Anoka County Foreclosures Rate Highest in Metro—How Does this Affect Homeowners?

Another housing report and more bad news; foreclosures are up in Anoka County. In fact, Anoka County ranks in first place in the 13 county metro area for foreclosures at 1.57% according to article by Paul Levy on StarTribune.com, Housing Crisis Hits Hardest in Anoka County. Does this come as a surprise?

Maybe for some, but there are some factors that could help explain. Anoka County is one of the largest counties in the metro with a southern border to Hennepin County where the foreclosure rate has been on the rise for many months. Add this to the housing development explosion all over Anoka County in the past 5 years in communities like Andover, Lino Lakes and Blaine. During this time period, many first time homebuyers took advantage of the zero down programs and adjustable rate financing to maximize purchasing power and possibly purchasing more than they could afford. With balloon payments coming due on these programs, rates rising and property values stagnant or in some cases falling, there is no refinancing safety net. Foreclosure is the ONLY option for those who are over extended.

So how will high foreclosure rate affect the property values of other homeowners in Anoka County?

Two factors give this situation a little more perspective:

1. Real estate is local and Anoka County is a BIG county.


2. The foreclosure rate less than 2% means that 98% of homes are NOT in foreclosure.

Sounds a little better right? Before we get too excited, we have to remember that some specific communities may be hit hard. If you live in a neighborhood where several of the homes are in the foreclosure process, if will probably have a negative affect on the value of your home. Families facing foreclosure often do not have the funds to keep up their homes so when the foreclosure process is complete, the bank has to sell at a discount to find a buyer. Banks don’t give away these homes so property values won’t plummet but they are not getting top dollar either.

If you don’t have to move over the next three to five years, you should be okay as this downturn should balance out in time. However if you need to sell your home this year, it is more important than ever to have good expert advise from someone who knows the community where you live.

Understanding and assessing the neighboring property values and positioning your home to compete with foreclosed homes for sale will take knowledge and expertise of a Realtor who works to sell homes in your specific community every day.

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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/

Town Hall Meeting Update—More Questions than Answers as the City Water/Sewer Debate in Ham Lake Continues

It was a full house at Ham Lake City Hall this past Tuesday night. People from all over the city came to view the five options for growth being considered by the Task Force. Most of the standing room only audience was there to hear about the potential for city water and sewer as Ham Lake is currently a community with 100% individual septic systems and wells. The cost estimates for assessments running into the tens of thousands, brought out many concerned residents.

The Town Hall meeting regarding possible changes to the City of Ham Lake was brief but thorough. It was given by the two consultants with Bolton & Menk that were hired to set up and run the community development task force. Neither the Mayor nor any city officials, though present, addressed the public during the hour plus event.

The Five Alternative Visions being considered were presented, followed by a brief question and answer session. The consultants indicated the meeting was an opportunity for the community to view the alternatives but the final decisions on the plan would be made at a later date by the city council. Their opening remarks of how they had never seen such a big turnout for an event like this was an indication of how passionate Ham Lakers are about the subject of city water and sewer. (The crowd filled the meeting room and overflowed into the lobby seating area.)

Two of the visions were most concerning. Vision #1 would provide city water and sewer to a 115 mixed use village center with wastewater management provide by East Bethel. Vision #2 expands this plan with utilities for the village center and 1700 acres of surrounding residential areas with wastewater management provide by the Metropolitan Council.

The presentation began with slides that compared the Highway 65 corridor in the city of Ham Lake to several other Twin Cities completed village communities located in St. Louis Park, Burnsville, New Brighton and the newly developed Hugo area. Two of these were completely city- redevelopments with utility infrastructure already in place. It was also pointed out by a member of the audience that two of these commercial endeavors while better positioned to jobs, airport and downtowns than Ham Lake, still suffered significant financial difficulties. The presenter did concede that this could be true.

