Inspection, Pre-Inspection, Truth-In-Housing and Disclosures! What is Required?

As a Minnesota REALTOR®, my real estate clients, both buyers and sellers, are sometimes confused by inspections and disclosure requirements in the Twin Cities and surrounding suburbs. Sellers want to know what they have to disclose which in short is, every material fact a buyer would want to know. A handful of Twin Cities communities require a home to be inspected prior to listing it for sale. Buyers, especially in a changed market full of foreclosures and short sales want to what their rights are in regard to disclosures and inspections.

Recently while listing a home for clients in Anoka County, a first-time selling couple asked about pre-inspections. There home was beautiful with many updates and it was obviously well maintained. As they filled out the required disclosure, they brought up the subject of pre-inspection. A friend of theirs had recently sold a home and had it pre-inspected. When the offers came in, the buyers on their friends’ home opted to forego the inspection, choosing to just read the report. My clients were wondering if this was a common practice and if a pre-inspection was required.
In Minnesota, there is no Truth-In-Housing inspection requirement to sell your home at the state or county level. There are however a number of communities in the Twin Cities metropolitan area that do require a pre-inspection report. These go by many names: Truth-in-Sale of Housing Disclosure, Time-of Sale, Time-of-Sale Code Compliance, Dwelling Maintenance and Occupancy Code Compliance, Housing Code Compliance Inspection or Housing Maintenance Code Inspection. Some of these inspections are done by inspectors that are city employees while other communities have licensed private inspectors to perform the inspection of the home. But in most cases, it is the home owners responsibility to select a private inspector to perform the inspection prior to listing the home for sale.

The Twin Cities communities that currently require a home inspection are:Private Inspectors (Selected by Homeowner)

• Bloomington
• Hopkins
• Maplewood
• Minneapolis
• St. Paul
• South St. Paul

City Inspectors

• Brooklyn Park
• Crystal
• New Hope
• Osseo
• Richfield
• St. Louis Park

Can I still have my home pre-inspected if my community does not have a truth-in-sale requirement?

Absolutely! Having you property pre-inspected and an inspection report available to potential buyers can speed along the buying process for many buyers. Some buyers will choose to review the report and not have another inspection completed making the offer not-contingent on an inspection. Other buyers will choose to have the inspector who did the pre-inspection come out to the home to explain the details in the report. This is often completed for a reduced fee to the buyer since the work has been completed and it is not as time consuming to the inspector. However a pre-inspection does not guarantee that the buyer will not opt to hire their own independent inspector to give another report on the home.

If I give an Inspection or Truth-In-Housing Report, do I have to complete a seller's disclosure?

If you have lived in the home, yes! It is required to disclose any material facts that you know about the home. However, in the case of an estate or rental property where the owner did not live in the home, the owner will have limited information regarding the property to disclose. In this case, an inspector's report can be offered in lieu of the completed disclosure to meet the state disclosure requirement. A buyer may also agree to waive their right to the required seller’s disclosure. In either of these cases, this will not exempt a seller from any local or federal statutes (i.e. for septic or lead based paint).

What if it is a bank owned home? Does the bank have to provide a seller’s disclosure on a foreclosure?

Minnesota state law does not have different rules for a bank or other financial entity. They must disclose material facts on a seller’s disclosure, offer an inspection in lieu of foreclosure or have the buyer agree to waive their rights to a disclosure.

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

Forest Lake, MN Real Estate Market Statistics Mid Year 2008

Forest Lake, Minnesota is a special community in the northeast metro Twin Cities area. Many people from the city remember Forest Lake fondly from decades ago as a summer vacation spot or place to go for a drive in the country. Today, the lakeside cabins have been replaced with year round residences and the rural nature is all but a thing of the past in this thriving St. Paul suburb. Though housing growth has slowed down drastically in the past year or two in many northern suburbs due to ever increasing gas prices, Forest Lake is holding it’s own.

Real estate in Forest Lake, MN in north Washington County and east Anoka County continues to sell but slowly. The Days on Market (DOM) Statistic is currently running at about 211 days for all homes sold. When the first quarter numbers showed area homes had stayed on the market an average of 287days, this is welcome news.

