Minneapolis Real Estate Blog

Moving On Up....

2010-04-24T21:58:00.002-05:00

HI all my readers! I have not been writing on this blog since almost a year ago because I have been trying to figure out what to do with it. I finally put together a new Wordpress blog and have transferred all the content of this blog to it. My new blog is Twin Cities Real Estate Buzz. Please come on over to the new blog and pick up where I left off. Add my new site to your list of blogs please and keep reading! I am still working on the new site, so check it out often to see what else has been added!

Yes Virginia, There Really are Multiple Offers

2009-07-13T22:36:00.001-05:00

I know many of you won't believe this, but the dirty little secret that the local media isn't reporting is that homes in the lower price range are flying off the racks. Yep...just like a bridal store having a super cheap sale on gowns with women knocking each other out of the way as they try to snatch up the latest deal, so too are investors and first time home buyers trying their best to win that little cottage home, out doing each other with above list price offers.

Like I said, you don't believe me, do you?

Last month I experienced this phenomenon first hand with a duplex I listed. With-in five days, I had five offers, all above asking price. There must have been some telepathy in the air because almost all of them were around the same price. I actually had to tell them to resubmit their "highest and best" offer. Who ever did the best, gets the house. Let me tell you, it was competitive bidding and I was truly surprised at how high some of the offers got.

Even better, I know an investor couple who are snatching up dilapidated foreclosures and rehabbing them to flip. Not only do they have to bid against other offers each time they find a home, but when it comes time to sell the property, they have to deal with multiple offers from first time home buyers. (They do fantastic rehab work by the way!)

So yes Virginia, there are some segments of the real estate market that are doing quite well. Multiple offers do exist and are getting more common.

It makes is hard to explain to a buyer why they need to offer above listing price if they want to get a home, especially when all they hear about is how cheap homes are. But if you want to purchase a home in decent shape and at a great price, be prepared to pay for it because in this market you'll be just like those brides you see on television...pushing and yelling your way to that perfect find.

Ways NOT to Sell a House

2009-07-03T09:13:00.003-05:00

There are obvious ways that should not be pursued when trying to sell a home. I really don't care what type of home it is, or what the circumstances are for the sale (foreclosure, short sale, etc), but there is just no excuse for the agents listing these homes to take photos like the ones below.

First of all, I do believe tomorrow is the fourth of July, NOT the fourth of January. Snow has not been seen in Minnesota since March, so why is the photo of this home still in the MLS? The white wire reindeer just scream "Buy Me".

Now this home is a distressed property...I cannot remember if it is a short sale or foreclosure, and every listing photo of this home shows trash and clutter just like this photo. I have to ask, why even bother? No buyer is going to jump on this home, unless it is an investor looking for a steal. It definitely doesn't have the "cozy" feeling that a first time home buyer is looking for in today's real estate market.

I guess I am constantly amazed that agents out there feel photos like these are acceptable. It doesn't take much effort to pick up some trash, or take a new photo in the summer. Sellers, please take a look at the photos taken by your agent to see just what type of marketing they do. Trust me, if you have photos like these, your home is NOT going to sell anytime soon...unless you list it for $1.

Minneapolis Real Estate Update from the Minneapolis Association of Realtors

2009-06-22T21:30:00.001-05:00

Keep Your Home Information Confidential

2009-06-17T22:04:00.004-05:00

When selling your home, it is extremely important to keep confidential information confidential. Any details given out could harm your position with a buyer who is interested in your home. Knowing things like your motivation or personal circumstances are great for a buyer, but they can easily take advantage of these facts and offer you less than you would like, or deserve.

Case in point, a recent seller was having some work done on their home while it was on the market. Nothing major, just some finishing touches to the rehab work that was recently completed. While a buyer viewed the home one day, a sub-contractor was working in the home. Naturally, the buyer and his agent struck up a seemingly innocent conversation with the worker. After a few minutes, the buyer started asking some questions about the work, which led to other questions of why the owners were selling, and what their motivation was. Knowing some of this information, the worker answered the questions. Not knowing it at the time, this worker gave up some confidential information that should have never been communicated.

A few days later, the buyer made an offer, with some peculiar requests regarding the work, as well as a low offer price. It was obvious that the buyer was privy to information they should not know. When they were called out by the listing agent, they simply said the construction worker had told them. At this point, the seller's realized their position was compromised by loose lips and they had no option but to negotiate with the buyers.

Who knows if the offer would have been better, had the buyers not been privy to certain facts. And there was no way the sellers could have known that an innocent conversation with the contractor would mean money out of their pockets. They learned a very valuable lesson that day. Don't tell anyone about your circumstances that you wish to remain confidential. This includes your real estate agent, if you truly want to keep something secret.

(this post does not pertain to information or material facts about the property that must be disclosed according to state law)

Copyright on my Minneapolis Blog

2009-05-20T22:04:00.002-05:00

(I placed this post originally on my Historic Home Blog today, and thought it best to bring it on over to my other blogs, as an FYI about copyright and not stealing my photos and content.)

A recent incident that is now recurring is forcing me to write this post about copyright of photos used on this site. (Notice the "Do not Copy" notice on the leftside of this blog.) To some people, it is ok to go onto the Internet and lift photos of other peoples work. They then use these photos on their websites without permission. They either do not care or don't know the law, but either way, what they are doing is stealing....oh, and Copyright infringement.

As a visitor to this blog, I am sure you can easily see that I travel around the area taking photos of historic homes (and other places around the Twin Cities), then post them to my blog with a story about the home. It's what I do, and the whole reason for this blog, which is to educate locals and others about the great historic resource we have in Minnesota through our homes and buildings. Taking these photos takes time, energy, patience, and creative thought.

What many people fail to realize is that even though the Internet is public domain, the content is not free for all to use. The general rule of thumb (in this instance) is that once a photo hits a hard drive, it is considered copywritten. The photo does not have to have a copyright notice on the photo, nor a big C. In order to use a photo, one must obtain permission from the source. So for those people out there that "right click and save" and then use the photo, you are committing copyright infringement.

Any excuse you give does not matter. Taking something created by another without permission is wrong.

I could go into greater detail, but I don't want to clutter up my nice blog with a post such as this. I just want you to know, that I work hard to write this blog, so please do not steal my stuff. Simple as that.

If you want to learn more about Copyright law as it pertains to blogs and websites, please visit a great lady's blog regarding copyright law, Lenn Harley, for in depth articles on the subject.

Minnehaha Falls

2009-05-10T20:53:00.003-05:00

A great place to visit in Minneapolis is Minnehaha Falls on the east side of town. The evening I took this photo last weekend was Prom night, so we had to find a spot around the prom goers getting their photos taken, in order to take a good picture of the falls.

Writing a Post Everyday...Does it Really Matter

2009-05-06T23:01:00.002-05:00

I have been thinking lately how life is keeping me from blogging everyday. I used to write everyday the first year or more of this blog, but am finding it difficult to keep up. Business has picked up and so has life with two kids. There are some other successful real estate bloggers in town who write everyday, but I just can't post 30 times a month without staying up till midnight every night. I like my sleep, or I can't function.

I can tell my readership has suffered because of this. Google analytics tracks my blogs and lets me know how many visitors I have daily. Needless to say, my readers have decreased. Google has dropped my site in page rank just this past week. Oh, well, what can you do? Obviously, writing a post everyday does really matter if you want your blog to rank high in Google. If it ranks high, more people visit you and possibly come back to read some more. The more people who visit, the more Google likes you. It is a vicious cycle!

So I would love for those that read me to stick around and visit every now and then. Or drop me a line and let me know what you love or hate about the blog. Trust me, I miss blogging everyday, but never can find enough time to do it anymore.

Spoon Gets It's Cherry Back

2009-05-03T22:41:00.002-05:00

On Friday, the art piece "Spoon and Cherry" at the Minneapolis Sculpture Garden, got its cherry back, after a few days of getting a new paint job. I took this photo yesterday, which was hard considering the amount of photographers there and prom goers.

We Need Your Help to Stop the Minnesota House of Representatives

2009-04-21T09:52:00.000-05:00

Below is a press release sent to Minnesota Realtors regarding some important tax law modifications that will negatively impact homeowners in our state. Please take the time to read the below information and take action via the link below. All of us need to come together to protect our real estate market.

From the Minnesota Association of Realtors:

"On Monday, the Minnesota House of Representatives Tax Committee released a "delete all amendment" to HF2323 and added provisions that are negative for real estate in the Omnibus Tax Bill. Authored by DFL Representative Ann Lenczewski, it contains a number of tax law modifications that hurt all Minnesota home owners. We need you to review and distribute this "Call to Action" to your clients, customers, and friends.

BACKGROUND: The Minnesota legislature and many other state governments find themselves in a situation familiar to many Minnesota households – their expenses have outpaced their revenue. Whether it is your family budget, a business budget or government budget, when expenses are higher than income you have to make choices. Since 1992, even with all of the Budget Shortfalls Minnesota has faced, the spending has increased each and every year. In fact, Minnesota State spending has gone from $14.5 billion in 1992/93 to $34.6 billion in 2008/09 – that’s a whopping 138 percent increase.

To resolve the budget shortfall, legislators have a number of options: 1) raise taxes to cover the government spending; 2) reduce spending to equalize the revenue projected; 3) raise revenue and reduce spending. The House/Senate DFL plans focus on option 3 – raise taxes and reduce spending. Governor Pawlenty has proposed a plan focused on reducing spending and raising revenue without raising taxes.

HOUSE TAX BILL HURTS REAL ESTATE. The DFL House Tax Plan raises revenue by cutting a number of income tax deductions. Of significant concern to Minnesota REALTORS® and homeowners, the DFL House plan eliminates two major real estate tax deductions: the Mortgage Interest Deduction and Real Estate Property Taxes. The bill also eliminates provisions of the Relative Homestead Tax.

Elimination of Mortgage Interest Deduction (MID)– a feature of the tax code since 1933, the MID has helped numerous generations achieve the American Dream of owning a home. A significant public policy objective for decades, homeownership stabilizes families, neighborhoods and communities. The House DFL Tax Bill eliminates the MID for homeowners and replaces it with a "housing credit" for qualified homeowners. The maximum credit is $420, which is equal to 7 percent (7%) of up to $6,000 of mortgage interest paid during the taxable year. However, no credit is applied to the first $4,000 of interest paid. Therefore, a homeowner must pay at least $10,000 in MID in order to receive the full $420 credit. As an example, if a homeowner has mortgage interest of $8,000 in the tax year, the credit equals $280. ($8,000 - $4,000 = $4,000 x 7% = $280).

This provision hurts young families disproportionately because mortgage debt loads are highest when people are establishing their households. This provision changes the financial plans numerous families have made when purchasing a home and increases the financial difficulties many are facing during this economic downturn. At a time when housing is finally getting a financial foothold why eliminate a tax provision that has helped millions of families achieve the "American Dream?"

Real Estate Property Tax Deductibility –This public policy provision has been included in the tax code since 1933 and allows taxpayers to deduct property taxes paid from their income. The House DFL Tax Bill eliminates the deductibility of real estate property taxes at a time when local property taxes continue to increase faster than Minnesotan’s income.

Relative Homestead – If you own identical houses, with identical values, with identical tax rates you would assume you would pay identical taxes – Right? Not if the House DFL Tax Bill becomes law. In a provision of the bill, authored by a DFL legislator, families that provide housing to other family members will pay more taxes on the second home. The goal of the provision, as stated by the legislator, is to stop parents from buying homes for their college students. MNAR pointed out that this is a small piece of the overall program and instead the proposal will be hurting families trying to assist other family members who may have gone through job loss, divorce or other financial difficulties. Isn’t it better to have families provide for families instead of government?

