Home values have gone up 12.8% over the past year in the North Star State. It is the best time to be selling a house in Minnesota.
» Jump To
- Best Time to Sell
- Pricing Your Home Right
- 3 Ways to Sell Your Minnesota Home
- Prepping & Marketing Your Home
- Managing Showings & Offers
- Paperwork in Selling Your Minnesota Home
- Closings in Minnesota
- Final Word
1. Best Time To Sell Your House In Minnesota
Selling your house at the right time can fetch you the best possible price. Summers are the best time to put your house for sale in Minnesota. For instance, in Duluth, if you sell your home in June, you can save 2.15% more than the yearly average.
That said, practically all of Minnesota is a vibrant seller’s market. And mortgage rates are expected to rise in 2022, which may affect buyer demand and Minnesota real estate sales. Most of Minnesota is a hot seller’s market. This guide summarizes the steps for selling your house in Minnesota.
» Best Time to Sell a House in Minnesota: Know When’s The Best Time to Sell a House in Minnesota.
2. Price Your Home Competitively
As a seller, pricing your property right is important. It is also important to keep in mind that the price you list your home at determines the popularity of your Minnesota MLS listing and brings in foot traffic. The list price itself doesn’t determine what your sale price is.
REMEMBER! The purpose of the LIST PRICE is to ATTRACT BUYERS to your listing. Your LIST PRICE is not your SALE PRICE!!!
How to sell a house in Minnesota with the right pricing?
|If you price it too low||It is most likely that you will get multiple offers. You’ll likely go for “Highest & Best Offer” or counter the best offers to finalize the sale price with the buyer. And you will sell at market price.|
|If you price it too high||You will get little traffic. It’ll make you drop the price, and you will sell at the market price.|
Real estate agents create what’s called a Comparative Market Analysis (CMA) to determine what’s an ideal listing price for a property. If you are opting for FSBO Minnesota then you can easily create your CMA with Zillow and Redfin and understand how to sell a house by owner in Minnesota.
3. Options For Selling A House In Minnesota
You have various pathways when it comes to selling a house in MN. Selecting the right one at the right time can help you save thousands of dollars.
Option 1: Sell Your Home For Sale By Owner
One way to bypass the hefty Realtor fees/commissions in the state of Minnesota is to sell your house For Sale By Owner (FSBO).
It is a DIY approach with no listing agent involved. Sellers have maximum control over the entire process but have to handle all the paperwork with no oversight.
The idea of selling your home FSBO in Minnesota has its drawbacks. Though you save up on the commission money, you will have to handle everything – listing, marketing, negotiations, closings, etc. – on your own.
» Best FSBO Sites: Check out the best For Sale By Owner websites in 2022!
🚩 Key Downsides of Selling Your Home For Sale By Owner:
- No MLS Exposure: MLS is the most important tool an agent has. Selling FSBO means limited exposure, so there will be less competition for your property. That will likely reduce the selling price. One study found that homes on the MLS sold for 17% more than homes not on the MLS.
- No Help If You Need It: If you need help with paperwork, inspections, negotiations, or closing, you’re on your own as a For Sale By Owner.
Option 2: List With A Traditional Full-Service Agent
You can always hire a full-service agent to help you sell your home. From listing to closing, the agent will help you with everything. But of course, you’ll be paying a full 2.5% to 3% listing agent commission.
🚩 Key Downsides of Listing With a Traditional Full-Service Agent:
- Hefty Commissions Will Cost You Thousands: Average real estate commission in Minnesota is 5% to 6%. That’s thousands of dollars of fees in commissions.
- Limited Control Over Your Sale: Everything will go through an agent. That reduces the risk that you will do something wrong, but will also limit the control you have over your transaction. For almost everything, including if a counteroffer was submitted, the status of your closing, and how many showings you’ve had, you’ll have to reach out to your agent.
