Real Estate

The $27,000 Pricing Gap: What Buyers and Sellers Need to Know

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If you’re planning to buy or sell a home in 2025, there’s a key trend you need to know: buyers and sellers aren’t seeing eye to eye on price. A recent Clever Real Estate survey revealed a $27,000 gap between what buyers expect to pay and what sellers hope to get. Buyers are budgeting around $386,507, while sellers are aiming for $413,976.

So, what’s driving this pricing gap, and how can you navigate it? Let’s break it down.

What’s Behind the $27,000 Pricing Gap?

Sellers Are Riding High on Confidence

After years of rising home prices, sellers are entering 2025 with optimism. In fact, 74% of sellers believe they’ll sell at or above asking price. However, with market conditions stabilizing, these high expectations may not always align with buyer budgets.

Buyers Are Feeling the Pinch

On the flip side, buyers are grappling with rising mortgage rates and affordability challenges. Nearly 68% worry escalating prices will delay their purchase plans. Budget constraints often lead to tougher negotiations or missed opportunities.

While 87% of buyers and sellers expect strong demand in 2025, housing economists predict smaller price increases compared to previous years. This stabilization could mean buyers have more negotiating power, while sellers might need to rethink pricing strategies.

Tips for Buyers: How to Bridge the Gap

Navigating the $27,000 gap can feel overwhelming, but these strategies can help:

  • Know Your Market: Research local home prices and trends. Being informed gives you an edge in negotiations.
  • Be Flexible: If you can’t meet the asking price, consider other ways to sweeten your offer, like flexible closing dates or waived contingencies.
  • Leverage Stabilizing Prices: Slower price growth in 2025 could work in your favor during negotiations.

Tips for Sellers: Attracting the Right Offers

Sellers, getting top dollar means setting realistic expectations and preparing your home to shine. Here’s how:

  • Price Strategically: Partner with a local real estate expert to price your home competitively. Nearly 49% of agents agree pricing is the key to a quick sale.
  • Stage Your Home: Professional staging or high-quality photos can help justify your asking price.
  • Stay Open to Negotiations: Flexibility can mean the difference between a quick sale and a prolonged listing.

What the Pricing Gap Means for the 2025 Real Estate Market

The $27,000 pricing gap highlights a broader trend in the housing market: cautious buyers versus confident sellers. Bridging this gap will require both sides to adjust their expectations. For buyers, it’s about realistic budgeting and smart negotiations. For sellers, it’s understanding market trends and pricing your property to attract serious offers.

With the right strategies and a little compromise, 2025 could be a great year for both buyers and sellers.

TL;DR

  • Buyers expect to spend $386,507, while sellers aim for $413,976—a $27,000 pricing gap.
  • Sellers are confident, but buyers are cautious due to rising costs and mortgage rates.
  • Strategic planning and realistic expectations are key for navigating the 2025 real estate market.

Are you ready to tackle the 2025 housing market? Let’s work together to achieve your goals!

Twin Cities Market Report For March 2024

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Last month I mentioned that we were really starting to see interest in the market heating up. February showed just how intense that interest really was. Showings jumped from up about 4.7% over the previous year to an increase of 13.6% over the same time last year! And if we talk about how this data is a little bit lagging I can also say that next month I bet we break over a 15% increase.

We also saw a huge increase in the number of new listings starting to come online this past month as it was up 36% over the same period last year. With that many new listings I’m not surprised that the number of days on market ticked up a couple of days as well. I think this clearly shows that there were people waiting for the spring market and who have probably been waiting awhile to list their homes due to the higher interest rates the last 20 months.

Interest rates have leveled off for the most part and we’re not seeing huge swings up and down right now. This brings a level of certainty for buyers who might have been scared off by the constant roller coaster of rates we were on before.

If you are thinking about making a move this year you should be talking to a real estate professional and coming up with a strategy for exactly what you are going to do. Having a conversation and coming up with a strategy is not a commitment to doing anything…it’s just a solid plan based on your unique situation.

A Warm Brew and a Welcoming Store: VENDELLA Coffee Haus in Eagan, MN

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Nestled amidst the bustling streets of Eagan, Minnesota, lies a haven that transcends the chain coffee shop experience. VENDELLA euro boutique & coffee haus isn’t just about caffeine fixes and quick bites — it’s a tapestry woven with warmth, community, and a touch of European charm. Stepping into VENDELLA feels like stepping into a friend’s living room, where the aroma of freshly brewed coffee mingles with the scent of homemade pastries, instantly inviting you to relax and unwind.

But VENDELLA’s magic lies beyond its inviting atmosphere. It’s the story etched into every detail, a story born from the passion of a family with diverse roots. The owners have poured their cultural heritage into every aspect of the cafe. The menu boasts a delightful array of European-inspired dishes, from the savory richness of Käsebrote (open-faced toasted sandwiches) to the delicate sweetness of Swedish pastries. Each bite is a journey across continents, prepared with fresh, local ingredients and a touch of family tradition.