I reviewed documentation on the Ham Lake city website addressing Ham Lake Development Needs. These include the following needs: failing septic systems in the commercial area at the corner of Highway 65 and Crosstown, a lack of an city image, poor frontage roads, a need for trails around McKinley Elementary and upgrading Lexington Avenue. I don’t know how many of these needs were addressed with the plans other than upgrading the septic and creating an image for the city in the plans.

Many new questions and problems will come from some of the proposals, specifically the mixed use, village community center concept with city utilities and high density residential. My biggest question is, “Why?”

The Answer: The City of East Bethel is doing it. This seems to one standout reason for installing city water and sewer and creating this neighborhood village-type shopping and residential center. East Bethel has recently committed to pursuing this concept with its own sewage system, so Ham Lake should likewise, seize the opportunity or be left behind. If Ham Lake doesn’t do it now, the community will have missed a growth opportunity and residents will have to drive two miles further north to shop in the East Bethel or five minutes south to Blaine.

Some questions that I still have following the Town Hall meeting are as follows:

1. Finite lines for the proposed Sewer Area. It was said that the potential sewer area had finite lines and would only affect 7% of the area of Ham Lake with the rest remaining rural. One of these lines borders a new development on Crosstown that will have individual septic systems and wells. Not one lot has sold in two years since the development opened. Now I ask you, do you think a developer would ask for a variance to have city water and sewer cross the “finite” line so that the properties could be more affordable?


2. Lake Netta is very near the 7% area with the finite lines. If septic systems start failing in this area, do you think there will be requests and variances to protect Lake Netta as well?


3. If the answers to questions 1 and 2 are yes; Do one really believe that if city water and sewer are introduce in one area of Ham Lake, it won’t be introduced little by little to all parts of the city eventually?


4. When looking at similar community developments, why wasn’t the recent project in the City of Ramsey reviewed? I would think that much could have been learned from their project as they are in an area the most similar to Ham Lake with many acreage properties on well and septic and have similar commute issues as they are located in the northwest suburban area. According to the 2005 profile on Met Council website, this 370 acre mixed use development is profiled as a conscious effort to redefine rural Ramsey’s identity. Could it be it wasn’t included because the Ramsey project is now considered a financial failure and in foreclosure?


5. In looking at the other cities, what were the cost overruns for each of the projects? Why weren’t these costs added in as part of the cost equation?


6. A statement was made existing homeowners would not have to connect their home to the water and sewer lines. The cost outline was for new homes only. A significant part of the 7% area included existing homes. Does this mean there would be no cost to that homeowner who does not connect? Or would there still be a substantial cost in assessments for city water and sewer being available in the street whether a resident chose to connect or not?


7. Why aren’t all property owners citywide being assessed for this new development as they too would benefit from the community expansion and be end users of the new village center?


8. As many property owners have more than one acre lots, will the fees be assessed based on current property identification numbers being counted as one assessment or per acre or some other smaller unit? The question was asked, but no firm answer was given.


9. How can home owners, many struggling with financial issues or on fixed incomes, be expected to pay assessments that are exceeding 10-20% of their current property values?


10. Why is there only an 800 resident phone survey being used rather than a citywide vote? If all city residents aren’t to pay for the new infrastructure, shouldn’t the end users who will be required to pay these assessments have a stronger voice in the issue?


11. Will it really come down to a vote of the city council without a majority vote of Ham Lake citizens?


12. Are there any legal options either as individuals or a class action that affected home owners have to delay this process until additional information can be gathered and reviewed?
    

Unfortunately, I don’t have answers to these questions. I had more questions than answers after the presentation this past Tuesday.

Today, I took a further step and look up the original information presented to the city council in January. It is worth looking at…especially page14 of the presentation describing how the improvements will be paid for…Up front, fully funded by the users. The costs projected at over $32,500 are in 2007 dollars without interest. Here is a link to the slides used in the January presentation. There are differences with the Alternative Visions sheet passed out at the Town Hall meeting and this earlier presentation. Note that Alternative #5 for remaining status quo has no cost or even a page outlined in the January presentation. My guess is that is because there would be no cost if your well and septic are in good working order. This was changed in the public proposals to include a cost to the residential user of $22,000-$30,000 for a new well and septic system.