- Slow & Manual Process: Realtors in Minnesota do things manually. A simple price change is several steps – the agent has to talk to you over the phone, create a price amendment, get you to sign it, then sign it, and only then can they update the price on the MLS.
Best Option: For Sale By Owner with a Flat Fee MLS Listing
The average real estate commissions in Minnesota are 5% to 6% i.e. for a house sold at $450,000 commission is around $27,000. Listing with a high-tech website like Houzeo.com saves you the listing agent commission. In addition, it gets you maximum exposure to the MLS and helps whenever you need it.
✅ A Flat Fee MLS Listing Service Combines the Best of Both Worlds:
- Save Thousands in Commission: Instead of paying a 2.5% to 3% listing agent commission, you just pay a $299 listing fee.
- Maximum Exposure: You get full exposure to the MLS, Zillow, Realtor.com, Redfin, and hundreds of other websites.
- Help When You Need It: Services like Houzeo.com offer the “Contract to Close Coaching Package”. So if you need help during the transaction at any time, a licensed broker is there to help you sell!
- Full Control Over Your Sale: You retain full control over when to sell and who to sell. Houzeo captures all leads and displays them on your dashboard. All offers and showings are summarized online, along with the buyer’s or their agent’s contact info. It doesn’t get easier.
- Fast Listing & Changes: Houzeo is 100% online, and allows you to request changes instantly. Contracts are auto-generated, and turn-around times are fast!
- A-la-carte Options: Need a yard sign, ShowingTime, or lock box? You can purchase them easily from your Houzeo dashboard!
👉 Houzeo Reviews: Home Selling made easier with Houzeo.com!
Houzeo, an online real estate tech company, provides an unbeatable combination of maximum savings, cutting-edge technology, and 5-star customer support.
💰 Save Thousands on Commission: Houzeo’s plans are typically a small flat fee. This will save you thousands. If your buyer is unrepresented, you save the buyer agent commission as well.
📣 Maximum Exposure: Listings get syndicated to the MLS, Zillow, Realtor.com, Redfin, Trulia, and hundreds of other websites. Houzeo also has nifty social media sharing tools. No other platform gives you this much exposure.
⚡ Fast Listing & Changes: Houzeo is 100% online. Listing is easy and changes are fast. So you can focus on what is most important – your sale.
⭐ 5-Star Customer Support: Home sellers across America have rated Houzeo 4.9 out of 5 stars on major review sites like Google and Trustpilot. There is comfort in the fact that when you call, there is a live person picking up the phone on the other line.
📱 Cutting-edge Technology: Houzeo is the most powerful real estate website. Its advanced features include:
- IntelliList Listing Management System: Lets you manage your listing 100% online.
- Houzeo Showings: Manage showing appointments online.
- Houzeo Offers: All offers are summarized online. You can view and compare offers, or counter an offer. In a multiple-offer situation, you can also call for highest and best offers.
- Buyer Search: Buyers can contact you directly on Houzeo.com instead of going through a real estate agent.
- Houzeo Settlement Agent Platform: Guides you to your closing.
👉 Our Take: Houzeo.com is our top pick because it delivers an unbeatable combination of savings, tech features, and service of any flat fee MLS listing service website we’ve reviewed.
- Nationwide coverage
- Listings get syndicated to Zillow, Realtor.com, Trulia, Redfin, and 100s of other sites
- Quick listing (within a day with concierge)
- Savings on commissions
- 100% online – easy listing, fast changes, online showings, and online offers
- Mobile app availability
Houzeo is available nationwide.
» Flat Fee MLS Minnesota: Research Best Flat Fee MLS Companies In Minnesota
Option 3: Other Discount Real Estate Brokers
Apart from Flat Fee MLS Listing Companies, there are three other types of discount real estate brokers you can choose from.
Flat Rate Brokers
A flat rate is a fixed amount the seller pays the broker. Flat-rate brokers are predominantly full-service brokers. They handle everything from listing to closing. These fees are fixed and do not change as per your home’s services or the selling price.