These provisions have been designed according to the author to make the Minnesota tax system more progressive and to raise revenue to fill the state’s pending budget shortfall. Because real estate related public policy provisions of the tax code benefit the upper 50% of tax payers – Top 50% begins at $40,061 according to the Tax Incidence Study (http://www.taxes.state.mn.us/legal_policy/other_supporting_content/2009_tax_incidence_study_links.pdf ). At a time when the housing market is beginning to stabilize, this House DFL sponsored proposal sends the wrong message to struggling Minnesota households.

The Minnesota Association of REALTORS® has a long and respected position that government, at all levels, needs to "Live Within Your Means." Just like families sitting around the kitchen table trying to make ends, Minnesota's legislative body should not be adding to the long-term financial burden of Minnesota homeowners. The House DFL Tax Bill penalizes families who have invested in the American Dream and provide for the backbone for stable communities.

ACTION REQUEST: To fight this unbelievable proposal we are asking that you take three steps:

Please contact your legislator and let them know how you feel about this proposal. Please find attached a list with legislator contact information or use this link: http://www.leg.state.mn.us/leg/Districtfinder.asp
Forward this email to your clients, customers and friends. Let them know what is being proposed and give them the web address above to review the bill.
Go the extra mile and CALL your legislator about this tax bill. Let him/her know your concerns and how it will impact your clients, your family and your business. Let your Representative know that it is time for our elected officials to "LIVE WITHIN YOUR MEANS" by prioritizing spending and not raising taxes.
You can access the bill summary (48 pages) at: http://www.house.leg.state.mn.us/hrd/bs/86/HF2323.html

Newly Released Market Report from Minneapolis Area Association of Realtors

2009-04-20T17:58:00.003-05:00

The newest update is in from the Realtor Association, who actively tracks real estate market statistics like none I have ever seen.

"Hopeful signs of a Twin Cities housing market recovery carry on thanks to a combination of no growth in the spring supply of homes for sale and still-improving sales figures.

Helping to keep inventory down is slow new listing activity, a metric that has been sluggish all year. For the week ending April 11, there were 20.7 percent fewer new listings than there were during the same week in 2008. Pending sales are still trending in the opposite direction, up 21.9 percent in year-over-year numbers to 1,046 for the week. That's only the second week of 1,000-plus pending sales or more since May 2007. If these two metrics persist, the market could be in for some serious re-balancing.

With the Housing Affordability Index reaching 218—an increase of 40.8 percent over last year—it seems to be an awfully good time for buyers to get off the wall and on the dance floor...being mindful that 29.1 percent of the dance partners are lender-mediated."

Don't forget the Monthly Skinny Report video below:

Spring is Finally Here

2009-04-19T10:01:00.000-05:00

I planted some pansies last week, as they are the first real flowers you can plant in the Spring that survive the cooler temps. Over on my garden blog, I have started writing on what is peaking out of the ground. Hopefully this drizzle rain of the last two will help them grow a little higher.

Tea Parties and the Media Discrace

2009-04-16T09:15:00.005-05:00

I have to say, it is really disappointing that in today's society, only certain people are allowed to voice their opinions in opposition. After watching the news clip I have included below, of a CNN reporter cutting off a demonstrator who is just trying to point out why he is there, I have to say that I am just sick and tired of the media bias.

Journalism is dead. What we have instead are airways and channels of editorial reporting, where so called "reporters" give us their opinion and political beliefs on topics. Kind of like bloggers. We give our opinions and beliefs in matters, but we don't hide behind the belief of being professional journalists. Heck, I'm a Chemistry major for goodness sakes. English writing was never one of my best subjects, but blogging has helped me get better.

But back to the reporter. If there is one thing I have learned when working as a professional, it is that you NEVER cut someone off when they are speaking. And the second thing you never do is become condescending to that person when their beliefs are different than yours. Obviously, this reporter, needs to go back to etiquette school and learn some manners. Not that I do already, but I won't be clicking the remote to CNN anytime soon.

The last thing I will say is that I am very proud of those that made it out yesterday to show their disappointment and anger over the growing government and increasing taxes. I spoke with numerous family members and friends across the nation who went to their local Tea Parties, and everyone of them said the demonstrations were peaceful. Nothing like what was being reported by the likes of CNN.

Where Have I Been?

2009-04-15T09:42:00.002-05:00

Well, to answer it, very busy.

Birthday Party
Sick with the Flu for a week
Closings and new Listings
Volunteer Work
Reading Books that have been on my shelf for a Year
Visiting Family
Waiting for Spring

But now I think I am back. Has anyone even missed me?

Minneapolis Advantage Loan Program up for Round Two

2009-04-03T15:05:00.004-05:00

To all you home buyers out there looking to buy a home in Minneapolis, listen up, as you might be able to take advantage of the Minneapolis Advantage Program. It helps potential buyers purchase a home in neighborhoods beseeched with foreclosures. Last year was the pilot program and it went very well (see more below), and this year will most likely prove to be another huge success.

Two hundred loans at $10,000 each will be provided on a first come, first serve basis as of April 1, 2009. The funds can be used for closing costs, down payment assistance, or small repairs to the home, and if you keep the house for five years, the loan is forgivable. As with last year, only certain areas of Minneapolis apply, so you will have to be purchasing a home in one of these neighborhoods to qualify.

Income Requirements and Program Guidelines

If your income is less than $64,720 (less than 80% of the area median income), you may qualify for the following program:

Minneapolis Advantage Program – Federal Home Loan Bank, Guidelines

If your income is less than $97,080 (less than 120% of the area median income), you may qualify for the following program:

Minneapolis Advantage Program – City of Minneapolis, Guidelines

2008 Results for the Minneapolis Advantage Pilot Program

Last year, every real estate agent in town was excited to see the loan program offered by the City of Minneapolis. However the program was such a success, that before anyone knew it, the funds were all used up. Only $500,000 was available at the time, so 50 lucky home buyers were able to qualify for the $10,000 (just a quarter of what is now being offered). Here are some of the statistics for the Advantage Program in 2008:

62% of the homes purchased were foreclosures
50% of the homes were sold for under $100,000, and 82% were under $150,000
80% of the homes bought were located in North Minneapolis
78% of purchases were from first time home buyers

You can even see where each home is located by viewing this map.

The Gardening Itch is Here

2009-03-17T19:07:00.002-05:00

Now that we have had a couple of "warm" days (above 40 degrees), I have been out in the garden taking inventory of what spring bulbs might be peaking out of the soil. So far, some of my Iris bulbs are coming up and I can't wait to see if they bloom this year.

We have a lot of great garden centers here in the Twin Cities - Bachmans, Linders, etc, and it is hard to drive by them because I have that garden itch. Of course, they don't have anything right now except seeds. Speaking of which, my current indoor garden project is growing tomato plants from seeds. The first post for this year on my garden blog is my tomato experiment.

If you have that spring garden itch too and want to get some ideas of great garden centers around Minneapolis and Saint Paul, check out this forum, which has some locals give their opinions.

To Walk or Not to Walk, That is the Question

2009-03-11T17:15:00.002-05:00

It seems like almost daily that I hear from a seller questioning whether they should walk away from their home, or stick to the commitment they made to the bank. Across the country, thousands of sellers are potentially facing foreclosure, and many are just not sure if it is better to find a way to keep their home, or take the easy way out and damage their credit score in the process.

Sometimes I get aggravated by those who openly choose to walk away when they shouldn't, as witnessed in a post I wrote last week, but I do truly understand the whole ordeal. Today I read an interesting article from CNNMoney.com which looks at some home owners across the nation, and the dilemma they face....and the reasoning by their decisions to either walk, or not. It helps to put a human face on the issue.

Lake of the Isles in Winter

2009-03-04T15:07:00.002-06:00

I was showing homes last week around Lake of the Isles in Minneapolis and noticed the ice rink on the Lake, created by clearing off the layer of snow. For those of you who don't have raging hockey fans where you live (or frozen lakes, for that matter), it is quite a common practice here in Minnesota. Some people even bring hockey nets out onto the ice to make it more playable. It costs a lot to rent ice at a formal rink, so we just go and use the ice mother nature creates for free!

the $8000 Tax Credit for First Time Homebuyers

2009-02-15T12:40:00.004-06:00

I dove into the Stimulus Plan on the House Appropriations website to try and find out what kind of agreement the Senate and House of Representatives came to regarding the First Time Home buyers Tax Credit. Not the most fun reading, but extremely important to know about for any serious real estate professional.

Currently, a taxpayer who is a first time home buyer (someone who has not owned a home within the previous three years) was allowed a refundable tax credit of the lessor values of $7500 or 10% of the purchase price of the home. The credit was allowed for homes purchased between April 9, 2008 to July 1, 2009. However it would have to be repaid, interest free, over a period of 15 years, or recaptured at the time of sale.

The stimulus package modifies the current rules, but also keeps the following in place:

the tax credit phases out for individual tax payers you have a modified gross income of $75,000 to $95,000 ($150,000-$170,000 for joint filers)

tax payers can claim the purchase of a home on their 2008 tax return (thus the reason for the credit beginning on December 31, 2008), even if they buy their home, for example in January of 2009

The new agreed to provisions that go into effect December 31, 2008 and are:

extends the current home buyer tax credit for qualifying home purchases to December 1, 2009

increases the maximum credit to $8000 ($4000 for a married person, filing separately)

waives the recapture of this tax credit for homes bought between December 31, 2008 to December 1, 2009

if the home is sold, or ceases to be the primary residence, within 36 months of the closed date, then the rules of recapturing the tax credit apply (currently over a time period of 15 years)

The part that really stinks about the revisions is for the first time home buyers who closed on their home between April 9, 2008 -December 30, 2008. It appears they will still need to repay the tax credit of $7500 over a period of 15 years, just as originally written, and none of the new revisions will apply to them.

Don't worry though, at least you get a tax credit. We closed on your new home in March 2008, and even though we are only 30 days out for qualifying, no soup for us!

This Just in From the Minneapolis Association of Realtors

2009-02-10T09:22:00.001-06:00

"For the week ending January 31, new listings continue at a lower level than seen last year, clocking in at 1,635—a 15.3 percent drop. Conversely, pending sales continue to raise sand with 673 recorded for this week's report—25 percent above last year. Basically, this is all welcome news. Having fewer listings on the market, combined with an increase in pending sales, helps to reduce the Months Supply of Inventory to 13.5 percent when compared to last year at this time—down from 8.9 to 7.7 months. This means it will take the current supply of houses for sale 7.7 months to sell (on average).

The Percent of Original List Price Received at Sale continues to fall, with the January figure of 89.5 sitting at 1.6 percent less than 2008. It's important to consider sales prices of foreclosure homes and how they affect this figure.

Our new Housing Affordability Index jumped to 202 in February. This is a new record and means that the median family income is 202 percent of what is necessary to qualify for the median-priced home. Again, we must consider how the sales prices in the lender-mediated market are affecting this figure, but we can say with some confidence that there are a number of very attractive buying opportunities in the local housing market. If we are able to maintain these trends, we'll be well on our way to killing the blues. And to this current market malaise, we'll be singing "gone, gone, gone (done moved on)."

Who are the Next Businesses to Fail?

2009-02-09T10:18:00.003-06:00

I just read an interesting article which predicts the next 15 companies that could likely fail in 2009. While some of them are no big surprise, like Chrysler, who should have failed decades ago, or Blockbuster, who has been struggling ever since online video rentals have taken off (I am an avid Netflix fan), some are rather surprising.

Well, OK. Krispy Kreme is really not that surprising. They over expanded in the United States and stretched themselves too thin. Sometimes, staying small is the best plan for long term survival. But one that I was surprised to see is Realogy, the largest real estate brokerage in the country:

"Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room."

