Happy New Year 2011! Real Estate Resolutions for Home Buyers and Sellers in Minnesota

During the past decade we have experienced some highs and lows in the real estate market in Minneapolis, St. Paul and the extended Twin Cities suburbs. In the later part of the decade, home sellers began to count market time in months rather than days. Home buyers stayed hidden in the woodwork coaxed out only by extremely low prices on bank-owned foreclosures and tax credits offered by the government. We have been through the proverbial wringer during the past ten years, with terms like short-sale and REO that were once seldom heard when describing Minnesota real estate creep into the media on a daily basis. And then there is that abundant inventory...In every price range and most locations there are several OPTIONS at all price points on the market. Town homes, single family, split levels, ramblers, two stories, remodels, foreclosures, short sales and new construction. No longer flying off the market as soon as they were listed as in the early 2000's. The bubble popped and we are working our way toward recovery.

As a REALTOR® working in Washington and Anoka Counties, including Ham Lake, White Bear Lake and all communities in the Forest Lake School District, I keep a close eye on the Twin Cities real estate market. During the last few months of the year, I noticed bit of a change in the wind. Activity was starting to pick up and inventory is leveling off. Sellers that need to sell choice to price their homes attractively to entice buyers. Buyers balancing for months even years at the top of the fence jumped into the real estate market and wrote purchase agreements. Negotiations were made and offers accepted. The Twin Cities real estate market took one baby step toward forward at the end of 2010.
So what does that mean for those considering purchasing a home or selling their property in 2011? From Ham Lake to Forest Lake and East Bethel to East St Paul we have a strong foundation in our real estate market. Our communities have long been some of the most affordable areas in the country. With continued low interest rates, there will be opportunities to buy a Minnesota home. Even lakeshore and acreage has become more affordable. As we move forward into 2011, we should all Resolve to be Real Estate Savvy!
Resolutions for Sellers
*Team up with a professional REALTOR®
*Price your home correctly from the start
*Make all repairs
*Declutter
*Make each showing count by staging the home for sale.
*Be willing to negotiate.Resolutions for Buyers
*Team up with a trusted REALTOR®
*Get Pre-approved and check in with your Loan Officer regularly to discuss market changes.
*Write realistic offers that encourage negotiation.
*Understand the foreclosure and short sale process—While prices can seem like a deal, the assumed risk to buyers on an as-is sale can be great.
Resolutions for Homeowners

*Even if this isn’t the year for you to sell, there are things a homeowner should be doing to maintain and retain property value.
*Maintain the interior and exterior of your home and make repairs on a continual basis rather than deferring to time of sale.
*Stay current with your mortgage and discuss any financial problems with your lender immediately.
*Be a good steward of your neighborhood.Resolutions for Investors*Team up with a professional REALTOR®
*Take advantage of the abundance of foreclosures that are continually hitting the market.
*If holding the property, offer a safe and maintained residence at a fair price to the renters
*If flipping or repairing/reselling the property, be realistic with the numbers. Don’t over invest in materials and curb enthusiastic inflated resale estimates. 2011 buyers are market wise!
*Be a good steward of your properties and the communities in which they are located.
*Maintain the properties to retain value for portfolio as well as the neighborhood.

If buyers, sellers, homeowners, investors and real estate professional alike work together to maintain slight momentum in the market, 2011 could be another babystep forward toward recovery in the Twin Cities real estate market. 

Copyright 2011 terieckholm.com

Rent or Buy? The Debate Continues…But in Minnesota, Buying is #1!

Earlier this month the real estate web search company Trulia announced a new rent versus buy index. Topping the list of places to buy rather than rent was the Minneapolis market (yes, this means all of the Twin Cities metro). Trulia made the calculation using the listings on Trulia.com comparing the average rent of a 2 bedroom home or condo compared to cost the list price of a similar sized home. Results show that in this market people may come out ahead if they buy rather than rent.

Now combine that information with the first quarter numbers just released from the National Association of REALTORS® showing that the prices in Minneapolis/St. Paul are still down. In the just released First Quarter Local Market Report for Minneapolis/St. Paul/ Bloomington the trends for the market indicate that nearly all of the equity from the housing boom has been wiped out. Today’s homebuyer has the ability to buy a home at a price not seen since the late 90’s. This IS a huge opportunity for anyone STILL on the fence about buying a Minnesota home.

Should you rent or buy?

There is an awesome website that helps individuals to answer that question. Ginnie Mae is an organization providing that provides the private mortgage insurance to most government (FHA and VA) loans. Their website provides tips, tools and ideas to help out the first time buyer.One helpful tool is their Rent versus Buy Calculator. It is simple to use: Enter your current rent, the price of the home you are considering, how long you intend to stay at the home and a few other details. The calculator will provide an indication of where you will stand financially if you make the purchase. It is a good tool because it allows you to adjust the estimated property value increase. (In this changed market, it would be best to consider a 0-1% increase. Or consult with a REALTOR® for an estimate for a particular region or neighborhood.)

