Perfect Timing—In Real Estate, Does it Exist?

Years ago, my then 3 year old son wanted us to videotape him singing a song. He was not like most toddlers, wanting to record Twinkle Twinkle or a quick chorus of Happy Birthday on tape. No, he loved the Hal Ketchum song, Small Town Saturday Night and wanted us to record him singing the entire song.

I can still see him start the first few lines then pause with his blonde head bobbing slowly as he concentrated. We stopped the camera and asked if he forgot the words. He said of course not and started again. But again he paused at the same point. This time we kept taping because we now knew he was still listening to the melody in his head, waiting for the words to start for the next verse. We were amazed that at such a young age, he wanted his timing to be perfect…even without any background music playing.

Whenever I hear that song play, I remember my little boy trying so hard to perfectly time his singing without any assistance and only his memory to guide him. It also makes me think about all those home buyers and sellers hoping to perfectly time their real estate transactions.

Keeping a musical beat for a 3 year old is easier than timing the real estate market…WAAAY Easier! While my son had the memory of a tune to follow, home buyers and sellers really don’t have a road map for this market. Yet time and time again I hear comments similar to these.

“I’m not going to GIVE away my house. I will wait out the market and list when things get better.”

“This home seems perfect but I’ll wait for the next price drop.”

“I don’t think the market has hit bottom yet.”

“Interest rates have been low for quite awhile. I think I will wait to see if home prices drop further too.”

“I love the house but I'm going to wait. I want to make sure I do not overpay.”

Just like the stock market, it is impossible to project and time the real estate market. We can make educated guesses or predictions on the market based on what is currently happening. But know one really knows if you would get more for your home by waiting a year or if you would be paying less for a similar home in the future. By the time prices begin to recover and trend upward, you have missed the bottom of the market. If in your hyper-local community, home prices start selling for higher prices there is no guarantee you will receive more for your home. Like all other aspects of the economy, there are predictions and opportunities but knowing which prediction will perfectly direct you to the right opportunity; that is hazy in the proverbial crystal ball.

It’s Time to Step to the Beat of Your OWN Drummer

I know it's cliche but when investing in real estate one cannot follow the crowd and take a "wait and see" approach. Residential real estate is like no other investment because of the extremely personal aspect. People need a place to live. Deciding to buy or rent in this market is not a cut-and-dry decision. There are several pieces to the "rent vs buy" puzzle, including getting the right mortgage and working with an experienced REALTOR® for the buyer.

While home sellers have to understand how to make their property stand out from the pack with aggressive pricing, thoughtful staging and expert marketing, sometimes it does make sense to wait to move up to a larger home in a market like this. But more often, people make successful and quick transitions to new homes with expert advice. Sellers that “give away” their homes often “steal a home” at a fabulous price on the other end of the transaction when they buy their new property. Buyers opting to move forward now are getting awesome interest rates and bargain home pricing to boot! It is a good time to buy a home and homes are selling at fair prices considering the current economy. People sitting on the fence waiting for the “perfect” time may end up disappointed because nothing is ever perfect.

Copyright 2011 www.terieckholm.com

My Headache Today Can Help Homebuyers Avoid One in the Future!

Don’t you hate when you forget the simple things? Like this morning, I have all my vitamins and allergy medications set out to take first thing when I wake up but today I realized at noon, I hadn’t taken them. No biggie…except for the generic Allegra that keeps away sinus headaches. By lunchtime it was too late and the headache had already started. Oh well, it won’t last for too long.

This reminds me of a rather expensive headache that a homebuyer could experience if they don’t take care of the simple things in a timely manner. Filing for homestead is a very simple process. It is a matter of taking the paperwork to the county offices prior to December 31 and dropping it off. It doesn’t even cost anything. But it does take a bit of time out of your crazy moving-in day.

The closer often cautions the buyer to head to the county offices immediately but moving day is busy. Some buyers, especially in the summer months, will opt to wait a few days, or weeks. After all, they have MONTHS before the paperwork has to be filed.

This can be a bad choice. Remember I said moving day is busy right? It is also a very confusing time with boxes, bags and furniture being unloaded. Paperwork can be misplaced and forgotten but unlike my allergies, forgetting to file homestead means a bigger headache (i.e. higher property taxes). And, unlike my headache, this cannot be resolved in a matter of hours. The higher taxes will last an entire year!

