WAYZATA, Minn. - Selling a home has been a frustrating effort for many Minnesotans in recent years, but so far in 2013 the market has become more favorable to sellers.
"We have not seen this for about 10 years, where everything is going in multiple offers," said Alex Boylan, of Edina Realty. "I should not say everything, but the majority of homes are selling with multiple offers. It is frustrating for a lot of buyers, but it is exciting for a lot of sellers."
One of those sellers is Ryan Filloon of Wayzata.
"It was our intention to price it aggressively to kind of open it up to a bigger group of prospective buyers," explained Filloon. "We got a ton of showings right away and we were fortunate enough to get multiple offers within about three days. We (listed) on Monday the 18th and we accepted an offer on the 21st."
The Filloons have a unique 4 bedroom, 6 bath property on a wooded lot in a quiet neighborhood, but their experience is not uncommon, according to realtors and University of St. Thomas experts, who follow the local real estate scene.
"It is basically a shortage," said Boylan. "In the past, everyone was buying all the foreclosures. Foreclosures were being sold before the traditional (homes). Now, there are no more foreclosures. There are not a whole lot of them. So, we are seeing just traditional homes on the market, and unfortunately, there are still people under water. So, they still cannot afford to sell. We are seeing a lot less of inventory coming on the market, but we still have a large number of buyers who are buying homes."
Boylan said would-be buyers are offering $10 to $15,000 over the asking price and the phenomenon is widespread.
"We are seeing it everywhere," said Boylan. "I mean, we are seeing it in Minneapolis, Roseville, St. Louis Park, St. Paul, and Golden Valley. If they lost out on one, two, three homes, and then, they are in multiple offers again, they want to offer whatever it takes to get that house."
"The showings were rampant for three days, just almost nonstop," said Filloon. "Even after we have accepted an offer, we still continue to get a lot of people in through here, just in case that offer falls through or falls off the table."
Andy Fazendin, President of the Minneapolis Area Association of Realtors, told Kare11 that the demand is particularly high for homes priced under $500,000. Realtors said they believe the demand is being driven by first-time home buyers and investors anxious to buy.
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