Hey Anoka County Homebuyers! Do you Have your Eye on a Real Estate SLEEPER?

You check the MLS link every day and there it is...sitting on the market day after day. It's your dream home and you have watched it for a couple of months now. It seems to be priced right; in fact, it is a steal of a deal. But the market has you paralyzed into watching and waiting rather than making your move on the perfect home so there you are on the fence still waiting until that perfect moment to call up a REALTOR® and put in your offer on your dream. As you continue to "time the market", waiting to see if seller of that “sleeper” is going to drop the price again, you may be missing out. It is time to WAKE UP! Because, you might not be the only one with an eye on that sleeper and if you wait too long it will be gone.

A real estate “sleeper” is a home that is an amazing deal but few people, if anyone, is paying attention to it. Usually it is a great property, location, structurally sound and priced well but has not sold. In a buyer’s market where there is significant home inventory but few buyers, sleepers are abundant.

Maybe the home was originally over priced and though it is now priced very well it is being overlooked because of high days on the market statistics.

Possibly several very similar homes went on the market at the same time and in the same condition. Picture for a second, three homes listed during the same week in a cookie-cutter development where all the homes have roughly the same floor plan. All the homes are the same age, condition, and priced very well, but only one homebuyer comes through the neighborhood during the next two months. So after 60 days, there are two sleepers left that didn’t sell. Since the houses are essentially the same as the neighboring home that sold, it's not that the homes aren't properly priced. This is another scenario that will cause a sleeper in this changed market.

And then some great homes are "sleeping" on the market because…well, there is just so much darned inventory out there!

But if you are sitting on the sidelines and just watching your perfect home for another price reduction, beware. I have sold a couple of sleepers this past year throughout Anoka, Ramsey and Washington Counties. In each case, nothing was happening on the property then BAM....we had 2-3 qualified parties interested in the home at the same time. In these particular cases, they weren’t the cookie-cutter variety either. One home in Ramsey County in the White Bear Lake/Vadnais Heights area in an ideal location. After months on the market, there were suddenly two offers in one day! Agents and clients were nonchalant when I told stressed that the home had recently seen a sudden surge of interest. Many even “pooh-poohed” the idea and mildly accused me of trying to get them of trying to coerce an offer. When the first offer came in, the seller wasted no time in accepting and I had several parties, buyers and agents alike, shocked, and more than a little miffed, that it was suddenly sold!

If the sleeper phenomena had happened only one time this past year, I would consider it a fluke but I have experienced this situation on homes in Washington and Anoka Counties as well. In some cases I was the listing agent and others I was representing buyers.

So homebuyers heed my warning, if you are on the fence watching a sleeper that is currently listed, now might be the perfect time to make your move...Contact your REALTOR® for a showing, make sure you have your pre-approval from your loan officer ready to go and make your move! Or someone else might beat you to it!

Copyright 2011www.terieckholm.com

The Art of the LOWBALL offer on Real Estate—How Low is it Safe for a Home Buyer to Go?

So you have scoured the internet for the perfect home and you found it! But it is tens of thousands overpriced compared to similar homes. Is there an art to submitting a lowball offer in this changed real estate market? Where do you start? 10% less? 20% less? 50% less? And is it the percentage less than the original list price or the current asking price?

Welcome to the reality of the real estate market today! There is no one-size-fits-all answer on this one. It really depends.

As a REALTOR® working in the north and east Twin Cities metro for several years, I have seen my share of sellers who were insulted by a buyer’s offer. And not just in a market where buyers have the upper hand either. A decade ago, anything but a full priced offer was insulting. Buyers were afraid to request a few thousand toward closing costs lest the sellers would balk and accept the next offer in line. So buyers would skip inspections and write offers thousands more than asking just to get into their "dream" home.

Those days are but a memory now...Sellers throughout Anoka, Washington and Chisago Counties are anxious to sell. They know that they are competing with short sale sellers (those who have to sell and owe much more than their home is currently worth) and foreclosed homes. Few traditional home owners with “for sale” signs in the yard are naive enough to expect a full priced offer in this changed market.

The problem is that there are naive buyers who believe sellers are desperate to take ANY offer. But in reality most sellers can't or won't accept just “ANY” offer. An offensive lowball offer could put the buyers’ dream home purchase in jeopardy.

How to Coming up with an Acceptable Starting Point:

• Ask Your REALTOR® to do a Market Analysis for the Home. In this market, I always pull the comparables to see what has sold recently in the neighborhood before my buyers decide what to offer on a home. Many sellers are listing homes at or below current market value. If the home is properly priced, anything less than 15% of the current asking price could be considered an insult. Currently, in the Twin Cities market, most homes are selling for about 990-95% of asking price. This percentage does not include seller paid closing costs either which does reduce the net offer. By looking at the neighborhood comparables, my buyers better understand what offer will be considered reasonable.

Keep in mind that if you are working directly with the listing agent who is under contract with the seller, they cannot ethically prepare a market analysis for a buyer. As a dual agent (working for the buyer and the seller) they must remain neutral regarding price negotiations.

• Consider the Original List Price. If someone has come down 25-30% or more from when they originally put their home on the market, they have made improvements since listing to the condition and now the market analysis shows the home is priced fairly, writing an offer over 10-15% less could be insulting. If this truly is THE home for my buyers, we discuss whether it makes sense to offer closer to the asking price rather than hitting the seller with a lowball offer.