It will be no surprise to me if some real estate brokerages go out of business in 2009 and 2010. Many just over expanded and overspent during the fat years, and left nothing for the lean years. I believe that the local Realtor association has said about 15% of the agents in town have left the business.

The funny thing about this, to me at least, is it seems many people and businesses should have reread the Biblical story of Joseph. See Joseph could interpret dreams and when Pharaoh had one he couldn't decipher, Joseph came to the rescue and predicted that Egypt would see 7 years of famine after 7 years of feast. Their solution? Put some food aside during the seven years of plenty, so they would not suffer from hunger during the famine. Hmmm...there's a novel idea.

But so many businesses, including our local governments, saw the money flooding in and decided to build larger buildings, expand, grow, grow, grow, and were so blinded by the wealth they violated history, and are now paying for it. Cities in Minnesota are right now debating on whether to cut school funding and after school programs...because they are facing a budget deficit. You've got to be kidding me. I don't see them proposing to cut a few of those high paying government jobs.

Please, can someone answer how governments survived 5+ years ago, before the boom, on a budget, but cannot do it today?

Who has the Most Foreclosures in the Twin Cities?

2009-01-30T18:05:00.005-06:00

The fourth quarter market data is out for the Twin Cities, featuring market saturation of Lender Mediated sales and inventory. The silver lining from all this data is that for the first time since 2003, quarter to quarter results has declined. In fact, the closing quarter of 2008 saw a decrease of 4.3% in lender mediated listings. Yeah, I know, not a staggering number, but I'll take it.

Want to know who has the most foreclosures? The numbers below are the percentage of homes in the specific area currently either in foreclosure or short sales. Take a look at the report to see where your area falls in the foreclosure mess.

Top Five Areas with the Most Foreclosures:

Brooklyn Center - 65.9%

North Minneapolis - 64.9%

St. Paul - Central - 59.1%

St. Paul - Phalen - 58.8%

Big Lake Township - 56.8%

Bottom Five Areas with the Least Foreclosures:

Edina 5.2%

Minneapolis - Central - 7.9%

St. Paul - Downtown - 10.8%

Minneapolis - Calhoun/Isles - 11.6%

Victoria - 12.5%

Don't Lose Your Voice

2009-01-28T17:49:00.003-06:00

Once again, I am recovering from some evil thing the kids brought home from pre-school. Let me tell you, it has been so much "fun". This one has been a real kicker...I have lost my voice and am going on day four of barely being able to talk. Talking to clients on the phone has proven difficult as no one can understand me. Add to that a transaction that has been trying to close for the last two months and I have to email everyone back and forth (talking is proving too difficult). Of course there are some, like my husband, who might prefer the lack of speech. Unfortunately for him, I can't hear that well either, so what ever "smart" comment he is saying to me is falling on deaf ears. Maybe this illness isn't so bad after all?

Braving the Cold to View Art in Saint Paul

2009-01-26T22:15:00.000-06:00

I had some free time in Saint Paul today and thought I would stop by Rice Park to see the ice sculptures done a few days ago in celebration of the Winter Carnival in Saint Paul.

It was really, really cold and my hands were hurting after a couple of minutes. Kind of hard to take a photo with heavy gloves on. I can only imagine how cold the artists became while carving this beautiful pieces of art.

Another Great Minnesota Sunset

2009-01-22T17:47:00.000-06:00

My view last night out my backyard.

Will the Proposed Stimulus Plan Really Work?

2009-01-21T08:33:00.002-06:00

CNN released an article today letting us take a peak at where the $825 Billion will go if Barack gets his way with the new stimulus plan he is pushing for acceptance. Looking at the numbers, I see a lot of items that leave me wondering how exactly they are going to stimulate the economy.

Take for instance the $10 Billion going to research facilities. Um, how is that going to stimulate the economy exactly? Or $500 Million going to better airport screening detectors? I guess I am just having a hard time seeing how some of these items are going to help. The only good thing I do see is some money going to help housing, but in the long run, it just isn't enough. I honestly don' t think any of this money is going to stimulate anything but our national debt.

Modular Construction in Minneapolis

2009-01-19T08:36:00.005-06:00

In the Linden Hills neighborhood of Minneapolis, a community filled with historic homes and bungalows built in the 1920s, stands a recently constructed "modern" home. To say it sticks out like a sore thumb is pointless, but it is not so obnoxious that I hate it. In fact, the warm colors and use of wood take away some of the edge found on many homes with the modern style.

Located at 4221 Ewing Ave S in Minneapolis, the original 700 square foot home that graced the lot was torn down and replaced with a pre-fabricated modular building designed by architect Geoffrey Warner. It is comprised of four sections that were made at a factory, shipped to the homesite, and placed atop a concrete foundation.

While modern architecture, at least in residential homes, is not easily embraced in the Twin Cities, you can find it sprinkled about the metro area. This home, known as the WeeHouse, has about 2800 square feet. It was sold early 2008 for a price of $749,900.

Each Monday, I will be featuring a Minneapolis home that I find interesting. The Weehouse is the first featured home, so please visit often to learn more about home styles in Minneapolis!

Best Place to Get an Honest Design Opinion

2009-01-18T09:12:00.004-06:00

I ran across an interesting blog this weekend that will take your questions and answer them. Written by designer Annie Elliot, the Bossy Color Blog talks about interior design and what to do about it. We all know the dilemma. You walk into your home, take one look at that white wall, and wonder what in the hell you can do to make it look not so white.

Well, we are all saved because now we can actually get some free advice, turning our homes from boring to posh with some paint and other design techniques. Like I said before, Annie's "you asked..." section, looks at questions posted by her readers, photos included, and finds solutions to their design challenges. I think I need to submit some questions for her myself!

It's Fre-Fre-Freez-Freez-Freezing Here!

2009-01-13T13:45:00.000-06:00

Wow! It is really cold today. I really don't want to go outside, seeing as my face might get frozen off, but alas, I must bare the -10 degrees and show a home later.

If you are moving to Minneapolis or Saint Paul from the southern states, today might scare you silly. Don't let it. It doesn't get this cold all the time. Just make sure you have all your winter gear, including a pair of long johns (thermal ware to some of you) and you should be fine. Of course if you plan on moving to the northern part of the state, near Canada, well, I think it is 40 below up there right now....see, that is even too cold for me. I'll just stay nice and warm down here in the Twin Cities.

Be Honest to the Listing Agent

2009-01-12T09:11:00.001-06:00

The one thing that every transaction needs is honesty, even before anything is written on paper. Listing agents, well, some at least, put a lot of effort into marketing homes. Their time is very precious and worth money. So when a potential buyer calls them to request a showing, most agents will ask if the buyer is working with another agent. (Heaven forbid we get in the way of an agency relationship. )It is a well known courtesy, not to mention good manners, to inform a listing agent if you are currently represented or not.

However it happens every now and then that a buyer calls to inquire about a home and requests a showing and is less than honest about their situation. Just the other day I showed a listing of mine to a buyer who spent an hour in the home. I had asked my questions before hand to make sure I wasn't stepping on a buyer's agents shoes. But just as the buyer was walking out the door, he turned around and let me know that "by the way", if he decided to put in an offer, such and such agent will be sending it over to me. You've got to be kidding me.

See, the whole problem stems from the lack of manners. The buyer's agent should be the one showing the home, not me. Now I am OK with an agent calling me and asking if I could please show her buyer a home because the agent will be out of town. But I am not OK with an agent sending her buyer out to me, unannounced, so that I can do all the work. Trust me, there are plenty of agents out there that would much rather pick up a check then lift a finger or break a sweat, and they really annoy those of us that take this job seriously.

You know who they are...you have met them plenty of times.

One reason you really need to tell another agent if you are represented or not, is the fact we agents are bound by ethical rules. We can't get in the way of another agents relationship with a client, or we might be found in violation of the Code of Ethics. No agent wants that headache.

Another reason is called confidentiality. If you walk into a listing without your buyer's agent, and start gushing out your life story, then the listing agent is obligated to tell the seller anything she might hear. Since no fiduciary duties are owed to the buyer, it is fair game on anything you say. However, if you had been honest about your representation, then the listing agent will not play 20 questions with you during the showing. Well, I don't at least.

Thirdly, time is money. Having to take time out to show a home, and then actively "sell" the home to the buyer, only to have another agent show up after the fact, really gets on a listing agent's nerves. Not only is it bad manners, but it wastes time, energy, and money. We all hate to have our time wasted...so think about the other party before you lie about having a buyer's agent.

Trust me, it will make for a smoother transaction if you are just upfront and honest from the very beginning. So next time, please let the listing agent know before hand if you are represented or not...for real.

Outdoor Hockey in Minnesota

2009-01-08T20:44:00.002-06:00

Throughout the Twin Cities, park after park has outdoor hockey rinks for the public to skate on and warming houses to catch a break from the cold. Rinks are usually open till March, depending on the weather.

Short Sale Does Not Equal Foreclosure

2009-01-07T17:14:00.004-06:00

There seems to be a misconception out in the public, and among some real estate agents, that a home being marketed as a short sale will shortly (no pun intended) become a foreclosure. I hate to burst the bubble of anyone waiting for a home they really love to go into foreclosure, just because it is a short sale, but that will not always happen.

Short sale, in the simplest definition, just means that a home is being sold for less than the current mortgage. It has nothing to do with the owners ability to make payments, in most cases. Yes, there are those short sales where the owner is reducing the price to entice a buyer, before the bank forecloses, but many sellers in today's real estate market are selling due to relocation out of the area, downsizing, etc. Not every homeowner out there is having financial trouble.

Case in point, I had an agent present his buyer's offer on one of my listings recently. When the sellers refused to come down to the buyer's price, the agent asked me when the home was going into foreclosure and when the redemption period would start. I laughed out loud and simply stated that the owners are not going into foreclosure, and that the reason the buyer's offer was rejected was due to it being 20% below list price. Obviously, this agent was not well educated, or just had no clue. Anyway, it was good entertainment... most likely influenced by the media.

If you were to listen to the nightly news or read the local paper, you would think that 90% of the homes for sale are bank owned. Many buyers believe they can low ball every seller, because the media says sellers are desperate. Folks, it just isn't true. Just because it is a buyer's market, doesn't mean that sellers have to take any offer that comes across their table.

Now, back to the short sale. With the decline of market value here in Minneapolis and Saint Paul, some home owners who purchased in the last four years are finding their homes are worth less than what they owe. Some do not have the cash to make up the difference when the home sells, so the only solution is negotiating a short sale with the bank. They can however, still afford their monthly mortgage payments.

Bottom line: Don't get sucked into the trap of assuming a short sale, or low priced home is going into foreclosure. Usually, it just isn't so.

Minneapolis Housing Affordability Highest in 18 Years

2009-01-06T06:13:00.000-06:00

Make Sure You are on the Same Page when Purchasing a Home

2009-01-05T07:49:00.007-06:00

When shopping for a new home, especially if you are a new home buyer, it is important for you think about what you want before you buy. One thing I have my clients do before we go house hunting is to sit down and make a list of the things they MUST have in the new home, and the things that would be nice to have, but don't really need if it came down to a hard decision. By going through the action of putting something on paper, a home buyer is forced into reality.

One reality often discovered is the fact that two home buyers may not want the same things. Take for instance a couple I worked with recently. The husband was happy with a home that needed a little work because the home was in a good location and would hold its value in the future. Any updating they did would only add more future value to the home. The wife however would rather buy a completely updated home and pay more for it now. Every home we entered was picked apart by one or the other. Needless to say, they were not on the same page.