So remember to file the homestead paperwork as quickly as you can after closing on your new home and avoid that HUGE tax headache!

Copyright 2011 www.terieckholm.com

Homebuyers in Anoka and Chisago Counties--Put a bit O' St Pat's Day Green into your Home Search!

Celebrate St. Patrick’s Day by bringing a bit of “green” thinking in your home search. Whether your home search is in Anoka, Chisago or Washington County, there is an opportunity to buy real estate that's a wee bit green. Spring is the time that many start thinking about making a move. Homes are more affordable than ever before and there is still an awesome selection of single family homes on the market for buyers to choose from.

Ton’s O' choices on the market!

• Homes on lakeshore
• Homes on acreage
• Starter homes
• Foreclosures
• New construction

Here are just a few GREEN opportunities I found currently listed for sale in the north metro:

♣ Consider a home with a green shingled roof. There’s a beauty in Scandia on 3 acres. It is bank owned and seems to be quite a value with a price under $200K

♣ How about a home in Blaine’s Centennial Green development? This one is not a short sale or foreclosure and has a wonderfully remodeled kitchen.

♣ Looking for Lakeshore on Green Lake? This Chisago City home just listed and is a 3BR/2BA gem with 100 feet of shoreline.

♣ Maybe living in a two-story home where life is evergreen is more your style—here’s a 5BR/4BA home on Evergreen Lane in Circle Pines. Save some green with a recent price reduction too.

♣ But if going green on St. Pat’s means saving energy, why not consider this great Lindstrom home with a Geothermal heating system?

If none of these dwellings are striking your fancy maybe you will need the expertise of a REALTOR® to bring a wee bit of the Irish luck to your home search. (Okay…I know Eckholm is a Swedish name but I am still a Flaherty at heart). Give me a call and I will help you find your perfect home and put my expert negotiation skills to work for you to keep more “green” in your pocket too. And that’s no blarney either!

Copyright 2009 terieckholm.com

Foreclosure Disclosure in Minnesota—Despite Regulations, It is Still Buyer Beware!

Wise men say; only fools rush in…Wait a sec. I know that classic song is about falling in love. But since many home buyers do “fall in love” with a home and become a bit foolish, it applies.

A few weeks ago, I was with a couple who went a bit gaga over a bank-owned foreclosure listed by one of those agents specializing in REO homes. I’ll admit, this was an amazing home: Nice floor plan….Picture perfect condition…Terrific View…And a “just reduced” price tag that put the home in the category of phenomenal deal!

These buyers were not first time buyers, having bought and sold several times before, my clients were a bit savvy and wanted to write an offer on the spot. As their buyer’s representative, I advised them that the instructions from the listing agent required any interested parties email for instructions on how to write the offer. Offers not following the specific instructions would not be presented or accepted.

I sent off the email to the listing agent and momentarily received a return email with a 15 pages attachment with step-by-step instructions as to how the buyer’s agent was to fill out the purchase agreement so buyers could, among other things, sign away all of their rights to disclosures.

Some of the instructions were just plain crazy! For instance, the buyer could inspect the home but not turn on the water if the home has been winterized. How can a home be properly inspected without water? This home was on city water and sewer, but had the home had been on a private sewer system with a well, we are talking about some big ticket, critical components of a property, without a disclosure or ability to inspect.

As it turned out, I didn’t have to write an offer for this particular REO home. I did not have to explain to my clients how all the restrictions for an acceptable offer on this home would be slanted totally in the banks favor while put them as buyers at serious risk . Paraphrasing another musical classic, “you can’t always get what you want but sometimes you get what you need”; we received an email that another offer had been accepted. It was a solid, cash offer and no backups were being accepted.

Long story short…First priority was finding my disappointed buyers another home. My philosophy: There is ALWAYS another home. And sometimes the second home is much better. Within days, another better home was found.

But for me, the memory of the 15 pages of instruction manual remained. In fact, this was so alarming to me I kept the printout. I have sold other foreclosed homes where the agent did not spoon-feed the directions on how to write the purchase agreement. In other cases, the buyers requested the water be turned on prior to the inspection contingency timeframe counting. As my buyer’s representative, I discussed the specific terms as we wrote up the agreement and though a few standard instructions were indicated, like a special warranty deed is required and personal property cannot be part of the agreement, it is not always required with a litany of instructions to completely slant the sale to where the buyer must take an incredible risk.

