Main

October 22, 2009

Commissions Rates To Sell a Home are Negotiatble

Here's something I bet you thought you'd never hear, real estate commission rates are negotiable. 

What a great way to find out how good of a negotiator your potential real estate salesperson is going to be for you.  When you ask them to lower their commission, you are in sense taking money directly out of their back pocket.  If an agent is willing to drop their commission from 7% to 5% just to get a listing, that means that they are willing to work for nearly 30% less than they were orignally planning.  Can you imagine trying to run your household budget if you were willing to take 30% off of your paycheck every now and then?

How do you think that agent will help you negotiate more money for your home when an offer shows up?  By folding and giving in just to make some money??

Something to think about.  Sometimes what an agent does can tell you more about them and what they'll do for you than their big drawn out presentations.

 

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.StCloudEdina.com - Home of the e-Market Analysis (free home value estimator)

www.JasonTangen.EdinaRealty.com - Search homes for sale in Sartell, MN

Best on the Internet for Real Estate St Cloud, MN.

[ Yahoo! ] options

October 13, 2009

Do open houses work?

What a great question.  I love it because quite frankly, I don't believe that open houses work.  Statistics say that only 2-4% of all homes sell as a result of an open house (according to National Association of REALTORS). 

So why do real estate agents want to do them?

1) To please the seller.  If the seller thinks they work, then why not just do some open houses to make them happy.

2) To advertise the agent.  Nothing states that you are actively working better than putting out an ad stating that you are indeed working - and here are the times.

3) To capture new leads.  Don't sell this one short.  I did most of my business in my first year of real estate by sitting in open houses that weren't even my listings.

4) To get some work done.  I generally don't want to go to the office on a Saturday or Sunday and there is no way that I am going to get any work done around my family (my daughters command too much of my attention).  If I want to get some phone calls made and get some minor paperwork completed, what better place then in your home.  This is my personal #1 reason for doing open houses.

5) To sell the house.  Oh yeah, it does happen every once in a great while.  Who knows when you might get lucky.

 

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud

http://JasonTangen.EdinaRealty.com - Search open houses in Central Minnesota.

http://StCloudEdina.com - Home of the e-Market Analysis (free home value estimator).

Best on the Internet for Real Estate St Cloud, MN

 

[ Yahoo! ] options

April 29, 2009

Selling Your Home - Greener is Better

I can't stress enough for those of you who are thinking about selling later this spring or in the summertime - spend the time to make your yard look its best.

By spending a couple of hundred dollars to kill all of your weeds you will make up for it in the time it takes to sell your home.  Also, get out the trimmer and spend some time edging your walkways.

I often bring up the 15 second rule in real estate.  This means that most buyers will have decided what they think about a home and whether or not they are going to buy it within 15 seconds after entering the home.  What does that mean they have based their judgment on?

1) Price

2) Location

3) Curb Appeal - Lot

4) Entrance/Entryway

Everything else they pretty much know about a home through the pictures and information provided on real estate websites.

 


Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud.

http://JasonTangen.EdinaRealty.com - Search Real Estate in Sartell, MN.

http://StCloudEdina.com - Home of the e-Market Analysis (free home value estimator).

Best on the Internet for Real Estate St Cloud MN

[ Yahoo! ] options

January 09, 2009

2008 Real Estate Sales - Commission Dollars Going Up

I am wrapping up some of the initial numbers for the real estate sales from the St Cloud MLS and one stat jumped out at me recently.  It looks like the average payout that home sellers are willing to give to an agent who finds them a buyer (Compensation to Buyer's Broker) has gone up quite substantially in the past few years.

According to the St Cloud MLS, commissions paid to a Buyer's Broker for a real estate transaction have gone up 15% in the last 4 years. 

What does that mean?  People are more willing to pay a premium in order to get their homes sold.

It kind of goes against the ordinary flow of business during a recession.  Most people flock to the Walmarts, McDonald's and other quality (but cheap) businesses during tough times.  In real estate, they flock to who does the job best.

It makes sense.  If selling real estate is tougher than ever, you would want to use the real estate agent who is the best.  If that means spending an extra percent or two, so be it.  It is better than making payments on a home you no longer want and getting less for your home when it does finally sell.

Look for my year end "Tangen Report" to be posted here in the next week.  For those of you who don't know, the "Tangen Report" is a quarterly breakdown of the real estate activity in St Cloud, Sauk Rapids, Sartell, and Waite Park in Central Minnesota.

 

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud

http://StCloudEdina.com - Home of the e-Market Analysis (Free home value estimator)

http://JasonTangen.EdinaRealty - Search homes for sale in St Cloud MN

[ Yahoo! ] options

January 03, 2009

The Price is Right in Real Estate '09

I just wanted to start off the new year with what will probably be the biggest tip that I can give anyone who is looking to sell their home in 2009: "Price it Right!"

Above anything else, price has become more important to buyers in today's real estate market.  They are willing to overlook just about anything - so long as the price is right.

A good example.  I showed one of the best staged properties that I have seen in some time (Curt and Pam Carls' listing in Lake Henry).  Even though it looked great and was priced well, my buyers decided to write on a home in Melrose that was in much worse condition, but it showed much more upward equity potential and was priced below its local comparables.

So what can you take from this? 

First of all, we need to let go of 2005 for a little while longer.  While it is getting tough to accept that home prices have been on the skids for nearly 4 full years now, we need to accept it.  The prices we saw at the top of the market will come back, but it won't be in 2009 or even 2010. 

Second, homes are still selling.  If you need to unload a property it isn't impossible in this market.  As a whole, there were over 2500 residential properties that sold on the St Cloud MLS in 2008.  Of those 2500 properties, approximately 1600 were owner occupied units that were not bank-owned.