• The Overpriced Home. If the market analysis shows the home to be significantly overpriced and the offer will be more than 20-25% less than current the current asking price. I provide the comparables to the seller. Sometimes when the offer is accompanied by documentation to back up the offer, the seller is less offender especially when it is explained that these are the same comparables that will be used by an appraiser. If the home doesn't appraise, the offer will have to be renegotiated in most circumstances.


• Buyer’s Plans to Remodel and Update. Be careful when using documentation for changes that reflect cosmetic and personal taste. Many sellers will be insulted when a buyer’s offer indicates that they are offering tens of thousands less due to paint, carpet and other cosmetic changes that a buyer wants to make. If the updates are necessary due to age or wear, make note of the fact and consider whether the home is currently priced to reflect the condition or not. Slamming a well maintained and updated home to justify a low offer is insulting.


• Avoid Considering Price Paid for Home. Many buyers think that if someone purchased a home a decade ago they mus have tons of equity. This could be true but it is not a hard and fast rule. Many sellers have taken the equity out of their home for improvements or for other reasons. Keep the negotiations focused on the fair market value of the home.

Most sellers are in waiting impatiently for that non-contingent buyer to write an offer on their home. In most cases, they understand the market and have worked hard to prepare their properties to entice an offer. But buyers must think through their offers; the perfect starting point for negotiations must contemplated thoroughly. Discussions can go south very quickly between buyer and seller when the initial offer is deemed rude. If you want to try a lower offer to see how low a seller will go but are prepared to pay more, make sure a note or letter accompanies the offer saying this is a starting point for negotiating on the beautiful home and property...a little kindness often goes a very long way.


Copyright 2011www.terieckholm.com

Decisions. Decisions….A Homebuyer’s Dilemma—Hundreds of Homes! How Many Should I See?

Inventory and affordability are a buyer’s dream situation. Fortunately for home buyers in the Twin Cities real estate market, that is the situation we currently find ourselves in today! As a REALTOR® specializing in lakeshore and acreage properties in Anoka County, I have had several clients with very loose selection criteria end up with several hundred homes in their initial MLS search. The amount of homes is overwhelming to the buyer going it alone. By working with an experienced REALTOR®, homebuyers can get that list of homes down to a manageable level it quick order!

The U.S. Department of Housing and Urban Development website indicated, an average homebuyer will see 15 homes before writing an offer. In my experience this is fairly accurate. Most buyers get bored with the process after seeing a dozen or so homes. The homes start to look similar and buyers have trouble remembering keeping them all straight. In a buyer’s market, with so many choices, how does a homebuyer stay focused?

1. Write down what you Must Have in a home. Need an attached garage? Want a fireplace? Can’t live without central air conditioning? Must have a wooded backyard? Electric heat a deal breaker? Weed out the homes that don’t fit the bill by writing down the must haves and must not haves.


2. Select a neighborhood, area or school district. If you must be within a few miles of work or you want your children in a specific school district, make certain to specify in your criteria.


3. Work with a REALTOR®. Although the internet searches have become specific, they are still not as detailed as the ones used by licensed agents. Real estate agents are skilled at asking questions to narrow down your needs then set detailed searches to find your dream home.

It doesn’t cost buyers anything to work with an agent in most cases and it can save time and money! Fees are most often paid for by the seller. But a REALTOR®’s service can save the buyer time and frustration.

As a case in point, I was working with a family that started looking for homes in throughout the northeast metro. When we set the initial search by map search and price point alone, they had an overwhelming 300+ homes to choose from. When questioned further, they really wanted to be within 20 minutes from work in Shoreview and relatively close to downtown Minneapolis and the airport. And, they really preferred to keep their children in the Centennial school district. After initially showing four homes, I learned from the family that a 3 car garage was a “must have” and foreclosure homes in disrepair were not going to be considered. After setting a search and reviewing the homes, I emailed the family two dozen homes that met their specific needs. They chose to see about half of the properties and after viewing the homes, the list was down to a few homes for second showings and possible offers.

Had this family chose to go it alone, they would have been overwhelmed, distracted and frustrated driving around to several homes that would never really consider. By setting specific criteria and working with me, an experienced REALTOR®, the number of homes became a manageable. The buyers remained focused and were able to narrow down to an ideal home rather quickly.

So what happens if you are in a buyers market and there are no homes that are meeting all of your criteria? The beauty of a buyers market is affordability and inventory so buyers have an opportunity to key in on more of their wants and needs for their dream home. But since no home is ever 100% perfect, if too many wants are specified, there may never be a home that measures up. If the list of homes available is too short, reassess those “must haves”.


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

Hey Homebuyers—Do you Have your Eye on a Real Estate SLEEPER?

You know what I mean…There is a home you have been watching for a couple of months and it is priced right. In fact, it is a steal of a deal. But you are still on the fence about buying a home and want to wait until that perfect moment. You are timing the market so to speak and waiting to see if seller of that “sleeper” is going to drop the price again. Well wake up bargain hunters…You might not be the only one with an eye on that sleeper and if you wait too long it will be gone.

A real estate “sleeper” is a home that is an amazing deal but few people, if anyone, is paying attention to it. Usually it is a great property, location, structurally sound and priced well but has not sold. In a buyer’s market where there is significant home inventory but few buyers, sleepers are abundant.

Maybe the home was originally over priced and though it is now priced very well it is being overlooked because of high days on the market statistics.

Possibly several very similar homes went on the market at the same time and in the same condition. Picture for a second, three homes listed during the same week in a cookie-cutter development where all the homes have roughly the same floor plan. All the home are the same age, condition, and priced very well, but only one homebuyer comes through the neighborhood during the next two months. So after 60 days, there are two sleepers left that didn’t sell. Since the houses are essentially the same as the neighboring home that sold, it's not that the homes aren't properly priced. This is another scenerio that will cause a sleeper in this changed market.