If we look at sold homes in the under $300,000 category the absorption rate has come back an 11 month level from earlier this year where it was nearly 24 months. But high end homes continue to struggle for sales. Only five homes sold in the last 6 months in the $400,000 plus price category. Currently, the Forest Lake community sits with nearly 5 years of inventory if sales continue at this slow pace on high priced homes. Great homes at amazing prices are out there on lakeshore and acreage properties. With this much inventory, sellers will need to be flexible on pricing. It might be the perfect time to negotiate a GREAT deal on a lakeshore home!

Lakeshore opportunities are abundant in the Forest Lake area! There are more listings than ever before at incredible prices too! The is inventory awesome…47 lakeshore homes currently active. Many have been on the market for a quite a while. With continued low interest rates, it is a great time to negotiate a deal on your piece of Minnesota shoreline!

Mid Year 2008 Forest Lake real estate statistics for single family homes:
Under $300,000~ 99 Active Listings, 10 Pending Listings, 47 Sold Listings, 194 DOM (Lakeshore Subgroup ~ 2 Active, 0 Pending, 3 Sold)

$300,000-$400,000 ~ 39 Active Listings, 0 Pending Listings, 14 Sold Listings, 268 DOM (Lakeshore Subgroup ~ 8 Active, 0 Pending, 8 Sold)

$400,000-$500,000 ~ 13 Active Listings, 0 Pending Listings, 4 Sold Listing, 167 DOM (Lakeshore Subgroup ~ 6 Active, 0 Pending, 2 Sold)

$500,000 and Up~ 37 Active Listings, 1 Pending Listings, 3 Sold Listings 385 DOM (Lakeshore Subgroup ~ 31 Active, 1 Pending, 3 Sold)
Lakeshore available in the Forest Lake area:47 Active Listings, 1 Pending Listings, 16 Sold Listings

Forest Lake lakeshore price range: $269,900-$2,300,000

38 Homes on Forest Lake
7 Homes on Clear Lake
1 Home on Shields Lake
1 Home on Heims Lake

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1 /1/08 through 6/30/08.
Articles on Forest Lake, 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
• Relocating to Forest Lake MN? The Schools are Full of Ranger Pride!
• Forest Lake, MN Real Estate Market Statistics 1st Quarter 2008
• Lino Lakes, MN Real Estate Market Statistics 1st Quarter 2008
  

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

Home Shopping with Teens—Get Ready. They WILL Voice their Opinions!

It is a great time to buy a home in Minnesota. As a Realtor working in the north Twin Cities metro, I see awesome homes at great prices coming on the market everyday. There is an abundance of homes in the $300,000 plus category from Ham Lake to Forest Lake and everywhere in between. Whether you want a two story on acreage or a rambler with lakeshore there is something for everyone. And people are able to negotiate some very attractive deals. So as a family we started thinking, this might be time to make a move.

Now the last time we relocated, the kids were toddlers and offered very little opinions on the homes we looked at. As long as we assured them that their Little Tikes, Hot Wheels and Duplos were coming, the house was just a box to keep the playthings in.

Flash forward to today and we have an entirely different situation. Our young adults who are usually in a music-induced stupor and non-talkative when it comes to family outings, take the earbuds out and fully participate in the discussion of possible new houses.

Here’s an example of one such conversation with my teenager…

“There it is up there. It looks very nice. Nice lot. Interesting design.”

“You mean that big ugly GREEN house?”

“That’s just the siding color. It is beautiful inside. I have seen the photos!”

“But it is GREEN!”

“So you live on the inside of the home.”

“Look at all the other homes in the neighborhood. They are tan. We are going to be the house that everyone uses as a landmark, you know, ‘turn right at the ugly green house’!

“It’s not ugly green. It is a very lovely sage green”

“Mom, I don’t know what sage is but I if it is anything similar to the color of puke, I would agree!”

Okay…so my husband didn’t like the wetland so near to the home so the lovely sage green house is out. We will continue to look. But my experience with young adults tagging along and voice opinions is not limited to my own kids. Several of my clients have had young adult children accompany them on house shopping excursions lately. Some of their voiced wants, needs and demands are priceless:

• “You are not seriously considering moving us to this dump are you?”
  
• “I vote for the home with the swimming pool!”
  
• “It’s in the middle of NOWHERE!”
  
• “This one is great! We can build the wet bar here and put the pool table there.”
  
• “So why can’t we have the big bedroom with the walk-in closet and private bathroom? It makes sense if you are going to make us share a room.”

And if you think watching a toddler at a home showing is tough, try an inquisitive teenager.