Since 2002 there has been a mandatory seller’s disclosure statement in Minnesota requiring sellers to share all pertinent information to buyers of a home. The disclosure must be made in good faith and include all material facts pertaining to the adverse physical condition of which the sellers are aware that could adversely and significantly affect an ordinary purchaser’s use and enjoyment of the property and any intended use of the property which the seller is aware. The law does provide alternatives to the disclosure for those sellers who have not lived at the property like when the home is bank owned or is part of an estate. Sellers can have an inspector view the home and provide a written report of the condition. Or they can ask a buyer to sign a waiver that says the seller is unaware of the condition of the property and that they buyers waive their rights to the disclosure.

When buying an REO or bank owned home a buyer must be prepared to waive their rights to disclosures.

There are additional federal, state and municipal laws that require sellers to disclose the condition of the property prior to the purchase agreement. Homes built prior to 1978 require a lead based paint disclosure. The existence and condition of wells and private sewer or septic systems must be disclosed in Minnesota. Some septic systems will require additional inspections at a county or local level. Also it must be disclosed if the home has ever been used in the production of methamphetamine. It is important for a buyer to understand they have rights and to be very careful when waiving them away. It may not be the best decision to buy a foreclosed home without the assistance of an experienced professional REALTOR representing your interests. As tempting as it may be to buy that “picture perfect” home at the amazing price, it could end up costing thousands more without proper disclosures and inspections.

Copyright 2009 terieckholm.com

2008 Real Estate Market Statistics Ham Lake, Forest Lake, Lino Lakes and Blaine MN….It’s All in the Details!

Real estate marketing statistics have been thrown around in the media lately as commonly and as randomly as a toddler tosses around a bowl full of Cheerios. Just like those darn O’s, numbers and stats are everywhere! But with so random of a disbursement, does a home buyer or seller really get what they mean?

Since the beginning of the year, I have been posting real estate market statistics for the communities in the north metro where I do the bulk of my business. While I work in Anoka County, Southern Chisago County, North and Eastern Ramsey County and North Washington County, the focus of my business is Ham Lake, Blaine, Lino Lakes and all communities in the Forest Lake and Centennial school districts.

There are two types of reporting that I post. The first is a quick snapshot report that includes information taken directly from the Minneapolis REALTORS® Association Top 100+ Report that includes statistics for 205 different Twin Cities communities. I put these stats along with a quick synopsis of what happened during the past year. I have done quite a few of these "short and sweet" looks into the basic real estate housing stats for several communities.

Housing Statistic Snapshots

But as is said, the devil is in the details (or God as the case may be). I have another version of market reports for specific communities are not snapshots. In the communities that I work in on a daily basis, I want to really help people to understand the market so I take good hard look at the real estate sales on a quarterly basis and post a more detailed report. I also post a year end review several communities I work in and know well.

When I take the time to pull statistics directly from the Twin Cities Multiple Listing Service (MLS) I look for specific details like cumulative days on the market (CDOM). This comes into play every time a home is relisted as a new listing in the MLS. The snapshots DOM do not take relisting into account so the time on the market appears to be much shorter than it really is in some area.

I also look at CDOM by price point. Homes in the lower price ranges are selling much more quickly that in the higher price points. A quick overview does not get that specific.

Since each community is unique, I will examine different things in different areas. Blaine has an abundance of townhomes. Since townhomes are lingering on the market in all price points, this does have an affect on the CDOM if the sales are looked as an aggregate. But if the townhomes and single family homes are looked at separately, the details give home buyers and sellers more useful information than a one-size-fits-all quick look at the market. Now in Forest Lake, lakeshore homes are a focus while in Ham Lake and Lino Lakes, acreage comes into play.

Knowing how to pull the right comparables and read the market comes from knowing a specific area and what makes the community different. Finding a REALTOR® that knows the details is imperative when buying or and selling a home in this topsy-turvey, continually changing real estate market. There is no one-size-fits-all agent when buying or selling a home today. It is necessary to work with an expert.

Copyright 2009 terieckholm.com

Would YOU Hire a Bikini-Clad REALTOR? How About in a Hospital Gown?

