Year End Real Estate Market Statistics for Lindstrom, Minnesota

Lindstrom is known throughout Minnesota as America’s little Sweden. Lindstrom was first settled by Daniel Lindstrom who left Sweden for America in 1853. A statue of Karl and Kristina Oskar, the fictitious characters that symbolize Swedish peasants who migrated to America over one hundred years ago, is a focal point for visitors to the Lindstrom community. Lindstrom is one of four cities that comprise the Chisago Lakes Area. The area is named after an Indian phrase, "Ki Chi Saga," which means "fair & lovely waters." Swedish immigrants referred to it as, "The Big Lake," as many of today's area lakes comprised one large lake.

Currently real estate in Lindstrom, MN in Chisago County is selling slowly. Being a bit east of the main metro area, it is often overlooked by home buyers as too far out. With the recent Highway 8 improvements and the brand new Park and Ride in Forest Lake, Lindstrom is worth a second look. As homes linger on the market in this area, sellers are negotiating and relisted properties are coming in at lower asking prices. There are great prices on new construction, nearly new homes and lakeshore properties throughout the community of Lindstrom.

In other Twin Cities counties, inventory levels are sitting at about 4-6 months but Lindstrom levels are a bit higher. Homes under $200,000 are in the best position to sell in Lindstrom as there is currently only 8 months of inventory on the market based on last years sales. Inventory levels are a bit higher than demand in the $200,000-$300,000 price range with just over a years worth of inventory. In the over $300,000 price range, it will take over three years to sell all of the currently listed homes if sales continue at this slower pace.
Lakeshore opportunities are abundant in Lindstrom! The combination of an amazing inventory of 22 lakeshore homes on 8 different lakes, long market times, and low interest rates, creates the perfect situation as sellers should be ready to negotiate an acceptable deal for the sale of your piece of shoreline!

2007 Year End Lindstrom residential real estate statistics for single family homes:

Under $200,000~ 21 Active Listings, 4 Pending Listings, 31 Sold Listings, 140 DOM (Lakeshore Subgroup ~ 1 Active, 0 Pending, 0 Sold)

$200,000-$300,000 ~ 32 Active Listings, 2 Pending Listings, 28 Sold Listings, 182 DOM (Lakeshore Subgroup ~ 4 Active, 0 Pending, 4 Sold)

$300,000-$400,000 ~ 21 Active Listings, 1 Pending Listings, 7 Sold Listing, 162 DOM (Lakeshore Subgroup ~ 6 Active, 0 Pending, 3 Sold)

$400,000 and Up~ 13 Active Listings, 0 Pending Listings, 4 Sold Listings 279 DOM (Lakeshore Subgroup ~ 11 Active, 0 Pending, 3 Sold)

Lakeshore available in the Lindstrom, MN
22 Active Listings

Lindstrom lakeshore price range: $169,900-$747,777

4 Homes on Kroon Lake
1 Home on NEDS Environmental Lakeshore
3 Homes on North Center Lake
4 Homes on North Lindstrom Lake
7 Homes on South Center Lake
1 Home on South Lindstrom Lake
1 Home on Spider Lake
1 Home on Vibo Lake

**All SOLD Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/07 through 12/31/07. Current pending and active listings statistics as of 3/4/08.

FEATURED LINDSTROM LISTING:
29541 Shoreview Circle, Lindstrom, MN 55045

Articles on Lakeshore and Minnesota that might be of interest:

• Does "Minnesota Nice" Affect the Real Estate Market? "Yah, You Betcha!"


• Dreaming of Life on MN Acreage?--What YOU Need to Know Before YOUR Move!


• Affordable Minnesota Lakeshore

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If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2008 Teri Eckholm http://www.terieckholm.com/

Are Homes Really a Good Investment?—Is NOW the time to Buy a House?

Annual housing numbers were released this week and there were no surprises that the housing market was down in 2007. I say there were no surprises because the double digit increases in value seen a few years ago throughout the Twin Cities and Minnesota could not continue. Everyone working in the real estate industry knew the market was ready to correct.

In the north and east metro counties (Anoka County, Chisago County and Washington County), I have notice the market correction building for the past few years. In the northern suburbs we feel the trend sooner than in the heart of the metro. So the slower market is no big news bulletin. **View Twin Cities Housing Statistics Here**

The real news is that the real estate market is poised to turn in the other direction. Who wouldn’t want to get in on the ground floor of a historically-solid performing entity?

Though real estate has peaks and valleys, it is still a good investment. Even with the recent price drop, Twin Cities home values are up significantly from where stood in the mid-1990’s. The astronomical, unrealistic pricing is gone but the core value is holding strong. Real Estate remains a good investment if people once again start treating it as such.

Glenn Dorfman of the Minnesota Association of Realtors (MAR) suggests we all look at the real estate market with a dose of realism. His recent podcast, “Not optimism, not pessimism, but REALISM...” explores the idea that everyone must look at real estate as the long term investment that it is.

Facts and common sense are what a strong real estate market is built on. Outrageous increases in property value are an abnormality in the market. Historically, housing has shown continuous, MODERATE increases. Due to the outrageous increases in the past decade, the market needed to correct.

So what does this mean to the average home owner? Think of your home purchase as a LONGTERM investment. Almost every financial planner I have ever met would strongly advise against ever borrowing against a 401K program. It is a long term investment for your retirement and the penalties are harsh if not repaid.

Borrowing against the equity in your home has similar consequences. So why would anyone think that removing equity from their home is a smart option?

So is NOW a good time to buy? In a word, Yes! Smart buyers will get in the game! Low interest rates, negotiating sellers and massive inventory give a savvy buyer options! There is no way of telling whether any market has hit bottom until the prices start going up again. Work with a Realtor, knowledgeable in your community to find a good deal!