It came to a point when I stopped the process and asked them to sit down at a meeting. I told them it seemed they were not ready to buy a home because they didn't really know what would work for the BOTH of them. If they cannot agree or compromise on the amenities they want, then what was the point of wasting everyone's time. Funny enough, they both agreed that a huge talk was in order. One week later, they came back to me with a revised list of "have and have-nots"...we found a home with-in a few days that both loved. Once they faced the reality of the decision making process, they found something both could live with.

In other cases, I have shown buyers what they think they wanted, only to find out it was the exact opposite. In instances like this, it works out really well if I show them two extremes in their price range, and then they can tell me which better suits them...kind of like telling them to rate a home between 1-10.

Here are some things to consider when buying your next home:

Location - many people just can't compromise on this, but if you can't afford the neighborhood or town you want to live in, then go further out to a neighborhood you like and can afford

Price Range - make sure you can afford the homes you view. Don't even think about looking at homes outside your price range that you could only afford with a low ball offer. It wastes every one's time.

Lot - think about if you want a large lot, small lot, trees, etc. Do you love to work in the yard? Do you hate to mow grass? Figure this out and you can greatly narrow down the homes to view.

Wood - do you hate oak cabinets? Now a days, many home buyers do and want different types of wood in the home. You will have to think about replacement costs for any wood you hate, or if you even want to go through the hassle. I know I hate oak and wouldn't even consider a home with these types of cabinets...unless it was for the right price.

New vs. Old - This is a big decision factor. In today's real estate market, new construction home builders are giving some pretty good incentives that rival resale homes. It could be a good way to go, especially if you would like help with closing costs as some builders are offering up to $7500 toward these costs.

So the bottom line is this, KNOW what you want BEFORE you go house hunting. And if there are two or more people involved in the decision making process, take a look at the reality of your situation and find a happy medium in which all of you can live with.

Final Entries in for the 2008 Magnificent 7 Best Consumer Articles

2009-01-03T08:13:00.000-06:00

Back in February of 2008, one of my posts was featured in Larry Cragun's Magnificent 7 monthly contest over at the Real Estate Undressed blog. It was an article on how some home owners can't handle the truth about the condition of their home, and thus, blame the agent for an honest opinion.

At the end of the year, Mr. Cragun runs through all these posts and picks the top 7 for 2008. A few weeks ago, he posted the Nominee 7 for the month of November, and will be choosing the Final top 7 for 2008 winners sometime in January. Feel free to read through all the entries and see which Consumer Articles you find to be most helpful. I will let you know who the final winners are when Larry gives us the heads up.

Winter on Crystal Lake in Burnsville

2009-01-02T09:47:00.002-06:00

I was in Burnsville recently shopping and thought I would pop on over to Crystal Lake and see how it looked in the winter snow. No one was there and hardly any foot prints were in the recently fallen snow. Needless to say, the sun was blinding off the snow so I used the trees as a filter.

Here's To a New and Better Year

2009-01-01T19:53:00.005-06:00

Don't we all wish for the next year to be better than the last? I know I always do...and I make goals, both business and personal, to help keep me on track to having a better year. I think the real estate market will do better than last, though it will still be "sluggish" compared to years past. But keep your chins up...unless we strive to make our lives better, they never will be.

I look at my kids and wonder how they are going to change, how much they are going to learn and grow in 2009. Call me silly, but I find the unknown exciting. If I knew exactly what was going to happen to the real estate market in the next year or two, the challenge of furthering my experience would cease to exist and I would grow bored. Some things turn out the way we hope, and many others don't. But we pick ourselves up, keeping living and learning.

And of course you still need the humor and fun that goes along with life. I guess that is why, even though I like the unknown, I will still keep my magic 8-Ball around for those emergency, want-to-know future questions.

Happy New Year!

the No Offer

2008-12-29T07:51:00.004-06:00

Nothing bugs me more than an agent who calls to inform me that they will be sending an offer on one of my listings, only to never receive it. After I give him or her my fax number and email address to send it to, after I email them the Seller's Property Disclosure, after I sit patiently by the computer waiting for the offer....I get diddly squat.

My next course of action is to call the agent, send them a text message, or email them, sometimes doing all three. Who knows, maybe the file was too large to get through email. Amazingly, these agents never return my calls. Is it embarrassment? Probably, but I chalk it up to pure old unprofessional behavior.

Like most people, I hate it when my time is wasted. So now, I don't contact my clients until the offer is in my hand. What's the point of disappointing them as well and wasting their time? So the lesson of this story it, don't tell me about an offer unless you actually have one.

Do I have to Sign a Buyer's Contract to be Represented?

2008-12-28T10:50:00.002-06:00

Lately I have had some buyers ask whether they have to sign a Buyer's Representation contract in order to be represented in Minnesota. In some states, like Florida for instance, it is not a state law to sign a representation form, but here in Minnesota, it is.

It seems like everyday I run into a local real estate agent who does not know the basic rules and laws of Buyer Representation. They tell prospective buyers or their clients that there is "no need" to sign an agreement, and then people wonder why I make them sign one. The fact is, here in Minnesota, you are not represented until you enter into a written agreement with a brokerage.

Upon first meeting an agent, he or she should give you what is called an Agency Disclosure form. This form is just a disclosure for the different types of representations available for sellers and buyers, which are:

Seller's Broker

Sub-Agent

Buyer's Broker

Dual Agency

Facilitator

You'll notice that I said the disclosure is JUST a disclosure. It is NOT a contract for representation. People always get confused over this one. If you want an agent to represent your interests, then you must, by Minnesota law, enter into a written contract.

Yep, that's correct...a written contract/agreement.

So here's a scenario: Buyer Bob calls Agent A and tells her he just moved to the area and needs to find a home. Agent A meets with Bob, finds out his needs, and they go house hunting. Buyer Bob really likes a home and wants to put in an offer. Agent A doesn't return his phone calls. After two days, Buyer Bob finally hears from the agent and is told the agent is working with another client on the same home. Bob is really upset and wants to know why "his agent" is not putting his best interests first. Agent A reminds Buyer Bob that he refused to sign a Buyer's Representation contract, and so the Agent owes no fiduciary duties to Bob.

Hmmm...what's going on here?

Well, on the disclosure form that was presented to Buyer Bob, it reads that if a buyer or seller does not enter into a written contract, that they:

"will be treated as a customer and will not receive any representation from the broker or salesperson...and will be working as a facilitator"

Yes, there is a difference between a "client" and a "customer". Buyers and sellers do not become clients until they sign a written agreement with an agent. So, this leaves us with the question, what is a facilitator?

For the simplest definition, a facilitator performs limited services for a buyer or seller. They do not owe any Fiduciary Duties to the customer, except confidentiality. Oh, no, I have brought up another topic! What the heck are Fiduciary Duties?

Whenever an agent represents a client, that agent owes the client certain duties:

Loyalty (agent acts for the client's best interests)

Obedience (agent will carry out the client's lawful instructions)

Disclosure (agent will disclose all material facts known by the agent)

Confidentiality

Reasonable Care (agent will use reasonable care in performing duties)

Accounting (agent will account for client's funds received)

You get all these rolled up into a nice package when an agent represents you as a Seller's Broker, Buyer's Broker, or Dual Agent, but if a buyer refuses to sign the Buyer's Broker Agreement, then the only thing an agent owes you is the right of confidentiality.

Now I ask you, what type of relationship do you want to have with an agent? One in which you can actually say she is "your agent" (because you entered into a written agreement). Or do you want the other one, where no one is really looking out for your best interests and you are left out in the cold, blowing around, lost in the wind?

Minnehaha Falls Getting a Face Lift

2008-12-11T07:56:00.004-06:00

Starting this month, one of my favorite areas in Minneapolis will begin a year long process of getting a much needed face lift. Minnehaha Falls, located in Minnehaha Park, has been famous every since Henry Wadsworth Longfellow made the falls famous a century ago by writing the poem "The Song of Hiawatha". Visitors, like those I photographed last year in the above photo, can walk beneath the falls in winter when it is frozen over, or throw rocks into the waterfall pool and bubbling stream in the summer.

For the price of $6.3 Million, Minnehaha Falls will have its crumbling retaining walls repaired, hiking trails fixed, creek banks stabilized, etc. Work will be going on during the winter because the area will be frozen over, and workers will not have to fight the water current. I visit Minnehaha Park a couple times a year and the banks are indeed eroded very badly. As long as the parks department keeps the renovations natural looking, I think everyone will welcome the improvements.

Working on a Short Sale in Minnesota

2008-12-10T19:26:00.004-06:00

Let me tell you, working with a bank on a short sale sucks.

There, I said it.

Whew, I feel better...but I am sure it won't last long.

For the past three weeks, I have been trying to keep a deal together with a client of mine. We finally had an offer submitted and quickly sent it off to the bank. Unfortunately, it was the same week of Thanksgiving, and as you can imagine, the bank got nothing done.

First, we had to wait for the property to be assigned to a short sale rep in the loss mitigation department. (Some banks will not do this until an offer comes in). Sadly, this delays the process.

Next, we have to wait for a BPO (broker's price opinion) to be completed on the home. It follows the line of a CMA (comparative market analysis) and falls short of an appraisal.

Once we here from the bank regarding the offer, two weeks after the initial submission, the short sale rep decides to counter offer, reducing the buyer's requests and slashing the real estate commission. (Don't get me started on that part)

Next we have to negotiate back to the bank and tell them the deal will walk out the door unless they give the buyer such and such for closing costs. Not too mention that if they try and make the seller sign a promissory note at closing, the owner will just let the property go into foreclosure and the bank will lose everything.

Now, I call the bank at least two times a day, trying to push the transaction along. Christmas is just weeks away and both parties want to be in and out before then. Today I find out I have to wait until end of the week for the final approval because some other person at the bank has to sign off on the deal. Geez!

Needless to say, but the whole thing has been more aggravating than I can put in words.

People say real estate agents don't do anything and are not worth the money, but I tell you this, if you had any idea of the "behind the scenes" things we do to keep a deal from falling apart, you would change your mind. Someone once told me that real estate agents earn their money best, by keeping the deal out of trouble, and that when the deal does go south, buyers and sellers really see our true value. You can kind of equate it with insurance. You pay into it for years, and nothing happens. But finally when something does happen, you thank God for having the safety net there, even while the whole time, you didn't think you needed it.

Latest Chicago Government Corruption Shows Nothing has Changed in Politics

2008-12-09T11:52:00.005-06:00

I had to laugh out loud this morning to read about the latest government corruption coming out of Chicago. When is the city and state going to realize that they are one of the most corrupt cities in the nation...not only do they have a dictator of a mayor with union corruption ties, now the Illinois Governor has been arrested by the FBI for trying to sell the Senate seat vacated by Barrack Obama to the highest bidder. Apparently he wanted to personally gain from the sale and was "seeking a "substantial" salary for himself at a nonprofit foundation or union affiliated organization, a spot on a corporate board for his wife, promises of campaign cash, as well as a cabinet post or ambassadorship in exchange for his Senate choice".

He also is accused of "threatening to withhold substantial state assistance to the Tribune Company in connection with the sale of the Chicago Cubs' baseball home Wrigley Field "to induce the firing of Chicago Tribune editorial board members sharply critical" of him".

Amazing, isn't it? The people we continue to elect are corrupt just like the ones we vote out. Now the state is seeking to impeach the Democratic Governor before the Governor can select who will feel the seat. Illinois law allows the Governor to appoint someone to the seat, no matter if he is in jail, and the Dems fear losing the Governorship in 2010 because of this latest scandal.

Those of us that have lived in Chicago or in its shadow understand this is just another part of the Chicago Godfather Saga. Don't be surprised when Blagojevich is pardoned by Barack Obama in a few years. If that happens, I will lose all remaining respect for the President.