Next week I will start doing my final tally's for the Central Minnesota real estate market in 2008.  I think that we will get some really interesting statistics as to average prices, type of property bought, and even commissions.

Jason Tangen - GRI, e-PRO - Real estate broker associate with Edina Realty in St Cloud MN]

www.StCloudEdina.com - Home of the e-Market Analysis (Free online property value estimator)

JasonTangen.EdinaRealty.com - Search homes for sale in Rice, MN

[ Yahoo! ] options

December 27, 2008

Jason Tangen's Year End Review

I am a little anxious to get started on the final tally of numbers for the St Cloud MLS in 2008.  In the meantime, I am finishing up some of my own personal numbers and one stuck out as a glaring "heads-up" to any potential seller in the St Cloud MLS.

There were 13 listings last year that I lost out on to other agents or chose to not list.  Most of them were because of price.  My starting price was too low for what each seller needed to get in order to sell.  I hate to be the bearer of bad tidings, but the market is going down for those of you who hadn't heard.  My early estimations are that we will be down nearly 8% from last year in both median and average sales prices on the St Cloud MLS.  I cannot sell your house for the same price it was worth in 2005.  I'm sorry, but it just won't happen.

Out of those 13 listings, NONE HAVE SOLD!  Ouch.  While this is a perfect "I told you so moment," I feel truly bad for every single one of those families.  Some really needed to sell their homes.  I also hate losing listings (for whatever the reason), so that frustrates me too.  Even if homes don't sell, they are great generators of potential buyers.

While I would like this stat to change in the new year, I cannot control the market.  What I can pledge is to continue being honest with potential home sellers so that they are aware of what they need to do in order to sell their homes.  That with a little pinch of a market turn will make 2009 a banner year for my real estate business.

 

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud MN

http://StCloudEdina.com - Home of the e-Market Analysis (Free Home Value Estimator)

http://StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

[ Yahoo! ] options

December 16, 2008

Oooo that smell... Selling a Home 101

I showed a home to a potential buyer yesterday and was quickly reminded that some people need to go back to school when it comes to selling their homes.

As I unlocked the door and we slowly walked in to the house, it hit me.  I looked over at my clients and quickly realized that they had noticed it as well.  "I'm not sure what that is, but it can probably be cleaned out." I stated.

After walking through what is undoubtedly a beautiful home (if it was cleaned up), my buyers looked at me and said "It just didn't feel like their home."

"What would we need to fix with this to make it the right home?" I questioned, knowing full well that this was exactly the home they have been searching 4 months to find.

"I just don't like it." one of my buyers stated, "I cannot live in a home where my very first impression is 'WHAT'S THAT STENCH'"

Understanding of their thought process, I told them we should wait on this one.  I would call the listing agent and see if we couldn't get the home thoroughly cleaned and maybe come back for a second look.  My buyers agreed and we left.

Moral of the story.  If you are selling your home, make sure that you have all of your bases covered before allowing tours.  In this case, the home was not cleaned properly before allowing us to walk through.  The real problem was from leftovers that had obviously been left to rot on the stove for the past few days.

I always tell my sellers that buyers have sized up your home within 15 seconds of being in the front door.  They have decided that they like the location, the price and amenities are good, and now all the home can do is un-sell itself.

Smell is one way for a home to un-sell itself.  Cleanliness, bad floor plans, unfixed maintenance problems, and being outdated are just a few of the other ways.  I like to use this example when I discuss the topic of smell in a home:

I was a competitive swimmer in high school (and a fairly decent one).  I actually still have a varsity record at Monticello High School (over 15 years removed now).  Anyway, because of all that time spent in a pool, I am a little bit soggy and I love the smell of chlorine.  It reminds me of good times as a youth.  Consequently, when I walk into a home and they have been scrubbing with bleach it is appealing to me.

I don't recommend the bleach smell as a home owner trying to sell.  Most people aren't as fond of bleach as I am.  Instead, I recommed the baked goods smell.  There are candles that smell just like cinnamon rolls, cookies, or whatever if you don't have the time to make some goodies yourself.  These are the smells that seem to make most buyers think of good thoughts.

Remember, you only have about 15 seconds after they enter your home to make a good impression.  Make them count.

 

Jason Tangen - GRI e-PRO - Real estate broker associate with Edina Realty St Cloud

http://StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud, MN

http://StCloudEdina.com - Search Real Estate For Sale in Sartell MN

[ Yahoo! ] options

October 22, 2008

Best on the Web for Real Estate in St Cloud MN

I wanted to take the chance to "toot my own horn" for a second:

Search term: real estate st cloud mn

  • Google Rank: #4
  • Yahoo Rank: #2
  • MSN Rank: #2, #4, & #7

Woo-hooo!  If you are looking to sell a home, use the real estate agent who can guarantee that people will find your home listed for sale on the Internet.

 

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud

http://StCloudEdina.com - Best on the Internet for Real Estate St Cloud MN

http://JasonTangen.EdinaRealty.com - Search Open Houses in St Cloud MN

[ Yahoo! ] options

October 16, 2008

Real Estate Blue Light Special on Aisle Six

I have to give Coldwell Banker Burnet a little credit for trying anything to spark sales.  Their 10 day sales event has gotten a ton of publicity and gotten people in the twin cities looking at real estate again. 

My personal thoughts on this promotion, what an ingenious way to basically trick your sellers into a price reduction. 

Most all real estate agents know that once you drop the price on a home it is nearly impossible to get that money back.  Think about it: if you saw a home listed for $180,000 two days ago and it is listed for $190,000 today what will you offer them?  $190K?  I thought so:)

In the grand scheme of things, the price reductions are more than likely a necessity in order to get a lot of homes sold that are currently listed.  I congratulate Coldwell Banker on trying new things to get people into the market, but what's next?  A "blue light special?"