Copyright 2010 Teri Eckholm

I’m not going to give my house away—But do you want to sell it?

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Traditional home sellers are cautiously entering the market again. They have heard the recent news that home sales have rebounded in the Twin Cities area. True, the number of homes sold is up this is a good thing. Homes are selling again in Minnesota.

I have noticed an uptick on the number of requests for market analyses in the past few weeks. Many sellers are realistic about the housing market and realize that they will not get the price they could have sold for a few years ago. They have witnessed what neighboring foreclosed and short sale properties have sold for. They have received their tax assessed valuation in the mail and know it is 20-40% less than a few years ago. But still some would-be spring home sellers are looking at the recent news reports through rose-colored glasses, forgetting that the average price of a home is still down considerably.

The internet has changed things. Homebuyers have an abundance of information at their fingertips these days. With a click or two of a mouse, they can discover when a home was last sold, what price it sold for, what the current assessed value is and more. They know what other homes in the neighborhood sold for too. There are websites that will analyze the cost per square foot of all homes currently active on the market in a particular area—Today it doesn’t take a rocket scientist to tell if your home is over priced. Buyers just won’t consider it at all!

It is always a tough conversation to have with a seller. They made an investment by when they purchased their home. They worked hard and spend additional money to fix up their property inside and out. And now it is often worth less than the initial investment that they made. To sell for less than what they paid for the home leads some to think, I'm giving my home away.

But are they really? No buyer wants to overpay for a home. No professional appraiser will overvalue a home. No bank will give a loan to a borrower for more than a home appraises for today. Sadly, traditional sellers that have to sell at these lower values are not giving away their homes; they are starting over and moving on.

One of the testimonials I recently received for a townhome sold in this market gives an optimistic way to view the market. "We couldn’t have asked for a better person to work with. We were very pleased with the attention and effort you put into selling our townhome. The fact that we were able to sell our home in the worst market decades speaks volumes about the way it was marketed." Here is a family that lost tens of thousand dollars on the sale, but was elated with my work as they had to relocate. They priced their house correctly, even though it meant that they would lose money and it sold.

The truth is homes are selling again, but at much lower prices. A home is only worth what someone wants to pay for it today. Unfortunately, homeowners must choose whether to take a loss now and move on or stay put until values increase. And even a cloudy crystal ball indicates that could be a long wait indeed.

Copyright 2010 Teri Eckholm 

January and February 2010 Twin Cities Real Estate Market Video Updates—A Video Double Feature!

The February Monthly Skinny from the Minneapolis Area Association of REALTORS® was released last week. They say time flies when you are having fun...Well, I have been having fun working with several buyers and traditional sellers to get their homes prepared for the spring market so I missed posting the January Skinny. So...It is Double Feature time!

The January Skinny was a year end update for 2009 as we closed the book and took a huge step toward a balanced market in the Twin Cities. As many of the community snapshots I have posted over the past 3-4 weeks have stated, this is due to many factors. Most noteably, historic affordability, low interest rates, the first time buyer tax credit and pent up demand.





The February Skinny recaps a slow start to 2010. While traditional sales were finally up, home prices are stabilizing and market times are down, there is still reason to be concern. The tax credit for homebuyers that has spurred home sales over the past few months will soon expire. Add to that, the Federal Reserve has announced it will no longer purchase mortgage backed securities which is predicted to cause interest rates to rise...2010 will be an interesting year for buyers, sellers and home owners.









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 , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. 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 2010 Teri Eckholm

December 2009 Twin Cities Real Estate Market Video Update—Continuing Signs of Recovery!

In the December Monthly Skinny from the Minneapolis Area Association of REALTORS® provides a snapshot of the Twin Cities real estate market as we wrap up 2009.
Though there still are challenges in the upper brackets of the housing market, there has been a continued trend of recovery. Though we did still see a 3% month-to-month drop in median home prices, from $175,000 to $170,000, this is lowest drop in two years. Strong home sales added to shrinking supply equates to a stabilizing home market. This month's Skinny notes that our Twin Cities was affected by the $8000 tax credit as part of this recovery. There is hope that the extended and expanded tax credit will continue to stabilize the Twin Cites home marketing into 2010 but only time will tell. Also predictions for the 2010 national market by Lawrence Yun, Chief Economist for the National Association of REALTORS® were shared in this month’s report.
Enjoy the last video update for the Twin Cities real estate market for 2009.



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 , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. 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 2009 Teri Eckholm http://www.terieckholm.com/