Covered in Snow

2008-12-08T12:42:00.002-06:00

Tonight we are getting about 4 inches of snow....Christmas time is so much prettier when covered in white.

Morning Sunrise in Minnesota

2008-11-26T08:38:00.003-06:00

I happened to wake up the other day to a beautiful sunrise. It was crisp and chilly and the colors were perfect. Grabbing my camera and running outside in bare feet, I was able to capture the shot just in time. Five minutes later, and it was gone.

The Failure of Home Builders in the Twin Cities

2008-11-23T07:59:00.004-06:00

For the last few months, it seems every week I hear of another local builder closing its door, or filing for bankruptcy. The first big one to go down this year was MW Johnson, the 11th largest builder in the state, who filed for Chapter 11 bankruptcy in June of this year. Even though their doors are still open, their website now only has contact information for current home owners and the media.

When we were house shopping two years ago, MW Johnson had developments everywhere, and they were still asking for buyers to over pay for their homes, which in my opinion, were mediocre at best. So it is no surprise to me for them to restructure their business. They followed the model of most home builders in Minnesota: they failed to see the writing on the wall and continued to over build the Twin Cities housing market.

Now it seems another large builder who has been around since 1968 has closed its doors, literally. Just two days before they won the right to build in Eagan, MN on the Carriage Hills golf course, Wennsmann Homes closed its doors November 7th and is not answering its phones. No one knows for sure what has happened as there has been no response from Wennsmann. Maybe the money it took to win the four year legal battle drained them dry. Who knows. But what I do know, is that when viewing their developments in Prior Lake two years ago, I wasn't impressed. Homes were overpriced for the falling housing market and Prior Lake was becoming over-built.

Many small time builders have also gone out of business, which is really no surprise. The Twin Cities builders that are staying afloat are doing so by cutting jobs. Centex homes has laid off many of its employees, contractors, and real estate agents. Other builders are laying off their designers, and some are not keeping their model homes open, but rather rely on "by appointment only" showings. To take a step further, I have heard some builders are cutting back the number of floor plans they offer to potential clients, and no longer allow upgrades at the time of build. Cutting costs and overhead is the only way to stay alive in this depressed real estate market.

But my main point is this, could it be that home builders in general didn't have a business plan in place for after the boom? They reaped the financial rewards for five years. Now many of them are in trouble because they failed to prepare for the bad times. Did they spend all their profit, waste it away in new developments, waste it away in fancy advertising? I honestly don't know.

I am not a genius. But I did see the hand writing on the wall in 2004 and took measures to make sure I would be OK when the market started to decline. I am staying afloat right now because of making a plan four years ago. But like many local builders, many real estate agents have been forced out of the business. So the questions is, if builders and agents had been honest with themselves and planned for the future that was inevitable, would they be closing their doors or filing for bankruptcy? Let me know your thoughts!

Minneapolis Downtown Condo Update

2008-11-11T09:36:00.005-06:00

The area in Minneapolis which has the most single listings is by far downtown Minneapolis. With the inventory largely condominiums, it is easier to break down the data, separating out the houses (only six for sale currently) from the condos. Below is a break down of what has happened so far this year when compared to 2007 for downtown Minneapolis condominiums:

Average Days on the Market (DOM) : it is taking on average 108 days for a Minneapolis condo unit to sell, up an amazing 28% from this same time last year!

Inventory : the good news is that the number of condos for sale in downtown has decreased by 28%. This means there is less competition compared to 2007, and because of this inventory decrease, the Average Price for condos has increased by 5.6%. The only downside is that the number of closings so far in 2008 is pretty much the same as that in 2007.

Foreclosure Rate: So far this year, of the 571 closed sales, between 7-8.5% of them have been foreclosures or short sale properties. I don't know about you, but that is a pretty low portion of condo sales. When compared to the average Twin Cities real estate market, which is at 35% rate of foreclosure, it is really quite good.

So the bottom line is this, if you own a condominium in downtown Minneapolis, keep your chin up. While times are tough, if you stay positive and have patience, your condo will most likely sell. Just remember to keep your asking price realistic, and possibly ahead of the market. With current listings receiving 96% of the asking price, pricing it right from the start is imperative. Before you know it, Spring will be here and a new wave of home buying will begin!

It's Winter Hazard Week in Minnesota

2008-11-10T17:18:00.004-06:00

Winter Hazard Week — November 10-14

My friends in Florida would have you believe that living in the north during winter is like living in hell. Funny how I feel the same way about Miami in the middle of summer. At least in winter, you can put multiple layers of clothing on to keep you warm; however, in the hottest summer (with lots of humidity) you can strip down to nothing and still be roasting hot.

So for those of you new to Minnesota this year, or for those of you thinking of moving to our beautiful state, this week is Winter Hazard tips week. For the cliff notes version of winter survival, check out these quick tips.

Today it is Winter Weather Overview, where you can learn the basic winter terms like Lake Effect Snow and such. With 10,000+ lakes, it is very common to have white outs on one side of a lake. To make the rest of the safety information easy for you to find, follow the links below for each days winter weather tips:

Tuesday - Outdoor Winter Safety

Wednesday-Winter Fire Safety

Thursday- Indoor Air Issues, Insurance

Friday - Winter Car Safety

Remember, winter in Minnesota is beautiful. One thing unique about the north is that people don't let the cold weather keep them indoors. Everyday you can find people around Minneapolis and Saint Paul enjoying a walk down the street, or taking a jog around the lake. To my friends in Florida, while I do miss the Gulf of Mexico, there is something to enjoy about Minnesota when you can actually have four seasons.

First Day of Snow in the Twin Cities

2008-11-07T10:34:00.002-06:00

Not all of the corn has been taken in quite yet. It was very pretty to see the snow clinging to the stalks this morning in Dakota County.

Gopher Hockey

2008-11-01T19:25:00.000-05:00

Tonight I get to enjoy some early season hockey at the Xcel. If you move to Minnesota, you're sure to become a hockey fan!
Sent from my BlackBerry® smartphone with SprintSpeed

The Monthly Skinny for September in Minneapolis

2008-10-27T21:31:00.002-05:00

Each month, the Minneapolis Area Association of Realtors puts together video snapshot of the Twin Cities real estate market. Take a look at September, a historical month for home sales.

Fall Color is Reaching the Twin Cities

2008-10-10T00:30:00.003-05:00

Fall color is creeping into the Minneapolis metro area. You can drive to one town and see tons of color, and then drive five miles away to no color. But no doubt, by the end of next week, the entire area will be brilliant.

Fall is my favorite season. So many changes happen, you get to bundle up in a warm jacket, sip on hot chocolate, enjoy the first game of hockey season, and trick or treat....and then, before you know it, Christmas is here.

Loring Park in Downtown Minneapolis

2008-09-23T22:31:00.005-05:00

On the southwest corner of downtown Minneapolis sits Loring Park, a great oasis for all the family to enjoy. The park is surrounded by cathedrals, new condominium developments, the Minneapolis Sculpture Garden, and the Walker Art Center.

Created around 1883 by the Board of Park Commissioners and originally named Central Park, the park was renamed in late 1890 to honor Charles Loring who served as a Minnesota Supreme Court Justice and who was the first President of the Board of Park Commissioners in 1883. Loring is now known as The Father of Minneapolis Parks.

For the sports enthusiast, the park features basketball courts, tennis courts, biking path, and a tot-park for the kids. For dog lovers, there is now an off leash area at the northeast corner of the park.

One part of the park that I love is the perennial flower garden that is blooming spring through fall, which is very relaxing too. Surrounded by brick trails and lounging benches, visitors can sit back and enjoy the day while being only minutes away from downtown.

To learn more about the park visit:

Friends of Loring Park
Loring Park Neighborhood
Loring Downtown
Minneapolis Parks

Lake Harriet Historic Home in Minneapolis

2008-09-11T17:01:00.001-05:00

This gorgeous Spanish Revival home is located near Lake Harriet in Minneapolis and was built in 1923 by the well known local architect John W. Lindstrom. Mr. Lindstrom has designed hundreds of homes and buildings around Minneapolis and has even authored a few books about home styles and floor plans. In 1922, he published a book solely on two story homes, many of which can be found still standing today. Unfortunately, when I looked through a copy of the book at the Minnesota Historical Society, the above home was not included. Most likely because the home was not completed until after publication of the book.

The original owner of the home was Fred Soderberg, which looking at original permits, contracted out the work himself. All in all, it appears the homes was built for around $11,000. He didn't live in the home very long, for the 1934 Land Survey conducted by the City Planning Commission shows a new owner by the last name of Kavanaugh was in possession, with 8 people residing in the home, including the maid.

With almost 4000 square feet and five bedrooms, the home sits on a large corner lot. It sold in 2007, for the first time in 35 years, at a price of $832,000.

New Minnesota Carbon Monoxide Detector Law

2008-09-06T21:48:00.002-05:00

The new carbon monoxide (CO) alarm law requires that "every single-family dwelling and every dwelling unit in a multifamily dwelling" have "an approved and operational carbon monoxide alarm installed within ten feet of each room lawfully used for sleeping purposes." (See MN Stat. 299.51) This law was effective as of August 1, 2007 for newly constructed homes, and just became effective August 1, 2008 for all existing single-family dwelling units. It becomes effective in August 1, 2009 for existing multifamily dwelling units. The alarms must be an approved device (conforming to UL2034 standards), and may be hardwired, plugged in, or battery-powered (if attached to the wall).

So, yes, this means YOU, all home owners in Minnesota, must have CO detectors or you are breaking the law! But some how I doubt most of you will be running out and picking one up. Just know that when you go to sell, you should make sure to have one within 10 feet of all bedrooms. Failure to comply with the law could hurt your wallet in the future...with the sue happy society we live in, a buyer that is later injured by Carbon Monoxide poisoning could come back and take you to court for damages.

Video Market Update from the Minneapolis Association of Realtors

2008-08-25T22:26:00.000-05:00

Another One Bites the Dust

2008-08-21T12:47:00.003-05:00

Looks like another local fraudulent figure in the real estate world has been taken down, being sentenced to federal prison on Tuesday.

Molly L. Heise, of Chaska, was sentenced to six years or money-laundering in which she stole more than $2.5 million from the clients of her real estate closing company, Profile Title and Escrow. Her wonderful actions win her the prize of 70 months in prison and three years supervised release. She also has to pay more than $3.9 million in restitution.

Makes you wonder if she thinks it was all worth it, in the end.

The Wonderful World of Foreclosures

2008-08-20T18:42:00.005-05:00

One of the luxuries agents have when showing vacant homes is that you never quite know what you are going to find when you open the front door. I have a few clients that are looking at investing in some foreclosed homes around the Lake Nokomis area, so needless to say, I have shown quite a few these last few weeks.

Foreclosures are vacant homes that the bank really doesn't care about. All they want to do is sell them. Many of the agents I have run across that specialize in foreclosures don't ever check up on the homes they list. Sometimes they take a photo of the home from their car window. If you are lucky, you might get a photo of the back of the home too. But that is about all they do.

Take for instance, the little birdie in the photo. He has been dead a while on the second floor of a foreclosure I looked at a few weeks back. He took the pleasure of dieing right in front of the only bathroom in the house, so my clients were a little put off by his presence. It didn't help matters to then go into the next bedroom to only have another dead bird laying near the attic door. Strike two....my clients, though at one time interested in the house, decided against it. I took the liberty of calling the agent and leaving them a message about the dead birds. Who knows if they ever cleaned up the mess.

