What's Selling: Hopkins

Days on Market: 12

Where: 301 13th Ave. North, near downtown Hopkins

What: 3 BR/2 Bath stucco bungalow with over 1,800 finished square feet; nicely updated.

When: listed 10/29; off market yesterday (11/10)

How much: asking $250k

Who: listing agents -- Stacy and Christina Cranbrook (Edina Realty); selling agent -- Nancy Bourland (Edina Realty)

"We must all hang together, or assuredly we shall all hang separately."

--Benjamin Franklin

The secret to this sale?

The price, location, condition, and curb appeal all helped.

But my educated guess is that the key was the "mini-Broker tour" on Nov. 2 (a week ago Tuesday).

That's when 20 agents with "Active" Hopkins listings -- myself included -- collaborated to all hold our listings open between 11 a.m. and 1 p.m., complete with drawings and catered lunches at many locations.

All that publicity generated lots of traffic, which raised everyone's exposure and resulted in at least two other deals that I'm aware of.

The home is officially "Pending" until it is scheduled to close Dec. 10.

Listings, Shelf Life, & "The Ennui Factor"

How Much is Too Much
Time on the Market?

In most walks of life, qualities like patience and persistence are virtues.

So when are they vices?

In the housing market -- at least one that's not strongly appreciating.*

That's because homes that sit, unsold, for too long become shopworn.

Buyers naturally start to wonder why the home has sat so long, and start to zero in on shortcomings instead of overlooking them (if they come to look at all).

Meanwhile, Buyers' attention naturally turns to new listings, where the excitement and energy level are higher.

"The Ennui Factor"

Which is the other reason time on the market is the enemy of home sellers.

Most Sellers do a very good job having their home "market-ready" the first weeks and months that it's listed.

Ten -- or 50 -- showings later, not so much.

Lights that might have been turned on to greet a prospective Buyer earlier in the listing, aren't.

Ditto for dishes in the sink, freshly vacuumed carpeting, the (formerly) spotless windows, etc.

Or the home is now vacant.

All those factors diminish a home's appeal -- and therefore it's value.

As a result, whereas a modest price reduction earlier in the listing might have been sufficient, as time wears on, a dramatic one is often necessary to re-ignite Buyers' interest.

*In a market that's strongly appreciating, eventually an overpriced home will be market-priced (unless the owner raises their asking price -- which I've also seen).

Pre-Thanksgiving Leftovers

Sizing Up (What's Left of) the Summer Market

Maybe it's just the unseasonably cool weather prompting thoughts of Fall(!), but here's how I see the Twin Cities housing market shaping up between now and Thanksgiving, when things traditionally slow down.

Basically, I think the sub-$500k market has different qualities before and after Labor Day (housing above $500k is likely to mirror overall economic strength or weakness).

Between now and Labor Day, Buyers will have the best selection, and can expect stronger (higher) pricing.

After Labor Day, that will reverse, and Buyers can anticipate softer pricing, but smaller selection.

Swimsuits -- and Houses -- in Feb.

That's so because the Twin Cities market still has a strong seasonal component, with "Spring" (beginning mid-Feb.) the busiest, and Nov. - Jan. predictably the slowest.

Think of it this way: if you listed your home in April, and still haven't sold -- it's time to get serious. Cut the price, invest some money in fix-up, make a final marketing push.

In fact, many home Sellers are already at this point, and alert Buyers will snatch up the most enticing of these homes.

Once this process is complete, what will be left on the market?

The true "leftovers."

Such Sellers will now have to overcome three obstacles: 1) even greater accumulated market time (referred to on MLS as "CDOM," for cumulative days on market); 2) a rapidly closing window to sell before truly cold weather arrives; and 3) a depleted pool of Buyers.

Offsetting these negatives will require a truly compelling (read, low) asking price.