St. Cloud February Market Update

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We’re experiencing a shift in the St. Cloud market. We had 833 listed homes on the market last week. That’s the lowest we’ve seen since in about fifteen years! In January 2015, we had inventory this low with 989 listings, but it only lasted for a week.

Instead of the normal 1,200 to 1,300 homes on the market, our inventory is quite low. This leads homes to sell in two to eight weeks on average. Likewise, we might begin to see more multiple offer situations in a competitive market climate. This benefits sellers, but makes it more difficult for buyers.

Secondly, we might see home appreciation increase in 2016 with tight inventory. Sellers have the potential to earn top dollar for their properties now compared to the rest of the year. Buyers have the best opportunities to purchase a home right before the start of the spring market, such as in April.

If you’re thinking about buying or selling a home this year, reach out to us by phone or email today! We’d love to hear from you.

Why Are Interest Rates So Low Right Now?

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We've got a short message for you today, but it's an important one. In the last few weeks, the stock market has been going wild. This instability has pushed mortgage rates down below 4%! We aren't sure how long this is going to last so if you've been thinking about making a move, now is a great time to take advantage of these rates.

How Do Real Estate Commissions Work in St. Cloud?

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A lot of people are unfamiliar with how the real estate industry works. Since I'm often asked how I make my living in the real estate industry, I want to briefly walk you through commission splits.

Think about a real estate transaction commission like a pie. If you were to divide it up into four pieces, one piece would go to the listing agent, one would go to the broker that we work for, one would go to the agent working with the buyer, and then the last quarter goes to the brokerage of the buyer's agent. If we had a $4,000 dollar commission, each party in the transaction would get $1,000.

Each party that earns a commission is an independent contractor that is 100% performance based. If we don't get the job done, we don't get paid! Additionally, if we don't sell anything, we have to eat the costs of our expenses, which include marketing, health insurances, and other business expenses. So, in this business, it's crucial to be consistently productive, week in and week out, in order to stay afloat. We have managed to do this for years!

If you have any questions about the benefits of working with an experienced team, or if you need real estate assistance of any kind, please don't hesitate to reach out to us. We would love to hear from you!