And then some great homes are "sleeping" on the market because…well, there is just so much darned inventory out there!

But if you are sitting on the sidelines and just watching your perfect home for another price reduction, beware. I have sold a couple of sleepers this past year throughout the north and east metro. In each case, nothing was happening on the property then BAM....we had 4-5 qualified parties interested in the home at the same time. In these particular cases, they weren’t the cookie-cutter variety either. One home in Washington County/Forest Lake area had a one-of-a-kind wooded lot and was in a perfect location. After months on the market, without an additional price reduction, over half a dozen serious buyers suddenly appeared. People were nonchalant when I told stressed that the home had recently seen a sudden surge of interest. Many even “pooh-poohed” the idea and mildly accused me of trying to get them of trying to coerce an offer. When the first offer came in, the seller wasted no time in accepting and I had several parties, buyers and agents alike, shocked, and more than a little miffed, that it was suddenly sold!

If the sleeper phenomena had happened only one time this past year, I would consider it a fluke but I have experienced this situation on homes in Chisago and Anoka Counties as well. In some cases I was the listing agent and others I was representing buyers.

So homebuyers heed my warning, if you are on the fence watching a sleeper, now might be the perfect time to make your move...Or someone else might beat you to it!

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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 terieckholm.com

A Lowball Offer in Today’s Real Estate Market—How Low is it Safe for a Home Buyer to Go?

When is a lowball offer insulting? 10% less? 20% less? 50% less? And is it the percentage less than the original list price or the current asking price?

Well, my answer is it depends.

As a Realtor working in the north and east Twin Cities metro for the past several years, I have seen my share of sellers who were insulted by a buyer’s offer. And not just in a market where buyers have the upperhand either. A few years ago, anything but a full priced offer was insulting. Buyers were afraid to request a few thousand toward closing costs lest the sellers would balk and accept the next offer in line.

However times have changed. Sellers throughout Anoka, Washington and Chisago Counties are anxious to sell. They know that they are competing with new construction homes and foreclosed homes. Few home owners with “for sale” signs in the yard are expecting a full priced offer in this changed market.

In fact some situations may lead buyers to believe sellers will take ANY offer. But in reality most sellers won't accept just “ANY” offer. An offensive lowball offer could put the buyers’ dream home purchase in jeopardy.

How to Coming up with an Acceptable Starting Point:

• Ask your Realtor to do a market analysis for the home. In this market, I always pull the comparables to see what has sold recently in the neighborhood before my buyers decide what to offer on a home. Many sellers are listing homes at or below current market value. If the home is properly priced, anything less than 10% of the current asking price could be considered an insult. By looking at the neighborhood comparables, my buyers better understand what offer will be considered reasonable.


• Consider the original list price. If someone has come down 25-30% of the value of the home already and now the market analysis shows the home is priced fairly, offering 10% less could be considered insulting. If this truly is THE home for my buyers, it might make sense to make an offer closer to the asking price.


• The Overpriced Home. If the market analysis shows the home to be significantly overpriced and the offer will be more than 10% less than current the current asking price. I provide the comparables to the seller. Sometimes when the offer is accompanied by documentation to back up the offer, the seller is less offended.


• Buyer’s Plans to Remodel and Update. Be careful when using documentation for changes that reflect cosmetic and personal taste. Many sellers will be insulted when a buyer’s offer indicates that they are offering tens of thousands less due to paint, carpet and other cosmetic changes that a buyer wants to make. If the updates are necessary due to age or wear, make note of the fact. But slamming a well maintained and updated home to justify a low offer is insulting.


• Avoid Considering Price Paid for Home. Many buyers think that if someone purchased a home 5-10 years ago they have a ton of equity. This can be true but not always. Many sellers have taken the equity out of their home for improvements or for other reasons. Keep the negotiations focused on the fair market value of the home.

Most sellers are in waiting impatiently for that non-contingent buyer to write an offer on their home. In most cases, they understand the market and have worked hard to prepare their properties to entice an offer. But buyers must think through their offers; the perfect starting point for negotiations must contemplated thoroughly. Discussions can go south very quickly between buyer and seller when the initial offer is deemed rude.
Need help coming up with that perfect starting point for your home offer? 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 terieckholm.com

Avoid Being “The Biggest Loser” in this Changed Real Estate Market!

For the past couple of years now, the term “Buyer’s Market” has been synonymous with the real estate market. Obviously this is the opposite of the “Seller’s Market” term that had been used for the prior decade. I too, tossed around these descriptions until recently. A few months back, I decided when I use these terms I negatively affect half of my clients.

A buyer’s market, defined as a market with many sellers and few buyers, gives the impression that all buyers are winners making the sellers the losers. Likewise, in a seller’s market, with fewer sellers than buyers, there was an implication of the sellers getting the upper hand in every deal.

But here’s the rub: In this market, not ALL sellers lose and not ALL buyers win.

A seller that purchased a home in the early 1990’s, maintained it properly, diligently made payments and didn’t refinance out all of their equity can sell a home today at a handsome profit. This seller is in no way a loser.

A buyer who purchases a foreclosed home from a bank without a disclosure for a price well below the value of neighboring properties then discovers toxic black mold in the walls costing, a failed septic system or cement in the plumbing with unexpected repairs in the tens of thousands is not a winner.

These situations are part of today’s CHANGED real estate market. Yes, that is how I describe the market now. I avoid the phrases, “buyer’s market” and “seller’s market” and used "changed market" instead. Face it, the market has changed. But there can be winners on both sides of the transaction.