As a resident of Ham Lake I have concerns for my property value and possible assessments. As a Realtor working in the Ham Lake area, my clients have these concerns and questions too. If you are a Ham Lake resident, I invite you to leave your questions and comments regarding the proposal and Town Hall meeting here as well.

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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/

Tale of Two Headlines—City Water and Sewer for Ham Lake?

A day or two before Christmas, our copy of the January 2008 Ham Laker Newsletter arrived from the City of Ham Lake. I noticed it nestled between the holiday cards and did a quick glance over the headline, “Please Answer our Community Survey”, before tearing into the envelopes that held the photos, wishes and good tidings from our family and friends. It wasn’t until the Christmas gift wrap had been cleared that I had a chance to sit down and actually read it.

Being a Realtor who likes to blog to keep residents informed on Ham Lake and Anoka County, I read every issue of The Ham Laker cover to cover to get the news from the city council meetings and community. Luckily even though the January issue was poorly timed, I did not make an exception.

On closer examination of the story on the community survey, I read the words, “financially feasible sewer and water system.”

Hmmmm…I had heard that there was talk about developing the corner of Highway 65 and Crosstown for additional commercial development. I had read about the task force of 30 people that were investigating options. Reading further, I became a bit concerned as I read between the lines, it sounded like they were seriously considering bringing city water and sewer into Ham Lake and implying it would lower our taxes.

Looking closely at the map, the proposed area included areas around Coon Lake. I was becoming mildly concerned.

A few days after the New Year, the January issue of Lakes and Loons arrived. This year old privately funded publication has been giving a different side of the news since it’s inception first issue. Their headline was not a bit vague. Ham Lake Sewer District: $75 Million…Plus Interest

Ouch…The Ham Lake city council was not just considering a northern city water and sewer system, they were talking numbers. Reading the article was eye opening!

• The task force is not made up of Ham Lake residents.


• No citywide vote is scheduled for this massive change to the Ham Lake community.


• A community center is being considered along with walking and bike paths.


• High density housing would be an option in areas where the city utilities are available.


• Several proposals are being considered to pay for the proposed city utilities. One funded completely by developers.

Now as a Realtor working in Anoka County, this concerns me. People consider Ham Lake because of the rural life style and close proximity to the city. These changes will have an immediate affect on property values. Right now, any homeowner in Ham Lake would have to disclose to a buyer that city water and sewer are being discussed as an option. This could deter a buyer from considering a purchase of a home as the costs to abandon a septic system, seal a private well and connect to public utilities will run into the tens of thousands of dollars. How do you escrow for unknown assessments and costs?

With current time on the market for a Ham Lake home being counted in months not days; this is going to be another blow to the Ham Lake home seller. View 4th Quarter Ham Lake real estate market statistics here.

If your Ham Lake home is not in the area where the public utilities are being considered but you live nearby, your home value can still be affected. I have sold homes in Centerville, Lino Lakes, North Branch, Forest Lake and Wyoming with septic systems in close proximity to homes with city water and sewer. It is a tough sell when you have a well but your neighbors have city water. And the situation is the same with a septic versus public sewer connection. There is always a perceived threat that the homeowner might be forced at some point to connect to the system.

Though, I have few answers and many questions about the water/sewer proposal for Ham Lake, I do have some advice to Ham Lake residents. Read both of the articles* and Mike’s Musings “Sewergate” editorial and make your own determination on the situation. Make it a point to attend the council meetings. Take the survey and give your comments on the situation. Get educated. This WILL affect Ham Lake property values and taxes and the affect will begin immediately.

*I provided a link to the Ham Laker Newsletter page but as of today, the January 2008 issue is not available on-line.

