Setting The Price Of A Twin Cities Home In Minneapolis Or St. Paul

By Author: Chuck Harris
Total Articles: 81
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Most home sellers in Minneapolis will consult a number of sources when determining where to set the price of the home they're selling. Some will talk with neighbors, many will consult Zillow and most will talk and meet with at least two real estate agents in the area. Minneapolis real estate agents are bound by a code of conduct which encourages them to provide the client with an ACCURATE comparative market anlaysis (CMA), however in practice I've frequently seen Minneapolis REALTORS® inflate the CMA in order to get a listing.

You're probably wondering why a real estate agent would inflate a homes value and how doing so might get them a listing. Think about it this way. You're a home owner in Minneapolis and you're planning to interview three twin cities real estate agents before choosing the right REALTOR® to sell your home. Each of the three Minneapolis REALTORS® give you a different home valuation. Determining a homes value is certainly more of an art then a science, so it is logical that all three values will be different. The home values come in at $300,000, $315,000 and $340,000. Most people reason ...
... that the real estate agent who valued the house at $300,000 is just looking for an easy commission and they're trying to convince the home owner to under price the home for a quick sale. They reason that the Minneapolis agent who values the house at $315,000 doesn't see the homes true value. Finally they decide to list the house with the real estate agent who valued the house at $340,000 the highest valuation. This must be the best agent, he's going to get the home owner the most money for their house. He's showed them comparable homes that the other agents didn't include in their valuations and he really sees the homes true value. What's really going on here? The Minneapolis agent who got the listing at $340,000 included "comparables" that weren't really "like properties". He's not a better agent, he's just been around the block long enough to know that if he gets the listing he'll easily be able to convince the sellers after the house has been on the market for a while, that home values in Minneapolis are falling since they listed the house for sale and now they need to reduce the price to stay competitive. At this point, the REALTOR® will try to get the seller to reduce the price as far as possible, so that he can actually sell the place and make his commission.

Don't fall for this trick! Real estate agents all over the country do this over and over again to clients and it's part of the reason housing inventory levels are at historic highs. The reality is that almost every home owner in Minneapolis and across the country who purchased or refinanced a house in the past five years in under water and needs short sale help, but there aren't enough real estate agent out there who are able to have an honest conversation with home owners about their situation and their options and there are even fewer real estate agents who are comfortable, knowledgeable and experienced negotiating short sale.

Please REALTORS® be honest with your clients about the value of their homes and let's get this market moving again. You can know more at http://agentsranking.com

Author bio:

Chuck Harris is the founder of Agents Ranking; a Minnesota company that helps home buyers & sellers throughout Minnesota connect with the best real estate agent for their particular needs. It provides a unique free consulting service to those who want the best Minnesota REALTOR® possible. Know more about Minneapolis real estate agents at http://agentsranking.com