Here’s a case in point: A savvy young couple, who wanted to take advantage of the glut of new construction models on the market last year in the Forest Lake area and sell the Anoka County starter home they had outgrown, were winners! They negotiated with a major builder on a perfect model and saved over $30,000 on the price. Then after making all necessary repairs, they listed their home at a rock bottom price equal to what they had paid for it four years earlier, and sold it in less than 60 days.

Did they lose money on the sale of their previous home? Probably. But this educated couple realized they were not losers. Their gain from the builder far outweighed the money they lost on their sale. Had it been a hot “Seller’s Market” they might have sold their starter home for a few thousand more but the builder would never have negotiated the drastic price reduction. All parties in this transaction were winners all the way around…The buyer of the starter home got a great deal. The move up couple sold quickly and got and awesome deal. The builder reduced their home inventory. Win. Win. Win.

This is just one example of the success stories I have witnessed this past year in this CHANGED real estate market. I know of dozens of examples of other individuals and families, both buyers and sellers, who are winners in this market.

Is it your turn to be a winning home buyer or home seller? If you are thinking that now is the time to make a move but the constant gloom and doom of the media has you sitting on the fence about buying or selling, contact a Realtor to help you assess your situation. Getting professional real estate assistance from the get-go is the best way to win in this changed market.

The young move-up couple in the previous story had contacted me months prior to finding their dream home to figure out a plan of action. I give sellers throughout the north and east Twin Cities metro area realistic facts about how to get their homes ready and where they need to be priced. They were prepared and ready to negotiate realistically with buyers when an offer came in on their property.

Sellers who are upside-down with their mortgage can also be winners in this market. Being upside-down is when you owe more money on a home than it would sell for on today’s market. Working with a Realtor that knows how to work with a bank to negotiate a short sale for their home and save their credit rating is a win for that seller. A foreclosure on a credit rating will become a huge red flag that will stay on your credit report for nearly a decade.

When I meet first time buyers, I give them a packet of information on how to buy a home so they are prepared for what to expect in the process. Before we start deciding whether to look at homes in Forest Lake or Hugo, I make certain my buyers are pre-approved for a loan with a reliable mortgage broker who will get the job done. Clients understand exactly what they can afford and what their payment will be. Then I discuss with my buyers the opportunities and pitfalls when looking at foreclosed homes, short sales, new construction and owner occupied homes. Prepared clients are then ready to jump on the perfect house and when the situation arises. With my expert assistance, buyers understand how to finesse a low offer as a starting point to negotiations so they can get their dream home at a price acceptable to both parties.

Are you ready to make a move? Team up with a great Realtor and get educated! Whether buying or selling a home in today’s market, there is no reason to be the biggest real estate loser. Win-win sales are possible and are my goal in every transaction!

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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/

Sticking with Home Buyers until the Dream is Reality

It’s a bright sunny early spring afternoon in 2006, my cell phone rings.
“Hi my name is Ben Johnson and you worked with my in-laws a few years back. They are in that great home in Scandia.”

“Sure, Ben, I know who you are. I spoke with your wife, Kim, a few years back but you weren’t ready to make a move then.”

“Well we are now! Could you show us a few homes tomorrow? We are interested in a few horse properties that are on the market in Isanti and Anoka Counties.”

“Great! I will set them up!”
So began the journey to the perfect home for the Johnson family. This story does have a very happy ending but the middle was rather a long drawn out process. Ben and Kim had a home to sell. When they sold their first home a decade before, it sold in a matter of days. Like most Twin Cities homeowners a few years ago, they were certain that their home would sell quickly, even in the slower market. Many people had said they were interested in the two-story, centrally located St. Paul home. But FSBO is not as easy as it would seem. After exhausting their contacts, they listed with me at the end of the summer of 2006.

From our first meeting, the Johnsons opted to sign a buyer’s representation agreement with me. I represented the couple in the search for their dream home. Kim and Ben’s dream was to live on acreage so they wouldn’t have to board their daughters’ horses. The Johnson’s wanted land to ride on and prairie views of beautiful private sunsets. Driving from North Branch to Linwood and Stacy to Scandia, we scoured the countryside. We found many perfect places for this family while they waited for their home to sell so they could write a non-contingent offer.

Over the holidays, the Johnsons chose to remove their home from the market. Their busy schedule included celebrating with a number of children and grandchildren. Showings didn’t fit in the plan. During the time their home was temporarily off of the MLS, a buyer contacted me as my sign was still in the yard. She was ready to buy and love the home from the outside and the photos online. The day the house re-listed, she wrote an offer which was accepted.

Of course this was the first big snowstorm of 2007 and the Johnsons and I trekked out in the elements to see new homes. After viewing properties from East Bethel to Chisago, the perfect home was found in Forest Lake. Unfortunately, the person buying their home wasn't a good buyer; the earnest money check bounced. So we were back to the drawing board.

A few weeks into March and my clients were more dedicated than ever to find the perfect home. Kim and Ben had just had a new roof put on the house and made every repair recommended by the truth-in-housing inspector. They decided to offer a warranty on their home so a new buyer wouldn’t have to worry about an older dryer or boiler. They lowered their list price and showings picked up. The home they had their eyes on in Forest Lake sold but new homes were coming on the market to consider.

As spring turned to summer, my clients were home sellers frustrated with the market. The Johnsons dropped the price again. Weeks later, we were contacted by an agent that another offer was coming in. Out we headed again to find a perfect place to call home. This time there were homes in Scandia, Stacy, Columbus, North Branch and Linwood to consider. Again a perfect Scandia home was located.