But my point it, you never know what you are going to find inside a foreclosed home, so it is best to keep an open mind. Some homes have mold problems, some have updating issues, some need to be torn down, while others have been torn apart by the previous tenants. I heard about one owner in Prior Lake who has been foreclosed on and is still living in the home. He is "getting back" at the bank by stripping the property of everything he can, and then selling it on Craigslist. Supposedly someone bought his retaining wall, and dismantled it stone by stone. He also sold his deck. I heard his shingles are also for sale for anyone that wants to come take them off his roof.

Foreclosure makes people do funny things, and lets buyers see anything you can imagine.

Downtown Minneapolis Towers

2008-08-11T22:27:00.002-05:00

Monday morning was beautiful with blue sky and lots of natural light. As you can see, the buildings reflect the blue very well, what with all the glass on these architectural towers.

To see a few pictures of my approach to Minneapolis, check out my Minneapolis Luxury Real Estate Blog.

Butterfly Garden

2008-07-23T09:34:00.003-05:00

Butterfly gardens are a great place to visit with kids and to also try to take photos of these beautiful creatures. You have to be quick to get a good shot. I went through many blurred photos just to get about seven photos that were decent. I used the macro setting on my camera and got really close to the butterfly for each shot.

The Wonderful World of Real Estate Smells

2008-07-22T23:57:00.003-05:00

One of the joys of showing real estate is the unexpected surprises that can great buyers as they walk through a home. The good ones are the smell of cinnamon apples and chocolate chip cookies. The bad ones...well, read on to learn about some I have ran into on a recent showing.

House #1 looked great online. While is was quite a bit older than the other two on our list, say 20 years older, the current owners had done quite a bit of remodeling. The first thing we noticed when we drove up was the next door neighbors car collection. Wow, what it must take to service 2 minivans circa 1980, 1 beat up Chevy, and something else we couldn't quite make out. We decided that wasn't a total scar on the home, so we went inside. Now here is where the sellers lost us. As I opened the door, the lovely aroma spilled out into the snowy cold. Unfortunately it wasn't the spell of Roses, or cookies, or cinnamon apples, but the smell all real estate agents know is a deal killer, pet urine.

You have to understand, while I can see a way out of the situation, like giving the home a head to toe bath, husbands are not so forgiving. His crinkled nose tells me that no matter how great the inside looks from this point on, there is no way we will be buying this house. I convince him to go inside anyway. The sellers have done a pretty decent job...a great new kitchen, hardwood floors, and a refinished basement. However even I notice the poor tile job, the unfinished trim, and the shoddy painted walls, and I have to join my husbands prior unspoken position. We decide to move on to #2.

The 2nd home was more expensive than the last and had more square feet. With no bad odor greeting us at the door, we preceded downstairs to the beautifully remodeled lower level. Wow, this was great! It even had a huge office with french doors, perfect for me! As we ventured upstairs, thinking this was the one, we headed to the kitchen. See, I am a cook, so I am very picky about my kitchen...this one got a B, but it needed updating. I could over look this, so we headed upstairs. As soon as we started up, another wonderful odor hit us head on. No, not roses again, but this time mothballs and must. Unfortunately it had to be me to scratch the home off the list, as I am allergic to both these smells. I couldn't even continue up the stairs it was so strong! Now that my allergies are all messed up, it is useless to proceed to #3. We decide to go home to regroup and venture out on another day.

So what is the moral of the story? Sellers, please get an outside third party to smell inspect your home before you put it on the market. Do not be offended if the report issues you a citation for having a smelly house. If you do not take care of the problem now, the home will never sell. The easiest solution is a thorough cleaning...no, do not just cover it up with a spray. It only adds to the problem. Realtors, do not be afraid to tell your clients their home does not smell like roses. Offer them suggestions to improve it and tell them it will not go on the market until odor is fixed. Why waist your marketing dollars if a seller refuses to listen to you? Anyway, if your home is stinky, you won't be smelling anything green.

Rural Minnesota

2008-07-21T23:55:00.000-05:00

We have been having a great summer so far this year, at least in my opinion. I grew up in a small town in Indiana, that was surrounded by farms. Minneapolis is very similar as you can drive just a half hour out of the city and be in farm country. We have some of the most beautiful scenery with rolling hills and acres of corn fields, reminding me of southern Indiana. If you want real estate with 2 or more acres, you have to travel to the far suburbs to find a great piece of land. Seeing the profit to be made, many local farmers are selling off their tracts of real estate to developers.

Declining Markets No Longer Penalized

2008-06-26T09:31:00.004-05:00

In the past, home buyers who have wanted to purchase in declining markets were penalized for doing so. Usually, lenders required more funds for a down payment, some up to 5% more than homes bought in regular markets. Local lenders held the power to call an area "declining" so any buyer could find themselves paying more, even when local areas were doing well.

Sound unfair? Well, it is.

Thankfully, someone has finally figured this out, and surprisingly, it is Fannie Mae and Freddie Mac. Now, buyers will pay the same amount for down payments, no matter where the property is located. Both factions have suspended their loan penalties indefinitely.

Now there are still many lenders out there that refuse to lift their penalties, but if the loan if backed by Fannie Mae or Freddie Mace, relief is available now. For heaven's sake, how can you get a market out of decline if you make it harder for low income families to purchase a home?

By the way, buyers can also get funding through FHA which also does not have a declining market penalty for home purchases.

A Day Trip Through La Crescent, Minnesota

2008-06-25T22:14:00.001-05:00

There is this little area of road near the Mississippi River just south of La Crescent in Southeast Minnesota that always captures my eye. If I had to describe peace, then this would be one of the first places I would think of. We drive though it every time I travel to Wisconsin to visit the in-laws. On one side is this old looking train bridge that sits just above a small tributary stream. On the other side is a water-marsh area that is always a nice bright green. Finally, after two years, I stopped to take some photos. Enjoy!

Fresh Off the Presses

2008-06-16T21:11:00.003-05:00

A Snapshot of the Minneapolis Housing Market

The Minneapolis Association of Realtors has reported the following:

"Bringing our market back to balance involves a two-step process: supply needs to draw down, demand needs to bounce back up. It's as simple as that. So far, 2008 is proving to be the year that we can confidently check the first item off this list, as the number of homes for sale continues to dwindle relative to one year ago. There are currently 33,219 homes for sale in the Twin Cities region, down a hearty 4.9 percent from one year ago, a year-over-year figure which should continue to drop in the months ahead. New listings for the week ending June 7 were down 13.9 percent from a year ago, while pending sales declined by a smaller 5.3 percent for the same time period comparison.

All in all, we're halfway there: supply is coming down, but demand is only flattening, not coming back up just yet. Regardless, the signs are encouraging."

My Photos Stink

2008-06-14T21:44:00.000-05:00

Many real estate agents have a computer generated feedback system in place for their listings, so that when a home is shown, the agent can let the seller know what buyers think of their home. It is a great way to get honest feedback about price, condition, etc.

Today I received some feedback on one of my listings. I had to chuckle at this one. Apparently I have been asked to put new photos of the home on the Multiple Listing System because the home looks nothing like the photos. In fact, the home is too small. Hmmm...the home is only 1000 square feet, so what were you actually expecting when you walked in?

I can only presume that my photographs made the home look like it is 2000 square feet, and now I can understand why the buyer was upset. Of course, the room sizes are available as well, but I guess they missed that one too.

Bottom line is that I take really good photos for my clients which helps receive more traffic through the home. Not everyone will be happy with a home they see, but if my photos get them in the door, at least they will know if it works for them. By the way, I won't be changing the photos any time soon.

Let There be Hail

2008-06-11T10:03:00.002-05:00

We had a series of rough storms roll through today, and nature decided to drop marble size hail onto my house. Haven't checked for damage yet, but maybe I can wish it away?!

Can You Get a Deal from a Short Sale?

2008-06-09T21:58:00.002-05:00

Quite simply, the answer is yes. While some banks are still having trouble stomaching taking a huge loss, many others are realizing the necessity of getting homes off their books, or keeping them off there in the first place. I am seeing many more short sales sold at low prices.

Take, for example, a home that closed this past month at a price of $145,403. The original list price started out 138 days ago at $227,000. The owners had bought the home for $250,000. Instead of going into foreclosure, they were able to get the bank to agree to a short sale. And some short sale this was!

The buyers are now sitting on a home with instant equity because they bought it greatly under market value. If they hold the home for at least five years, there is a very good chance they would make a good resale profit on the home, should they sell in the distant future. The positive point to remember is that they made an offer to the sellers and were not embarrassed that is was low. I am sure the sellers were happy just to get an offer, and while difficult to swallow, the bank is probably happier that it won't have to deal with the home as a foreclosure.

If you are in the market to buy, don't be afraid to look at the short sales...you can get a great deal right now all over the Twin Cities for homes that are in excellent condition.

Early Summer at the Minnesota Landscape Arboretum

2008-06-07T21:37:00.000-05:00

The Minnesota Landscape Arboretum is a great place to take the family and enjoy hours of exploration. There are so many gardens to see and collections to visit that it you might actually run out of time and come another day to finish. It is also a wonderful place to host your wedding.

Just in Case You Want to Know

2008-06-06T21:33:00.000-05:00

There is a lot of mis-information on how much real estate agents earn floating around the media, so I thought you might like to see the newest income stats for Brokers, agents, and Realtors. Remember, brokers run the business, all of us are agents, but only those who proscribe to a Code of Ethics can call themselves Realtors.

How the Next President Could Effect Your Taxes

2008-06-05T23:08:00.005-05:00

One of my financial advisors from Merrill Lynch sent this interesting article on how the two presidential candidates might effect your future pocketbook.

Two Candidates, Two Different Tax Plans

The next president will have much to say about taxes and investments. From the capital gains rate to the corporate tax rate, here’s what to expect after the election.

With the economy ranking No. 1 on voters’ list of concerns, the topic of taxes is coming up with increasing regularity in debates and on the campaign trail. It’s clear that the 44th president will greatly affect future tax policy and, by extension, your pocketbook and investment portfolio.

The parties have very different approaches, as evidenced by their candidates’ positions. Republican presidential candidate John McCain, for instance, proposes making President George W. Bush’s tax cuts permanent. He also wants to make it harder to raise taxes. His Democratic challenger, Barack Obama, is equally vocal about repealing those tax cuts for households earning more than $250,000.

Here’s where the candidates stand on these issues and how their proposed changes might affect you:

Minnesota Wildflowers - Columbine

2008-06-04T22:24:00.002-05:00

This beautiful red-orange flower hangs upside-down and is usually found perched on rocks or on the edge of shady woodlands. From the Buttercup family, Columbine blooms in late spring and into summer.

Are Buyers Spoiled?

2008-06-03T08:12:00.000-05:00

For the last few months, I have been working on and off again with several buyers, which is keeping me really busy. However it is proving difficult to find a home that each of them likes. Now, trust me, we are finding homes that are fantastic, but it seems buyers want the cake and to eat it too in the current real estate market. My question has to be, are buyers spoiled when it comes to amenities inside homes?

Over the last five years, with the increase in home "appreciation" equity, many home owners could afford to renovate their aging homes. Trying to make the home more modern, it was common to put granite counter tops in, hardwood floors, stainless steel appliances, and exotic wood cabinets. Builders jumped into the fray as well and offered all types of previous "upgraded" amenities as standard options.

Rehabbers that bought homes to fix and flip were making a killing on net profit, so to make their homes more appealing, they were putting in the best products. I remember watching one of the cable home improvement shows where a 900 square foot home was being rehabbed, which they priced moderately, but it had granite countertops and high end appliances. As a former rehabber myself, a few things you have to look at when considering what to out fit the home with are:

value of the home

type of buyer

location of home

If the home is not in a great area, or has a low value, then one should not over build the home with luxury amenities that are not supported by the surrounding homes. Unfortunately, I saw this happening time and time again over the last several years, and it looks like buyers are now used to top of the line, even in the smallest homes.