• “I wasn’t touching anything. I just opened the door of the clock to see how it works!”

Most families want their teenagers and young adult children to be onboard with the move. If the kids are not working with the parents, passive aggression could rise to the surface. Bedrooms will never be cleaned when there is a showing on your existing home. Dishes will be left in the kitchen sink and dirty towels on the bathroom floor of your perfectly staged home.

I understand that every family has to negotiate and find middle ground. But parents have to remind the kids who will be signing the purchase agreement and making the payments on the new home. The parents have the final decision on the house.

Of course, that doesn’t mean that we parents won’t hear our young adults’ opinions loud and clear—but as we are changing a world that they believe revolves around them, that’s to be expected. Right?

If you are buying, selling or relocating to Minnesota (with or without teenagers) 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/

North Metro Home Prices Plummet—No Wonder Activity is Picking Up!

The sales numbers are out for February 2008 and it comes as no surprise that the median price for a home in the north east metro Twin Cities has drop compared to the same period last year. No surprise to someone like me who as a Realtor works in Anoka, Chisago and Washington Counties everyday. Though it is hard to look at a double-digit drop in average prices, it is what is getting home buyers to start buying again.

Here are a few of the indicators I have noticed in the Ham Lake, Forest Lake and Lino Lakes areas:

• Mortgage options have tightened.


• Every appraisal is being scrutinized.


• Home buyers don’t want to overpay.


• Sellers are tired of waiting for their price.


• Deals are now being negotiated.
  

I have noticed a marked change since mid-December in the north and east Twin Cities. Throughout the area, buyers and sellers are coming to agreements and the stagnant housing inventory is starting to move.

This is happening in areas closer to the cities first. Homes in areas like Hugo and White Bear Lake have less days on the market than those in Forest Lake, Linwood, Wyoming and Chisago. But homes in the north are starting to see more activity than in the past year.

When inventory starts moving, prices will level off. Now is a good time for home buyers to waiting on the sidelines to look at getting into the game. Deals are being made and your dream home could be waiting!

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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/

Change the Clock and Spring Forward on that Housing Purchase!

In the debate on daylights savings time, I am on the progressive side who likes the change. Sure it messes with some old software so a clock or two is out of sync, but the tradeoff is well worth it. We get an hour more of evening daylight weeks early than in the past. This is a tremendous help to buyers, sellers and Realtors!

The traditional winter slow down in housing sales can be attributed to a plethora of reasons: cold, snow, holidays, school year, etc., but it really boils down to one factor. People don’t buy homes in the dark. It the winter daylight hours are short. Most people work that 9 to 5 shift so are not able to view homes in the daylight during the work week. It is tough to tie up weekends looking for homes so the process is delayed until spring and summer when people have more flexibility and more light in their evening schedules.

In this changed real estate market many homes are vacant. It is difficult to assess the condition of a foreclosed home that has the utilities turned off without light. Sure a flashlight, or better yet a half dozen flashlights, would help. But it stigmatizes the home further by giving it an “old haunted house” feel. Most vacant properties look a bit better in the light of day! Sunshine gives a better perspective on the work that would need to be done on the home.

Owner occupied homes also look better with the warm spring rays shining through the windows! People get a better idea of the colors and space inside the home. It is also easier to view the exterior for features or necessary repairs and to walk the property lines in the late afternoon sunshine!

Spring forward and get in gear! If you are thinking of making a move this year, you have been given a few extra weeks in the spring market to see homes. Remember it is the early bird that catches the worm! The first spring buyers have an awesome selection of properties across the Twin Cities metro! And those savvy sellers who put their homes on the market in the early spring attract those motivated family buyers who want to move as soon as the school ends.

Featured Homes “JUST LISTED” in the North and East Metro:

15139 E Vermillion Circle NE, Ham Lake, MN 55304
29541 Shoreview Circle, Lindstrom, MN 55449

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/

What’s My Home Worth in Forest Lake, MN? Or Ham Lake? Or Lino Lakes? Or Blaine?

Sound’s like a trick question in this market doesn’t it? Funny thing is that no matter what the market is like, the answer is not simple.

What if you dig into your closet or file cabinet for that big vinyl envelope you received when you finalized your refinance last year? There was an appraised value for your home in that paperwork. Is that what your home is worth?

