Are you Stalking a Real Estate Sleeper?

Do you have your eye on the perfect home but have yet to make a move? You know the house I mean...It's been there saved as a favorite for a couple of months and it is priced right. In fact, it is a steal of a deal. But you are still on the fence about buying a home and so you just continue to "stalk" the listing but never act on it. Maybe you are trying to time the market and see if seller of that "sleeper" is going to drop the price again. Well wake up bargain hunter! It is very possible you are not the only one with an eye on that sleeper. If you wait too long it will be gone.

A real estate "sleeper" is a well priced home that hasn't sold yet. Usually the home is a great property, location, structurally sound and priced well but has not sold. In a winter market, especially just after the holiday season, sleepers are abundant.

Maybe the home was originally over priced and though it is now priced very well it is being overlooked. Possibly several very similar homes went on the market at the same time. Maybe the seller did receive an offer and the buyer's financing fell through so now it is "back on the market" through no fault of the house itself.

But if you are a buyer sitting on the sidelines and just watching your perfect home for another price reduction, beware. I have sold a couple of sleepers over the years throughout the north and east metro. In each case, there was minimal activity on the property then BAM....we had 3 or 4 qualified parties interested in the home at the same time. In these particular cases, they weren't the cookie-cutter variety either. One particular home in Washington County/Forest Lake area had a one-of-a-kind wooded lot and was in a perfect location. After months on the market, without an additional price reduction, over half a dozen serious buyers suddenly appeared. People were nonchalant when I told stressed that the home had recently seen a sudden surge of interest. Many even "pooh-poohed" the idea and mildly accused me of trying to coerce an offer. When the first offer came in, the seller wasted no time in accepting. Subsequently, I had several parties, buyers and agents alike, in disbelief, that it was suddenly sold!

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

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



READY to Make YOUR Move? If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of BOARDMAN Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. 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 2017 terieckholm.com

Wordless Wednesday (Almost) Mountains not Mole Hills.

Living in Minnesota there are hills and valleys but no mountains. (Ski hills like "Spirit Mountain" do not count at all). In Anoka County we do have a lot of mole hills, though. 

As we flew into Seattle last fall, the view was impressive. From above the clouds, the world is in a word, breathtaking. It makes all the "big" issues in the my job of real estate seem quite small. 

Of course when there is an issue in a transaction, it is my job to see the big picture, keep everything in perspective and make any hiccups in a deal as minute as possible for my clients.  Keeping mole hills from becoming mountains could be a new motto for this REALTOR®.

Need to know more about buying or selling a Twin Cities home? Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of Boardman Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. 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 2015 www.terieckholm.com

Is this the Summer to Buy a Minnesota Lake Home?

Early this spring, I was contacted by a potential seller on Coon Lake in Anoka County. They were contemplating listing their lake home but hadn’t quite decided if this was the year to make a move or not. I completed a market analysis for their beautiful home and property. The current activity really spurred my interest in that area so I have been keeping close tabs on that market ever since. It was simply amazing to me how affordable lakeshore was in the north and east Twin Cities metro even as prices on homes were rising. It should have been no surprise based on the affordability and low interest rates that lake homes really sold quickly in Anoka County this year.

So this got me thinking and once again I decided to check on what was happening on other lakes in north and east Minneapolis/St. Paul market. I decided to once again to ask the question, 

Is this the summer to make a  GREAT DEAL on a Minnesota Lakeshore Home?  

 

To see what kind of an impact the buyer’s market has had Minnesota lakes; I did some research on lake homes sold in first half of 2013. As a REALTOR® working in the north east metro for over a decade, I knew at one time it was difficult to find reasonably priced Minnesota lakeshore…especially properties located in areas with a quick commute to the downtowns and airport. During the slump, while home prices were affordable, lakeshore owners seem reluctant to sell at distressed prices. The market has changed once again so are metro lake homes now affordable or are prices on the rise?