A flat rate is perfect for homes priced on the higher end. Let’s say your house is valued at $450,000 and you pick a flat-rate pricing model of a $3500 listing fee. If you opt for the traditional agent route, you would have to pay a Realtor commission of around $27,000.
Apart from the buyer agent commission, you will also be responsible for concessions, escrow fees, and warranties.
Our Top Pick For Flat Rate Brokers
🏢 About: Home Avenue Flat Fee Realty is located in Minneapolis, Minnesota. They have been in business for the last 30 years, have sold 28,000 homes, and have saved over $190,000,000!
💼 Packages: $3,495 is an all-inclusive fee that provides a complete service with Realtor representation. In the breakdown, the seller gives $595 at the beginning of the deal and $2,900 at the closing.
📜 Note: In addition to the flat fee of $3495, Home Avenue charges a $395 Broker Administrative at closing.
📶 Recognition: Home Avenue Flat Fee Realty has been featured in the Minneapolis Star Tribune, Wall Street Journal, KARE 11, and more.
- MLS Listing until sold with 24 photos
- In-home Market Analysis
- Educating the seller about all city code compliance
- Home saleability tips and suggestions
- Showing appointments
- Professional photoshoot
- 6 foot professional yard sign
Home Avenue Flat Fee Realty has a 4.8-star rating out of 5 on a credible site like Google reviews.
Home Avenue Flat Fee Realty serves only the state of Minnesota.
Low Commission Real Estate Agents
A low commission realtor or an agent is a discount real estate broker who works on a lower commission rather than the traditional 3% commission.
With the rise of the flat fee model and commission-based models, real estate commissions have been falling gradually. This makes low-commission real estate companies in Minnesota more relevant to sellers nationwide.
For example, some of them offer full-service packages at 1 or 2% brokerage. This covers everything from listing to closing.
Our Top Pick For Low Commission Realtors
🏢 About: Ideal agent provides a free-of-cost agent matching service, and there is no obligation to work with the recommended low-cost real estate agents. The company has strong criteria for selecting agents, which means only the best for you. (only top 1% sale producers).
💼 Packages: Ideal Agent helps the sellers find quality low commission real estate agents. A traditional brokerage has 3 commission realtors while the listing fee on Ideal Agent is 3%, which means you are saving a lot more than you would the traditional way.
📜 Note: It is required by the sellers to talk to the concierge on the phone post to which an agent is assigned. This does create a delay in the selling process. On average, a seller saves approximately $3000 – $4000 while listing with Ideal Agent.
- Qualified agents
- No obligation to choose an agent
- Add-on services like professional photos and more
- Good customer service
- Good savings
- Single-agent match
- No customer dashboard
Ideal Agent has an on TrustPilot.
Ideal Agent is available throughout the U.S.
Virtual Full-Service Brokers
A virtual full-service broker does everything a traditional broker would do i.e. listing, marketing, pricing, negotiating, etc. The only difference is that a virtual full-service broker would do all of these online i.e. virtually.
Because of their cloud-based presence, they have many advantages. Such as lesser fees, discounted commissions, and much better management and marketing support. Many MLS listing companies like Houzeo, also provide full-service options that are 100% online.
Our Top Pick For Virtual Full-Service Brokers
Beycome is a technologically-advanced virtual full service real estate company and makes it easy for home sellers to list their home on the MLS Alabama as an FSBO.
Virtual Management: Through their seller dashboard, you get to access advanced features like managing your listing, organizing offers, and showing schedules.
$99 Basic Package: With this package, you get to upload maximum pictures on the MLS and make unlimited changes to your listing. They even provide an open house scheduler and a tool to manage home visits. In addition to receiving all the leads directly, you also receive online offers and get to access all legal forms & disclosures.
Easy Cancellation: With their 90-day money-back guarantee, you can cancel your purchase if you don’t sell or receive at least two offers in that timeframe. Sellers have also reported that Beycome will ask you to use their title company.