As Dorfman says, “residential homes are long term investments in the same way that stocks are...flipping, greed and making fast money is mostly myth.”

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If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2008 Teri Eckholm http://www.terieckholm.com/

Ham Lake, MN Real Estate Market Statistics 3rd Quarter 2007

The sluggish real estate market continues to affect Ham Lake, MN and Anoka County in the third quarter of 2007. Homes are staying on the market longer with an average Days-on-Market (DOM) of 157 days for homes sold in the 3rd Quarter in the Ham Lake area. While homes under $300,000 have a manageable inventory level similar to other areas of the Twin Cities (about a 10 month supply), high end homes are selling at a much slower pace. Note the abundance of existing inventory in the over $500,000 category. With 47 homes on the market and two homes selling every 3 months, it will take over five years to sell the entire inventory if home sales do not pick up in this high end category.

3rd Quarter Ham Lake residential real estate statistics for single family homes:

Under $300,000~ 51 Active Listings, 4 Pending Listings, 12 Sold Listings (All existing homes)

$300,000-400,000 ~ 30 Active Listings, 1 Pending Listings, 2 Sold Listings (New Construction Subgroup ~ 2 Active, 0 Pending, 0 Sold)

$400,000-$500,000 ~ 30 Active Listings, 1 Pending Listings, 4 Sold Listings (New Construction Subgroup ~ 4 Active, 0 Pending, 0 Sold)

$500,000 and Up~ 47 Active Listings, 1 Pending Listings, 2 Sold Listings (New Construction Subgroup ~ 13 Active, 0 Pending, 1 Sold)

Lakeshore available in the City of Ham Lake:

5 Active Listings, 0 Pending Listings, 1 Sold Listings

Ham Lake lakeshore price range: $274,900-$945,000

2 Homes on Coon Lake
2 Homes on Lake Amelia
1 Home on Mallard Lake
**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 7/1/07 through 9/30/07.

Featured Lakeshore Listing in Ham Lake Minnesota: 3608 Woodland Drive

Articles on Ham Lake, Lakeshore and Minnesota that might be of interest:
Where's the Playground? A Key to Parks in Ham Lake Minnesota
What Makes a House a Home-Ham Lake, MN
Does "Minnesota Nice" Affect the Real Estate Market? "Yah, You Betcha!"
Dreaming of Life on MN Acreage?--What YOU Need to Know Before YOUR Move!
Affordable Minnesota Lakeshore

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage properties! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 www.terieckholm.com/

Is NOW a Good Time to Buy a Twin Cities Home? YES!!

CNBC’s Jim Kramer may have ignored one of the cardinal rules of real estate last week. Location, Location, Location. Many in real estate industry have heard and discussed the infamous statement “now is the absolute worst time to buy!” made by Kramer last week during a segment on national real estate.

At Keller Williams our co-founder and chairman had something to add to the debate in our weekly newsletter. His comments are timely and I believe more accurate. Keller points out three key problems with a blanket statement on the national real estate market. Here’s what Keller has to say about waiting out the current market:

First, residential real estate is not a national market product — it
is a local one. To say from a national position that this is either a good time
or a bad time to buy real estate is like saying the national forecast for the
U.S. today is 92 degrees — it is a useless and irrelevant perspective. What is
happening in your local market is all that matters.

Second, trying
to predict when it is a good time to buy, or not, means you’re trying to time
the market. Staying on the sidelines is the surest way for most people to never
time anything correctly.

Last, and maybe most important — there are
always two markets in every market. There is the market of properties that are
good buys and there is the market of properties that are not a good buys.
Interestingly enough, this is true in either buyer or seller markets. To
categorically say that this is the time to buy or not is absolutely ignoring the
fact that every market really has two markets inside it.

All three points are valid in the Twin Cities real estate market. There are a handful of communities in the southwest metro where homes continue to sell a few days or weeks after being posted on the MLS. These areas have seen modest appreciation this past year while most Minneapolis and St. Paul suburbs have been flat. Some have even seen slight depreciation. Homes in the Twin Cities metro are taking an average of 4 months to sell but the days-on-market stats for Linwood and North Branch are definitely longer than for homes in White Bear Lake and Maplewood.

As a Realtor working in Ham Lake and the Forest Lake school district, I would never make a blanket statement regarding the whole Twin Cities. But Kramer made a statement regarding the market across the entire US. When I am asked by potential clients if it is a good time to buy a home in the north and east metro of the Twin Cities, the answer is “Yes”.

As Keller states, there are two markets in every market and this is truer than ever currently in the Twin Cities. There are many homes that are over priced. Short-sale homes where the sellers are upside-down on the financing, owing more than the home is worth. Those are not necessarily a good deal. Likewise there are always a few sellers in every market that have higher expectations than what buyers in the marketplace want to pay. Those homes should be avoided.

But what I am seeing in the Twin Cities market is a good portion of sellers WANT and NEED to sell their homes. When sellers want to sell, the homes are in tiptop condition, priced incredibly well. And, sellers are willing to negotiate. Builders are having unprecedented incentives and price concessions so a new construction dream home can be a great buy too.

To find that well priced, dream home in the Twin Cities, it is imperative that buyers work with a Realtor. Through market analysis and experience, a real estate professional will help you determine which category a home falls; overpriced or good value. Just like we have done in every market—buyer, seller or in-between—for years.



If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage properties! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 www.terieckholm.com/

Buyers Continue to Have the Upper Hand in the Twin Cities Real Estate Market

The Statistics are out for August and the numbers show that in the 13 County Twin Cities metro, home buyers continue to have the edge over sellers in the real estate market. Affordability is up. Closed sale prices are down. Home inventory per buyers remains in the 10 to 1 range. The good news for sellers is that homes are continuing to sell but at lower prices.