Valentine’s Day started out for me with a visit to St. John’s emergency room in Maplewood. No worries, I’m okay. I found out after a few hours of tests that I tend to faint when in extreme back pain but I digress…While waiting behind the curtain in a gown that opens in the back without much else on but socks, I heard one of the nurses discussing her search to purchase a first home with a colleague. Just a few feet away from me, I could clearly hear the discussion. “Looking for a home in Forest Lake or Hugo….Great homes on the market…This one is a foreclosure…I don’t really know what short sale means…”

Yep the REALTOR® radar kicked in but alas I’m not exactly dressed for success in the hospital issued garb. Besides I was still feeling a little woozy after the early morning fainting spell. My husband jokingly offered to go out and give her my card but I declined. It is hard to be viewed as a professional REALTOR® and discuss homes in your skivvies between a blood draw and EKG.
I guess I am just not THAT aggressive when pursuing a client.

I do know of an Anoka County real estate agent that is very aggressive. I heard tales of her amazing ability to drop everything that she was doing to run over and offer her services to every car that drove up to the home she had listed across the street. I heard the tales from a less-than-impressed family that had the unfortunate opportunity to be met by this real estate agent at their car. She was sunbathing when they stopped for a flyer. The aggressive agent didn’t bother with a towel but high-tailed it over, barefoot and bikini-clad, to ask if they wanted to see the inside of the home. They declined and drove away. FAST!

I know I am a very good REALTOR and buyer’s representative. I would have been able to expertly assist the young emergency room technician to purchase her first home. I know the market and have been taking buyers to see foreclosures and short sales all over Blaine, Forest Lake and White Bear Lake for the last several months. I may have even been in some of the homes that she had printouts for. But as a professional REALTOR®, I chose to remember there IS a time and place for everything. This wasn’t the right time.

I prefer to save my aggressiveness for the negotiations and find my leads when I am fully clothed!

Copyright 2009 terieckholm.com

2008 Year End Snapshot of Lino Lakes, MN Home Sales Statistics

The number of closed sales took a drastic drop in Lino Lakes, Minnesota in 2008. Over 25% fewer homes were sold last year in the Lino Lakes area than in 2007. The number of new listings is down as well along with the average price of a home sold. It took about a month longer to sell a home in Lino Lakes, Minnesota in 2008 compared to in 2007 but the Days on Market Statistic is still significantly lower than in some other north metro communities.. The average sales price for a home is down just over 14%. This probably reflects that more lower priced homes are selling than those at the higher price points as well as the flattening of home values. As in other Twin Cities north metro areas, affordability is up. If you are a home buyer looking for the right time to buy a Lino Lakes, this may be the best time in a long time to make your move!

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

I LOVE Being a REALTOR®~~Making Homebuyers Dreams Come True!

Back in October, I was asked by Cynthia Tilghman, Realtor® Onslow County NC Home Specialist to write about why I love my profession. I put this off for quite awhile. At first, I was going to write about what my Dream job would have been...We had just returned from Disney World and had the opportunity to meet a few of the Dream Team. These are people who spent the last two years walking up to visitors at the park and making dreams come true by letting families stay over night in Cinderella's Castle or giving them a unique behind the scenes tour or other special gift.

I have to admit, as part of a family of Disney Fanatics passing out dreams at Disneyland or Walt Disney World would be the epitome of a perfect job in my book...even if it was only a two year stint (Disney's Year of a Million Dreams ends in a few weeks...sigh.)

Every day making dreams come true...THAT would be an awesome job! But as I thought more about it, I realized that what I do makes others dreams come true too...First homes. Relocations. Move up homes. I love my job because I make dreams come true...not Disney Dreams but dreams just the same.

Today. I ran across this post from earlier this year where I wrote of helping first time homebuyers find their way home. The story gives an example of how I make dreams come true...one happy homebuyer at a time.

*****Best Part of Being a REALTOR®~ Helping First Time Buyers Find Their Way Home
Originally posted 3/8/2008 by Teri Eckholm/REALTOR®

Late on a Saturday afternoon, I received a phone call. The caller said he and his fiance had just driven by a listing of mine and could I show them the inside. "Are you working with an agent?" I inquired. "No", he said. The meeting was set for the next evening.


The young man and his fiancée arrived with an entourage of parents and assorted other relatives. Being first time buyers, they wanted assistance and approval on their first home. Looking over the home from top to bottom, they liked what they saw but needed time to think. I asked the question I always ask, "When you are shopping for a home, are you shopping for a REALTOR®?" The young man's dad answered, "They don't need an agent because they could get a better deal working directly with the listing agent." I explained why this wasn't true but could tell from the look on his face, Dad was not convinced.
I explained agency and asked the young couple to sign the disclosure on agency as required by the State of Minnesota. Buyers need to understand that at any listing for my broker, I am under contract to work for the seller and protect their interests. If the couple decides to sign a buyers' representation agreement with me, they would be in a DUAL agency when looking at homes listed by my broker. They had seen many homes with other real estate agents, but I was the only agent who explained agency to them or asked them to sign the required disclosure.

