Real Estate Value | How to price your home in South West Minneapolis
There are a lot of common denominator's that are the same no matter what price range your home is in but I want to cover a few of the differences within the different price ranges. You want to know what the current market real estate market is in South West Minneapolis before you can accurately price your home. Every city and neighborhood is different so you want to look within 2 miles of your current home for sold properties that are the closest to your home. That's with the appraiser is going to do to determine your value. They will look at square footage, foundation sizes, number of bedrooms and baths; along with a host of other things.
What's the current market doing?
Prices are up and from all indications they will continue to trend upward this year. Please keep in mind that this is not a full recovery and you need to know why this is happening. Sometimes what you're reading the newspaper is 100% accurate. Yes it's true that the market is improving but I challenge you to consider that the market is correcting not due to the economy but just the flow of the real estate market. An example would be in 2009 we saw an all-time high of over 47,000 listings for sale in the Twin Cities Metro area. In July 2012 we dipped below 17,000 listings. That was the lowest since around the year 2000. We now have more buyers than we do inventory in certain cities and markets. South West Minneapolis is no exception and remains to be a very popular place that people want to live.
Homes under $200,000
This is the market that has seen the most amount of growth over the last 12 months. In 2011 the average sale price was $155,000 in the metro area towards the end of 2012 it was $169,000. That's quite a jump but you're not seeing that all over. When considering pricing your home in this range you have to look at the buyers which are mostly first-time homebuyers and what their needs are. There are also investors looking to purchase homes to either flip or keep his rentals. There's a lot of competition for good quality homes which will help you with your value. You want to present a clean and well cared for home no matter what price range are in. You want to be aware of what the foreclosures and short sales are selling for because they are your competition. They may not affect your bottom line when it comes to pricing but you have to be aware of what the buyers are looking at.
Homes between $200,000 and $300,000
This is still a first-time homebuyers market as well as some buyers that are moving up. It still very active but the buyers are starting to look for more amenities in this price range. Square footage and updates become a bigger concern for them. At this point you may want to consider bringing in the stager and you definitely want to make sure that you add some much needed updates. It may not increase the value all that much but it can make the difference between getting your home sold and not selling it. What you have to offer always factors in to what your value is when you're considering it against other properties.
Homes between $300,000 and $400,000
In this range you really have to consider what your amenities are when it comes to pricing your home and you must be aware of new construction. Buyers will be comparing your home against what they can get in new construction. So if you have a traditional home that was built in 1995 and you have not changed the carpet, upgraded the countertops and you still have vinyl flooring this is definitely going to affect your price. A lot of the new construction especially around $350,000 and up will offer the buyer four bedrooms up, finished lower level, stainless steel appliances, granite countertops and many other amenities. So you have to come up with a strategy when pricing your home to work toward your strengths. Every single detail that you have done to improve your home counts towards the value. You have to be more appealing than that new construction by showing your value added amenities.
Homes from $400,000 and up
I know that you're thinking this is a very broad price range, I agree with you it is. But there similarities here that need to be talked about. Once you hit $400,000 you really start to see all of the extras come in to play. Buyers are typically moving up from the $300,000 range and are looking for all the extras including granite countertops, stainless steel appliances, hardwood floors, larger bedrooms, finished lower level, larger yards, landscaping, and the quality of the craftsmanship. You have to remember you're competing with foreclosures that in some cases have lost almost half of their value. So you have to show your value through your amenities and all of the extras. You have to sow the buyer things that are unique to your home that higher-priced homes do not; for example reasonable property taxes.
There is so much more to talk about with this subject of pricing your home to sell in the South West Minneapolis real estate market but I wanted to hit some of the highlights that should be considered. If you are interested in a free market evaluation we are happy to provide you with one at no obligation, just give us a call.