Opportunity is knocking. Have you seen the new ads by the Twin Cities Builders Association? In the television spot, there are doorknockers gone wild--knocking endlessly to get out the message that it is time for buyers to buy. It is more than a promotion for their new blog/website, it emphasizes the fact that the market hasn’t been this good for buyers in years. Buying now is a great investment opportunity.
Compound the increased inventory with the Federal Reserve cutting the interest rates by half a percentage point yesterday; it is an awesome time for buyers to step into homeownership!
As a Realtor working in the north metro counties of Anoka, Chisago, Ramsey and Washington, I see these trends first hand. From Ham Lake to White Bear Lake and Blaine to Forest Lake, homes are selling when sellers take the time to prepare the home for sale AND price properly. With an abundance of inventory on the housing market, buyers have literally dozens of options. Overwhelmed, they will weed out the overpriced, overlook homes with bad photos, and take time to consider all options prior to writing an offer.


2 truths of the current real estate market:

1. It is a Great Time to Buy a Home!


2. Selling a Home takes Preparation, Patience and Willingness to Negotiate.

AWESOME Featured Listings:

• 1988 Robin Lane N, Centerville, MN 55038
• 3608 Woodland Dr. NE, Ham Lake MN 55304
• 20685 Georgia Ave N, Forest Lake, MN 55025

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage properties! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 www.terieckholm.com/

Chirp! Chirp! Chirp! Someone PLEASE make that Smoke Alarm STOP!

As a parent and homeowner, safety is a number one priority in my home. That is why as a Realtor, I was often puzzled, even concerned, when I visit a home with disabled smoke alarms. I just never understood the logic of removing batteries or unplugging hard-wired safety devices. I never understood it until I lived with a set of defective alarms for several months on end.

Last November it started. It was shortly after we installed new batteries at daylight savings time the first chirps started. A few evenings later about 3A.M. we were awoken by the smoke alarm going off in the kitchen on the main level of our two-story Ham Lake house. By the time we got downstairs, the alarm had stopped. It had not triggered the other six alarms that are hardwired throughout our home. We figured that since we had just turned on our forced air furnace, maybe dust was the cause. This seems to happen every autumn once or twice so we went to back to bed.

Around Christmas, the alarms started to go off about once a week in the middle of the night. I was beginning to understand why I would see alarms with removed batteries in listings throughout the Twin Cities, as this was annoying!

I did a bit of online research. Smoke detectors should be vacuumed periodically as dust and tiny spiders can cause malfunction and false alarms. It was also noted that smoke alarms should be replaced every ten years. We opted for the cleaning route and vacuumed all seven alarms the next morning.

In March we contacted an electrician about having seven new Firex alarms installed. We were assured that these top of the line detectors would eliminate the problems. A few weeks later, we were $400 poorer but positive it would be worth it for a good night’s sleep. The electrician’s truck had not made it down the road before the next set of chirps began.

This was the first of several visits from the electrician to our Ham Lake home. He returned the next week to verify there were no loose wires. He also replaced the unit in the hallway that seemed to make the most noise. Again, within an hour there was a chirp, chirp, chirp. Now, I have an upset electrician along with a tired and upset family.

I did a Google search and ended up at the Firex website. The company has a frequently asked question page that is a wealth of information. What a great resource. Newer alarms must be reset after the batteries are installed. To reset the alarm, you need to depress the test button for 15 seconds with the battery removed. Great! Problem solved! A good night’s sleep is ahead.

Wrong! About 12 hours later, it started again. Back to the list of options from the Firex site. We called the electrician back to put all of the alarms on one circuit so we could shut off the alarms and be certain that poor wiring in another part of the home wasn’t setting off the alarm. One more tense visit from the electrician and we were now on our own with the noisy, frustrating problem.

After months of this noisy protection of malfunctioning alarms, we found you can learn to sleep through the noise but never really get used to it. The four periodic chirps were nerve grating to say the least. On the first chirp our neurotic geriatric dog would get up and move closer to the nearest person. On the second chirp he would try sit as close as he possibly could and stare with big sad eyes. The third chirp would cause him to shutter and with the final chirp he would lay down at your feet shaking.

Finally in August we had enough and were ready to disable all of the hardwired smoke alarms in our home and install battery operated ones. I now understood the decision made by so many others to put a good nights sleep over fire protection.
Before we cut the wires, we tried one more time to resolve the issue. We took down all seven alarms, reset them and installed seven new batteries. One of the smoke alarms would sound as soon as the battery was installed. Bingo! We had the problem unit in hand. So we installed the six good alarms and waited.

Chirp! Chirp! Chirp! Finally I resorted to calling the 800 number for Firex technical support. They were very concerned about our wanting to remove these safety products from our home that were designed for our protection, not annoyance. They offered to replace the defective alarm and sent out a new one via overnight mail. But the technician did not stop there. He wanted to help us resolve the continuing problem. The tech asked if there could be anything else that would cause a noise. Check the attic and check for Carbon Monoxide detectors. The sound of a plugged in CO2 detector can travel echo through the house and sound like it is coming from the smoke detector. We had checked the attic previously but did not check the carbon monoxide detector as we they are electric not battery operated.

Of course I had forgotten that we now had two CO2 detectors. The newest one was installed in the hallway near our bedrooms. After a quick check I realized that the new model DID have a battery backup. It was the source of many of the annoying chirps. So lesson learned. Change the batteries in your CO2 detectors right along with the smoke detectors. Not certain if your carbon dioxide detector has a battery backup? Check it now. It could mean a good night’s sleep in your future.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage properties! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 www.terieckholm.com/

Doctor! Doctor! Give Me the News! I’ve got a Bad Case of Real Estate Blues

Have you ever noticed how people out there want a quick fix for everything? Think about how many informercials and products out there guarantee quick and easy weight loss. Consider those who took Fen-Phen or have tried the new Alli fat-blocking product. Trading a heart attack or serious gastro-intestinal problems for a healthy weight, isn’t a good tradeoff. Talk to an educated professional dietician and you will begin to understand there is no magic involved to long term weight loss. Good old fashioned hard work is the secret to success.