Days later, a decision was made; the young couple wanted to make an offer. A contract was signed for buyers' representation for the specific home only. Dual agency now applies. As an agent working for both parties, I could not do anything that would hurt either the buyer or seller. Because it was only for the specific home, I could not discuss other property options. An offer was presented, but terms could not be agreed upon. The buyers went away.

A few weeks later the price was reduced on my listing. I called this young couple to see if the lower price would be enough to renew their interest. It would. But there was also another new construction house in a different area that was being considered.

Another showing. They were sure that they had it down to between the two homes. I could see the indecision and confusion on their faces. I asked about the other home they were considering to help them contrast it to my listing to help my selling clients and put their home in a better light. As with most homes, neither home was a perfect fit. I am a firm believer that after weighing all of the pluses and minuses, homes will sell themselves if it is the right home for the buyer. A week passed. No offer came forth.


Finally a phone call from the young man. We have made a decision. We are not going to offer again on your listing. It is not the right home for us. In fact, neither home is right. We are starting over. "Would you help us find a home?"

Now as their buyers' representative, I got to work. For the next few weeks, we visited a dozen or so homes from the hundreds currently on the MLS that met their criteria. Traveling from Stillwater to White Bear Lake and Hugo to Forest Lake we narrowed down the field of potential homes to two or three. Finally, one sparked enough interest for a second showing with the parents, but this home also had a few quirks that raised concerns. That same evening, since we were out, I set up another showing for a home in a development that hadn't considered. Funny thing was, the home was perfect!


With the perfect home, there were no delay or hesitation in signing the offer; everything just fell into place. With every visit to the home for the inspection and walk-throughs, the young couple became more excited.

At the final walk-through, with minutes to go before they were to receive the keys to their first home, I asked them, "So, are you glad that you decided to sign with a REALTOR®?"

They answered in unison a resounding, "Yes!! You made it so much easier to find the right home! Especially for first time buyers." I don't make this stuff up...Those were their exact words.


After the closing, I received a hug and sincere, "Thank you for everything", from my young clients. As they set off to begin life in their dream home a thought struck me, what a great job I have!


Do you need an expert Buyer's Representative to help you find your Dream Home? 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 2008 terieckholm.com

A Tapestry of Fall Color in Ham Lake, Minnesota

Sunday was a perfect day for an autumn walk down our Ham Lake road. We are blessed to live on a quiet road with nature all around us. It is amazing that just a few minutes north of the bustle of city life in the communities of Blaine and Shoreview there is an Anoka County community with acreage lots that allow residents to escape every evening to a natural paradise. Ham Lake still has a farm or two. Horses are allowed and many families have riding rings in their yards. Another common sight are the huge fields of Kentucky Blue Grass that stretch across many acres throughout the area as Ham Lake is known for its lush green sod farms.

We are fortunate to live in an area where it is common to see raccoons and fox; a family of deer romping through the yard is a daily sight! We can look out our back window anytime of day and see wild turkeys wandering around in the grass. And let me tell you those birds are more fun to watch than the gaggles of Canadian Geese that have overtaken many Twin Cities parks. In addition to the squirrels, bunnies and chipmunks that are common in most residential communities, eagles, hawks, turtles, and even an occasional bear have been known to live in our neighborhood.

Though the natural beauty is wonderful year round, capturing the beauty of Ham Lake on a crisp October afternoon was a joy that needed to be shared. Here are a few snapshots of the tapestry of color that I experienced last Sunday as I walked through my neighborhood.

Apple, oak and aspens in our side yard to the north.



Catalpa, aspen, red oak, white oak and pines in our side yard to the south.




A bank of beautiful oaks across the prairie to the east.


Colorful beauty across a Ham Lake sod field.



Amazing burst of golds, oranges, crimsons, and greens accented by the white bark of the birches that have already lost their leaves.


Autumn beauty upclose!

