Thinking of selling, but don't know where to start? Recently I've been asked by a number of potential sellers, "How do I choose a REALTOR®?" Here is what I recommend in a step by step process:
1. Choose up to 3 REALTORS® to interview. The most common way to pick is by referral from a friend or family member. If you don't have a referral you can choose based on online reviews and profiles.
2. Set up appointments with the REALTORS® to come out and give you a Comparable Market Analysis (CMA) on your home and present a Marketing Plan, this may be a 2 step process. They may need to view your home and go back to do research and prepare the CMA.
3. Review their Comparable Market Analysis. Upon the REALTOR® viewing your home they should provide you with a written CMA which shows you what comparable homes to yours have sold for in the past 6-12 months and what is currently on the market, which will be your competition. Pricing is the single largest factor in selling your home, so pricing it right and not over pricing is extremely important. One of the most common misconceptions is that you should choose the REALTOR® that tells you the highest price your home will sell for. Do not do that!
4. Choose based on qualifications. Make sure they are licensed, full-time, a member of the National Association of REALTORS® and a member of the MLS. Ask how many years of experience they have and how many homes they have sold. This is important because some REALTORS® have all these qualifications but only sell a couple homes per year.
5. Ask how they will market your home. A good REALTOR® will have a Marketing Plan prepared for you that lays out where they advertise and what marketing activities they will be doing to get your home sold!
6. Choose a REALTOR® who listens and understands your needs and desires. This person will be assisting you with possibly one of your largest financial transactions of your life so you should enjoy working with them and trust them.
Any further questions or comments? Don't be afraid to ask!
Friday, May 16, 2014
Friday, January 17, 2014
2013 Bemidji Real Estate Market Year in Review
Happy 2014 Everyone! 2013 was a great year for the Bemidji real estate market. Let's start off with the stats:
What does this mean? More homes were sold and they sold in less time! For many markets around the country, 2013 brought multiple offers, bidding wars and appreciation. In Bemidji, we always see a miniature version of what they see in larger metro markets. For example, during the boom we didn't see sky high prices likes some in metro areas, during the recession we didn't fall as sharply, and now in recovery we don't have that far to go to recover.
The list price to sale price ratio of 95% means that homes in our area were being priced fairly according to what the market could bear and our inventory was sufficient for the number of buyers. Those factors make for a stable real estate market.
Finally 10% of all homes sold in Bemidji were bank owned?! This may be a surprise to some of you! Here are a few factors that contribute to this seemingly large percentage:
While I don't have a crystal ball to tell you with certainty what will happen in 2014, with 11 years of experience in the Bemidji real estate market, I have some pretty good predictions. I predict we will continue to see foreclosures coming on the market, but fewer than years past. I predict interest rates will rise but continue to stay affordable. I predict that home prices will be stable and buyers will continue to buy at the same rate we saw last year. And lastly, I predict we will see more "move up" buyers as the economy continues to recover and consumer confidence returns.
Here's to 2014! I wish you all peace and prosperity!
429 Listings Sold in 2013 (up 9% from 2012)
955 Properties were on the market in 2013
Average Sale Price was $164,447 (Up 1% over 2012)
List to Sales price ratio remained the same at 95%
List to Sales price ratio remained the same at 95%
Average Days on Market were down 12%
10% of homes sold were bank owned
10% of homes sold were bank owned
What does this mean? More homes were sold and they sold in less time! For many markets around the country, 2013 brought multiple offers, bidding wars and appreciation. In Bemidji, we always see a miniature version of what they see in larger metro markets. For example, during the boom we didn't see sky high prices likes some in metro areas, during the recession we didn't fall as sharply, and now in recovery we don't have that far to go to recover.
The list price to sale price ratio of 95% means that homes in our area were being priced fairly according to what the market could bear and our inventory was sufficient for the number of buyers. Those factors make for a stable real estate market.
Finally 10% of all homes sold in Bemidji were bank owned?! This may be a surprise to some of you! Here are a few factors that contribute to this seemingly large percentage:
- If a bank owns a home they have to sell it. Not all homeowners have to sell.
- Banks will continue to drop their price until it sells. Not all homeowners can afford to use this type of strategy.
- We are seeing homes finally come on the market that went through the foreclosure process over 2 years ago!
While I don't have a crystal ball to tell you with certainty what will happen in 2014, with 11 years of experience in the Bemidji real estate market, I have some pretty good predictions. I predict we will continue to see foreclosures coming on the market, but fewer than years past. I predict interest rates will rise but continue to stay affordable. I predict that home prices will be stable and buyers will continue to buy at the same rate we saw last year. And lastly, I predict we will see more "move up" buyers as the economy continues to recover and consumer confidence returns.
Here's to 2014! I wish you all peace and prosperity!
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