of areas that are hard hit by the downturn in the economy. Depending on the amount of lender mediated properties for sale (meaning foreclosures and short sales), it can be very challenging for traditional home sellers to receive what might be a fair price for their property.

Believe me, there are many homeowners in your boat and have been for years now. Depending on the circumstances, some folks might qualify for a short sale if they can prove a hardship, which includes a job transfer far away from the current home, etc. Absent that and other allowable circumstances, it's a matter of deciding when the time is right for YOU!! Even though you may receive less for your current home, you can still take advantage of lower prices on your next purchase.

BUT, be aware, mortgage interest rates are on the way up, too, which will impact your monthly payment unless you're paying cash.

Good luck!!!
0 votes Thank Flag Link Mon Jun 3, 2013
There are two ways to sell your home:

1) Sell "As-is". It basically means you do nothing to the property. A realtor just comes in and has to market the home the way it stands. Sometimes a homeowner takes such good care of their home that this option is just fine, because you will still get a premium sales price.

However, many times there is deferred maintenance on the home that will raise objections with a buyer. Also, if you have lived in the home for a long period of time chances are it is considered "outdated" compared to current trends in real estate. A realtor will tell you how much this will effect value, and where you currently stand compared to the competition.

2) "preparing a home for sale" is where I believe realtors make their commissions big time and the second option. If there is deferred maintenance what are cost-effective solutions to add value to the home? This is strictly a ROI question, because if you put $5,000 into a home you need to obviously increase the value correct?

Carpet/flooring, paint, and staging tend to be very common changes a seller may choose to make. Vanities, countertops, light fixtures....basically focusing on the kitchen and baths for giving the house an "updated" feel tend to be things you discuss with a realtor.

There is not many outside items besides landscaping that tend to be high ROI, so most of the discussion is cosmetics inside the home.

As I always tell sellers "Getting a good price for your home is all about removing objections from a buyer". Highlight the selling features of a home and remove major negative objections for a buyer so they will write an offer. There are ways to do this with any budget, but ultimately you will only get what you are willing to put into it. A experienced realtor knows what is common for your neighborhood and what buyers are looking for. Their knowledge can greatly help you.

I don't agree with worrying about the neighborhood. Paint someone else's porch? That is ludicrous. A buyer is not going to take the time to even go over there and notice it. How on earth is that going to raise the value of your home? It won't period. It will also emotionally put you on the wrong mindset that is counter-productive to selling the home successfully.

Focus on only what YOU CAN CONTROL. That means your own home. You can't control the neighborhood, and you can't control the market. You can only react to it. Do the best you can and let the market do the rest.

If you want to discuss more in depth just get in contact with me. I may be able to help you on the buy side since that is a zip code I work knowing it will still be awhile. However, I can still help you get started regardless of how long it may take before you end up buying. I could also maybe help give you a referral for selling too.

Good Luck!

Chris
Realtor North/NE suburbs
651-307-7663
chris.block@imetroproperty.com
0 votes Thank Flag Link Mon May 27, 2013
Unless you're prepared to work at making your neighborhood appear better, I'm not sure there's a lot you can do. Marge Bennett below has offered some viable suggestions, but there's only so much you can do to properties you don't own.If you believe your neighborhood is decreasing in value your best bet is to sell sooner rather than later and move on with your life. I don't know if this is actually the case and I would start by getting some local Realtors in to give you a market analysis; perhaps you'll be surprised.

I wish you all the best.
0 votes Thank Flag Link Sun May 26, 2013
See what you can realistically do to make your neighborhood look better. Maybe mow the yard of the vacant house next door, ask that elderly person or the single parent if you could do some yardwork or paint the porch for them. Maybe work with them to clean up their yard or fix up the house a bit. This can be an encouragement and blessing for your neighbors and you.
0 votes Thank Flag Link Sun May 26, 2013
Try to realistically look at your home compared to others on the market. Make sure you have put your home in the best position possible to compete with the other homes. Try to find a niche or extra that your home can offer above the other homes and keep it super clean and presentable at all times. It is proven that clean homes sell!!!! You may have to take some less for your home but you can possibly make up the difference in your purchase!
0 votes Thank Flag Link Sat May 25, 2013
Try to realistically look at your home compared to others on the market. Make sure you have put your home in the best position possible to compete with the other homes. Try to find a niche or extra that your home can offer above the other homes and keep it super clean and presentable at all times. It is proven that clean homes sell!!!! You may have to take some less for your home but you can possibly make up the difference in your purchase!
0 votes Thank Flag Link Sat May 25, 2013
Sell now before the neighborhood gets too bad. No really, most neighborhoods are actually seeing prices increase now that the real estate crisis has calmed.

I would recommend contacting an experienced and highly recommended local real estate agent to prepare a Broker's Price Opinion to find out what they think your home would sell for. You maybe pleasantly surprised that it is worth more than you think.
0 votes Thank Flag Link Sat May 25, 2013
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