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

Lakeshore Market Statistics for Forest Lake, MN—Clear Lake & Forest Lake Sales

A few weeks back I received a phone call from a lovely lady thanking me for my informative post on the lakeshore market in the Twin Cities north metro. She lives in Forest Lake on Clear Lake and was considering selling next summer After reading my article, Think Now is a GREAT Time to Make a DEAL on a MN Lakeshore Home? I Do!, she was concerned about the changing market and wanted more specifics on how homes on Clear Lake were fairing today. She didn’t want a market analysis of her home, just some statistics on what was really selling on Clear Lake. I told her that was a very good question and the sales values would be very different than what was happening on other area lakes. I said that I would look into the situation further and get back to her. I also told her that her query could become my next post. She thought that was a terrific idea so here it is.

First of all, many people may not realize that the City of Forest Lake, Miinnesota has several lakes and the lake, Forest Lake itself is really 3 lakes, First, Second and Third. All three are full recreational lakes and are connected by channels but the lakeshore on the different has different levels of desirability and hence drastically differing values. First Lake is the largest and most coveted shoreline. Similarly, Clear Lake is nearby Forest Lake. It is a full recreational lake but it is not connected to Forest Lake. Many people driving past the City of Forest Lake as they head up on 35 toward Duluth will mistake Clear Lake for Forest Lake as it is the only lake visible from the freeway. It is just to the east of 35 and there is a small fishing pier and boat landing visible from the road.

So how has Clear Lake real estate faired during the market slow down? My research showed very little activity in the past year. In fact, only one home has sold so far in 2008 and three homes were sold in 2007. The home sold in 2008 had been recently remodeled and sold within days of listing for an amount significantly higher than its stated tax value. This is very unusual and on the surface sounds like great news for Clear Lake homeowners but it is only one house and so the information taken alone is misleading.

Taking the three homes sold in 2007 into account, the picture is clearer but not as rosy. Averaging all four homes, the days on the market (DOM) expands to 135 for the SOLD homes on Clear Lake. Since each of the homes is drastically different in age, style, shoreline, acreage and condition, I did not want to average the value. Rather I compared the homes sales prices to the current listed tax values from the Washington County Assessor.

Here is what I found:

• A home on 217th sold for $463K and has a current tax value of $332K. It sold for significantly more than its tax value.
• A home on Everton sold for $295K and has a current tax value of $277K. It sold for slightly more than its tax value.
• A home on 210th sold for $320K and has a current tax value of $441K. This is significantly lower than the county has listed (and more in the norm for what is happening in the marketplace).
• A home on Fondant sold for $682K and has a tax value of $530K. Again very high compared to the tax record.

Then I averaged the sales prices to come up with an average; it appears that the homes on Clear Lake are selling at 1.15% of tax value based on the 2007 and 2008 sales data.

There are also four homes currently listed on the lake that and the cumulative DOM is considerably higher. The average DOM is over 440 days for these four lakeshore homes. Also two of the homes are listed at prices significantly higher than tax value:

• 21XXX Everton $270K List, $278K Tax
• 21XXX Floral Bay $406K List, $441 Tax
• 57XX 220th $680K List, $375K Tax
• 51XX 217th $949K List, $703K Tax

The first two homes were originally listed at $340K and $475K respectively. I think it is possible that the prices on these homes were brought down to under tax value so that they would have a better opportunity to sell. This seems to be inline with what is currently happening in most segments of the real estate market today.

Since there were so few sales on Clear Lake, I also compared tax values to sale prices for lakeshore homes on Forest Lake during the past 12 months. On Forest Lake (Lakes First Second and Third combined), 17 previously owned homes sold with lakeshore. The tax record to sales price ratio was 1.01% just slightly over tax value.
To get a true picture of what a lakeshore home value would be in the market place today, it would be most prudent to have a property specific market analysis done. But, if you just want a ball park value, take a close look at your Washington County tax statement. Unless your home has significant recent improvements or is significantly distressed, its current value in today’s market is very close to the assessed value.

More Articles on Forest Lake and Lakeshore that might be of interest:

• Forest Lake, MN Real Estate Market Statistics Third Quarter 2008
• Extremely Affordable Minnesota Lakeshore!
• Dreaming of Life on MN Acreage?--What YOU Need to Know Before YOUR Move!
• Relocating to Forest Lake MN? The Schools are Full of Ranger Pride!