The offer did arrive by fax the next day. It was from an investor who wanted to close within days. When the sellers countered with a new closing date, the investor rejected the counteroffer and bought a different home. A week later the Scandia home went into pending. Another dream faded away.

As August approached, Ben and Kim remained positive and determined to have a new home for the school year. Another price adjustment and another offer came in. Third time was definitely the charm!

Now, it was crunch time! A perfect horse property was available. It was a second choice to the Scandia home. An offer was written, accepted and on a bright sunny fall afternoon, both homes closed. Their dream was finally a reality.

See, the lesson here is a professional Realtor is in it with you for the long haul. I stuck with my clients through flighty buyers and a rough market. I showed them homes in four counties and several communities for over a year until the timing was right.

When I checked in on the Johnson family a few weeks after closing, Kim and Ben were happy with their new home. Of course there were hiccups that need to be resolved but overall the family was satisfied and at home. Their children were adjusting well, the horses were grazing in the back and life was returning to a new normal on 10 acres in the country.

This is why I am a Realtor. I make dreams reality no matter how long it takes.

*The story is true though in interest of my clients’ privacy, I did change the names.


More Articles on Buying Real Estate that might be of interest:
Are You a BUBBA?
Rent VS Buy? It's Time to Revisit the Question!
How to Choose a Realtor—Why a Good Friend is Not Always a Good Option
How to Choo-Choose a Realtor and Avoid a Train Wreck!

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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 2007 www.terieckholm.com

It’s Hard to Show the Unhandy-Andy, Weasley Burrow!

As a Realtor, showing homes can sometimes be more of an adventure than others. This past summer, I had a wonderful family of clients looking for a hobby farm so they would no longer have to board their horses. They wanted to be located near the schools and employment in the Twin Cities, needed a minimum of 5 acres and the ability to keep at least 2 horses on the property. Age and condition of the home were secondary considerations as long as it was in the price range and met the three main criteria.

So we began the journey! We scoped out homes from Scandia to North Branch! We trekked all over Washington, Anoka and Chisago Counties and checked out properties from Linwood to Stacy, even a few in northern Ham Lake and East Bethel.

On one such adventure, we visited a home that sounded in the MLS like a real find. A 1998 built split level home with a 3 car garage, 5 bedrooms, 3 baths, and a mother-in-law apartment. Pulling up to the home, we noted the unique layout…A standard split level home was enhanced with an additional third garage stall and an apartment above. Since the home was a walkout, the third stall was at a lower elevation than the other two. It was unusual but not concerning.

Entering the main front door, the home did appear to be a standard 2 bedrooms up and two bedrooms down split but that is where the normalcy ended. The upper level deck was an obviously-abandoned, work-in-progress, missing railings and several floor boards. When you walked through the two car garage of the main home, there was a service door that lead to a long dark hallway. If you took a sharp right, you would fall down steep stairs. We headed straight and went into a weirdly designed mother-in-law apartment complete with swinging saloon-style doors to gate off the kitchen and fake parquet inlayed floors. At this point, I turned to my sellers and stated, "Oh my gosh, we are in the Weasley house!"
Okay, maybe it was because I had just stayed up several nights in a row to finish the final installment of Harry Potter but this home hit me as a knock off of the Burrow. If the Potter Series is only in film version in your mind, you might miss the analogy as the Weasley home only makes a quick appearance in one film. J. K. Rowling gives architecture a whole new meaning in the wizarding world with moving staircases and disappearing/appearing townhomes. (Can you even imagine a muggle Realtor trying to find Harry’s godfather, Sirius Black’s family estate at 12 Grimmauld Place?) But the description of the Burrow is very vivid in the literary version as a convoluted maze of a home.
My clients agreed and couldn’t leave the property fast enough. It actually took longer for the homeowners to leave the house than it did for my clients to view the home and make their decision.

The sad thing is this wasn’t the only Weasley home that we visited before the clients located their dream home. In many country homes people are foregoing common sense, reason and building permits when putting an addition on a home or making home repairs. We saw an odd, 3-story home where the additional floors got smaller just like a home created by Dr. Suess. Then there was the home that had a spiral staircase removed to put in hardwood but the owner didn’t make the opening large enough for an adult human to go up and down. In another home, with a very rustic interior must have been a bit drafty in the winter winds as they had used expanding foam insulation between the boards in the main family room!

I avoid listing Weasley homes. If an unhandy-Andy did improper home “improvements” or added onto the home without permits, I won’t list the home until the repairs are made and properly documented.
We are still in a buyers market in the Twin Cities. There are dozens of properties listed that buyers can choose from. Homes with weird layouts, mismatched siding, unfinished decks and stairs that go nowhere, don’t sell. Buyers have options and will move on to the next home. So before you head out to Home Depot or Menard’s for the next weekend project, ask yourself if relocation is possible in the near future. If it is a possibility, make certain the work is done correctly and properly permitted.

As much as the Weasley family loved their home and it worked for them, I wouldn’t want to have to sell it!

Featured homes in Ham Lake and Forest Lake:

• 3608 Woodland Drive


• 20685 Georgia Ave N
  

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 2007 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/

Weighty Issue for Today’s Home Seller--Make Sure Your Scale isn’t Broken!

A few years back there was a weight loss contest at our Keller Williams Premier Realty office in Vadnais Heights, Minnesota. It started as a way for people to inspire each others weight loss and help keep to New Year’s resolutions. A scale showed up in the office bathroom for participants to track their achievements. Though not a part of the contest, I stepped on that scale now and again. I hated that dumb scale…It seemed to weigh heavier than my scale at home by about five pounds or so. I didn’t like the numbers, so I avoided the scale.