 

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.StCloudEdina.com - See all the bank owned properties listed on the St Cloud MLS

http://JasonTangen.EdinaRealty.com - Search open houses in Sartell MN and all of Central MN

 

[ Yahoo! ] options

April 25, 2008

Free Home Value Estimator in St Cloud MN

The e-Market Analysis is a free home value estimator in the St Cloud area.  I wish that I could cover a larger area, but I can only manually figure out estimates of home values in areas covered by the St Cloud MLS (Clearwater, Clear Lake, Becker, Foley, Rice, Avon, Albany, Cold Spring, Rockville, Richmond, Kimball, Annandale, St Stephen, St Joseph, Sauk Rapids, Sartell, Waite Park, and St Cloud).  Outside of this 15 mile circle around St Cloud, MN my effective range drops drastically.  I can sometimes get you in touch with someone locally that can help, but I can't guarantee that they have the resources to pull this off.

How does the e-Market Analysis work?

Every month I scan the MLS to get average prices on specific home amenities for specific areas.  By utilizing these prices, plus the current listing and sold prices of the best comparable properties on the St Cloud MLS, I can get a fairly accurate estimate of value.

What makes this different than other home value estimators?

1) The e-Market Analysis uses only the most current data from the St Cloud MLS for comparisons.  2) The e-Market Analysis is performed by a human to make sure that only the best comparable properties are used.  3) The e-Market Analysis can generally be delivered within a few hours of request (depending on my schedule that day).  4) For an non-viewed property analysis, it is amazingly accurate.  Granted, the specific amenities and condition of a home can move the final market value up or down accordingly.

What have I learned in doing these e-Market Analysis'?

1) I learned that many people do not want to hear the potential sales value of their home.  When I first started doing e-Market Analysis' in 2006, I had several people tell me that I was crazy and that their homes were worth thousands more.  As it turned out, there have been 8 homes that have been listed for sale with a different real estate agent after an e-Market Analysis was performed.  All ten have sold at or slightly under what the e-Market Analysis said.  They also averaged more than 6 months on the market before they sold.  If you have an e-Market Analysis performed and you feel it is inaccurate, give me a call.  If I stop at your home there might be something that I am missing.  Which brings me to my second point...

2) Some homes don't fit into boxes.  What I mean by this is that certain properties just cannot receive good numbers without being seen first.  It seems the more unique the property, the bigger the difference between the e-Market Analysis value and the actual value.

If you are interested in finding out what your home might be worth at a time of sale, visit http://www.stcloudedina.com/e-MarketAnalysis.html and I can have an e-Market Analysis out to you within a few hours.  Also, if you know of some other good value estimators available on the market, I would love to check them out.  I have tried Zillow's Zestimates before and it just doesn't have enough data to be accurate in Central Minnesota yet.

 

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud, MN

[ Yahoo! ] options

April 19, 2008

Getting Homes SOLD

I have looked back over all my old real estate files and in almost 5 years of real estate I have had two homes that I lost to other agents after I had them in contract to sell.  Both of homes went to decent agents in the area, and neither home sold.  Hmmm...  I don't want to toot my own horn, but I am pretty impressed with myself.

Maybe I should try out a new slogan...  "Not for Sale...  SOLD."

Or maybe...  "Jason, Jason, he's our man.  If he can't sell it no one can."

With real estate sales, a lot of real estate agents will tell you how many homes they've sold in a given year.  The true question is how many of the homes do they list to sell that do not sell?

When it comes to hiring a real estate agent, think about what it is that you truly want to achieve.  Do you want to have pretty pictures of your home in the Home Times magazine, or would you rather have maximum exposure on the Internet?  Do you want open houses or not?  Do you want to stay where you are or do you want to move?

It doesn't matter who you hire to sell your home, just make sure that their marketing plan fits into what you want for your home.  Nothing aggravates sellers more than expecting one thing and getting something completely different.

 

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud

www.StCloudEdina.com - Search homes for sale in St Cloud MN and surrounding areas.

JasonTangen.Point2Agent.com - More Advertising = More Results

[ Yahoo! ] options

March 29, 2008

Home Sellers: Offer Negotiations 100 (The Course Before 101)

I'm all for the Central Minnesota method of haggling.  I think it comes from the fact that most of us are only a couple generations removed from the true hagglers and wheelers and dealers of the past: the farmers. 

One of the biggest problems facing some of the sellers of real estate in St Cloud, MN is that they feel like they are being taken by the buyers in today's market.  While it is true that your home is not selling for what it did two short years ago, you have to remember your true goal: selling your home.

Here are some tips to help sellers as they analyze offers coming in from potential buyers:

1) Try to take your heart out of the deal.  The home that you will be leaving was perfect to raise your two kids back in the 80's, but it might not be perfect for the new couple raising kids in the 10's (that sounds funny).  Only negotiate with market facts and up to date market values.

2) If you have a fish on the line, reel them in.  You may or may not be having a second offer come in.  Even real estate agents with the best of intentions cannot deliver the purchase agreements that they say they will bring tomorrow.

3) Take all offers seriously.  This is tough when there is that one yahoo out there who wants to offer $90K on your brand new two story home worth at least $250K.  Even though you want to just say go away (with some anger in it), it is best to just politely counter back at full price.  Find out if they are interested in coming to the "dance floor" of negotiations.  Who knows, they might just want to buy the house at full price.

4) Look at the bottom line, not the sales price.  You might actually make more money at a lower sales price depending on what the buyers are asking you to pay.

5) If you decide to not take an offer, you are saying that you would rather stay in your home than sell it for that price.  That could prove costly if you have somewhere else that you need to live.