>>EXPLORE: How to sell your house without a Realtor
- Set up a free web page along with listing your property on the MLS
Beycome has a on popular review sites like Google Reviews.
Available in Florida, Minnesota, Georgia, Rhode Island, California, South Carolina, North Carolina and Alabama.
What If I Want To Sell My House Fast In Minnesota?
Due to some reasons, a seller may want to sell their house fast in Minnesota or any other state. Here’s what you can do in such cases:
|Sell Your House As Is||Selling a house as-is in Minnesota can help you save hundreds of dollars by bypassing the repairs. This also ensures that your house is sold fast.|
Selling a house as is can be done via a real estate wholesaler as well. A wholesaler is an investor who buys your house in its existing condition and sells it for a higher profit.
» Selling a House As Is in Minnesota: A Comprehensive Guide As Is Home Sellers
|Sell Your House For Cash In Minnesota||If you want to sell your house fast in Minnesota then selling it to cash companies can be a very good option. They can offer you cash right away and ensure your house is sold quickly. There are various types of cash companies that can ensure that the deal is closed instantly.|
» Buy Houses for Cash in Minnesota: Discover the Best Cash Home Buyers Near You
|Offer Your House To A Flipper||Flippers in real estate are buyers that buy a property in its existing condition, repair it, and sell it at a higher price. Selling your house to a flipper will help you save time and dollars. |
» Flipping Houses in Minnesota: An Introductory Guide for Beginners
» Sell My House Fast in Minnesota: Discover Best Ways to Sell Your House Quickly
- ✍️ Pro Tip: Consider selling your Minnesota home to an iBuyer
iBuyers are companies that will buy your home for cash outright. They use technology to make an instant offer. This gives them an edge over the traditional cash companies. The price is decided with the help of their proprietary algorithm, recent real estate data, and their in-house experts. An iBuyer can offer and close the deal within 24 hours.
» Explore: iBuyers Reviews: Selling Your House for Cash in 2022
4. Prepare and Market Your House For Sale in Minnesota
A clean and well-prepared home combined with the correct marketing strategy can help you attract a large number of buyers.
Get My House Ready
Whether it is Minnesota or any other state, you need to take care of certain things if you are thinking of selling your home without a realtor. Here is what you need to do:
|Declutter & Depersonalize||Make sure you eliminate anything that may bring a feeling of personalization from your perspective i.e. you need to make the buyers imagine as if it is their home. This means removing your personal belongings, etc. before the showing.|
|Make Repairs||If your home requires any necessary repairs, make sure it is done before you start the process of selling. This may help later when the inspection is done.|
|Repaint Neutral||You can attract a higher number of customers when you paint your home with neutral colors.|
|Improve Curb Appeal||Go for a clear landscape, fresh flowers, or exquisite paintings because the first impression is everything!|
|Implement staging||The best way to sell a property is by hiring a home staging professional. They would be able to utilize the spaces and furniture cleanly and attractively.|
Staging costs in Minnesota vary across cities and counties. For a vacant home in Minneapolis, the staging price could be around $2,200.
Market My Minnesota Home Professionally
Almost 95% of home buyers search and review homes online. So, being online is the #1 priority for the sellers. A good online marketing strategy can make a difference in getting your house sold.
Here’s what you need to do if you are in for selling a house in Minnesota by the owner or any other state:
|1.||List on the MLS||Homes listed on the MLS sell faster and for 17% more. This doesn’t mean you need to hire a listing agent and pay that extra commission. You can work with discount real estate brokers to get MLS access. A Flat Fee MLS Company like Houzeo can be a very good option to list your home in Minnesota. |
Houzeo will help you save the hefty Realtor commission and get your property maximum exposure. All of this, just for a small flat fee!
✍️ Pro Tip: Research the best free websites to list for sale by owner to sell your house on your own.
|2.||Get a Yard Sign||Opting for a yard sign can be a good investment when selling a home in Minnesota. It can help in attracting buyers from the neighborhood. On a crowded street, an attractive yard sign can drive the attention of potential buyers. |
Houzeo’s yard sign can help you with this. Houzeo custom yard sign comes FREE with a selfie and it is available for $49 only!
