Businesswise, What’s Odd about Selling Your St. Cloud Home?

Dated: 05/08/2020

Views: 162

Looking at the prospect of selling your St. Cloud home from a purely business perspective, it has some odd sales attributes. Pricing is definitely one of them.

Consider how manufacturers arrive at a selling price for the things they make. Before even beginning to lay out their production line, the target sales price for their product is usually pretty well pegged. First, the cost of production is taken into account, determined by the quality of the raw materials, the amount of labor that will be needed, the outlay for equipment, rent, etc. (etc.=all the overhead costs of running the business).

The dollars are tallied, a target profit margin selected, and that’s it—so long as the manufacturer judges that selling price will be competitive. Later, the buying public (the “market”) will determine if the sales price should be adjusted, up or down.

Selling your St. Cloud home, on the other hand, weighs in with only one of those factors: the one about being competitive. If a home costs $500,000 to build—but similar homes are priced (and selling) for $900,000—the original cost of construction won’t factor into the asking price. If substantially similar homes are currently listed at $400,000, the same applies—it’s highly unlikely that the property will bring in anything close to that $500,000.

So it might seem that determining the asking price for a home puts the homeowner in a terribly passive—even weak—position compared with other business propositions. In one sense, that’s true. But in the vast majority of cases, the competitive asking prices are eminently reasonable. They’ve been arrived at by negotiation—and the other neighborhood sellers are seldom prone to underestimating the value of their own listed properties. If one seller has been overly accommodating, that “comp” will stand out like a sore thumb. Oddball comps never have undue influence on subsequent sales.

One of the most important elements of a successful sale is developing an on-target asking price from the get-go. When it’s time to explore how your own property stacks up, I hope you’ll give me a call!

                                                          White 2-storey House

Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

Five Office Locations To Serve YOU!

Saint Cloud 320-259-4554
Princeton 320-983-3555
Maple Grove 763-565-2000
Hutchinson 320-455-9127
Litchfield 320-298-1140

Premier Real Estate specializes MANY areas around Central MN including Saint Cloud, Waite Park, Rice, Royalton, Sartell, Royalton, Little Falls, Cold Spring, Saint Joseph, Elk River, Monticello, Ramsey, Saint Michael, Andover, Ham Lake, Anoka, Champlin, Buffalo, Glencoe, Brownton, Silver Lake, Kandiyohi, Dassel, Minneapolis, Maple Grove, Saint Louis Park, Saint Paul, Robbinsdale, Crystal, New Hope, Brooklyn Center and more!

Blog author image

Noel Johnson

Passion for investing in real estate brought me to create Premier Real Estate Services in 2002. Years of purchasing, developing, and managing several rental properties, while assisting friends & cli....

Latest Blog Posts

St. Cloud Mortgage Rates Make History

For St. Cloud mortgage interest rate chroniclers, this month began with the culmination of a trend that’s been playing out for quite some time. It’s “the other shoe” that

Read More

For St. Cloud Homeowners, Potting Season is Game On!

We’ve arrived at the familiar post-Mother’s Day time of year. The birds are cheering up everyone’s St. Cloud mornings with their noisy springtime come-hither commotion. Out in the

Read More

A Rosy Report, St. Cloud Homes, and a Prediction Draught

Last Thursday was the regular release date for ATTOM Data Solution’s quarterly Home Equity report. This year, ongoing events created the need for some additional commentary.As the &ldquo

Read More

Businesswise, What’s Odd about Selling Your St. Cloud Home?

Looking at the prospect of selling your St. Cloud home from a purely business perspective, it has some odd sales attributes. Pricing is definitely one of them.Consider how manufacturers arrive at a

Read More