Similarly, there is no pill to kill the ills of the real estate market woes. Sell quick schemes and guaranteed sales programs are no replacement for preparation. Consult with a professional Realtor and there will be no gimmicks to replace the good old fashioned hard work that will get your home sold. Partnering with a highly qualified professional to price and prepare your home for sale is essential in this changing market.

If a real estate offer seems too good to be true, you need to look it over carefully and examine that fine print. A claim of “sold in 120 days or I will buy it” doesn’t look so great when you will be selling it to the agent for 80% of the appraised value of the home and the selection of the appraiser is at the sole discretion of the real estate firm. A company that offers to buy your home directly and will close in days for cash has a certain appeal to those desperate to sell. Again, peruse that fine print very carefully as the fees may be surprising and not such a great deal to the average seller.

The best option is to skip the magic pill mentality and roll up your sleeves! If you really want to sell your home in this market, here is a simple 3 step approach to kick the real estate blues:

Step 1: Partner Up! It is imperative to team up with a professional agent to get your home ready and priced right. Find someone who lists and sells homes in your community. Don’t choose your best friend from college who just got their license or the wife of your coworker who lives on the other side of the Mississippi. Pricing is critical and understanding the marketplace can vary from neighborhood to neighborhood. Sure, your brother-in-law’s mom who lives and works mostly in Wisconsin may have a Minnesota real estate license, but does she really know anything about Forest Lake?

The selling process still will take time. In the Twin Cities north metro and Anoka County, homes are taking an average of 120 days to sell. Unprepared homes and improperly priced properties can sit for well over a year on the market.

Step 2: Fix everything! Yes, EVERYTHING! The 20 year old roof. The dripping faucets. The missing doors. The dingy carpeting. The outdated wallpaper. Everything needs to be repaired and replaced.

When a buyer has 20-50 homes that they can purchase, if you want them to consider yours, you need to remove every potential deterrent to writing an offer.

Curb Appeal is a Must! Your home must look AWESOME from the street!

Step 3: Pricing is Critical! The most important decision you will make in the process of selling your home will be determining the original list price. If you are too high, you will lose potential clients and increase your time on the market. Pricing a home correctly from the get-go is essential. If your real estate agent shows you sales comparisons from 3 months ago but you insist on using last year’s refinance appraisal, you are not working on the same team.

Most real estate markets have changed since the beginning of 2007. Changes include the amount of foreclosures in the community, new developments that are offering crazy incentives and fewer approved sub-prime buyers, have affected the marketplace drastically. Find a professional Realtor that knows your community and listen to their educated pricing opinion. It might be a bitter pill to swallow but to sell your home; you need to hear the truth.


More Articles to Get YOUR Home SOLD:Top 10 Ideas to Get Your Home Ready to SELL!
What is your Realtor’s List-to-sales Ratio?
Looking "HOT" From the Street—Tips for Curb Appeal
Does "Minnesota Nice" Affect the Real Estate Market? Yeah! You Betcha!


If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage properties! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 www.terieckholm.com/

Dinos Replace Peanuts in the Twin Cities this Summer!

My family along with thousands of others searched for a parade of Peanuts Characters for five straight years. First we searched for Snoopy throughout the city of St. Paul in the summer of 2000. The next spring in 2001, we were at it again finding Charlie Brown all around the town. During the next two summers, we looked for Lucy and Linus in Ramsey County parks, street corners and even at the Minnesota State Fair Grounds. The Peanuts parade ended in 2004 with Twin Citians asking “Where’s Woodstock?”, as we searched for Snoopy and his little yellow friend on decorated doghouses for one final summer. It was a tremendously fun way to honor the late Charles Schultz and tour our beautiful capitol city!

This summer, after a two year hiatus, the plastic statues will once again be gracing the corners of Twin City streets. Only this year the characters are not Charles Schultz creations. Get your walking shoes and cameras ready because starting in May 2007 expertly decorated dinosaurs will be invading the city streets of St. Paul and parks of Minneapolis. (Yes, this year Minneapolis has joined in the fun!)

The event is to commemorate one of my family’s favorite places, the Science Museum of Minnesota’s 100th Anniversary. The public is invited to a “paint off” in mid-May at the St. Paul RiverCentre as the artists transform the plain white statues into works of art. For more information visit www.diggingdinos.org.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com

First Time Buyers: Helping Define YOUR Dream

I love assisting first time home buyers! The opportunity to own their home is exciting and that excitement bubbles right out of these buyers. Many have a picture in their head of what their dream home looks like and it is my job to figure out what that picture is and help them find it. Is it the little bungalow with the white picket fence? A new trendy condo with views of the Mississippi? Or a fixer-upper that they can renovate and build equity?

Everyone has a different dream. As a home buyer’s representative, I work with you to define your dream. It doesn’t cost buyers one cent to have representation but what they receive is priceless!
In the current buyers’ market, there are so many options in every price range throughout the Twin Cities. I did a search a few days ago for a buyer and in a 15 mile radius from her place of employment, there were over 200 homes she could consider! While it is great to have options, 200 choices are overwhelming. So how do you narrow down your choices? Work with a professional real estate agent. As a Realtor, I work hard to understand your needs and lifestyle so we can find your perfect home.

To assist buyers, I asked them to define their dream…What was most important their home? Beyond the number of bedrooms and baths or how many garage spaces, how do they really live?