✍️ Pro Tip: If you secure a buyer from a yard sign, chances are you’ll save on the buyer agent commission as well. In a nutshell, it is worth the $49 investment.
» For Sale By Owner Yard Signs: Check out the 7 best FSBO Yard Signs!
|3.||Share Your Listing on Social Media||Share your property listing on social media. This will include your contact info apart from the listing details. If you share your listing on Zillow or Redfin, all the leads your listing generates will be sold to buyer agents who’ll demand a competitive buyer agent commission. |
Houzeo, on the other hand, doesn’t sell your information or leads. All buyer leads see your contact info, so you might save on the buyer agent commission.
✍️ Pro Tip: If you secure a buyer from social sharing, chances are you’ll save on the buyer agent commission as well.
|4||Hire a professional photographer||As a seller, you can hire professional real estate photographers in Minnesota to create a portfolio of your house. Professional pictures can greatly impact the selling process by attracting more buyers. |
Photographers charge on an hourly basis. For example, in Minneapolis, MN on average, one-hour real estate photography will cost $338 and four-hour photography will cost $950.
✍️ Pro Tip: Professional photographer can collate a portfolio that otherwise may not be possible if you are taking up the job.
» Real Estate Photography Minnesota: Create Your Best Listing Photos
|5||Run ads||When selling real estate in Minnesota, running ads on print and social media can help you attract more buyers.|
✍️ Pro Tip: Try to cover as many social media channels as possible to initiate ads for your listing.
With Houzeo, you can market your property to a large audience as it gets listed on the MLS and other real estate websites.
5. Manage Showings And Negotiations
Once you have prepared your house for sale in Minnesota, showing it to buyers is the next step.
How To Manage Showings When Selling A House In Minnesota?
Once your property is ready for showings, it is critical to managing the showings effectively. You can either opt for online showing tools or host an open house.
Online Showing Tools
Online showing tools provide home buyers and their agents with a frictionless way to request and schedule showings.
Houzeo Showings, a cutting-edge solution by Houzeo, helps buyers and buyer agents choose a particular showing slot as stated by the seller. The tool also provides features like rescheduling, updating, canceling, requesting, and more.
|1.||Set Showing Calendar||Buyers and buyer agents should only be shown times when the property is available for showing. This saves time for all the concerned parties.|
|2.||Request & Reschedule Showings||Make sure that buyers and buyer agents can request showings at available times. In addition, they should be able to reschedule and cancel on an ad-hoc basis.|
|3.||Provide Feedback||Feedback from buyers and buyer agents is critical for home sellers because it allows them to assess their property (priced too high, the backyard needs fencing, rooms need whitewashing, and more). Where the feedback is actionable, small remedies can go a long way in improving showings and attracting top dollar for your property.|
🗓️ Houzeo Showings: See how the most powerful showing app works on mobile and web
Introducing the Houzeo Mobile App!
- View your listing
- Manage your showings online
- Review and compare offers
- Counter an offer
- NEW! Buyers can now search your property and save it in “Favorites”
Hosting Open Houses
92% of home buyers find open houses useful. If your house is located in a hot seller’s market like Minneapolis or Rochester or any other prime spot in the Minnesota housing market, more buyers would be interested in buying. In such cases hosting an open house would be more feasible.
- ✍️ Pro Tip: You might attract unrepresented buyers, saving you the entire buyer agent commission.