Assessed values from the Washington County or Anoka County assessor are updated annually. That should be a pretty accurate number right?
There are some great, interactive websites like Zillow that have popped up over the past few years. Type in your address and within seconds a slew of interesting information hits your computer screen. But are these values accurate?
Ironically, all of these values could be considered good, accurate numbers or at least clues to the value of your home. As these numbers can be drastically different, how do you know what is the most accurate number? First, you need to know what the value is for. If you want a value to determine a selling price for your home in today's changed market there is no quick and easy answer. Since, there is no special real estate Magic 8 Ball for determining the best starting price, working with a knowledgeable Realtor for expert advice is the next best option.

Many things can affect the selling price. A home located with easy access to 35 is more desirable to some than a home on the opposite side of Forest Lake. Existing homes near the Landings of Summerfields development are affected by the prices and discounts being offered on the new homes in that community. Whether your home is on public utilities or has a private well and septic system is a consideration. And this is only the tip of the iceberg.

As a Realtor, I serve the communities in the Forest Lake school district and Anoka County. From Forest Lake to Hugo and Lino Lakes to Blaine and beyond, I keep my ear to the ground to hear what affects the prices of homes in the north and east Twin Cities metro area.

Are you planning a spring move and need to know what your home is worth? Do you want expert advice from someone who knows the Anoka County and Forest Lake District #831 area? Let me help you! CLICK HERE to schedule a FREE market value assessment. 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/

January Thaw Brings Out Home Buyers in the Twin Cities North Metro—Is Real Estate Making a Comeback?

With the Minnesota Vikings out of the playoffs, Sundays are once again a good opportunity to sell real estate. At my first open house of the year yesterday, I wasn’t able to sit down for a minute and read a chapter in the great novel I had brought with me. As soon as the sign was placed on the snow bank at the end of the drive, buyers started coming through the door.

What?!! Buyers???

On NBC's Today Show this morning, a real estate expert implied that there are no homebuyers to be found. Well that so called expert wasn’t in Forest Lake, Minnesota yesterday. The beautiful sunny day and well priced split level brought out several interested parties.

First time buyers

Move up Buyers

Empty Nesters

Sure some could have been tire-kickers, killing time on a Sunday afternoon. But it is my expert real estate opinion that most were seriously considering making a move. Will any of them write an offer on that particular house? Possibly, but that is not the point. The good news is I believe almost everyone I spoke with yesterday will be making a move this year! It is exciting to see the market charging up for a great 2008!

People, NOW is a great time to move!

Sellers, NOW is the time to start getting your home ready for the spring market. Ignore the naysayers! It is time become educated on how to get your home priced and prepared properly to be sold quickly. A quickie, internet market estimate for pricing just won’t do. Call a real estate expert in your market to pave the way to your new home.

As an expert in the northern Twin Cities suburbs, I have been successfully listing and selling homes throughout Anoka, Washington and Chisago Counties last year. I know what it takes to get a home sold in this changed market. My list to sold ratio was 71% last year—Yep, I sold 5 out of 7 homes I listed in 2007!

Buyers, NOW is the time to write that offer. With so many wonderful homes on the market, you really have a chance to be selective. But don’t wait too long as more buyers are getting that spring buying fever, homes will start disappearing from the active MLS and go into pending sales. It happens every year whether we are in a slower market or not, spring fever and the real estate market go hand-in-hand in Minnesota.

Buyers get educated and sign a buyer's representation agreement! Yesterday almost all of the buyers that came into my open house were not represented by a Realtor. I had the opportunity to educate several people on why having a Realtor working for you does not cost anything and can actually SAVE money.

Don't let the media dictate whether you make a move in 2008 or not. Team up with a good Realtor and make 2008 the year that your housing dreams come true!

Additional Articles for Home Sellers:
Top 10 Ideas to Get Your Home Ready to SELL!
Open Houses—Do they Work in a Buyer’s Market?
What is your Realtor’s List-to-sales Ratio?
Is the "Busy Road Factor" Affecting the Sale of Your Listing?

Additional Articles for Home Buyers:
Rent VS Buy? It's Time to Revisit the Question!
Real Estate Agent Selection Primer—How to Choose to the Right Realtor for You!
First Time Buyers: Helping Define YOUR Dream
Dreaming of life on MN Acreage? What YOU need to know Before You Make Your Move!

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If the January thaw gave you a bit of spring moving fever and you 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/