I take the time to talk with my buyers about their lives and what is important to them. By taking a short, lifestyle inventory I focus in on what makes up their ideal house. Once defined, the list of potential properties can be narrowed quickly to a reasonable amount of serious possibilities. By understanding what the buyers’ picture perfect home is, I can help them stay focused and not waste time with homes that don’t fit the dream. It most cases it only takes a short time to locate several good options and one “perfect” home to make an offer on.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com

Gloom and Doom for MN Real Estate? Maybe not…Check the Numbers

It is easy to get caught up in believing the hype of the tragic situation in today’s real estate market. Every day in the national and local news there is a new story of a housing development or community somewhere in the United States that has been affected by the sub-prime lending debacle that has taken place with zero-down and piggyback financing. But is it really that bad in Minnesota? Maybe and maybe not.

According to a study that was done through collaboration between the Minnesota Association of REALTORS® and the Shenehon Center for Real Estate Education at the University of St. Thomas the current situation is not dire. Their assessment is as follows: “Strong economic conditions, historically low interest rates and affordable prices help keep housing values strong in Minnesota.”

I was intrigued by this assessment so I reviewed the most current MN Housing Report for 4th Quarter 2006 myself to check the status of the Minnesota real estate market. While there are some numbers that have dropped sharply in the housing prices, the historical number of the past few years is still up dramatically.

In Minnesota we have experienced double digit increases in property values for several years in a row. While this “Hot” market was exciting, it was not sustainable. But these numbers while leveling off, do not indicate the bottom has dropped out. The price change in home values across Minnesota since 2002 is still up significantly at 20% or higher.

So how will this affect the average Minnesota homeowner? If you bought a home in the late 1990’s or early 2000’s, your home has most likely appreciated in value. If you just bought a home in the past year, your home may not have appreciated at all. A home is a smart investment but a long term one.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com

Home Buyers Guide: Important Checklist for a Final Walk-Through

What an exciting day; the day you close on your new home! A few days before, your Realtor had called to schedule the date and time of the final walk-through. You thought, “This is great! I needed to check the paint color in the bedroom and measure the windows for blinds.” But that is not what the final walk-through is for. This is the last opportunity for you to see the home prior to closing. It is an appointment not to be missed or glossed over. It is a time to stay focused on your investment and examine the condition of the property one last time.

The purchase agreement that you sign in the state of Minnesota requires the seller to warrant that the central air conditioning, heating, plumbing and wiring systems on the property are in working order on the date of closing. It also insures you the rights to a “walk-through” review of the property prior to closing. This is not something to forego.

Last year there was a news report of first-time buyers who headed with all of their belongings directly to their new home after closing. They intended to move right in and enjoy their dream home, but arrived to find a nightmare. Sometime since seeing the home and writing a purchase agreement, a pipe had burst and flooded the entire home. These buyers had considered the final walk-through unnecessary since they had just seen the home a couple of weeks ago. Now they were the proud but frustrated owners of a huge mess. Although they do have legal remedies for having the home repaired, these buyers would have been in a much better position if they negotiated with the seller prior to closing. Or in the case of this extreme damage, the buyers could have not signed the final documents to purchase the home.

Every buyer should do a final walk-through on the home as close to the closing as possible. I suggest to my clients that we schedule the walk-through immediately prior to the closing. We meet one hour before at the home to review the condition of the property and then go directly to the closing. Any problems are noted and I immediately contact the seller’s agent so they have time to discuss the situation with their seller before our arrival.

The walk-through just prior to closing doesn’t eliminate every surprise that a new buyer might face. But it significantly reduces the chance of closing on an unknown disaster. Here is a checklist you can use as a guide to remind you of the things to check during your final inspection of the home.



Final Walk-Through Checklist
Double Check the Paperwork**Do you have a copy of the sellers’ disclosure?
**Do you have all required/requested inspection reports?
**Have you checked with the city to verify that all permits were issued for repairs and other information on the home’s history?
**Are all work orders complete? Are you satisfied with the results?

Exterior Review
**Check steps, sidewalks, driveways and patios for any noticeable change.
**Review drains, downspouts and gutters for change.
**Look at all doors and windows to verify they are in the same condition.
**Check the roof for changes…do any shingles appear loose or missing?
**Check the garage door? Do the openers work? Is the auto-reverse functional?
**Check for any noticeable leaking in garage.
**Double check garage and exterior lights.
Plumbing Review**Flush all toilets.
**Check all faucets both hot and cold for water pressure and temperature.
**Watch all traps and drains for proper drainage.
**Check operation of all appliances:

• Washer/Dryer
• Stove
• Dishwasher
• Water Heater
• Water Softener
• Refrigerator
• Garbage Disposal
• Trash Compactor

**If there is a in-ground sprinkling system or swimming pool, verify that it is in proper working order.
Interior Rooms Review
**Check that all doors, windows and screens are operational.
**Check ceilings, walls and floors for stains or other signs of damage.
**Check all handrails.

Electrical Review
**Check all lights, outlets, bathroom fans and kitchen fans.
**Verify that all smoke detectors, carbon monoxide detectors, security systems and door bells are functioning.
Furnace and Air Conditioning Review**Increase home thermostat on furnace to verify proper operation.
**Test air conditioning by lowering thermostat if outdoor temperature is above 65 degrees to verify air conditioning is operating.
**Check that gas fireplaces are operating properly.
Attic and Basement Review**Check for changes in any stained, damp or wet areas.
**Verify that there are no new wall or floor cracks.
**Is the sump pump operational?

A quick review of the home inside and out with a checklist will get you back to exciting part of that final walk-through…Will the couch look better here or there?


If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com

Twin Cities Market Affordability is Improving--March 2007 Update

According to a press release this week from the St. Paul Area Association of Realtors (SPAAR), real estate is becoming more affordable in the 13 county Twin Cities metro area. This is due to predicted market correction which is a cause of concern to some homeowners who hoped property values would continue to rise indefinitely. Reality has hit with the slowest start in home sales in the past eight years. For the 7th month in a row, the Twin Cities has seen the median price of homes closed drop in comparison to the previous month.