I will hear a story about once a year that rehashes the philosophy that the first offer is always the best offer.  In this case the sellers had an offer in the Spring of 2007 for $200,000.  They wanted just a little bit more because their original listing agent priced them a tad too high and now they are feeling gypped.  The sellers decide to counter offer back at $204,000 and the buyers decide to leave.  The desire to feel like you are the winner in negotiations can make you the loser.  Fast forward to the Spring of 2008.  With no other offers and the market slowing down over the winter months the sellers price reductions to create activity now have them priced at $175,000.  Here is where they get another offer.  Disgusted but needing to sell, the sellers take the offer.  Ouch.

Before you even look at the offer someone has written to purchase your home, take some time to look at your true goals.  In most situations, selling the home is the most important goal.  Making a specified amount of equity is usually lower on the list.  From there, arm yourself with the market data you need to make the best decision for you.

 

Jason Tangen - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.jasontangen.com - Search Real Estate in St Cloud, MN and surrounding areas

www.jasontangen.point2agent.com

[ Yahoo! ] options

March 11, 2008

Where Should Real Estate Agents Advertise Your Home For Sale?

I am astounded every time I see the new stats regarding what real estate buyers are using to find the homes they purchase.  I'm not astounded about what technologies they are using; I'm astounded by what real estate professionals prefer to use in spite of these results.

I've seen stats to show that anywhere from 80-90% of home buyers are starting their search for a new home on the Internet.  This doesn't surprise me in the least.  I know that from my own website's traffic there are a ton of people search homes for sale on-line.  It seems that they like to do it on their lunch hour as well.  I suppose it's because they have high speed Internet at work and not at home.

What surprises me is that less than 15% of people say the frequently used a newspaper, open houses, or real estate magazines (combined) as a way to find a home to purchase.

Consequently, if your real estate professional is utilizing the newspaper and local real estate magazines as a primary way of advertising your home, they are missing out on the vast majority of real estate buyers out there.

I've also seen a stat stating that dollars spent on Internet marketing of real estate will surpass that of print media within a few years.  That is a far cry from the statistics provided in surveys like the one Realty U Group has posted from 2006.  To read their article go to http://www.realblogging.com/effective-blog-marketing/print-vs-internet-marketing-and-blogging.

Hopefully some of the "powers that be" in the real estate community will take note of these stats and utilize more of their marketing dollars on the Internet.  One good example is Edina Realty's new ad campaign that is meant to be more a "Viral" campaign.  Like the great ads on YouTube or other e-mail blasts that you have received in the past, Edina Realty is taking a chance on the Internet bandwagon.  If you'd like to see their new "Red Couch" campaign, try Edina Realty's new website dedicated to this effort.

www.wefoundeachother.com - Edina Realty's "Red Couch" Campaign Website.

 

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.StCloudEdina.com - Search Real Estate in St Cloud MN

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

[ Yahoo! ] options

January 31, 2008

First Things First for Selling Real Estate in St Cloud

Here are the first few steps to listing your home for sale.  Do not discount the importance of Step #1.  Ultimately, many of you who read this post shouldn't go beyond step #1 at this time.

1) Do a very honest assessment of why you are moving.  If you don't have a lot of tangible reasons, you probably shouldn't be moving right now.

2) Get different CMAs (Competitive Market Analysis') from at least two local real estate professionals.  Even if you know a friend of the family (or whatever) is going to list the home, hear someone else's pitch.  They might give you some advice that you, and your agent, wouldn't have thought of on your own.  Also, if you have a friend or family member that is a real estate professional but they don't live in the area, get them a referral for the business and work with someone locally.  Your friend/family member will probably thank you.

3) Price your home realistically in order to sell.  That appraisal that you had done just a year ago is not accurate anymore.  Also, note that your biggest competition isn't your neighbors, it's the lending institutions trying to unload their foreclosures.

4) Hire a stager and get your home looking its best.  If you can't find a real estate professional that is willing to do it for you, pay for it yourself.  The money you spend will be saved in the time it takes to sell your home.  I put hiring a stager here, but honestly, you should think about having this done even before you get a real estate agent's opinion on the value of your home.

5) Negotiate with your head, not your heart.  While you might not make as much as you aniticipated in selling your home, you will probably more than make up for it in the purchase of your new home.

Do you have some other pieces of input that you think would be valuable to potential sellers of homes in St Cloud MN?  Post your advice, lessons learned, or whatever here for everyone to review.

 

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.StCloudEdina.com - Search Homes for Sale on the St Cloud MLS

JasonTangen.EdinaRealty.com - Search for Open Houses in Central MN

[ Yahoo! ] options

January 14, 2008

Real Estate Sales Per Office - 4th Quarter 2007

The year is at an end and I am finally finishing up some of my sales statistics for the St Cloud real estate market.  Below is a list of how the top companies stacked up in listings sold per office.  The data is obtained from the St Cloud MLS and represents the number of residential seller side transactions for the most active companies from 10/01/07-12/31/07.

Edina Realty of St Cloud - 62 Homes Sold

Coldwell Banker Burnet - 61 Homes Sold

Prudential Pladson Realty - 55 Homes Sold

Re/Max Realty Source of St Cloud - 33 Homes Sold

Premier Real Estate Services - 25 Homes Sold

Showcase Properties - 23 Homes Sold

Home 2 Home Properties - 23 Homes Sold

Centrury 21 First Realty - 20 Homes Sold

Castle Realty - 20 Homes Sold

Re/Max Today's Properties - 18 Homes Sold

Riverside Realty of Little Falls - 15 Homes Sold

Edina Realty of Monticello - 14 Homes Sold

Executive Realty St Cloud - 14 Homes Sold

Lind Realty - Showcase Properties - 13 Homes Sold

USA 4% Realty - 13 Homes Sold

Century 21 New Horizons - 12 Homes Sold

 

If you have any real estate related topics that you would like me address, please post them here.

