Year End 2009 Snapshot of Chisago Lakes, MN Home Sales Statistics

There were just a few more closed sales in Chisago during 2009 over 2008 but the average sales price was down significantly for the second year in a row. New listings were down almost 21% over the previous year. Sellers are receiving just slightly less than they did in 2008 with as the accepted sales price ratio compared to list price ratio is down just a bit. At 89% it remains one of the lowest in the north and east metro communities I work in as many communities saw an improvement in this ratio this year. Market time is up significantly to well over 200 days. Buying a home in Chisago City could continue to be a very affordable option as there appears to be plenty of sellers still on the market and willing to negotiate on the list price of their properties.

Copyright 2010 Teri Eckholm 

Homebuyers--Listen to that Little Voice Inside Your Head!

A few days ago I received a call from a past client. She excitedly told me that she was helping a very good friend who was in the process of buying his first home. The friend was enticed into the market by a Parade of Homes advertisement a couple weeks ago. It was for a new construction home in the Lindstrom/Chisago area that was for sale for around $150,000 with a zero down financing option. The friend was intrigued and asked my past client to tag along to see the home. At the model they were told that this particular home would qualify for one of the only zero down programs still available. From the conversation, the first time buyer thought the lending program was only available on this particular home, with this particular builder so he met with the builder’s recommended loan officer and was approved to buy the home at full price. He was seriously considering buying the home. But before signing, this first time buyer and my past client started talking and thinking, maybe we should run this by a trusted professional, a REALTOR®. Since the friend had never purchased or sold a home, my client called me.

Whatever prevented this young man from signing the document, a gut feeling or voice inside his head, it doesn’t matter. The instinct was right. He hadn't looked at enough homes to know if this was a good deal. See, it is in the builder’s best interest to make a sale at the most possible profit. So, this first time homebuyer wasn’t told a few things that really changed the picture:

1. The USDA program can be used to purchase almost any home in Chisago County including Lindstrom, Chisago, North Branch, Shafer, Center City and several other communities as well. (It isn’t available in Wyoming though.)


2. A buyer does not have to pay full price on a home even from the builder. They can negotiate the sale price the same as on any other property.


3. If you walk into a model home without your REALTOR®, the builder is under no obligation to pay out a commission to your agent. This means if the friend now decides buyer’s representation is necessary and signs a buyer’s representation agreement with me, the seller/builder is not obligated to pay any commission to me as their agent. The buyer would end up paying a commission to me out of pocket or buy the home without representation.


4. The builder, or builder’s representative, in a model home is not going to tell you if there is a better deal down the street. Even if there is a REALTOR® hosting the open house, that agent represents the builder of the home. They work for the builder and have fiduciary duties to work in the builder’s best interest to make the sale of the model home….Even if it is overpriced.

Again, thank goodness for that little voice; that pull in the gut. No contracts had been signed with this builder.

I explained that the USDA program was available in several areas, including some that would be a quicker commute to work for the buyer than the home in Lindstrom. After I did my MLS search, I found several well priced homes that would qualify for the USDA zero down program. In fact one almost brand new home that had gone back to the bank 8 miles closer in with 4BR/4BA that was almost $60K less than the builder’s model. There were almost 20 homes that I sent over to this first time buyer this morning that I felt were a significantly better value than the home they were looking at with the builder.
My exact words were that had he bought this new home at full price it would have been like paying sticker price for a brand new car and discovering that as soon as you drove off the lot, the value dropped. Previously owned homes in this area are selling for significantly lower prices per finished square foot than this home.
My past client's friend is now my new client and he is very excited with all the housing options he now knows he has. He has reviewed the listings online and determine a half dozen that seem to be a good value for a first home. I, as his buyer’s representative, will show these homes over this weekend. Thanks to that little voice, that uneasy feeling, this is one first time buyer who won’t be overpaying for a home in this amazing buyer's market!

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Foreclosures on Lakeshore, Acreage and New Construction in Chisago County that YOU will WANT to Call Home!

Looking for a foreclosure, bank-owned or short sale but need to be able to live in the home immediately after closing?

Good news is that foreclosures are no longer always trashed, fixer-uppers. Today's foreclosures can be simply AWESOME! This economy has forced builders and responsible homeowners alike to let amazing properties go back to the bank. Many are still in pristine condition. Some still may require a bit of cleanup or a few cosmetic changes but there are many in move in condition too.


Here are a few of the treasures I noted on the Twin Cities MLS in Chisago County this past week:

• 75 feet of lakeshore on Lindstrom’s South Center. Executive lakehome with all the upgrades previously priced at $475K; now listed for less than $260K!
• Chisago Lakes Acreage! Newer one level 5BR ranch home with pole barn& five acres. Previously listed at $360K now priced at $235K.
• Brand new 1.5 story log home on 5 Acres in Fish Lake Township. Originally listed for $500K but now sold by the bank for over $200K less!
• 80 feet shoreline on South Center. New Construction 2 story! 3BR/2BA was almost $800K bank selling for $600K.
• Modified 2-story in Wyoming on 3 acres 3000+sq ft and 5 car garage. Listed originally at $450K but bank has listed for $315K.
• Newer North Branch multi-level w/3car on wooded acre. Listed originally for $260K, bankowned price under $160K.

If you are in the market for a great deal on a foreclosed home, time to get a buying strategy put together because the rules to buy a REO or bank-owned home are a bit different than when working with a traditional seller. Good homes at great prices go very quickly so you have to be ready to make your move when you see a deal!

Seven Tips for homebuyers considering a foreclosed home:

1. Banks LOVE clean offers. Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won't be considered.


2. Banks most often reject lowball offers...no negotiation. They are a business and know the value of the asset they are selling.
3. Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first.


4. Banks sell homes AS-IS. What you see is what you get. Repairs will not be made.


5. Banks will not pay for inspections in most cases. This includes the septic system and/or well. Be prepared as all inspections could end up being the buyer's responsibility. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500.


6. Personal property is not included as part of the sale. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don't guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace.


7. Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank. In many cases, the bank will not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the bank...the listing agent is required to tell the bank everything that you say about your financing and the amount you are able or willing to pay. But the agent is not required to tell you anything in return. The agent works only for the bank.

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Year End 2008 Snapshot of Chisago City, MN Home Sales Statistics

Closed sales and average sales price were down significantly for Chisago real estate in 2008 compared to statistics in 2007. New listings were down more than in other areas but so is the accepted sales price ratio compared to list price. At just over 89% it is one of the lowest in the north and east metro communities I work in. Though the market time is up, it is not significantly more than in neighboring communities. Buying a home in Chisago City would be a very affordable option as the sellers in this community seem prepared to make deals.

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 or Homebuyers Success 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.

Buying a Home? Check out my new HOME BUYER'S BLOG!

Copyright 2009 terieckholm.com