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

Revisiting the Idea of BUBBA--The Opposite of FSBO

Buying as a BUBBA is down in 2007 though still higher than FSBO. What is a BUBBA you say? It is a Buyer Unrepresented by a Buyer’s Agent. In 2006, almost a quarter of all buyers’ were BUBBAs. In 2007, according to the National Association of REALTORS® 2007 Profile of Home Buyers and Sellers, that percentage has dropped to 16%. Is this possibly due to all of the short sales and foreclosures that started appearing across the country at that time and buyers felt a NEED for the services of a knowledgeable professional? Maybe…I wonder if the number will drop again when NAR’s 2008 survey comes out in November.

At any rate…Buying as a BUBBA is still happening at a higher rate than FSBO (16% vs. 10%). As the real estate market becomes more complicated, professional assistance is more critical than ever when buying a home. Here’s my original post from back in March 2007, where I explained the BUBBA acronym in detail….Enjoy!

****************************************************************************************************************BUBBA—The Flipside of FSBO
Originally posted 3/9/07 by Teri L. Eckholm

Most people, whether in the real estate industry or not, have heard of the FSBO--A For Sale By Owner seller. The acronym has been used for quite awhile as there has always been a segment of the market that chose to sell their home directly to a new buyer. But, there's a new acronym being used by REALTORS® these days--BUBBA or Buyers Unrepresented By a Buyer's Agent. It is making it's way into the real estate agent vocabulary because this market segment is growing.

In 2006, according to the National Association of REALTORS® 2006 Profile of Home Buyers and Sellers, nearly a quarter of all sales (23%) were BUBBAs. Although many of these home buyers did work directly with a builder or at a sheriff's foreclosure sale, 9% purchased directly from the home seller.

The internet is probably the most contributing factor to the growth of this buying segment. Buyers are certainly more educated--shopping on-line for as many as 6 months prior to making their house purchase. The homes are listed on the web. There are guides as to how to purchase a home. The whole process is less mysterious and seemingly simple that many self-educated buyers are foregoing working with a REALTOR®.

Are You Considering BUBBA? Before you move forward unrepresented, here are a few things to consider.

BUBBA can cost more. Buyer's representation does NOT cost anything. But being represented can save thousands. When you sign a contract for buyer representation, your agent owes specific fiduciary duties to you to work in YOUR best interest. They are required to keep your information confidential. A REALTOR® does this as a profession, not once every 10 years like most buyers. They are experienced in negotiating a deal on a home that is in your best interest.
So how does a buyer's agent get paid? Every home listed in the MLS states a commission agreed upon by the seller with his agent to be paid to the buyer's agent of the particular home. Yes, the seller pays the fee for you to your agent.

But this does raise the question, "If I buy directly from the seller and he doesn't pay a commission, won't I get a better price?"

Probably not. Think about it this way, the seller set the price in the first place. If he is not working with an agent, how can you be certain that you received a good price on the home? And why would a seller, who doesn't know you, give you the savings he intended to pocket by not hiring an agent.

In this buyer's market, with so many different homes to choose from, it is easy to be overwhelmed in the purchasing process. So you just wander into a FSBO open house and the seller has an amazing charismatic personality. He is very slick and used a three year old refinancing appraisal to set his price. Is it a good deal?--Probably not.

Buying a home is not as simple as walking into a discount store for a new computer...And that process can be overwhelming. There are details to a purchase that many home buyers just don't anticipate. How old is the roof? When can we take possession after closing? Is the septic system in compliance with current state and local statues or does it require replacement? Are there encroachments, like a neighboring fence or driveway sharing issues? Are there assessments pending and who will pay for them?

All of these are situations an experienced Realtor will try to anticipate and resolve in writing as the transaction moves toward the closing.

Some people are accidental BUBBAS. They start out in a "learning" stage...That time period of six months to years where they are "dreaming" of a new home but don't want to commit to a REALTOR® or be pressured into a contract. They wander into an open house and it "is" their dream home. Since they didn't have an agent when they first came in, they feel uncomfortable informing the seller that they want representation and just move forward without one.

As a REALTOR®, I try to coach potential clients into developing a relationship with an agent early in the process. If you want to see a home, contact that agent and sign a contract for a specific house. That way your interests would be represented, if the house is perfect for your family. But you would not be locked into a 6 month contract, if you are not ready to make a decision.
Before becoming part of this growing trend in home purchasing, do research and carefully consider your options. You may be giving up more than you think to when making the one of the most important financial decisions of your life.


****************************************************************************************************************

Don't be a BUBBA! 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