Here are a few things to keep in mind when hosting an open house in Minnesota:
|Ensure Your House is Ready||Buyers would not want to see a house with a leaky roof or broken doorknobs. Thus make sure you have fixed all the defects and made all the necessary repairs beforehand.|
|Choose a Correct Time||People are busy on weekdays. Thus hosting an open house on weekends, preferably a Sunday, would be best. Also, you need to take care of the time of day. Usually, afternoons are the ideal choice.|
|Post Open House Online||As per the National Association of Realtors, 93% of buyers rely on the internet for their home searches. Thus, posting online will make potential buyers aware of the open house. You can also list your open house on the local MLS, and real estate websites like Zillow & Trulia, Facebook, etc.|
|Give Visitors Their Space||During the open house, you might want to stay away from the property. This would give them the desired space to explore at their convenience. Also, it will help them in visualizing their future in the house.|
|Get Your Neighbors Involved||You can invite your neighbors to the open house. Even if they may not be interested in purchasing your Minnesota home, they would spread the word.|
How To Negotiate Offers When I Want To Sell My Home In Minnesota?
Counteroffers and requesting the highest & the best offer are the two tools of negotiations when selling a house in Minnesota or any other state.
Most brokers or brokerage companies will give you complex forms to counter an offer, or to request the highest & best one. Houzeo has digitized these, so, you can counter or ask for the highest & best with just a few clicks!
|#||Advanced Tactic||When to Use||How to Use|
|1.||Counter an Offer||Single or Multiple Offer Situation||Your best offer is not just the highest one but is also competitive across several parameters: deposit, financing, inspection contingency, closing timeline, etc. |
When you want to counter an offer, you can request any of the mentioned parameters updated as per your preferences.
▶️ Learn more: How to counter an offer on Houzeo
|2.||Request Highest & Best Offers||Multiple Offer Situation||If you have multiple offers and a timeline by which you’d like to pick an offer, you can call for Highest & Best offer from all the interested parties.|
▶️ Learn more: How to request Highest & Best Offer on Houzeo
Also, negotiating offers means focusing on other factors like contingencies, concessions, responsibility, and more.
6. Documents Needed To Sell A House In Minnesota
Not much paperwork is needed when you are confused about how to sell your house in Minnesota. Though your Realtor takes care of all the paperwork on your behalf, you need to be aware of them.
Seller’s Property Disclosure In Minnesota
You need to have the following disclosures when selling a home in Minnesota:
|Condition of the Property Disclosure||It is a standard checklist form through which sellers can disclose the condition of the property. The material facts that must be disclosed, can include facts such as lead-based paint, flooding, cracked floors or walls, damaged ceilings, etc.|
|Federal Disclosure on Lead-based Paint or Lead-Based Hazard||The Residential Lead-Based Paint Hazard Reduction Act passed in 1992 requires the disclosure of any lead-based paint or chipped paint in any house built before 1978.|
» Seller Disclosure Minnesota: A Guide to Ace The Seller Disclosure Requirements in Minnesota.
Mandatory Documents For Selling A House In Minnesota
Review these documents at length and understand their provisions. Here are some key documents you’ll likely need when selling a house in Minnesota:
|Minnesota Real Estate Purchase Agreement||It is a standard form of real estate contract that details the terms of transactions to which buyers and sellers agree. It contains aspects such as sale price, financing contingencies, property description, etc.|
|Statement of Closing Costs||This statement summarizes all the expenses involved in the transaction. The document is not complicated and can easily be taken care of.|
|The Deed||This document enables the legal transfer of the title from the seller to the buyer. Read this document carefully, verifying all details including the legal description of the property, the deed book, the deed book page, and the Property Identification Number (PIN), if any.|
|Certificate of Title||It allows you to state that you have the right to sell the property.|
|Bill of Sale||Information about the seller and the buyer with the selling price. This is important as part of the process of selling a house in Minnesota because it contains all the base information about the property.|
Possible Additional Documents
The below table showcases some more documents that may require in selling a house in Minnesota:
|Loan Payoff||In the case of a mortgage, you need to provide proper documentation if the disbursement of the loan amount has been completed. Else, you need to provide how much you still owe.|
|HOA forms||If the house is part of an HOA, the seller needs to give the buyer all the documentation on restrictions, fees, financials, and more.|
|Survey papers||The documentation defines the location and the dimensions of the property. This is important while selling your home in Minnesota.|
|Home Inspection||Contains all the details about the inspection of the property.|