Last week, I decided to give the office scale one more chance…I have been cutting back for the past few days. Maybe the scale could be my friend after all. Well, low and behold, the scale was my friend! So friendly in fact, that I weighed a whopping 50 pounds less than I had weighed on my scale at home this morning! For a split second, the sun was shining brighter, birds started singing; everything was right in the world!

Reality Check….This is the office scale. Somebody who didn’t like their numbers had probably kicked the darn thing against the wall after their weigh in. The Scale was BROKEN!! I knew this on an intellectual level; but on another unrealistic, basic feel-good level, I wanted to believe the incredibly low numbers that I haven’t seen my pre-teen years.

The euphoria of an unrealistic weigh-in was very short lived. A broken scale may give me a number I want to see, but not the number I need to know.
As I drove off to a listing appointment, I started to think about how some home sellers really prefer the unrealistic numbers of a few years back. They use a “broken scale” by measuring their home’s value by their neighbors’ sale price or a two year old appraisal. Some seem to think that they should get double the return of every penny spend on a remodeling project. And those who interview several agents and compare the competitive market analysis’s (CMA’s) will often choose the agent with the values their home the highest without question.

It’s time for a Reality Check. As a Realtor, I work diligently to get good numbers, to be your scale and weight the value of your home appropriately and correctly. In this market many people do not like the numbers. If you don’t have to move, you don’t have to get on the scale. If you are not moving in the next few years, don’t worry about the value of your home. The numbers will be different when it comes time for you to sell. Properly maintain your home it will retain a good market value.

Those have to move must step on the realty reality scale today. Due to a job relocation or change in family or financial situation waiting out the market is not an option. These sellers must be realistic when they step on the CMA value scale no matter how ugly the number is. They have to cut back on the junk and declutter their homes. They need workout hard to prepare the home for sale by making any and all repairs that potential buyers will find concerning. And they must have a proper realistic weigh-in with an accurate CMA from a professional Realtor. Take off the rose-colored glasses and listen to the professional advice of your real estate agent to get your home ready to sell and properly price your home from the start. Using a broken scale is not an option if you want to sell your home.
Other articles on Selling Your Home in a Buyers Market that might be of interest:Is the "Busy Road Factor" Affecting the Sale of Your Listing?
Home Sellers! You’ve Got to Know When to Hold ‘Em and Know When to Fold ‘Em!
Teri's Top 10 Tips for a Quick Sale!

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/

Mid-Year 2007 Real Estate Market Statistics for Lino Lakes, Minnesota

The Lino Lakes real estate market in southern Anoka County while slower than normal had a much healthier start to 2007 than its neighbors to the north. Per the St. Paul Area Association of Realtors, sales for the 13 county Twin Cities area are down 16% in the first half of 2007 compared with sales in the first half of 2006. The average home price fell 2%.

This mid-year update for Lino Lakes real estate reflects the sluggish market with many existing home listings but the homes are selling. Though existing home inventory is high in all price ranges, homes are selling more quickly than in northern Anoka County communities. Homes in Lino Lakes are staying on an average of 173 days while homes in Ham Lake have a cumulative days-on-market statistic of 208 days. (Click here for complete Ham Lake Statistics.)

The following are statistics of current single family residential market activity in the Lino Lakes area for the first six months of 2007.
Under $300,000~ 38 Active Listings, 10 Pending Listings, 39 Sold Listings; Average Cumulative Days on Market for Sold Listings: 153

$300,000-400,000 ~ 30 Active Listings, 4 Pending Listings, 10 Sold Listings; Average Cumulative Days on Market for Sold Listings: 188

$400,000-$500,000 ~ 21 Active Listings, 5 Pending Listings, 10 Sold Listings; Average Cumulative Days on Market for Sold Listings: 267

$500,000 and Up~ 16 Active Listings, 2 Pending Listings, 4 Sold Listings; Average Cumulative Days on Market for Sold Listings: 93
Lakeshore available in Lino Lakes:

6 Active Listings, 0 Pending Listings, 2 Sold Listings

Lino Lakes lakeshore price range: $334,900-$749,000

• 1 Home on Bald Eagle Lake


• 1 Home on Centerville Lake


• 3 Home on Reshanau Lake


• 1 Homes on Rice Lake

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/07 through 6/30/07.

Featured Listings in Anoka County:

1517 128th Ave NE, Blaine, MN 55449

15065 E Vermillion Circle NE, Ham Lake, MN 55304

1988 Robin Lane N, Centerville, MN 55038

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

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/

Realtor RADAR…Overheard at the Ham Lake Baseball Field!

While getting my haircut a few months ago, there was a conversation going on a few chairs over between a stylist and client about a home for sale. My stylist leaned over and asked, “Ears burning?”

Funny, how Realtors’ ears do pick up conversations regarding real estate. No, there is not a Real Estate Radar 101 continuing education class. It is just a fact that people talk about real estate quite often. Everyone knows someone buying, selling or thinking about buying or selling a house.

Last week, I was enjoying watching my son play baseball at a Ham Lake ball field. Soderville Athletic Association packs the bleachers every night at the Ham Lake City and County Parks. On this particular night, the sun was bright, the wind was warm and the air mosquito-free; A perfect summer evening for baseball. I was sitting near a couple of moms that I had never met who enjoyed chatting throughout the game. Baseball is a great sport for conversation as between innings and at-bats, quite a conversation can take place.