 

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Search Homes for Sale on the St Cloud MLS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

[ Yahoo! ] options

November 25, 2007

Using Technology to Market Homes for Sale

This post is for everyone who has their home listed for sale or is thinking about listing their home for sale:

If your home is currently listed for sale (whether it be on the St Cloud MLS or anywhere in the US), I would like you to perform a little test on the Internet marketing your real estate agent is providing.  Go to Craigslist, find the area where you live and see if you can find your home advertised for sale.  Craigslist is an outstanding service that real estate professionals can use for addition advertising of homes on-line.  If you cannot find your home, ask your real estate agent to please add it immediately.  If they give you grief about adding this to their services, simply inform them that it's quick, easy, and FREE!

If you are thinking about listing your home for sale, have the real estate professional you choose place an ad for your home on Craigslist for extra Internet advertising.  Some real estate agents might be reluctant to add your home at first, but once you explain to them that this is a free way to enhance the way they advertise your home for sale, they will see the benefits.  A recent statistic showed that over 80% of the people who have recently purchased homes started their search on the Internet.  As a home seller, you need to make sure that your real estate agent is getting you the most exposure to these potential home buyers as possible.

Do you have any questions or concerns about marketing of homes for sale on the Internet?  Post your thoughts and ideas here for the benefit of everyone in the future.

 

Jason Tangen, GRI - Broker Associate with Edina Realty

jasontangen.edinarealty.com - Search Homes for Sale in St Cloud MN

www.StCloudEdina.com - The e-Market Analysis (Free Home Value Estimator)

[ Yahoo! ] options

November 20, 2007

Truth in Real Estate Market Disclosure?

I had an acquaintance of mine approach me the other day in regards to the current state of the real estate market.  I told her what I tell everyone; I am having a much better year than I did in 2006 and I am personally expecting an even better 2008.

Is that a great spin on the market?  Yes.

It is a true statement in regards to my personal business as I am doing just fine and foresee great things next year. 

Is it a true statement about the market in general?  Not really.

Homes are selling - that much is true, but sellers have to be prepared for what is coming at them.

If you know someone who is planning on selling a home in the near future, please give them this little piece of advice.  Have your friend or family member ask their potential real estate agent for an honest evaluation of the real estate market.  If they give you a rosy picture of how easy it will be to sell your home, ask them the question again.  If they are start to get negative about the current state of the real estate market, I don't recommend using them to sell your house.  What your friend needs is an honest opinion about the current real estate market in which they live.  Think of it as your real estate professional's truth in real estate market disclosure.

If you want my honest opinion of the real estate market in St Cloud MN, or any of the surrounding Central Minnesota areas (Sartell, Sauk Rapids, Waite Park, St Joseph, etc.) you can ask for it here or e-mail me at jason@stcloudedina.com.

I'd love to hear your comments about this topic.  Please post any questions, comments or concerns about the real estate community in St Cloud MN or national real estate issues for answers and review.

 

Jason Tangen, GRI - Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Home of the e-MARKET ANALYSIS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

[ Yahoo! ] options

November 10, 2007

The Toughest Home to Sell Around St Cloud, MN

What is the toughest age of home to sell in the St Cloud vicinity?  Of homes that were listed on the St Cloud MLS since January 1st of 2007, there are currently 435 listings of properties that have expired without selling.  These 435 homes comprise only the St Cloud, Sartell, Sauk Rapids, Waite Park, and St Joseph areas.  I was a little surprised to discover that homes ranging from 0-10 years old made up 46.9% of all expired listings in my research.  Below is a breakdown of the number of expired listings per age range:

144 Expired Listings from 0-4 Years Old

50 Expired Listings from 5-9 Years Old

49 Expired Listings from 10-19 Years Old

35 Expired Listings from 20-29 Years Old

26 Expired Listings from 30-39 Years Old

15 Expired Listings from 40-49 Years Old

27 Expired Listings from 50-59 Years Old

11 Expired Listings from 60-69 Years Old

9 Expired Listings from 70-79 Years Old

20 Expired Listings from 80-89 Years Old

11 Expired Listings from 90-99 Years Old

20 Expired Listings from 100+ Years Old

 

If you are thinking about selling your home in the St Cloud area, know that the law of supply and demand is in full effect.  With the amount of homes that are available to purchase under 10 years of age, the competition for potential buyers is even more fierce than usual. 

The other statistic that stood out during my research was that the expired homes were listed an average of 5 months with only a 2.32% average reduction in price.   Compare that to the 735 homes that sold during the same time frame.  The homes that sold were listed for approximately 2 months before getting an offer and had an average 3.89% reduction in price from their original list prices (all sellers concessions not accounted for in price reduction statistics).  Oh yeah, there is also the little fact that the sold properties were listed nearly 18% less than their expired property counterparts.

 Questions, comments or concerns?  Post them here for answers and review.

 Jason Tangen

www.StCloudEdina.com

[ Yahoo! ] options

October 22, 2007

Are you pricing your home to stay?

One of the issues that people selling their homes take too lightly is correctly pricing their home to sell.  Inevitably, there are two issues that come up at a listing appointment.  1) What's my home worth?  2) How much do you charge to list my home?  For this post I plan on focusing on the first issue presented.  If you want more information on the second issue, post your comments below.  When a real estate professional is giving you their numbers relating to the market value of your home, take some time to seriously consider what they are presenting to you.  I know that it can be tough, but try to separate what you know and just listen to what they are saying.  The correct pricing of you home is even more magnified when the market gets a little tighter.  I'm going to give you a couple of examples of homes that I have dealt with and let you decide which scenario you would rather have for your transaction.