Focusing on the north east metro counties of Anoka, Chisago, Ramsey and Washington, I discovered some interesting facts. I set up a quick search for lakeshore homes SOLD and closed after January 1, 2013. I found 181 single family lakeshore homes that met these criteria. I then took a closer look homes that sold for the lowest and highest price in each county. The 181 listings were on the market an average of 89 days. But as one can expect, the cumulative days on the market was significantly higher at 190 days on the market since many lakeshore homes are removed from the market every fall and relisted again in the spring. When cancelled and re-listed the DOM would start again at zero. However, just a few years ago, the average time on the market for north metro lakeshore was roughly 2 YEARS on the market instead of this more reasonable, six months. So market time has gone down on lakeshore homes, but have prices gone up? On average, no. 


So where were the deals on Minnesota Lakeshore during the first half of 2013? All over the north metro! 

Here are some of the highlights:

Anoka County

Lowest Sold Price $75,000 (Original list price $79,900)
Highest Sold Price $729,800 (Original list price $849,900)
Average $343,472
Total Homes Sold 39

The lowest priced Anoka County lakeshore home in the first half of 2013 was on Coon Lake in the northern community of East Bethel. It was a 1950 cabin being sold by a traditional seller as a tear down or fixer-upper. It was a 2BR/1BA and a 1 car garage with 200 feet of lakeshore. It sold for $75,000 after just 4 days on the market.

On the other end of the spectrum, in the south east corner of Anoka County  in the community of Lino Lakes, a 2004 built 2 Story executive home sold with picturesque views of the environmental Amelia Lake. After multiple price drops to $749,900 and well over a year on the market the home was sold for $729,800. This 3BR/4BA home was chock full of the upgrades including 7+ garage stalls, master suite and 6 acres of privacy.

Chisago County

 
Lowest Sold Price $ 72,500 (Original list price $ 90,000)
Highest Sold Price $ 585,000 (Original list price $625,000)
Average $247,073
Total Homes Sold 53

The lowest priced home was another cabin sold by a traditional seller that was in need of a good clean up or a tear down. It was a 1950’s rambler one bedroom with no bath or garage, located on North Center Lake in Chisago Lake Township. This cabin sold in 13 days for $72,500.

On the high end, there was a 1979 built lake home on Green Lake with 1200 ft. of peninsula shoreline located in Chisago City. This 4BR/2BA stucco/brick rambler with a 3 car garage was a beauty! The home was situated on 3 acres and sold by a traditional seller. It was listed this spring at $ 625,000 and sold in 13 days for $585,000 though its cumulative days on the market was well over a year.

Ramsey County

 
Lowest Sold Price $130,600 (Original list price $154,900)

Highest Sold Price $1,270,000 (Original list price $ 1,599,000)
Average $469,897
Total Homes Sold 36

Ramsey County is the heart of the east metro and is home to the capital city, St. Paul. On the low end of the spectrum, there was a 2BR/2BA/2 Car One and a half story in Maplewood built in 1944 on Carver Lake. It originally listed early in 2013 for $154,900 and took 85 days before it sold as a bank-owned/foreclosure property for $130,600.

The spendy side of Ramsey County featured a North Oaks executive home on Pleasant Lake. The two story stucco home was built in 1982 and sits on 1.4 acres with 5BR/4BA/3Car and 11,100 finished square feet. After being on the market for cumulatively nearly 2 years and a quarter of a million dollar price drop, it sold for $1,270, 000.

Washington County

 
Lowest Sold Price $ 55,500 (Original list price $ 93,900)
Highest Sold Price $800,000  (Original list price $ 995,000)
Average $457,066
Total Homes Sold 53

The biggest lakeshore bargain in Washington County in the first half of 2013 was corporate-owned lakeshore home on Sylvan Lake in Forest Lake. It sold for $55,500 cash after being originally listed for $93,900 earlier in the year. This 2BR/1BA home without a garage was built in 1960 home was sold by the bank as a foreclosure.

The Washington County high ticket home sold so far in 2013 is located in Baytown Township with shoreline on environmental McDonald Lake. The 1995 multi-level brick home was built on a 3.8 acre estate and included an indoor pool/spa and sport court. It took 493 cumulative days to sell this 5BR/5BA/3Car executive home.

Bargains are STILL out there!

Currently there are over 250 single family lakeshore homes on the market throughout the Twin Cities north metro. As of today, there are 28 listed in Anoka County, 80 in Chisago County, 68 in Ramsey County and 83 in Washington County. Prices range from $ 87,500 to $2.65 million and everywhere in between! The deals on Minnesota’s sandy shorelines are out there! Your Minnesota lakeshore dream home could be closer than you ever imagined!