Lakes and Loons Survey for Ham Lake Residents

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

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

Ham Lake is Growing—In Size not Property Value

The Ham Lake city council hosted a Board of Appeals and Equalization meeting in April. According to the Ham Laker, the Anoka County Appraiser, Peggy Nordrum reported on real estate activity for the City of Ham Lake. Her findings echo what I first noted when I received my tax statement earlier this year, where I saw a 2.6% decrease in assessed value on my own Ham Lake property. Ms. Nordrum reported a 3.3% citywide decrease in the average median sale price of a residential home. Take a look at the numbers:

As a Realtor working who lives and sells homes in Anoka County and the north and east Twin Cities suburbs, what I find most interesting is that while these figures are down slightly, Ham Lake property values have risen 62.3% since 2000. Overall this is a pretty health increase in property values for the average homeowner in the city.

Nordrum also reported that the Ham Lake taxable property base is growing. As of January 2, 2007, there were 6,603 parcels in the City of Ham Lake. This is an increase of 120 parcels or 2.6% over the count in 2006. This statistic is not surprising to many Ham Lake residents as there are several new development signs and acreage that has been split into smaller lots throughout the city.

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

MN Landscaping: Composting & Tree Planting Tips

It is that time of year again…Most Minnesota home owners are itching to get out into their yards and get started on that big landscaping project. And, it is finally warm enough to jump right into it! Landscaping can add thousands of dollars to the value of your home.

As a Realtor in the northeast metro, I know how important it is for home owners to keep their property looking nice inside and out! Homes that have a wonderful curb appeal entice a potential buyer into the home.

If you plan to make a move this year or if the landscaping project is just to add to your own personal enjoyment of your home, think through your landscaping plan. Whether your project is a huge endeavor with a total redesign of your landscape or just trimming the bushes and grass, there are a few things you should consider before you get started.

Yard Waste

In Minnesota, it is against the law to place yard waste in your garbage. This includes leaves, lawn cuttings, weeds, shrubs and tree trimmings, and plant prunings. Using a mulching mower provides a natural fertilizer and strengthens the lawn. Residents of Anoka County can contract to have yard waste picked up or bring leaves and clippings to one of two county compost sites.

Composting is a great option for many homeowners. Compost bins are available from Anoka County or you can build your own. Compost turns into humus which enhances the soil when used as mulch so flowers, shrubs and trees can grow stronger. No need to buy and haul expensive mulches home anymore!

Yard waste that can be composted:

• Leaves
• Grass Clippings
• Dead flowers
• Pine needles
• Acorns
• Shrub trimmings (minus the branches)
• Straw
• Garden Waste

Household waste that can be composted:

• Vegetable scraps
• Fruit scraps
• Tea bags
• Coffee grounds
• Rinsed Eggshells
• Saw dust

Planting Trees

Trees add to a homes value. Leafy deciduous trees can provide shade to save energy as well as add beauty to the landscape. But planting a tree in the right location is essential. If you have above ground power lines anywhere in your yard or on the perimeter of your property, you need to consider the type of tree and how large it will grow before planting the tree.

According to Xcel Energy, trees are a common cause of electric service interruptions in Minnesota as well as throughout the nation. Use the "zone" approach, illustrated below, when planning the location of your new tree to avoid many of these problems.
Anyone who has ever driven by a home or property where the trees have been butchered by a utility company in the winter knows how bad it can look. Branches hanging over the power lines can cause power outages if they fall on the lines during a spring or summer storm. Utility companies have to be proactive in the winter and trim away any potentially hazardous branches, leaving some very ugly trees behind. Xcel Energy offers a free guide on how to correctly plant trees near power lines to help homeowners protect their landscape investment.
Before planting any trees or digging, Call Gopher State One Call 1-800-252-1166 to have all underground utilities located. This is a free service in Minnesota to prevent damage to underground utilities. It usually takes 24-48 hours so plan ahead for that weekend project.
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

Moles, Voles and Pocket Gophers…Oh, MY!

These critters are not as scary as lions and bears, but if you have spent thousands on landscaping your property, their destructive activity could frighten any lawn-loving Minnesotan.