But what truly sets VENDELLA apart is its heart. It’s a place where community thrives, where strangers become friends over steaming mugs and shared laughter. The owners, fueled by their passion for gathering people, have created a space that welcomes all. Whether you’re seeking a quiet corner to curl up with a book or a vibrant space to host a gathering, VENDELLA embraces you with open arms.

Here’s a glimpse into what awaits you at VENDELLA:

  • A culinary adventure: Embark on a taste bud trip with their diverse menu, featuring breakfast delights like toasted bagels and croissants, lunch options like Käsebrote and salads, and sweet treats like homemade pastries and smoothies. For the adventurous, there’s even a secret menu featuring unique items like the Black Forest Mocha, which I highly recommend for any chocolate and cherry lovers.
  • A haven of comfort: Immerse yourself in the warm and inviting atmosphere, perfect for unwinding with loved ones or enjoying a moment of solitude with a good book. The cafe exudes a sense of homeyness, with its wooden tables, cozy armchairs, and warm lighting.
  • A treasure trove of European delights: Discover unique gifts and home decor in the boutique section, each piece carefully curated to reflect the owners’ diverse backgrounds. You’ll find items from Germany, Sweden, and Kansas, all chosen with a focus on quality and craftsmanship.
  • A hub for connection: Find a sense of belonging in the community spirit that permeates VENDELLA. Strike up conversations with fellow patrons, participate in events or workshops, or simply bask in the feeling of belonging.

But to truly understand the magic of VENDELLA, you need to visit it yourself. Click the link below check out VENDELLA’s website and discover why this Eagan gem is a must-visit for anyone seeking delicious food, a warm atmosphere, and a sense of community.

Visit VENDELLA’s Website

Twin Cities Market Report For February 2024

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January was a month of continued demand and interest in the market. Compared to a year ago we see are seeing a noticeable uptick in activity from buyers. We saw new listings increase 23% compared to a year ago and sold listings increase 4.2% compared to a year ago. This definitely seems to match up with what I was seeing when watching the market in my area on a daily basis.

The average days on market for a listing to go from active to pending was 54 days. When we look at January of 2019 and 2020 we see that the average time for a house to sell was 63 and 65 days respectively so 54 days is right in line with previous “normal” markets. It’s also important to look at median days on market because it tends to reduce the influence of outliers on the data. The median days on market was 37 days which is down from 42 days last year.

More recently I’ve been noticing homes going to pending status fairly quickly and homes sitting on the market for less time than a month ago. We’re also seeing the number of showings increase year over year by 10%. This is a pretty substantial increase and I think it demonstrates that there is in fact some pent up demand. In the last week or so though we’ve also seen interest rates increase and as a result we’ve seen mortgage applications fall.

Sellers who are in a position to time when they want to hit the market should be getting their homes ready and paying close attention to what interest rates, jobs data, and inflation numbers are doing. Why? Because we saw an influx of buyers and activity that was spurred on by good numbers last month but as that data changed this month the mortgage applications fell. So I think we’ve seen that when rates come down in the 6.5% range or lower there are buyers ready to go and seller’s should be ready to list their property.

I’m not saying you should try to time the market though. Trying to perfectly time anything like real estate is very tough and you should decide to make a move when the time is right for you and your situation.

Homshuk – A New Twist on Mexican Food In Apple Valley

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Photo of the outside of Homshuk in apple valley minnesota

Homshuk, a Mexican culinary haven, boasts a vibrant and diverse menu that captures the essence of authentic Mexican street food with a modern twist. When I went I got the wet burrito which is just a fancy name for a chimichunga and it was amazing! I also had to try their Smoky Tamarind Margarita and it did not disappoint.

The appetizers showcase bold flavors, with dishes like carne asada fries and nachos featuring a medley of ingredients such as jalapeno queso, pico de gallo, and house aioli. For casual eats they have sopes, a traditional treat with thick masa topped with flavorful elements like refried beans and queso fresco. For tacos and burritos they offer a delightful journey through various proteins and inventive combinations, from classic traditional tacos to the mouthwatering wet burrito, a personal favorite at Homshuk. The main courses range from wood-fired options like pollo rostisado to tantalizing dishes like mole con pollo and tampiquena, showcasing Homshuk’s commitment to elevating Mexican culinary traditions.

Homshuk’s style of food caters to those who appreciate bold and authentic Mexican flavors presented in a modern, creative manner. It is an ideal choice for individuals seeking a lively dining experience with a menu that appeals to both traditionalists and those looking for innovative twists on classic dishes. From families enjoying kids quesadillas to food enthusiasts savoring unique specialties like pulpo tacos, Homshuk caters to a diverse audience. The rich variety of meats, flavorful salsas, and inventive combinations make Homshuk a go-to spot for anyone craving an exciting culinary journey through Mexican cuisine.

Check Out Homshuk Here

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