Looking to make a deal on a Minnesota Lake Home? Email or call me for a current list of most promising, affordable lakeshore home listings in the north and east metro. If you are thinking of selling a lake home, there is still time to get listed and sold before the snow flies and lake freezes! 

Copyright 2013 www.terieckholm.com

If We Buy a New House, Can We Get a Horse?

Horse and animal restrictions on Minnesota acreage properties

Last year, during a final walkthrough of an acreage home my buyers were purchasing in Anoka County, one of their daughters ran up to me giggling and said, “Joe thinks you are buying him a pony.”

“Oh…really?” was all I could think to respond.

Mom nodded that yes it was a fact, Joe had it in his three-year-old head that I was going to drop off a four-hoofed pet on move-in day. While I have been known to give a closing gift to my clients, I have never offered a pet as a present…especially a pony!

This particular precocious toddler must have mixed up some of the conversations during our home search outings. As we searched for the perfect Minnesota acreage home throughout Anoka, Chisago and Washington Counties, there was quite a bit of discussion of horses. The reason this city-dwelling-but-soon-to-be-country family was relocating to a more rural property complete with a polebarn, was so his older sisters could get horses.

But acreage alone does not make a horse property. The fact is, many potential acreage homebuyers are surprised to find out that there restrictions on animals in the country. Though leash laws and licenses are expected in most urban environments, many people don’t realize that rural communities also have rules, ordinances, covenants and restrictions regarding animals.

So if you are planning a move to a more rural environment and want to have a horse, raise chickens or just have a couple of dogs and cats, it is important to check the restrictions  before writing an offer to purchase a home.

Each county, city and even specific development will have rules, restrictions and covenants in regard to animal ownership. The current code for the City of Ham Lake, where I live has a number of specific rules for pet ownership. For instance, owners of more than two dogs must obtain a private kennel license. You can raise chickens or pigeons with a temporary conditional use permit. Horses, or other animals with hooves like a pony, can be kept if a permit is obtained from the city prior to obtaining the animal and land is designated R-A or residential agricultural.

Now, a few miles away in the City of Columbus, a homeowner can keep up to four dogs before being required to get a kennel license. And in the City of Wyoming, horses are allowed on properties that are larger than five acres but no more than 1 horse per 2 acres. There can also be restrictions on grazing acres versus wetland or unusable acres. One time I came across a development with 10 acre parcels that had covenants restricting the land use to exclude horses. Bottom line: There is no hard and fast rule regarding whether rural properties will allows animals. Each home must be researched to verify any restrictions.

So what should a home buyer who has promised the kids a pony do?

Work with a REALTOR® that specializes in acreage and knows how to find homes with a place for your pets. Be flexible on areas/communities you want to relocate to. If pets are a priority, write any offer contingent upon being able to have the number of horses, dogs or chickens that will be part of your family household. Make it a practice to call the city and/or county regarding any pet or animal ownership restrictions. Check with the seller regarding all covenants that would restrict pet ownership. So if your move to acreage requires a place for a pony, make sure it is allowed!

Need to know more about buying or selling a Twin Cities home? Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of Boardman Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. 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 2015 Teri Eckholm 

Uniquely Minnesota Artful Distractions--East Bethel Black Bear Against the Clouds!

In East Bethel, Minnesota on the north side of Highway 65 sits this tall carved black bear. It is a beautiful carving and one I am proud to add to my series of Uniquely Minnesota Artful Distractions!

Copyright 2012 Teri Eckholm

How the "Busy Road Factor" Affects the Sale of Your Home

Busy Road Factor Selling a Minnesota Home

As a REALTOR®, people across the north and east Minneapolis/St Paul metro area  contact me to provide comparative market analyses on their homes. I work hard to get the price right whether it is for a single family home, a townhome, an acreage estate or a lakeshore getaway. Getting the price right is imperative in this changed real estate market. I use a system to check the comparative homes sold in the past 3-4 months and add and subtract for differences in each particular home. But every once in a while there are homes that are affected by what I call the "Busy Road Factor". These are situations that are unique to the property but will dramatically affect the number of interested buyers.