Pocket gophers, along with their little mole friends, are the bane of the countryside. These small little rodents cause serious damage to lawns and landscaping across Anoka County. Pocket gophers leave huge dirt mounds above ground and runs that crisscross around your yard deep beneath the earth. Moles and Vole trails are the windy runs just below the surface of your lawn. The ones in my yard look similar to an aerial view of “the unweave the weave” highway construction project on 35E and 694!

Spring is a busy reproductive time for these little pesky creatures. And gophers, moles and voles can have several litters in a season. If you do not want your yard overrun with dirt mounds and the dead damaged trails on your lawn all summer, it is best to address the pocket gopher/mole problem in early spring.

As a Realtor working in the Twin Cities north metro, I know how buyers get concerned when they see several huge dirt piles in a sellers’ yard. It seems that these creatures have a knack for knowing when a home is listed. I have had several frantic sellers call the day after they have listed with their first ever gopher mound in their yard.
Similarly, when walking a property, buyers will stumble as the ground sinks beneath them when they discover a newly dug mole trail. It can be a huge concern to a home buyer as it can ruin the landscaping.

Whether you are a buyer, seller or home owner maintaining your landscape, here are ideas to eliminate the mounds and trails from your yard.
How to get rid of moles, voles or pocket gophers:

1. Get rid of their food supply. Pocket gophers eat grub worms that live in the dirt. If you chemically treat your lawn to kill the grub worms, the pocket gophers move on. Usually to your neighbors’ yard.
2. Mole repellents can also be used to change the taste of the grub worms. This can be purchased at a store or you can mix your own. One cup of dish soap, one ounce of Castor oil and ¼ cup of cayenne pepper mixed together and spread with a garden sprayer should do the trick. Of course this method again just moves the pests to your neighbors’ yard.
3. Ultrasonic Devices. I had a client who had some success with this method last year. The high pitched sound emitted by the unit is designed to sound like another gopher. Since these are territorial animals, they move on. Again, probably to your neighbors’ yard.
4. Use a poison for gophers and moles. This is effective but if you have pets or children, there are risks. Your pet could dig up the poison or the poisoned gopher and become ill or die.
5. Set underground traps. This is an effective method with results that you can see. The wire traps are set underground in near the gopher mound. When a gopher moves through the burrow, he is killed in the trap.

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. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007

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

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

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

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

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

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

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

Copyright 2007 terieckholm.com

Property Valuations Are Arriving in Anoka County!

It’s that time again…Your 2007 Notice of Valuation for property in Anoka County should be arriving in your mailbox any day now!

What a pleasant surprise! My property value did not go up again this year. Of course many homeowners would be shocked to hear a Realtor make such a statement. But as a real estate agent, I know that the sales price of homes has leveled off and even decreased in some areas of Anoka County during the past couple of years.

The decrease in value has been so noticeable that when I received my 2006 Notice of Valuation, I called the assessor and questioned my statement because my property value had increased in the eyes of Anoka County. The assessor was very nice and explained that they are using the past year's data that shows the Ham Lake area as continuing to increase in value. She really stays on top of things and would be going to be out to review area properties. She tries to diligently watch the property sales amounts to be within a few percent of the actual market value. I can only image that with a changing market, how difficult assessing property values can be.

It is a challenge to explain the difference between the rising Property Valuation to the average home owner when they want my expert opinion of their property value with a competitive market analysis or CMA. Of the most recent CMA’s I have completed, home owners have had a bit of a reality check when I don’t add in for appreciation. With so many homes currently on the market, a home owner has to spend money to put their home in optimal condition and then price the home competitively. Property values are currently not appreciating but are remaining flat or slightly decreasing.

As an Anoka County home owner, I am not concerned by the 2.5% reduction in value of my home by Anoka County. Since my valuation directly affects what my property taxes will be, a lower value will equate to lower taxes. Also, as a Realtor, I know that this is just a leveling off period after a significantly long run of rising values. The current

buyers market is the result of the past 7+ years of increased values. No, I know there is no reason to be concerned over a market correction. Real estate is still one of the best investments a person can make.

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

Copyright 2007terieckholm.com