|Repairing Proof||While selling a house in Minnesota, if the seller has made repairs to the property before the sale, he/she needs to furnish the relevant documentation.|
|Home Warranty||Contains all the coverage of the property, time span, and cost.|
|Closing Disclosure||Proof that the seller agreed to buyer concessions. The disclosure is provided to the lender.|
|Power of Attorney||If the property is inherited, then the seller needs to furnish the details of the history and how the property was passed onto him/her.|
|Affidavits||A seller will need to provide a few affidavits like name affidavit, non-foreign, etc. This may also include affidavits like “Affidavit of Title” which discloses that you are the rightful owner of the property and that there are no liens on the property.|
|Correction Agreement||In case there are any errors in the documentation, you may be required to correct those errors.|
Bring TWO Forms of Official ID
There will likely be a licensed notary involved in the closing process who’ll require you to swear on your identity. You would be required to furnish identity proof (like a passport, driving license, or any other authorized document) during the process. However, the closing process might require you to produce secondary identity proof.
7. Closing On Your Minnesota Home
The closing process in the state of Minnesota is handled typically by title agents or attorneys. They handle all the legalities. But you still need to be prepared for a few things during closing.
Take Care of Title, Appraisal, And Inspection
|Title||If there is a dispute relating to property ownership, the title company comes into the picture. The title company has the full history of a property. It ensures that the legal owner is identified in case of a legal dispute for the property.|
|Appraisal||A money/mortgage lender typically goes for a home appraisal to identify what is the appropriate value of a particular property. Based on the outcome by licensed appraisal agents, the lender decides the amount that should be part of the mortgage. This is crucial while selling a house in Minnesota (or any other state) as it keeps the buyer protected from unwanted sale prices.|
|Inspection||Inspection is also part of the process where licensed individuals scan the property for any issues. If there are defects, re-negotiations might take place between the seller and the buyer. The inspection includes everything from property worth, neighborhood, parking space, and more.|
Overall Cost Of Selling A House In Minnesota
It should be noted that Realtor commission and sale price are not the only two things that are involved from a real estate transaction perspective.
In Minnesota, there are multiple other fees involved while selling a house that should be known to a seller and is crucial for Minnesota home sales. Here’s a list to get you started:
|Transfer Tax||In Minnesota, transfer tax is deed tax. It is charged 0.33% of the deed value.|
|Capital Gains Tax Alabama||You are required to pay a tax on the capital gain of the property. A capital gain is a difference between the amount for which a property was bought and the amount for which the property is sold.|
|Title Insurance||Title insurance protects the buyer if an important chain of title ownership is missed by the Title agent/company which could cause issues later. The premium can be paid by either seller or buyer based on the negotiations.|
Title Insurance is calculated based on the Minnesota home sales price, and loan amount.
|Home Warranty||A seller may go for a home warranty if some components of the home (water heater, air conditioner, fans, etc.) require attention. This will benefit buyers in case a component of the home breaks down later. The average home warranty costs vary between $300 and $700 (average).|
|Appraisal Fees||An appraiser is hired to determine the actual price of the property. The price of the appraisal process depends on various factors such as property type, size, and location. It is usually paid by the buyer.|
In Minnesota, home appraisal cost is between $340 – $396 depending upon the type of property.
|Inspection Fees||Home inspection in Minnesota would charge up to $270 – $650 depending on the size of the home.|
|Survey Fees||A survey of the property is generally carried out before the purchase deal. It includes all the features related to the property. In Minnesota, $640.46 is the fixed fee for a residential boundary survey. It varies, depending on the size of your home.|
|Attorney Fees||This fee is mandatory as it is required to hire a real estate attorney in Minnesota. A real estate attorney can help you with the documentation and other closing processes.|
|Settlement Costs||In Minnesota, the closing process is handled by an attorney or title agent. It costs around $3,842.64 after taxes, which is approximately 1.28%-1.92% of the final home sale price.|
|Other Costs||Apart from the stated costs, multiple other costs are involved to sell a home in the state of Minnesota. These can be HOA fees, appraisal fees, pest control fees, recording fees, estoppel fees, and any other as imposed by the city/county. Apart, costs will be incurred for staging and preparing homes for sale.|
» Seller Closing Costs Minnesota: Everything You Need to Know
Who Pays Closing Costs In Minnesota?
