DRG Real Estate Blog

The Minneapolis residential real estate market in 2023 is shifting towards a buyer's market, with an increasing number of unsold homes. Factors such as rising interest rates, global changes (e.g., war, inflation, employment uncertainty), and longer listing durations contribute to this trend. In a buyer's market, there is an excess of inventory, typically over six months' worth based on closed sales. In contrast, a seller's market has less than three months' worth of inventory, while a neutral or balanced market ranges from three to six months.

Here are the top ten reasons why homes fail to sell and how to address them for a successful sale:

1) Improve Photo Order:  To captivate potential buyers in today's era of decreasing attention spans, it is of utmost importance to optimize the order of photos to showcase the most appealing features right from the start. Instead of commencing with the front view of the house, consider strategically placing the top five most captivating photos at the beginning of the listing. By doing so, you will effectively engage prospective buyers and instantly draw their attention to the most enticing aspects of the property.

2) Avoid Price Band Errors:  Many homes are priced with figures ending in 9s, such as $499,990 instead of $500,000. However, this can be a significant mistake. Real estate websites and apps typically use price ranges that consist of whole numbers, like $300,000 to $400,000 or $400,000 to $500,000. When a home is listed at $499,990, it falls outside the search range for buyers looking in the $500,000 to $600,000 range. As a result, potential buyers in the higher price range won't come across the listing, while those in the lower range may have already reached their financial limit. Conversely, if the property were priced at $500,000, it would be visible to both groups of buyers.

3) Do Your Home Work:  Prior to listing your property, it is crucial to thoroughly investigate and assess its legal status. This includes checking for any open permits, violations, or additional liens that may affect the sale process. To ensure a comprehensive evaluation, it is highly recommended to enlist the expertise of professionals such as attorneys or Realtors who specialize in conducting due diligence. Their knowledge and experience will enable them to identify any potential issues and address them promptly, thereby streamlining the listing process and enhancing the marketability of your property.

4) Real Social Media Marketing:  Effective social media marketing is often overlooked by many Realtors and sellers who lack the expertise in leveraging these platforms. However, investing time and effort into understanding the target audience and implementing proven social media strategies can lead to significant improvements in marketing results, allowing for wider reach and better engagement with potential buyers.

5) Owners' Real Work:  One crucial aspect of selling a home that owners often overlook is the importance of properly staging and preparing the property before listing it on the market. Rushing to market without allocating adequate time to stage the home, remove personal photos, and declutter can have a negative impact on buyer interest. Taking the time upfront to create an inviting and visually appealing space can make a significant difference in leaving a lasting impression on potential buyers. By investing effort in staging, depersonalizing the space, and decluttering, owners can ensure a great first impression, capturing the attention and interest of prospective buyers right from the start.

6) Choose the Right Realtor Expert:  When it comes to choosing a Realtor to assist with your real estate transaction, it's essential to avoid the common mistake of simply hiring a family member or friend without thoroughly considering their qualifications. While personal connections can be valuable, it's crucial to prioritize expertise and experience in the field. Take the time to interview multiple real estate agents, carefully assessing their track record, marketing strategies, and client testimonials. Look for a Realtor with a proven history of successful transactions, effective marketing plans, and satisfied clients. By selecting the right Realtor expert, you can ensure that you have a professional by your side who can navigate the complexities of the real estate market, provide valuable guidance, and ultimately help you achieve your goals.

7) Build the Right Network:  Avoid sending generalized email blasts to irrelevant recipients. Categorize recipients and tailor communication to specific groups, ensuring higher open rates and preventing emails from being marked as spam. Establish relationships with agents and buyers in the target area to enhance visibility and potential leads.

8) Professional Photography and Videos:  Investing in high-quality professional photography and videos will create a positive first impression. Cutting corners in this area can negatively impact buyer interest.

9) Improve Accessibility:  Make the home easily accessible for showings by keeping it show-ready at all times and providing keys to Realtors for convenient viewing. Flexibility in scheduling will increase the likelihood of attracting potential buyers.

10) View from a Buyer's Perspective:  When determining the price of your property, it is essential to adopt a buyer's perspective rather than relying solely on automated home valuation sites or past sales data, as this approach may result in inconsistent pricing. To set a competitive price that attracts motivated buyers, it is crucial to consider factors such as the current competition, recent sales, and market trends. Conduct a comprehensive analysis of similar properties that are currently listed for sale in your area to gauge their pricing strategies and market positioning. This will provide valuable insights into the prevailing market conditions and help you make informed decisions regarding your own pricing strategy. By adopting a buyer's perspective and leveraging up-to-date market information, you can set a compelling price that not only accurately reflects the value of your property but also appeals to potential buyers who are actively searching for properties in your area.

By addressing these key factors, sellers can increase their chances of selling their homes promptly and effectively in the Minneapolis residential market. Contact a DRG Minneapolis Expert today Info@DRGMpls.com / 612-777-8005