Minnesota is a hot property destination and according to reports, the market plummeted by 13 percent within a year and the average home seller price increased by 9.5 percent. This is because comparatively fewer houses are getting listed and the demand is high, especially in the twin cities of Minneapolis and St Pauls. The job market is great here; hence, it is a hot sellers’ market.
To make the most out of the market conditions, it is prudent for a seller to choose the right option to sell their house, which will help in saving commissions worth thousands of dollars. With the real estate market getting more flexible, there is more dependency on the internet to find homes. This has opened up a lot of avenues for For Sale By Owner (FSBO) sellers. Here is a brief guide to making a successful sale using Flat Fee MLS Minnesota.
How to sell a house by owner in Minnesota?
When thinking about How to Sell a House By Owner in Minnesota, would seem like a lucrative option for sellers because it saves up to 3 percent of the listing fee and the savings could go up by more than 2.5-3 percent if sellers find buyers without an agent, thus cutting down on the buyer commission. But one has to be well prepared with the documentation, pricing, staging, and ultimately closing.
Sellers who are FSBO can approach a Flat Fee MLS site to give them a package including an MLS listing to sell their house. Additionally, they can also go for basic methods like listing on Craigslist, and Facebook Marketplace and put up a customized yard sign on their home to attract more buyers. But this will need a lot of filtering which is tedious and time-consuming. So, the best way to go is Flat Fee MLS.
Location of the property, its closeness to schools. Additional features in the home like a pool or a fancy patio, and your final listing price dictate the sale of your property.
Real estate commission pricing in Minnesota
The commission rate in Minnesota is quite high. On average, the sellers have to pay around 5.5-6.5 percent commission in total. Sellers have to pay both, the seller and buyer commission. If a homeowner goes through a tried and tested route, he also pays the commission to the realtor who brings the buyer to the table, if the deal sees the light of the day.
This proves that hiring a full-service real estate agent is an expensive affair so going on an FSBO route is a cost-cutting and effective exercise which is rewarding and also gives autonomy to the seller.
Best Flat Fee MLS Minnesota
Minnesota has a lot of options for Flat Fee MLS you should have to choose one depending on your level of expertise in the field of real estate, services you need, the location of the property, and market trends.
Houzeo is one of the most recognized Flat Fee MLS services which provides services as per the package one takes. The services start from $249 to $999 and cover everything from MLS listing for 6 months, photoshoot, customized yard sign, virtual assistance, online interface to manage showings, closing assistance, and help with state and federal disclosures.
It has a good reach and can provide maximum exposure as Houzeo syndicates all their listings with Zillow/Trulia and other major real estate websites enjoying massive traffic.
Another benefit of going for Houzeo is that there are no hidden fees, total transparency, and cutting-edge technology which eases the red tape associated with real estate.
2: Minnesota Flat Fee MLS
This is one of the cheapest Flat Fee MLS available. They offer only two packages for $99 and $149 and they are pretty basic. They give MLS listings along with photos. They also give state disclosure forms and the best part about Minnesota Flat Fee MLS is that they disclose full information of the seller hence buyers can directly contact them. This is great for FSBO sellers looking for buyers who are not represented by agents, thus saving up on buyer commission too.
Also, sellers can make innumerable changes to their listings without having to pay the extra charge. While Minnesota Flat Fee MLS provides the necessary documentation, they have not fully digitized this process hence clients have to do some amount of legwork which could be tedious to FSBO sellers.
3: 123 Flat Fee Minnesota
This service is limited to only certain areas of Minnesota and offers two packages at $399 and $599. The best feature of this site is that they offer Home Valuation Report and online showing service for both packages. In addition to this, the premium package entails services like online real estate showings, review of recent sales, contract review, and closing assistance.
For inexperienced FSBO sellers, they offer full service at $799+1%.
Beycome is a Flat Fee MLS service based out of Miami and offers listing services at $99. They have a good technological interface and give a basic MLS listing at a cheap rate. They also promise to return your money if you don’t sell your house within 90 days.
Even though Beycome helps with the pricing, there is no other assistance given for the documentation and permissions needed for the sale. Hence, it is difficult for inexperienced FSBO sellers to work with this.
5: I Sold My House
Another option is I Sold My House which offers basic MLS listing, open house facility, and direct transfer of all buyer leads to the sellers. Apart from this, the seller is responsible for the marketing of the property. The price range is $299 to $399.
Important pointers for FSBO sellers in Minnesota
FSBO sellers need to be extremely careful with the documentation before preparing the house for sale. Sellers are legally binding to share the following documents to make a sale in Minnesota.
A: Valid photo identification like a passport or driver’s license
B: Signed sales agreement
C: Signed Deed
D: Closing statement
E: Bill of Sale with both seller and buyer signature
After getting these basic documents ready, the seller also needs to possess loan or mortgage documents, if any. They also need to keep home renovation proof, survey results and home inspection reports, and most importantly home warranty details.
Minnesota is also strict about sellers maintaining Seller’s Property Disclosure, Lead-Based Disclosure, and Flood Statement.
It is always recommended to have an expert look at the documents before going ahead with the sale.
To sell a house by owner in Minnesota is not at all tough if one signs up for an appropriate Flat Fee MLS package which saves seller and buyer real estate commission. While choosing a Flat Fee MLS one has to be careful about hidden fees upon closing and calculate if one is saving with this exercise. Also getting pricing right will take a long way for sellers to crack a great deal.
Also, FSBO sellers need to be accurate with all the paperwork and permissions needed to make a sale and also have an expert review the buyer’s documentation so that the sale does not fall through later. Marketing the property and managing showings also are crucial elements of selling a house and sellers should be adept in the same.
There are many options to explore in Flat Fee MLS Minnesota and sellers should wisely take their pick, carefully considering all factors.