Properties are staying on the market for longer periods of time and the housing inventory levels remain high with over 27,400 active homes on the market as of March 1. This is up 9.27 percent in just one month. But compared to last year's numbers, the statistics are relatively unchanged. 

The National Association of Realtors (NAR) released news of its own yesterday, predicting that a recovery of the housing market is likely but the timing is hard to predict. Recent problems in the sub-prime lending market and unusual weather patterns are pointed to as some of the reasons for the inability to forecast an upswing. A 1.2% projected rise to the median existing home price is bringing the median value to $224,500 this year and even stronger gains are predicted for 2008. 

It's not all gloom and doom on the horizon for the housing market. In a buyers market, prices are being adjusted by sellers to intice buyers. After years of exploding house values a little market dip or flatline should not be too concerning to the average homeowner.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007

What is your Realtor’s List-to-sales Ratio?

As many of you have noticed, Minnesota’s real estate market has changed. Throughout the late 1990’s and into the early 2000’s it was a seller’s dream market. It seemed like as soon as a sign was posted in the yard, a SOLD sign was attached. Not so anymore, Minnesota is in a full fledged buyers market. So what does this mean for sellers? Although many things have to be considered, there is a new important question to ask your prospective real estate agent: What’s your List-to Sales Ratio?

Some agents seem to have every house on the block or in a neighborhood listed. Their signs are posted in yards throughout the town. Their ads are in your local newspaper and in your mailbox. This is may be an indication of a successful Realtor. But the big question is “Did the homes sell?”

In this slower buyer’s market, there are many more homes on the market than buyers. Do you want an agent that can successfully get you to sign on the dotted line to list your home or would you prefer one who will actually get the home sold? If a potential agent is unsure of their ratio, work with them to figure it out.

Ask how many homes they listed last year.
Next, ask how many listings they sold. (Make sure that the agent doesn’t include sales of homes to buyers.)
Divide the listings sold by the total number of listings to get the ratio.

If the ratio of listings-to-sales is less than 50%, you might want to select a different agent. Successful agents won’t sell every home they list, but their success ratio will be over 70%, even in a slow year.

More tips on how to select a real estate agent. Part One. Part Two.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor who has a sale-to-list ratio of above 70%, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com

Foreclosure Disclosure—Do I Really Need An Inspection?

The local news investigators recently did a story on foreclosed homes that banks are putting on the market in the Twin Cities area. The story had an ominous tone. The reporter visited a home with a hidden camera in tow posing as a potential buyer. Questions were asked about the condition of the home and regarding disclosures available. This particular home did have evidence of a mold problem, dark spots on a sheet rocked wall. A few days later, the reporter returned to the home and the area with the mold had been repainted.

The angle of the story in the voice over was that in Minnesota there is a “loophole” where banks and other financial entities would not have to fill out a disclosure form that is required to be completed by all other home owners in the state. The reporter indicated that a new buyer would not be aware of the painted-over mold. She had a home inspector with her as an expert who said that it was his opinion that the law is flawed; financial institutions should be required to provide potential buyers with a report from an independent licensed inspector.

Though interesting to watch, there were many inaccuracies in this investigation. True, the state of Minnesota does not require financial institutions to provide a disclosure. But I don’t think this is a “loophole”. When the reporter first visited the home posing as a potential buyer, she was shown the home by the listing agent. The listing agent is working for the seller. Since the news reporter was trying to make a point about disclosure, it may have been cut out where the agent recommends that the buyer get an independent inspection. When under contract as a listing agent, the agent is working for the seller not a buyer but still must disclose any known information about the property. Although on the return trip, the wall was bleached and repainted, that does not mean that the agent wasn’t informing potential buyers of the situation.

Buyers considering foreclosed properties must go into these homes with their eyes wide open! The best advice is for buyers to sign a buyer’s representation agreement with an agent prior to visiting any listings. Your agent will advise an independent inspector on all properties, not just foreclosed homes, because the average homeowner may not be aware of all defects in their own property. Most listing agents on foreclosed homes will recommend an independent inspector as well. The reporter did say that the agent had done nothing wrong so they did not show his face. This makes me wonder if the agent had been explaining why inspections are necessary.

Most foreclosed homes have notices posted in the MLS and at the home to “Get an Inspection”. This inspector when hired by the buyer walks through the entire home with the buyer in a systematic two-three hour process explaining the defects and potential problems and repairs of the home. The buyer has an in-depth understanding of the property they are buying. If the state had required that financial institutions provide inspections, many buyers might forego having an independent inspection.

The current real estate market includes many foreclosed, bank owned homes. These properties can be a great investment resource or “fixer-upper” first home. But buyers must be smart. Smart buyers with have their own representation and hire their own independent inspectors. On a purchase this big, you owe it to yourself not to take someone’s word for the property’s condition.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.


Copyright 2007

terieckholm.com

Affordable Minnesota Lakeshore

So you are once again dreaming of a lake home? The Land of 10,000 Lakes translates into millions of feet of shoreline in the state of Minnesota. But often it seems as only the very wealthy can live on the water’s edge. Is that an accurate perception? Stop dreaming and consider a few options that will make paradise more affordable.

Channel Shore
Shoreline along a channel is a great option for a full recreational lake. Many large lakes will have channels or narrow extensions that lead to other lakes or ponds. Usually there is not a place for a beach but you can have a slip or short dock for your boat. The channel will provide access to the main lake. The view will probably include homes on the opposite shore of the channel but if your goal is affordable use of a full recreational lake, this is a great alternative.

Smaller Lake with Channel to Full Recreational Lake
Often the lakes in Minnesota are connected to one or several smaller lakes. This can be a great opportunity. Shoreline that is shallow or weedy is not considered prime but if it has access to a larger lake, it could provide the same enjoyment at a much lower price.