One new home buyer I represent has been looking at homes near Lake Nokomis in Minneapolis. They can only afford a certain amount of home, which means they cannot buy a home even a few blocks from the lake. Most of the homes we are looking at were built 30+ years ago, some need minor updating, while others may need a ton of work. Obviously, the less work to put into the home the better for my buyers.

What has surprised me most is that we have found a few homes that are PERFECT for them, being completely renovated. The only thing they don't have is granite countertops, high end appliances, etc. The buyers refuse to accept any house that doesn't have these amenities, I have come to learn. I have tried to explain to them that in their price range, these "luxury" items are hardly found, but they sadly refuse to believe it.

So my question is, have buyers, especially first time home buyers, been spoiled by the boom years? Growing up in a lower income family, one thing I learned was that sometimes you have to work your way up to what you really want. We bought a modest first home five years ago, and it took three years to finally get the money to tile the floors. After hard work, we were able to build a new, larger home, this last year.

But it seems to me that the new generation of buyers no longer want to work for things. They want it all, right now. With the market haven fallen the last two years, many buyers now expect to get everything for nothing. Sadly, I have to try and bring current buyers into reality, but it is no easy task. Buyers are even shunning homes that need a little updating via carpet or new vinyl because they don't want to do the work later. Sometimes, you just have to look past these minor flaws if your goal is to get into a home.

So what's an agent to do, when buyers just won't come to reason? Well, I guess just keep showing homes until it finally sinks in because, after all, this is just one more learning experience for the first time home buyer in Minneapolis.

Hiking the Bluffs of the Mississippi

2008-05-31T22:59:00.003-05:00

There are many places up and down the Mississippi River to hike and enjoy the beauty of the area. Many times hiking has to be done very carefully because hills are steep, large rocks are plentiful, and deadly drops lurk around corners. But if you find a great location on a beautiful day, you can get some amazing views and take the most gorgeous photographs.

Ugliest Architecture in Downtown Minneapolis

2008-05-29T22:46:00.004-05:00

I ran across a funny read from the Star Tribune about ugly buildings in downtown. The writers drove around to see what they could find for terrible facades and design. I have to say, I agree with them, I really loath late 60s building design, not to mention most buildings from the 70s. Not an ounce of inspiration in them.

The building shown in the photo is at 100 Washington Square, which gets a great critique by Rick and Claude:

"A big thanks to City Hall for issuing the building permit for that monster. The best thing about owning an RW condo is you can't see the outside when you're inside. And don't look now, but there's 100 Washington Square, Minoru Yamasaki's blow-up of a 1970s computer punch card, in a blinding shade known down at Hirshfield's as Crest Whitestrips. On stilts, no less, with a skyway snaking under it like a mirrored python. Then there's the Metrodome. Oh well. Why kick a dog -- literally -- when it's down?"

Of course, with all the modern design going on right now, I have to wonder if in 20 years, we will be asking the same question "what were they thinking?".

After New Construction - Part 1

2008-05-28T21:24:00.004-05:00

Many of you might have followed my series, Confessions of New Construction, which focused on my experiences while building our new home this last year. Now that we are moved in, the new phase of owning a home is beginning. My new series, while short, will highlight some of the things many people don't think of when building a new home.

Gutters

One thing many new home buyers forget to think about are the costs that arise after you move in. One that we almost forgot about was that our home would need gutters, since they were not offered by our builder. Call it a warranty issue or something like that.

But anyway, having never had to fund gutters before, I called three different Minneapolis vendors for pricing. Two were referred to me and the other I picked up at a trade show.

The new thing in gutters is seamless construction. Less seams mean better looks, and you can get them in aluminum or steel. One company we met with promoted steel gutters and that they would hold up to anything, but at a cost of $3000, our wallet's heart skipped a beat in disbelief. We went on to look at two other companies who used aluminum gutters. They came in around $1250 and $1500.

Before anyone came out to give us estimates, we looked at all the places that would need gutters. Right away I knew the corner of the porch would be a problem (pictured above) because it had this small 90 degree turn. How the companies handled this problem was going to tell me how smart they were. The lower priced guys said no problem, but the expensive company tried to tell me that the only way to make the downspout work would be to have it follow the porch post down to the ground. They would bend it to fit the post, then have it go down the brick base. Now, I had to look at that and wonder what this guy was thinking. I can't even begin to tell you how ugly that would look, not to mention take away from the architecture of the craftsman inspired post design. I'll let you guess who we didn't pick!

In the end, we decided that "gutters are gutters" and that there was no need spending a lot of money on these things. Even though the warranty is only good for 10 years, we don't plan on being in this house that long. Two weeks after closing, our new gutters were installed in a couple of hours. We even were able to get down spouts that matched the color of our siding to blend into the home. They look great!

The best advice I can offer is to remember the gutters:

If you don't put them on, you will have a little moat running around the home from water cutting into the ground.
Ask your neighbors who they used and get referrals, with at least three different estimates
Don't be afraid to ask questions...go with your gut feeling

Mmmmmmm.......Tasty Morel Mushrooms

2008-05-27T14:14:00.003-05:00

One thing I love about being in the Midwest is the yearly spring ritual of going mushroom hunting in the woods for Morels. These tasty mushrooms only grow for about a week or two and are highly sought after by local chefs. We had so many that I didn't have time to eat them all! It can be quite a task searching for them, so have patience.

More Real Estate Education

2008-05-21T22:18:00.002-05:00

The next two days I will be in at CRS class furthering my education on real estate topics. The class is called "Creating Wealth Through Real Estate Investing". Today was pretty much a numbers crunching game, because let's face it, investing in real estate is all about the numbers. Emotions should be checked at the door.

Having some personal investment properties all ready under my belt, I know some things about the topic. But I could never say that I know it all. That's why I take classes like this, to further my knowledge. My personal belief is that real estate agents cannot be any good at the job unless they take the time to go beyond just putting in their required continuing education units.

When you think about hiring a real estate agent to represent you, you should really check into their educational background. See if they have any real estate designations beyond the GRI, as this is a pretty simple designation to get. You might even ask them what was the last class they took and when. The subject matter could give you a good idea of how in depth the agent goes to further their real estate education. And of course, you have to like them too!

Lake Living in Minneapolis

2008-05-19T09:55:00.002-05:00

Just south of downtown Minneapolis sit multiple lakes for residents to enjoy. Naturally over time, homes have sprung up around the lakes as desirable places to live. Some of the most popular are Lake of the Isles, Lake Calhoun, and Lake Harriet, which string together to the west of I-35W. If you looked east of the 35W, the largest lakes are Lake Nokomis and Diamond Lake.

One of the great reasons for living in Minneapolis is the public use of the lakes and the surrounding parks. Residents and visitors can hike, bike, jog, stroll, or take a relaxing kayak - canoe ride on one of the lakes. Lake Nokomis has a public beach area that is perfect for summer swims in the lake. Lake of the Isles has a dog park at its south end, which needless to say, is used every day for a good doggie social hour.

There are just so many fun things to do in Minneapolis, and lake living is one of them.

Yellow-Rumped Warbler

2008-05-18T09:17:00.003-05:00

This little guy posed long enough for a photo op...his name makes you chuckle.

Don't Pick Your Home Based on Schools

2008-05-17T09:21:00.005-05:00

When ever I speak with a buyer client who has children, the most important question they want answered is whether a home is in a good school district. Because of fair housing laws, the question is a difficult one to answer. As real estate agents, we can't steer people to only one neighborhood, but have to make sure we show clients all the options.

Now if a client tells me they only want to search in a certain school district, then it is OK to carry out their wishes. What kind of agent would I be if I sent them to an area they didn't want? The kind that doesn't get paid, that's what.

So when the question of schools comes up when house hunting, the first place to look to determine a homes surrounding schools is the MLS fact sheet. Now, this might come as a shock, but these have been known to be wrong every now and then. The next best place to look is the school district website, which usually has maps, showing what school boundaries your home falls in. When you really want a solid answer, then the last resort is to call the district yourself.

But even when a buyer has done their due diligence and is satisfied with the results, things can change after you move in. Over time, and as little as every few years, school boundaries can change. Case in point, the city of Farmington is building a new high school, completion set for 2009. The old high school is going to become a second middle school for the area, so of course, the school boundaries are going to have to be reset, to accommodate the new schools. Most likely, there are going to be families affected by this change, and children are going to be attending different schools then originally intended.

There are also some elementary schools in Minneapolis and Saint Paul who are talking about closing down certain schools for lack of money. Many families will now have to truck their children many miles to the next school, and may not get a choice on what school their children attend.

Now if you had just moved into the area and were planning on sending your kids to school A, but a year later find out they have to attend school B, upset would probably be a good term to describe your feelings. But as the saying goes, "That's the way the cookie crumbles". So the best advice I can give is to not treat the school boundaries surrounding your home as the word of God...things can change.

Just Let the Kids BE Kids

2008-05-16T20:02:00.003-05:00

Sitting down this evening to watch the evening local news, something I rarely have time to do, I heard a story that blows my mind. Apparently there is a school in Minneapolis that has implemented a policy for their elementary school of "No Touching" on the playground. The new rule pertains to the games of touch football and tag.

The school principal says she is doing this to alleviate injuries, but also to make sure aggression between children does not happen. Now, I understand her thought process, but for goodness sakes, when are we as a society going to stop treating our children with white gloves?

I have heard of schools that do not allow kids to play kickball, one of my favorite games as a child, or dodge ball, because someone might get hit by the ball. These sports not only foster quick thinking, agility, and exercise, but they also teach our children proper sportsmanship and how to treat others. In today's society, however, we would rather our children be injury free, instead of building confidence and growing into life.

There are even schools who do not allow hugging or hand holding. See how ridiculous this is getting? In our litigious society, schools fear lawsuits from parents for physical and emotional injuries to their children. No longer is anything an accident...someone has to be to blame.

Elementary school is the beginning of life amongst others. Children have to learn manners, sharing, dealing with loss, peer pressure, physical changes, bullying, etc. If we shelter them too much, as is currently happening at our public schools, the only thing we will accomplish is raising children who cannot think for themselves, nor take care of themselves.

WE as parents are the only ones who can change this scary trend. It's time to say enough is enough of these silly rules, and just let the kids BE kids!

Daffodils

2008-05-13T09:30:00.000-05:00

Out Sick

2008-05-12T22:52:00.001-05:00

Sorry guys, I have been out sick the last few day so I will try and get back on track when I can stand to look at the computer long enough to post a post....

Is it Always this Cold Here?

2008-05-09T09:53:00.002-05:00

This spring I have been working with quite a few buyers moving to the area from the south. Being as our Spring this year is quite cold, the number one question I hear right now is if our weather is always this way.

Let me put your minds at ease and say that this Spring is really odd. The cold has delayed the trees budding, but the grass is getting very green from all the rain. The only thing that really puts a damper in my plans is flower planting and landscaping. Being in zone 4 means that many annuals cannot take colder temps. About the only thing you can plant safely outside right now are pansies.

Minnesota Wildflowers

2008-05-07T21:10:00.002-05:00

It's that time of the year again...the wildflowers are creeping out from under the fallen leaves of last year. This past weekend I took a long nature hike off the bluffs of the Mississippi River and found some great spring wildflowers.

The photo is the wildflower called Dutchman's Breeches. The odd shape of the flower makes it hard to get to the flower's nectar. Only bumblebees have mouths capable of reaching in far enough for the prize.