Example #1 - I inherited a listing from another colleague who moved out of the area.  I'm not really sure how they came to their original price, but when I first met the clients I informed them that they were over $10K over priced in their current asking price.  Due to their selling motivation, they finally budged and came down to my price.  An offer arrived shortly thereafter that was about $4K less than their new asking price.  They opted to not take the offer because they were still reeling from the change as compared to the original price and felt like they were getting robbed.  I hate to say it, but they are now priced $5K less than that offer was when they received it in the Spring.  Moral of the story... price your home correctly and take every offer seriously.  If you don't take the offer presented to you, it means that you would rather stay in the house than sell it for that price.  Is that you intention, to stay at your current place?

Example #2 - I had some real savvy home owners that were in a development with three other properties for listed for sale.  The other properties were the exact same as my client's home.  They wanted to ensure that they sold within their given time frame and decided to stay $5K under the lowest priced home no matter what happened.  We listed the property and shortly thereafter two of the properties dropped to our price.  My sellers proceeded to lower their price again to stay true to their original game plan.  Sure enough one of the other properties followed suit.  The second price reduction to get us to our target price was the one that put us over the top and we received an offer three days later.  Moral of the story...  the best priced home always sells first.

Can you guess the outcome of this scenario?  Two identical homes are listed to sell with the only difference being that one home is priced $5K less than the other home.  Which one sells first?  Utilize your real estate professional's expertise about the current market conditions to create a price that will sell your home.  This is the same in St Cloud, MN as it is in Joe, Montana.  This post is for anyone that is considering listing their home for sale.  If you have any questions, comments or concerns please post them below.

Jason Tangen

www.StCloudEdina.com

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud, MN

[ Yahoo! ] options

October 14, 2007

St Cloud, MN Real Estate Sales Per Office - 3rd Quarter 2007

This is a comparison of the residential properties that have been sold on the St Cloud MLS and the real estate offices that work in the St Cloud Market.  The number behind each office represents the number of homes listed by that specific office that sold during the 3rd quarter (7/1/07-9/30/07).

Edina Realty St. Cloud- 82

Prudential Pladson Realty - 74

Coldwell Banker Burnet - 67

Premier Real Estate Services - 47

Re-Max Realty Source - 38

Century 21 New Horizons - 30

Showcase Properties - 29

Home-2-Home Realty - 24

Edina Realty of Monticello - 24

Century 21 First Realty - 22

USA 4% - 19

Executive Realty Of St Cloud - 18

Coldwell Banker Herges - 17   *Coldwell Banker Herges Realty was purchased by Edina Realty St Cloud in the 3rd Qtr '07.

Castle Realty - 14

Riverside Realty of Little Falls - 14

Lind Realty-Showcase Properties - 11

Re-Max Today's Properties - 11

Multiple Offices with 10 or less.

 

If you have any questions, comments, or concerns about any of the information contained above, feel free to post them below for answers and review.  If you'd like some more detailed information about the real estate market surrounding St Cloud, MN., post your requests below.

 

Jason Tangen, GRI

www.StCloudEdina.com

www.StCloudEdina.com/Blog - REAL ANSWERS for REAL ESTATE in St. Cloud, MN

 

[ Yahoo! ] options

September 30, 2007

Questions to ask when hiring a real estate agent.

There are several very good questions that you should ask any real estate professional before you consider hiring them to sell your home.  The responses to these questions will give you loads of insight about the real estate professional you are interviewing, the company they work with, and what they are going to do for you.  In my opinion, there isn't one single question that will give you clarity, but rather the sum of all answers given that provide a good overview of the real estate professional you are interviewing.  You will probably find certain questions here that are more important to you than the others.  If the tally between a couple of agents is close, you might want to review how they scored on those specific questions.  If one real estate agent has scored higher than all of the others, hire them.  It's that easy

Rate each answer given 1-10 with 10 being perfect.

____  1.  How long have you been in the real estate industry?  This question should give you a good idea of how knowledgeable an agent is about the real estate market and if they know how to sell homes.  Generally, inexperienced and inactive agents will wash out of real estate sales within two years.  Conversely, some of the real estate agents who have been around for 15+ years are not keeping up with new sales techniques.  These agents might be unsure how to utilize the technology and tools that are available to them in today's real estate market.

____ 2.  What are the top 3-4 things that separate you from other real estate agents?  This question is pretty easy to analyze by yourself; either you like their answers or you don't.  You might be asking yourself, "What if they don't give me at least three?"  Answer - Don't hire them.

____ 3.  Why have you chosen to work with ________ Realty?  Most real estate professionals have a very profound reason for choosing their specific real estate company, money.  The question for you is,  "What does your real estate company have to offer me?"  Every real estate professional should have several good reasons why their real estate company is better for you than all the others.  You decide if you want what they're selling.

____ 4.  How are you going to market my home?  If the real estate agent you're interviewing is stumbling on this question, Run Forrest RUuuuunnnnn....

____ 5.  How many homes have you sold this year?  If they haven't sold at least 6 in the last calendar year, what's the problem?  If they have sold more than 52, do they have the time to give you the attention you need?

____ 6.  Do you work with other people who can help me sell my home?  It is highly advantageous for your real estate professional to have some professional contacts who can help you stage, update, or repair your home.  You've seen the shows on T.V.  Can your real estate agent do that?

____ 7.  How many homes have sold in this area recently?  You have to make sure that your potential real estate agent knows the market in which they are going to be working.  This should also include list/sold ratios, days on market, and average sales prices for homes.