Small Acreage Lake
Smaller lakes can be of interest to the more laidback water lover. Often there will be restrictions disallowing motors or only small motors. These smaller lakes can still be great for fishing, canoeing, kayaking and swimming. Some will allow docks and beaches but check with the DNR for specific restrictions. A small lake will still offer wonderful natural views at a significantly lower price than a full recreational lake.

Environmental Lakes and Wetlands
Very shallow lakes wonderful for privacy but not great for recreation. If you are looking for a home with awesome views of wildlife, this may be something to consider.

Deeded Access
Many homes and associations near a full recreational lake have been developed with deeded access providing use of the lake. The ability to have a dock, use the beach, or moor a boat, will be outlined in a legal agreement specifying what uses are allowed. Not all deeded access is created equal! Request a copy of all of the specific uses and rules before writing an offer so you can fully understand the access available as a home owner.

Lake View
A home with a beautiful lake view but no shoreline or lake access, can provide the wonderful picturesque views everyone dreams of without the high lakeshore taxes.Location with Public Access NearbyA final option is to look for a home that is near park with public lake access. I sold one such home where the public access to a good-sized full recreational lake was about a quarter mile down the street. This family uses the lake to canoe, cross country ski and fish without driving or trailers. There was none of the additional cost or taxes associated with lakeshore property but all of the benefits!

Lakes and Shoreline Link
Department of Natural Resources Lake Finder Comprehensive search engine to find information regarding the size, depth and condition of Minnesota lakes by county and lake name. There is even information on approximate numbers and types of fish found in the listed lakes.

Are You a BUBBA?

Most people, whether in the real estate industry or not,have heard of a FSBO, For Sale By Owner, seller. The acronym has been used for quite awhile as there has always been a segment of the market that chose to sell their home directly to a new buyer. But, there's a new acronym being used by Realtors these days--BUBBA or Buyers Unrepresented By a Buyer's Agent. It is making it's way into the real estate agent vocabulary because this market segment is growing.

In 2006, according to the National Association of Realtors 2006 Profile of Home Buyers and Sellers, nearly a quarter of all sales (23%) were BUBBAs. Although many of these home buyers did work directly with a builder or at a sheriff's foreclosure sale, 9% purchased directly from the home seller.

The internet is probably the most contributing factor to the growth of this buying segment. Buyers are certainly more educated--shopping on-line for as many as 6 months prior to making their house purchase. The homes are listed on the web. There are guides as to how to purchase a home. The whole process is less mysterious and seemingly simple that many self-educated buyers are foregoing working with a Realtor.

Are You Considering BUBBA? Before you move forward unrepresented, here are a few things to consider.

BUBBA can cost more. Buyer's representation does not cost anything. But can save thousands. When you sign a contract for buyer representation, your agent owes specific fiduciary duties to you to work in YOUR best interest. They are required to keep your information confidential. A Realtor does this as a profession, not once every 10 years like most buyers. They are experienced in negotiating a deal on a home that is in your best interest.

So how does a buyer's agent get paid? Every home listed in the MLS states a commission agreed upon by the seller with his agent to be paid to the buyer's agent of the particular home. Yes, the seller pays the fee for you to your agent.

But this does raise the question, "If I buy directly from the seller and he doesn't pay a commission, won't I get a better price?"

Probably not. Think about it this way, the seller set the price in the first place. If he is not working with an agent, how can you be certain that you received a good price on the home? And why would a seller, who doesn't know you, give you the savings he intended to pocket by not hiring an agent.

In this buyer's market, with so many different homes to choose from, it is easy to be overwhelmed in the purchasing process. What if the seller is has a charasmatic personality who uses a three year old refinancing appraisal to set his price? Is it a good deal?--Probably not.

Buying a home is not as simple as walking into a discount store for a new computer...And that can be overwhelming. There are details to a purchase that many home buyers just don't anticipate. How old is the roof? When can we take possession after closing? Is the septic system in compliance or does it need to be replaced? Are there encroachments, like a neighboring fence or driveway sharing issues? Are there assessments pending and who will pay for them?

All of these are situations an experienced Realtor will try to anticipate and resolve in writing as the transaction moves toward the closing.

Some people are accidental BUBBAS. They start out in a "learning" stage...That time period of six months to years where they are "dreaming" of a new home but don't want to commit or be pressured into a contract. They wander into an open house and it IS their dream home. Since they didn’t have an agent when they first came in, they feel uncomfortable informing the seller that they want representation and just move forward without one.

As a Realtor, I try to coach potential clients into developing a relationship with an agent early in the process. If you want to see a home, contact that agent and sign a contract for a specific house. That way your interests would be represented, if the house is perfect for your family. But you would not be locked into a 6 month contract, if you are not ready to make a decision.

Before becoming part of this growing trend in home purchasing, do research and carefully consider your options. You may be giving up more than you think to when making the one of the most important financial decisions of your life.

Is the Twin Cities Market Turning? A Closer Look at 2006 MN Homes Sales Statistics

Despite some of the negative slant the media coverage has given the 2006 Housing Statistics, there is actually some good news to report. According to the St Paul Area Association of Realtors Public Policy site, some of the changes were expected and not all the news is bad for the Twin Cities real estate market.

Here is an excerpt of the article.

Twin Cities, Minnesota (January 17, 2007) – Following five consecutive years of record or near-record home sales and strong home price appreciation, 2006 was the year that the Twin Cities housing market took an expected breather. The pause will ensure long-term stability and accessibility.

Buyer activity finally calmed and the year ended with 47,906 closed sales, a decline of 16.3 percent from 2005, according to the four Twin Cities-area REALTOR® associations. Newly signed purchase agreements—pending sales—showed a similar decline of 17.7 percent, posting 51,526 units.

