An acquaintance in Saint Paul's east side Dayton's Bluff neighborhood, a traditionally depressed area of the Twin Cities with numerous foreclosures and condemnations during the housing crisis, recently put her century-old house on the market for $60,000 higher than what she paid 8 years ago. Her agent, dubious about the post-offer appraisal being able to support that number, had suggested a lower figure, partly due to the house lacking a garage and being in a very mixed-income neighborhood with many properties being valued quite a bit lower. In the end, though, the house sold within 48 hours at approximately $12,000 above the asking price (considering closing costs, etc.), and with multiple offers. Their buyer offered on the house sight-unseen in order to outpace the other bidders.
After much holding-of-breath, the appraisal upheld these numbers in the end, the lender approved the mortgage, and the purchase offer moved forward at $195,000 plus closing costs.
This experience contrasts sharply with a that of a 30-year-old, beautifully-maintained and updated house on a lovely private lot in a Saint Paul eastern suburb that has sat on the market for more than 200 days, with the price having been reduced $40,000 since its first listing date.
Obviously, the differences in locations and property features make comparative market analyses in real estate more of an art than a science, but what makes some properties sell in the blink of an eye with multiple offers, while others languish for months with multiple reductions? More importantly, as you prepare to sell your own property and buy another, which will likely characterize your personal experience? What strategies will your agent bring to the table that can ensure success at both ends of your transactions?
A recent set of Star Tribune articles reports on which areas of the Twin Cities are market hotspots. Check out the links below to see where your house falls in today's market.
- Unlikely New Hot Spots in Twin Cities Housing Market
- Find the Hot Housing Markets in the Twin Cities
- What's My Home Worth?
- Who's Selling in My Area?
Posted by L. Lathrop, for Jim Burns