____ 8.  Can I contact some of your past clients?  This works real well if you use the third and fourth persons on their list.  Reason being - Most real estate agents realize that a potential client might call one or two people they provide.  With that in mind, most all real estate agents will give you their best references on the top.  Once you get down a little ways on their list, you might get a little more candor in the responses to your questions.

____ 9.  How much do you charge?  Chew on this thought for awhile - REAL ESTATE COMMISSIONS ARE NEGOTIABLE.  You might want to start negotiating early to try and get yourself some lower closing costs.  Think about it - the real estate agent you're interviewing is now negotiating their own money.  If they aren't very good at negotiating for themselves, how good are they going to negotiate for you when it's your money at stake?

____ 10.   Can I review your contracts before I sign them?  Give yourself a chance to review the information that you have gathered about the real estate agents you have interviewed.  Don't let a savvy salesperson force you into making a hasty decision.

____ 11.  Go with your gut.  Sometimes it's best to just go with what you believe is true.  If you feel like you have a connection with the real estate professional you are interviewing, you might want to seriously consider hiring them.  Maybe at the expense of experience, knowledge, and sales history...  or maybe not.

 

TOTAL SCORE: ___________

 

I look forward to any of your questions, comments, or concerns regarding hiring a real estate professional, please post them here for answers and review.

Jason Tangen

www.stcloudedina.com

www.stcloudedina.com/blog - REAL ANSWERS for REAL ESTATE in St. Cloud, MN

[ Yahoo! ] options

September 25, 2007

Hostile Negotiations in Real Estate

We all know that we are currently in a buyer's market.  It's because of this shift in the real estate world that many home sellers are faced with a negotiation process that is much more difficult than we have seen in many years.  I have posted some ideas here to allow you the ability to prepare yourself for the negotiation process as it pertains to real estate.

1)  Never negotiate out of fear.  Don't be bullied by a potential buyer because the real estate market isn't very strong right now.  Utilize up to date market information to make informed decisions about the offer that is presented to you.

2)  Win-win situation?  I hate the prospect of a true win-win situation.  The best scenario for you is a win-perceived win situation where you are winning and the person you are negotiating with thinks that they are winning.  Make sure the other side of your negotiations get what they need, but maybe not what they want.

3)  Keep an open mind.  Try to think of different ways to package something that will be enticing to the buyer.  Sometimes the craziest ideas stand to make you the most money in the end.

4)  Remove personal judgments and feelings.  This is very tough for home owners because they have lived and loved the property that they are selling.  You may think that your house is much better than the other homes available, but realize that this can only be true for <50% of the people out there.  Once again, rely on your real estate professional to give you sound advice in regards to current market data when making your decisions.

5)  First offer is the best offer.  I hate to say it, but this statement is probably true over 90% of the time.  I'm not saying it's always the case, but do take you first offer very seriously when negotiating the sale of your home.

6)  Buying your house back.  Something to think about when rejecting an offer is that you are basically telling everyone that you would rather keep the property than sell it for a certain price.  In essence, you are buying your house back at the price that the buyer offered.

7)  Negotiate with the decision maker.  Not only do you want to know a little bit about who you are negotiating a deal with, you also want to make sure that you aren't dealing with the wrong person.  If you know that the wife "wears the pants" in the family, you need to negotiate with her.  No offense gentlemen, but this seems to be the case more than not.

8)  The perfect timing.  Please realize that negotiations in real estate transactions can be extremely different depending on timing.  A seller with a house new to the market will be able to negotiate much more strongly than one that has been listed for sale more than 6 months.

9)  Don't just drop the price.  If someone is telling you your house is worth $10,000 less because it needs a new roof, should you just give in to a price drop to sell your home?  Or maybe should you look into replacing the roof and standing firm on price?  The ultimate question you need to ask is what is easier on your pocketbook?  If it only costs $5000 to replace the roof, you should probably offer that to a potential home buyer and stand firm instead of dropping to their price.

10)  Not all negotiations end in selling your home.  Just because you've gotten an offer, doesn't mean that you will end up selling your home.  One of the first rules of real estate revolves around the phrase, "__________ happens."  Please remember to always do what's in your best interests.  Your real estate professional should always be looking out for your best interests, but keep an eye on them.  Sometimes the dollar can be stronger than a person's morals, if you now what I mean.  If a sale is not meant to be, then it's not meant to be no matter what anyone tries to tell you.

There are tons of other thoughts that I could put into this post, but I would be typing all night.  Please post your questions, comments, or concerns in regards to negotiations in real estate here for answers and review.  I'd also love to hear about any good or bad real estate negotiations that you have had in the past.  Allowing others to hear the moral of your story may prevent them from making similar mistakes, give them great ideas, and/or could save them thousands of dollars.  I do ask that you please keep your posts clean and don't use the names of anyone involved.  We aren't here to bad mouth anyone, we are here to learn.

Jason Tangen

www.stcloudedina.com

www.stcloudedina.com/blog - REAL ANSWERS for REAL ESTATE in St. Cloud, MN

[ Yahoo! ] options

September 23, 2007

Selling Real Estate - Basics in Staging a Home

I thought that it might be helpful for home sellers to know some basic tips on how or what to do in staging your home for sale.  Most of us have seen one of those "Sell My House" type of television shows that take a home and stage it for sale.  Listed below are some of the most basic ideas that every seller needs to know when preparing to sell their home.

1)  Clean up the exterior.  Some of the greatest buys on the market aren't shown because the yard looks too horrible.  If you've had some landscaping ideas, or if your lawn needs edging and a trim, do it!  Your home's curb appeal is what invites a buyer inside and sparks their interest in buying.

2)  The first 10 seconds mean everything.  As you are preparing your home for sale, take the time to walk in the front door (where potential buyers will enter from) and take a hard look around.  Take special notes of the smell, color scheme, cleanliness, and overall impression given.  You want your entry to be inviting to a potential buyer.  The more open and clean the better the impression.