Here are some of the snippets overheard:
“Our new kitchen is almost complete. We went with the refrigerator that has the panel inserts…Go Reds! Now we are waiting until the flooring is in next week.”

“You know the lots in our neighborhood are so much smaller than yours. We love your neighborhood!...Nice swing, bud! Better luck next time.”

“Since the house is better than it has ever looked we were thinking as soon as the kitchen is done of selling ours and buying one of the ones in your area. We would love to have at least 2 acres, maybe 3. How big is your lot? Great Catch!”

“We figure that our home is nice than the one listed down the street for $389,000 so we think that we could get $425,000 for ours. Even though that one has been on the market for almost a year but ours would look so much nicer. Pitch it in there, bud!”

“Good job Reds!! You know the home down the street from you. They are asking I think around $529. It can’t be more than $300 per month more than we pay now, do you think? Great Play…Did you see that?!!”So about this time, I am contemplating…Do I keep quiet and focus on the baseball game or become the Hollywood Realtor stereotype and speak up? This is my opportunity…I could casually mention as a Ham Lake Realtor here are some of things that you will need to consider. I could note Ham Lake market conditions. I supply accurate financials upon request etc. I know about acreage. I know how to sell a home in Anoka County. Instead the moment passes and the game goes on.

A few innings later more snippets on a different topic but just as applicable:

“You know my business has slowed down considerably in the past year. Call the ball…Great Catch Red!”

“Don says the company promises a retention bonus if he stays through the end of the year. I think the bonus will be enough to carry us through. Good inning guys!”

Wait a second! Did I just hear that right? Why would anyone consider moving to more expensive home when faced with losing their only steady income?

For the record, I remained a secret agent. I work mostly on a referral basis. I restrain myself from soliciting business from unsuspecting people having a private conversation in a public place.

Here’s the scoop on Ham Lake Minnesota real estate. Homes are selling. But selling a home costs money…There are costs besides the commission that will need to be paid. In the $400,000-$500,000 price range, the average days on the market is 421 days! Since January 1, 2007 only 5 existing single family homes sold in Ham Lake in this price range…Less than one per month. There are currently 34 homes listed in this price range.

It is an awesome time to buy a home in Ham Lake! Deals and opportunities DO exist in this market. But take all needs, wants and your personal situation into consideration when making a decision to sell your home.

And remember that Real Estate RADAR is out there everywhere. Take care when you are speaking about your financial situation in public as you never know who could overhear.

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 Teri Eckholm 

Myths of a Buyers Market

For the better part of two, maybe three, years, communities throughout the Twin Cities, Minnesota and the entire U.S. have been in the throws of a full fledged buyers market. Sellers have adjusted their minds and their prices. They have roll up their sleeves and worked to make their homes shine for the periodic showings. Homes are selling…Just not as quickly as they sold in the past decade. So when a Realtor shows a potential buyer a listing, the sellers want it to make the short list of second showing homes.

With years upon years of sellers running the show, it is hard for the average person to understand why a home is not selling. Heck, it’s hard for the average real estate agent. Basically, the homes-for-sale inventory is way up. Buyers have 50-100 homes that will meet their needs. They have become very selective when writing their offers. They want the best deal on a place to call home. Buyers in many cases are no longer buying with just their hearts; their heads are 100% in the game.

Working with both buyers and sellers throughout Anoka County in this changed market, I have noticed some interesting patterns of thinking on both sides of the transaction. Not all buyers or sellers have a firm grasp of what is happen in the real estate market which is causing some misunderstandings and frustration. It is not just in Ham Lake and Forest Lake that these situations arise, in speaking with other agents and several buyers and sellers, these misunderstandings are widespread.

Myth 1~A home with a high DOM (Days on Market) is a “problem” house.
Agents are as guilty of this assumption as their clients. Often in this market, homes just slightly overpriced can sit for months with nothing wrong per say, except price. When the price is adjusted, the DOM is still there, but the “problem” is gone. There are many GREAT homes now properly priced with high DOMs.
Myth 2~ Sellers are desperate and will take ANY Offer.
Everyone seems to have heard of someone who got that great deal on a house. Stories of sellers who needed to sell and gave away the property just to get out are running rampant over the proverbial office water cooler. When I hear a story like this from buyers, I ask them if they actually saw the paperwork. If they have not, I remind them not to believe everything they hear. Contrary to all of the stories flying around, people don’t give away houses. They just don’t. Reality is sellers will accept a fair price for their home based on current market conditions. If a seller has their home priced fairly, they won’t want to come down another $20,000-$40,000.

Myth 3~ Buyers who write “lowball” offers should be looking for homes in that lower price range.
Again, sellers and their agents alike often think that a very low or “lowball” offer on a home is a junk offer. They will often send it back without a counter offer assuming the buyer is looking out of their price range and can’t afford to spend more. Hence, the low offer.

But in many cases, the buyers are not writing an offer at the top of their game. Consider the situation of an entry level buyer in a starter home. It is imperative that a first time buyer not overpay. If their game plan is to sell again in 3-5 years, they will never have enough equity as the market is expected to stay flat for several years. Interested buyers want to start the negotiations at a lower amount and if they believe the home is not priced correctly, it might appear to be a lowball offer. A smart buyer’s agent will submit the offer with a competitive market analysis (CMA) to support the low offer. Sellers receiving an offer with a CMA attached would be wise to carefully consider the offer before throwing it back. The first offer could be the best and only offer a seller will see for months.