Some Reality in the Housing Market

2008-05-06T20:24:00.005-05:00

Everyday I hear the same old story...the real estate market is tanking, buyers are scared to buy, bla-bla-bla. Even though us real estate agents scream to the roof tops that housing markets are local, the media negativity drowns the truth out.

The only thing we do know is that the number of foreclosures has increased and so the perception is that the Twin Cities real estate market is going down, down, down. Luckily, some savvy people at the Minneapolis Association of Realtors have created a new report that better outlines what is really happening here in Minneapolis.

Some say that statistics don't line. However, statistics themselves can be a problem if they don't take special circumstances into account. Case in point, all the stats that come in for the Twin Cities includes data from both foreclosures, short sales, and traditional sellers, saying that median home prices have fallen 10.3% in the last year. If you were to separate the two bank related sales from traditional sales, you would have a very different look for our local real estate market. Home sales NOT related to foreclosures or short sales are actually only down 3.9% from this same time a year ago in 2007.

Yes, foreclosures do effect the market, but sellers not facing foreclosure can now look at real information that shows the future is not as bleak as the media paints it. The same goes for buyers. While the national media might be reporting the sky falling, sellers are not giving away homes as you might like. There are good deals to be had, but if you want a steal, the best bet might be too look at a foreclosure.

You can read more of the report at the link above, which also has a break down of foreclosures by price range and housing type.

Spring Flowers are Blooming

2008-05-05T22:09:00.000-05:00

Photos I took of flowers after a Spring rain this weekend.

Take Time to Smell the Roses

2008-05-04T22:31:00.001-05:00

The last few weeks I have taken a step back from blogging. One reason is that I have been really busy with buyers, and the other is that I am just enjoying time with the kids. Like John Lennon says, life is what happens while you're making other plans. I have found that sometimes blogging can consume me, and I forget to look up from the computer. The other day my son was trying to get my attention, and I was so busy blogging that I didn't hear him.

When I finally felt him tugging my arm, I realized that, much like a video game consumes our children, so has blogging consumed parts of my life. At that moment, I realized that maybe I should take a step back and make sure I am not missing life as it happens. I decided to make a plan for my blogging.

My new goal is to only blog when my children are asleep. That means I will mostly be blogging at night, like right now. Have you thought about how blogging effects those around you? Do you no longer talk to your spouse because your head is buried in a laptop? I realized both I and my husband would have our heads in laptops at the same time. Now I make sure to close them and take time with ourselves.

We live in a world where technology surrounds us. It has become so much a part of our daily routine that we forget life with out it. Yesterday I stepped away from the TV, computer, and phone, and went for a long walk with my family. I even took photographs of nature after a spring rain. What fun it was to be free. When was the last time you were free?

Getting to Know the Area

2008-04-30T11:13:00.000-05:00

This last weekend I had the pleasure of viewing homes with one of my clients in from out of state. We spend two days going between new construction and currently owned homes. A little less than half the homes were vacant, two being short sales and facing foreclosures. When I called the listing agents, they were pretty much begging me to bring a non-contingent buyer. We looked at the homes, but unfortunately there were better homes on the market.

Flying into town for a preliminary house hunt is always a good idea if you have the time. It allows you to get to the know the area, see how housing styles differ from your area, and come to terms with home prices here in the Twin Cities. Yes, the cost of living is higher here, and you get less home for the same price as in other parts of the country. But you will never know if you like a town until you see if first hand.

My clients never did find a home that they liked for the money. Their choice is to rent for a year while they look for the best home to fit their needs. This is becoming the new trend of real estate house hunting. With the down market, people are scared prices are going to go down more, and there just isn't any rush to purchase a home like there was a few years back.

ASID Showcase Home in Minneapolis this Year

2008-04-29T21:44:00.004-05:00

For those of you who like to see major home renovations, including fantastic interior design, make sure to stop by this years American Society of Interior Design (ASID) Showcase Home. Minneapolis is home to the lucky home owner, Pat Fallon, who is moving into the Colonial located at 4300 Fremont Avenue South.

Mr. Fallon is the founder of Fallon Worldwide, an advertising firm who had created famous ad campaigns, including the CitiBank ads where identity theft victims talk with voice overs from the people who stole from them. He recently purchased the home, built in 1905, in 2007 for $1.4 Million.

The tour is packed full of ways to see the home. Either through cooking events, garden tours, wealth enhancement sessions, or wine & dines, there are many weekly events from May 16th to June 15th to enjoy a unique Twin Cities home tour. When I go to view the home, I will take a new exterior photo of the home so you can see the major renovation changes to this historic home.

A State of Water Towers

2008-04-28T22:31:00.000-05:00

Every town around the Twin Cities has a lovely water tower hovering in the skyline. I just happened to be taking photos in Farmington for a client of mine, and took a few shots of the water tower as the sun was setting. I think it turned out pretty good.

Television is Not Always the Truth

2008-04-24T20:10:00.002-05:00

This evening I had the privilege of being able to sit down for a few minutes to watch something on TV. I happened onto the show "House Hunters", and as fate would have it, the buyers were looking for a home in Minneapolis.

The show looked to be taped in 2005 with the buyers searching in the Southwest area of Minneapolis. The only problem I had with the show is that the photos they were showing of the area, were really photos of homes along Summit Avenue in Saint Paul.

Hmmm... Saint Paul....Minneapolis....yep, they are two different cities. Just goes to show you that you should not always believe what the television, or media for that matter, tells you.

So Much Wildlife

2008-04-23T08:37:00.002-05:00

We have had so many ducks the past few weeks in the pond behind our home. Today, we had a new arrival. Known as the Hooded Merganser, this small duck (male and female photo above) breeds every year in Minnesota. The white strip on his head actually flares out into a large white crest for mating display. Unfortunately, it looks like he has found his mate so I have not seen his beautiful display..yet.

Confessions of New Construction, Part 9

2008-04-21T11:52:00.000-05:00

Closing Day

The morning of closing, I walked through our soon to be home to make sure the last items that needed to be repaired were finished. Every thing looked good so we headed on over to the title company to sign the final documents. Most of the time, you will have two days before closing to do the final walk through. At this time, if you see anything that is wrong, you can bring it up before you hand over the money and sign for the home.

When it comes to preparing for the closing on your new home, a couple things to remember are:

make sure closing is not scheduled on a federal holiday - banks will be closed and you will not be able to pick up a cashiers check for your down payments.
close the second week of the month - if you close either late the first week, or during the second week, your first mortgage payment will not be due for 45+ days. However if you close as the end of the month, you will only have 30 days for the bill to come due.
close on any day other than Monday - first of all, it's Monday so everyone is going crazy, but closing on a Monday rarely goes smoothly because most title companies and lenders will not have the paperwork completed the previous Friday (HUD statement). If you close on any other day, you will get the paperwork on time and with less headache.
don't forget to bring your driver's license - one thing you must have, besides the funds you owe, is a valid driver's license. It proves who you are. There have been instances when people have "bought" homes using someone else's identity.

There will be a lot of signing, so come prepared to write. Don't be afraid to ask questions about what you are signing either. Too many times I see clients just sign, saying they will read the documents later. Be honest with yourself, you are about as inclined to read your mortgage documents as you are to read the dictionary front to back.

The nice thing about building new is that usually the builder will have a 3 month and 9 month checkup during the first year in which they can repair warranted items. So if anything major happens, or falls apart, write it down for the builder. For instance, one of the cabinet doors is falling apart in our kitchen, we have some nail pops in our ceiling, and a cold faucet handle does not work properly. No matter how small, make the builder aware so it can be fixed.

Read previous posts from the series below:

Part 8, Putting on the Finishing Touches

Part 7, Framing the House and Adding the Guts

Part 6, Finally, Construction!

Part 5, Digging the Foundation

Part 4, Staking the Lot

Part 3, Shopping Day

Part 2, Picking the Lot, and Part 2.1,

Part 1, Picking the Builder

**If you want to learn more about the luxury side of real estate in Minneapolis, check out my other blog.

How Not to Stage Your Home

2008-04-18T18:21:00.003-05:00

While looking through homes for sale today for a client of mine, I came across this photo that is actually listed with the home.

If you are a seller : don't you dare let your home look like this when a Realtor comes by to photograph your home. It will NEVER get showings.
If you are the agent: don't you ever take a photo like this and post it with the listing. You are shooting yourself in the foot, along with the seller. Please take the time to move the items off the counter and then take a GOOD photo!

Quick Twin Cities Market Snapshot

2008-04-16T21:18:00.001-05:00

The quick market analysis so far this year is that listings are up, sales are down. But you knew that already, didn't you?

Some People are Worried

2008-04-15T10:27:00.000-05:00

As Northwest and Delta praise their merger, residents of Minnesota are a little worried of what is really going to happen. Many home owners that live near the airport and are employed by Northwest are awaiting to see what is going to happen to their jobs. While Northwest and Delta claim that more jobs are going to be created, you have to wonder how that is possible since the Northwest headquarters will close down and relocate to Atlanta.

A month ago I sat down with a home owner to discuss the possible listing of their home. They were not listing because they had to, rather they were getting prepared to list in case the airline merger caused them to lose their jobs with Northwest. Best to be prepared for all possibilities in these turbulent times was their motto. It will be interesting to see how this merger is going to effect the local housing market, especially in Eagan, where most employees of Northwest live.

Nicollet Island Historic Home #2

2008-04-14T22:34:00.002-05:00

This weeks historic home is located at 101 W. Island Avenue on Nicollet Island.

For those of you not familiar with Minneapolis, Nicollet Island is located on very small piece of land in the middle of the Mississippi River, just off downtown. This simple Greek Revival home is known as the R.M.S. Pease House and was originally located at 814 University Avenue. It was moved to its current location in 1986.

New Loan Program Offered

2008-04-13T22:02:00.003-05:00

The Minneapolis Advantage Loan Program - Great News for Minneapolis Home Buyers

The Minneapolis city council has recently approved a new loan program for buyers who purchase a single-family dwelling, or duplex, in Minneapolis neighborhoods that have experienced higher than normal levels of mortgage foreclosures. The program offers a $10,000 zero percent interest loan that is forgivable over five years to anyone buying a home in which they will live in these key neighborhoods.

Minneapolis neighborhoods who could benefit from this program include Camden, Weber, Folwell, and McKinley, as they are offering an additional $4000 for homes bought in their areas. This brings the total offered to $14,000, and the city of Minneapolis is looking for other areas that will partner this initiative and offer incentives to home buyers.

The funds can be used for a down payment, or for closing costs. They can also be used by the buyer to offset any repairs/improvements that will be done to the home. Better yet, ANYONE can take advantage of this offer as it is not based on any home price!

So if you are thinking of buying in Minneapolis this year, make sure you ask your Realtor and lender about the Minneapolis Advantage Loan Program!

Showing Home Etiquette

2008-04-11T23:51:00.002-05:00

One thing that surprises buyers that come to the Twin Cities to look at homes is the house etiquette they must abide by. The number one rule is that upon entry, buyers and agents must remove their shoes before they venture further into the home.

I have had many question the reason, but it is definitely easier to explain in the middle of winter. Take for instance today, which was covered in a nice layer of slush. Imagine if you were a home owner who had to clean up a mess of dirty slushy footprints all over your newly cleaned floors. It would make anyone mad. Luckily, most sellers help out and provide a large rug where we can put our shoes, and some are even nice enough to provide a chair to sit on.

I remember one buyer, having worn lace-up shoes, refusing to take them off when we went in to a vacant home. I made it plainly clear that just because no one lives here, doesn't mean we throw courtesy out the window. He got the point and took off his shoes.

So the best piece of advice I can give when shopping for your next home is to wear slip on shoes. Trust me, by the time you get to the fifth house, you will be soooo thankful!