3)  Make the kitchen spectacular.  The kitchen is arguably the most important room when preparing your home for sale.  Besides sleeping, we tend to spend the majority of our time in the kitchen.  First rule of thumb - make your kitchen as BIG in appearance as possible.  You should only have a maximum of two items on your counter tops (neither should be a microwave or toaster).  You must maximize your counter top square footage and also cabinetry if possible.  Second - dress up your table.  This is especially true if you are using some cheesy little card table to get by.  A nice table cloth and some tasteful table settings can make all the difference.  Above all your kitchen needs to be spotless from top to bottom.  Think of it as a Marine Corps white glove inspection.  Clean the inside and out of all appliances, sinks, counter tops, cupboards, and anything contained inside.  You might even go so far as to organize all of your groceries inside the fridge and cabinetry.

4)  Put those scrubbing bubbles to work in the bathroom.  There is nothing worse than touring a house that has a dirty bathroom.  Everyone, and I mean everyone, gets a little queezy when the bathroom either stinks, is grimey, or is in need of some repair.  Redo the caulk around the shower, tub, and toilet.  Clean out the grout if you have tile.  Scrub the toilet both inside and out.  Also, clean all of any plumbing fixtures that are present.  If anything looks subpar, think about replacing it.  Faucets are fairly inexpensive in the grand scheme of things.

5)  Maximize the spaces.  Try to not have over sized furniture in a small room.  Some sectional couches are better served in storage while the selling process is taking place.  Sure they are cozy, but they do your living room a huge disservice.  Also, if you have some tough traffic areas where walking through is kind of tough, try moving around your furniture to maximize the space.  Maybe you need to remove a chair, loveseat, or (he's going to say it) that huge T.V. set up that you have to free up a room's true potential. 

6)  Remove the clutter.  In selling real estate, I am constantly telling everyone to remove the clutter throughout their home.  The best way to look at it is like this - You're going to move, right?  Then start packing now.  Get some boxes and go from room to room.  If there is something there that isn't a necessity, pack it up.  Go to your bookshelves and remove 1/2 of everything on them.  Go through your entire house and you will be suprised how much "stuff" you can pack in advance.

7)  De-personalize your home.  You have a beautiful family and have created a beautiful home together.  Now that you have decided that you are going to sell your home it's time to start moving out.  You don't want potential buyers envisioning your family in the family room watching T.V.;  You want them to envision their family eating popcorn and watching their favorite movie in their new house.  I recommend that all pictures of the family be taken down and replaced with something else (or maybe no picture is needed there at all).

8)  Clean, Clean, CLEAN.  Once again I will use the concept of a Marine Corps white glove inspection.  Clean every place in the home like it has never been cleaned before.  For some of you that are thinking about selling your homes, this won't be too much of a problem.  For others, well let's just say you need a little help.  Make the beds every morning.  You never know when you might get a showing.  Do the dishes as needed.  I'm not saying to do the dishes when the sink gets full, more like clean them as you use them.  Make sure your vents, window sills, walls, artwork... actually how about if we put it this way - make sure everything in your home is simply beyond clean.

9)  If it's broken, FIX IT!  If there is anything in the house that is in need of repair, now is the time to put those handyman skills of yours to work.  Everything from the loose cabinet handle to the leaky faucet needs to be addressed.  I know that you have been putting off these little projects for quite some time and they aren't a necessity to have finished.  Just remember that potential buyers will find these little defects and judge how you maintain a home by them.

10)  Paint it and replace it.  Some of the greatest fixes that you can do to maximize the amount of money that you receive when your house sells are also the least expensive.  A fresh coat of paint can do wonders to the look and feel of a home.  Sure it takes a little time and you have to be patient and do your corners correctly, but it give you great benefits.  Things to consider when picking out your paint colors:  Lighter colors tend to brighten up a room and give it a larger feel.  Bold colors can be very pleasing to your eye, but will they please the potential buyer?  If your color palet is challenged (and you know who you are), seek help from a professional.  As for the replace it part of this paragraph, your house will shine with new carpets.  If your carpets aren't that old and are in decent shape you can just have them shampooed.  If they are torn or tattered, get them replaced.  You will recoup the cost of flooring in your main living spaces 99% of the time.

Do you have some questions, comments, or concerns about what I have proposed to you here?  Post them here for answers and review.  Selling real estate can be a much less stressful proposition if you have taken the time to make sure that your home is ready to be sold.

Jason Tangen

www.stcloudedina.com

www.stcloudedina.com/blog - REAL ANSWERS for REAL ESTATE in St. Cloud, MN

[ Yahoo! ] options

September 15, 2007

What's the most important thing when selling a home?

I'm often asked what the single most important thing is when selling a home when I'm out and about.  It's kind of tough to answer because each real estate transaction is different and therefore what is extremely important in selling one home could be a total non-factor in selling a different one.  Below is a list of the four most common answers I will end up using in everyday real estate sales:

1) Location

2) Curb Appeal and Staging

3) Marketing

4) Price

If I had to pick out of these four what I think is the most common reason for a home to not sell within a specified period of time, I would generally pick the price.  Price is the one variable above that can basically trump all of the others.  Anything at the right price will sell.  The nice thing about this list is that most items above are in fact changeable.  If you aren't getting the utmost in internet advertising from your real estate professional, ask for it.  If you haven't already done so, and your real estate agent has not provided a free consultation, you might want to consider getting a staging evaluation from a professional.  The one thing above that you generally cannot fix is the location (short of picking uo the house and moving it onto another lot).

 Jason Tangen

www.stcloudedina.com

[ Yahoo! ] options