The bottom-line here is that we are in a changed market where buyers have a bit of the upper hand. But that doesn’t mean that buyers and sellers cannot find common ground and negotiate purchase agreements that are acceptable to both sides. Agents play a more important role than ever by making certain that clients have an understanding of the market and how their offer or pricing is being perceived. Choosing to work with a professional Realtor has never been a more important decision than it is today.


********




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 Teri Eckholm 

Is the "Busy Road Factor" Affecting the Sale of Your Listing?

As a Realtor, I am contacted by people on a daily basis to do market analyses on their homes. I work hard to get the price right as it is imperative in a Buyer's market to NOT be overpriced. I check the comparative homes sold in the past 3-4 months and add and subtract for differences in each particular home. But every once in a while there are homes that are affected by what I call the "busy road factor". These are aberrations that are unique to the property but will dramatically reduce the number of buyers interested in a property.


My daily travels as a real estate agent in and around Anoka County, take me down the same major county roads day after day. Many residential areas adjacent to these well-traveled roads. County roads are wonderful short cuts; posted 55mph and they crisscross the communities of Ham Lake, Lino Lakes, Forest Lake and Columbus.

Of course I notice several for sale signs on these roads as they have become a part of the landscape that doesn't change as quickly as it had in the past. First a new sign goes up. And then the sign changes on the same house when they try a new agent...again and again. I know this is not just the buyer's market, though that does affect the situation. No, these homes on well traveled roads are affected drastically by "the busy road factor". It is a lethal combination with the buyers' market for a sale of residential home. You are literally dead in the water before the house is listed if the pricing does not reflect the road.

Although I have nicknamed the phenomena, the "Busy Road Factor", I have come up with the acronym BaRF for short. It should be obvious why I came up with the name:


It is how most sellers feel when the BaRF is factored into their market analysis.

Location, Location Location! It is the real estate mantra and if your location is on a busy road, you cannot change it. But you can change the price. In order to sell, it is necessary to price your home drastically lower than all other homes on the market with similar features (but without BaRF) to attract buyers.



BaRF does not only affect properties on busy roads! There are other uncontrollable situations that are very tough sells in a hot sellers' market and next to impossible in a buyers' market. These include properties which are next to or near the following:

• Cemeteries


• Industrial Parks


• Hugh Power lines


• Gas Pipelines


• Freeways


• Landfills


• Airports


• Prisions


• Flood plains


• Train Tracks


• Open Lot that is for sale for undetermined new development.

So how can you deal with BaRF and get the house SOLD?

1. Be Realistic. Don't ignore the elephant in the room and price the home as if the BaRF doesn't exist!
2. Work with a Professional Realtor. An experienced professional real estate agent can assist you in pricing your home correctly factoring in all adverse conditions.
3. Be Ready to Negotiate. If a buyer comes along, don't pass on a low offer. Counter and try to reach terms that are acceptable for both parties.
4. Be Patient. In most cases, a property affected by BaRF, will required twice the market time compared to the average home.

**Photo Compliments of Garret Izumi from his Surreal Real Estate photography series.


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 terieckholm.com

Home Sellers! You’ve Got to Know When to Hold ‘Em and Know When to Fold ‘Em!

Sellers have been playing a great game out there; poker faced and toe-to-toe with potential buyers. Sellers have been the great masters of the bluff for well over a year now in some cases. But buyers aren’t taking the bait. They have called your bluff and your house is just sitting there with no activity.

Kenny Roger’s well known country song, The Gambler, may be an unusual basis for a real estate analogy, but it’s time for sellers to stop singing the blues and get back in the game!

If a homeowner really wants to get their home sold, it is time to lay down last year’s hand, reshuffle the deck and deal new cards. The reshuffle could mean revising the marketing plan, changing agents, repainting and/or remodeling. The new hand is looking at the pricing with a more realistic eye!

As a Minnesota Realtor working in the Anoka and Chisago Counties just north of the Twin Cities, I have kept an eye on several homes that have been on the market since last summer. Not one or two homes, I have been keeping an eye on a couple of dozen homes in Ham Lake, Forest Lake, Lino Lakes, Wyoming and Columbus. There are homes that listed last summer that have not dropped their price by one penny since they listed last year! This does not make any sense—or cents for that matter!

Sellers need to know when to walk away from incorrect pricing. If you have held firm on your price for over a year, it is not time to walk away from that incorrect price; It’s time to run.

Was the original list price based on a refinancing appraisal from a year or two ago? If it was, it just is not accurate.

Did your listing agent do a market analysis? The comparisons from that analysis are over a year old now…possibly going on two years old. In this changed market, ideal comps are no more than 3-4 months old. Have your agent do a new market analysis for the home. Homes do sell in a buyers’ market but pricing must be accurate and the home in optimal condition.

If you have sat counting your money at your kitchen table based on an out-of-date appraisal or market analysis, you need to immediately rethink your situation. The time for counting is when the dealing is done. There is no deal without a purchase agreement. To get to the paperwork, you need a buyer. Buyers in today’s buyers market are not going to overpay for a home.

The biggest mistake I see sellers make in this market is to get offended when an offer comes in. In their minds they have been counting their money with what they believe their home is worth. However, “Your home is only worth what someone will pay for it today”. That means if a buyer presents an offer backed up with a current market analysis from their buyer’s representative, make certain to take a good look at the offer. To not counter and wait for the next buyer to write up a purchase agreement is not a good idea in this market. Buyers have hundreds of homes to choose from. If a qualified, non-contingent buyer writes an offer and submits information to justify the rationale for the offered price, it shouldn’t be dismissed as a lowball offer. It may be the best offer the seller will receive.

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 terieckholm.com