MANKATO, Minn. (KEYC) — The competition is steep if you’re looking to buy a home in greater Minnesota, as low inventory and historically low interest rates are leading to multiple bids on properties.
Locally in Mankato, it’s a low supply and high demand.
“Right now, I’m seeing that the market is just bananas. It is definitely a seller’s market. There is not a lot of homes on the market. And I think there’s not a lot of homes on the market because sellers are worried about ‘where am I going to go? Am I going to be able to find a home to go into?’,” said Candee Deichman, real estate agent at Century 21 Atwood.
Jason Lieske knows that first-hand, as his wife and four kids are on the hunt for a new home in the area.
“The lack of supply of homes creates a very aggressive demand for all the buyers approved, so when you are approved for those homes you have to act very quickly, sometimes within an hour or a day or you might miss out,” said Lieske.
That’s why Diechman advises buyers to be prepared to make a competitive offer.
“Buyers really should be searching a little bit below what their ideal price point is or they need to be prepared to go above [the] asking [price],” Diechman explained.
“So what’s happening is, if you’re looking for a $200,000 house, there is going to be multiple offers on that $200,000 house, so now you are going to end up paying $205,000, $210,000, [or] $220,000,” Deichman continued. “If you can only spend $200,000 you should look at spending $177,000 [to[ $188,000 or something in a lower price range.”
For sellers, Deichman recommends pricing intelligently.
“Sometimes we even go just a little bit below market [value] so we can get those multiple offers and get above the asking price,” explained Deichman