Conversely, seller activity was robust. There were 108,022 new listings placed on the market in 2006, up 8.9 percent from the previous year. Despite a trail-off as the year progressed and new construction inventory was absorbed, sellers were active enough in 2006 to easily set a record for new listings.

All that supply colliding with lowered demand meant that the buyer gained more control over the process in 2006, and it showed in home prices. The median sales price in 2006 was $230,000, an increase of 0.5 percent compared to 2005. Total sales volume was $13,339,983,209, down 14.6 percent from last year.

“Since 1998, price growth has been extraordinarily high, between 6 and 12 percent each year,” said Wayne Gilbert, 2007 president of the Southern Twin Cities Association of REALTORS®. “The calm in appreciation was expected and is a natural byproduct of the market shift.”

As prices moderated and interest rates softened in the latter part of 2006, affordability conditions have improved significantly in recent months.

“The changes in the market during 2006 are often painted in a negative light, but they’re helping lay a solid and necessary foundation for the future,” said Jeff Dotseth, 2007 president for North Metro REALTORS® Association.

“Interest rates are still low, there’s a lot of inventory to choose from and housing is getting more affordable,” Steve Hyland said, 2007 president of the Saint Paul Area Association of REALTORS®. “It all adds up—2007 should be a great year to buy and sell real estate.”

But before sellers start to celebrate it is important to remember that the Twin Cities is a big area. Some areas did see a bump in the median sales price in 2006, some markets were flat and others did see a drastic decrease in the sales price of a home.

My clients in the the areas of St. Paul and to the north and east know this all too well. Ramsey and Washington Counties did post modest increases in the median sales price of homes. However there are neighborhoods that are not faring as well as others. While North St. Paul/Maplewood have modest increases in value (1.0%), the east side of St. Paul is not faring as well (Phalen -0.7% and Hillcrest -1.6%). Further north in Anoka County, the median sales price was flat. The Blaine area did see modest increases (2.2%) but most communities like Andover, Ham Lake and Lino Lakes saw as much as a 7.5% decrease. The median home price in Chisago County has decreased as a whole (-3.6%). Communities including Forest Lake, Wyoming and North Branch are in Chisago county and post similar results.




What does this mean to Sellers and Buyers in the North East Twin Cities Metro for 2007? Pricing is going to continue to be key. It is more important than ever to look at current sales, within the past 3-4 month, to determine what to sell your home at. Buyers still have plenty of options and are taking their time to find a great home at a GREAT price.

Signs point to a good year for the 2007 Twin Cities real estate market as a whole. But, keep in mind that "Location, Location, Location" is a huge consideration and some market adjustments will take longer in some areas.

Minnesota Real Estate—The Buyer’s Market Continues in 2007!By: Teri Eckholm


Minnesotans can’t deny it any longer. It is a tried and true buyers market! Some homes are taking so long to sell that the elements are causing real estate signs to rust and the paint to chip of the wooden posts. There is little hope for a complete market turn around in 2007 but all is not lost. There are positive indicators on the horizon. At least there is hope for market-smart sellers who properly prepare and price their home to SELL.

So what is a Buyer’s Market? For many Minnesotan’s it may be hard to remember. The Twin Cities (and greater Minnesota) now has an inventory of homes on the market that is expected to last 3-4 months, with no new listings. In a typical area, a buyer might have 10-20 homes that will meet their needs and price parameters. If the buyer is flexible on location and amenities, they can have upwards of 50 homes to choose from. With so many options, home buyers are taking their time, becoming educated, and being very picky before making a home purchase.

There are some positive indicators out there. According to the Monthly Market Indicators from the Minneapolis Board of Realtors, the housing affordability index is very favorable with low interest rates and flat prices. The Fed stopped increasing the short-term interest rate at 5.25 percent and we are seeing 30-year mortgage rates at a very favorable 6 to 6 ½ percent.

So what should Minnesota homeowners do if they are considering selling their home?
Waiting is NOT a short-term option! It may be hard to wait out; a typical market swing can last 5-7 years. In fact, the Chief Economist David Lereah predicts “a sluggish housing market until 2008” due to a stand off between home sellers and potential buyers waiting for the market to turn in their favor. The best advise for selling in 2007 is to become market savvy, get your home ready and bring a sharp pencil to price your home to sell!

*Get your home in tiptop shape! Fix everything! Yes, that does mean you need to put on a new roof or fix the shower and strip off the ugly wallpaper in the kitchen. Whatever needs repair or is outdated needs to be addressed BEFORE the 1st Showing. Project houses do not sell well in a buyer’s market unless they are deeply discounted below appraised value.

*Work with an experienced Realtor to price your home realistically. The refinance appraisal you received last year will not be applicable. It is best to only consider SOLD comparables from your neighborhood during the past 3-6 months. Be mindful of what is for sale down the block and compare all of the amenities. Pricing a little higher than the home down the block because yours is a little better has backfired for most sellers this past year. Buyers are knowledgeable and taking their time to make a decision. If your home is overpriced, the buyer won’t consider it at all. In fact, Pricing to undercut the competition is one of the best strategies in this market.

*Keep in mind you do have competition for a buyer and be aware of who that competition is. It is not just the neighbor down the block. You are also competing with builders who have taken drastic measures by giving deep discounts and gifts to entice buyers to their models and spec homes. There are also many foreclosed homes that are owned by banks on the market. These homes are also priced very aggressively to generate a quick sale.

*Consider FSBO only as a last resort. This is not a market where an MLS listing and a sign in the yard will sell your home. Work with a professional Realtor to get the most from your investment. As part of their service, Realtors will outline a marketing plan including advertising and Internet promotions. But not all real estate agents are alike…Ask for specifics on how they intend to market your home.

*Be Patient! Even with professional marketing, it will take time but homes do sell in Buyer’s markets. It just takes longer both in preparation and duration.

Copyright 2007 Teri Eckholm