Various closing costs are involved when selling a house in Minnesota. They are customarily paid by buyers and sellers by splitting it up.
|Closing Costs||Paid By|
|Realtor Commission||The seller pays the Realtor commission |
» Minnesota Real Estate Commission: Know The Exact Estimates of Commissions in Minnesota.
|Title insurance for the buyer||The seller pays the title insurance for the buyer|
|Transfer fees||Transfer fees are paid by the seller|
|Attorney fees||In Minnesota, real estate attorney fees are covered by the seller|
|Recording fees||Recording fees are paid by the seller|
|HOA fees, Property Taxes, and Utilities||The seller pays these fees in Minnesota|
|Home inspection||Home inspection fees are paid by the buyer|
|Title search fee||Title search fees are paid by the buyer|
|Lender’s title insurance||The lender’s title insurance fees are paid by the buyer|
|Appraisal fees||Appraisal fees are paid by the buyer|
|Survey fee||Survey fees are paid by the buyer|
|Credit Report fee||Credit Report fees are paid by the buyer|
|Origination fee||Origination fees are paid by the buyer|
|Underwriting fee||Underwriting fees are paid by the buyer|
|Settlement/Escrow fees||Settlement/Escrow fees are paid by the buyer|
|Recording fees||Recording fees are paid by the buyer|
» Seller Closing Costs in Minnesota: Know the Exact Estimates
How Much Are Closing Costs In Minnesota?
If you are concerned about how much are closing costs in Minnesota then know that the amount of money you will spend on closings while selling a property in Minnesota could depend on a lot of factors like the REALTOR’S commissions, a number of taxes, and fees as determined by the Minnesota real estate closing laws.
You can calculate your closing costs using Houzeo’s Advanced Closing Cost Calculator. The calculations are based on the latest prices and it gives you a very detailed estimate of all the costs involved in the transaction.
» Seller Closing Cost Calculator Minnesota: Know the Exact Estimates
Selling a house in Minnesota can be a little complicated, thus usually requires sellers to hire a realtor. But due to the hefty Realtor commission sellers are moving away from the traditional full-service pathway.
Many sellers are also opting for FSBO or DIY route. It does save a lot of dollars but limits exposure and increases sellers’ responsibilities many folds. So the next best choice is discount real estate brokers.
Among these brokers, Flat Fee MLS Listing Companies are the best choice. Flat Fee MLS Services like Houzeo allow sellers to control the selling process without compromising on exposure. All of these at a small listing fee!
With Houzeo, you have the option to list your property as an owner and enable a smooth closing process. You do not have to worry about complex processes as the platform is 100% online. It will help in listing your property on the MLS at a flat rate and take care of other tasks that otherwise would require manual intervention. Another big point is that due to platforms like Houzeo, real estate agent commissions are declining. This is because of the Flat Fee MLS structure that companies are providing.
Check out some of the Houzeo reviews and how it has helped customers around the US.
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Frequently Asked Questions
What is the average realtor commission in MN?
The average realtor commission in MN is 5%-6% of the sale price.
What is the realtor fees in Minnesota?
Realtor fees or Realtor commission in Minnesota is 5% to 6% of the price of your home.
Who pays realtor fees in Minnesota?
The seller pays the realtor fees in Minnesota.
What is the best time to sell a house in Minnesota?
Early summer or summer is the best time to sell a house in Minnesota.
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