My daily travels as an Anoka & Washington County real estate agent take me along many of the same major roads day after day.  County roads are wonderful short cuts through the north and east metro as most are posted 55mph and they crisscross the communities of Ham Lake, Lino Lakes, Forest Lake, Columbus and White Bear Lake. There are many residential developments adjacent to these well-traveled roads.

Of course I notice several for sale signs along these roads as they have become a part of the landscape that doesn't change as quickly as it had in the past. Often a sign goes up and then 6 months or a year later the sign is switched out on the same house when they try a new real estate agent...again and again. In fact there is one home I have watched over the past 3 years switch out every six months to a new broker. I think they are on their sixth agent with no sale yet. I is not just the buyer's market causing this situation. This home and other properties like it located on well traveled roads are affected by "the busy road factor". It is a lethal combination with the buyers' market for a sale of residential home. A home seller is literally dead in the water before the house is listed if they do not account for the negative impact the road will have on their sale price.

"Location, Location Location" is the real estate mantra. If your home is located on a busy road, you cannot change it. But you can change the price. In order to sell, it is necessary to price your home significantly lower than all other homes on the market with similar features  to attract buyers.

This phenomena does not only affect properties on busy roads! There are other undesirable location situations that are very tough sells when the market is good but become next to impossible when there are many homes for the buyers to select from.  These unwanted locations include properties which are next to or near the following:

• Cemeteries
• Industrial Parks
• Huge Power Lines/Transformers
• Gas Pipelines
• Landfills
• Airports
• Prisons
• Flood plains
• Train Tracks 
• Shopping centers 
• Gas Stations
• Open Land either for sale or not that has undetermined development potential
• Gun ranges 
• Auto Salvage Yards and other disposal businesses

So how can you deal with the Busy Road Factor and get the house SOLD?

1. Be Realistic. Don't ignore the elephant in the room. Set your price reflecting the undesirable location
2. Best Foot Forward Make sure everything else regarding your home is a positive. All repairs done, stage the home and market its unique positive features. 
3. Work with a Professional REALTOR® An experienced professional real estate agent can assist you in pricing your home correctly factoring in all adverse conditions.
4. Be Ready to Negotiate. When buyers submit a purchase agreement for review, don't pass on a low offer. Counter and try to reach terms that are acceptable for both parties.
5. Be Patient. In most cases, a property affected by the Busy Road Factor, will required twice the market time compared to the average home.

Copyright 2012 www.terieckholm.com

Home Seller Tips--Why Would a Seller Pay a Home Buyer’s Closing Costs?

Best Tips on Selling an Anoka County Home-Why Pay Buyer Closing Costs

A seller's estimate of proceeds or net sheet is an essential part of the listing contract.  It lists the  estimated closing costs associated with the sale of the home. One of the items on the list sheet is a blank for the “Seller's contribution to a Buyer’s Closing Costs.” In this current market, I always include several thousand dollars as an estimate to prepare my clients that this could come up at negotiations. So many FHA buyers, and even some conventional ones, will require assistance with their closing costs. 

But every now and again, I hear will hear a seller loudly scoff at paying a buyer's closing costs. The conversation usually goes something to the effect of, “I don’t want to pay my own closing costs. Why would I want to contribute to the BUYERS?”
 
This is an excellent question and the answer is very simple: You contribute to a buyer's closing costs so they can BUY your house!
 
Today most buyers are required to put down a minimum of 3.5% of the purchase price of the home as a down payment. In the case of a conventional loan, this can be 20%. The closing costs for a buyer include title insurance, home owner’s insurance, appraisals, loan origination fees, name search fees, filing fees and more. As a REALTOR® working throughout  communities in Anoka County and the north metro Minneapolis/St Paul area, I see these closing costs will run anywhere from $4000-$8000 for a first time buyer. Add this amount with a required down payment and few buyers will have sufficient funds to purchase a home.

Understanding Closing Cost Assistance Buyers have the option of waiting and saving additional money to cover the down payment and closing costs or asking for seller assistance. In many cases a financial institution will allow a seller to assist a buyer by paying either points to reduce the interest rates and/or closing costs.

How does this work? Let’s say that a home is on the market for $200,000. The buyer writes their offer for $195,000 and their financial institution allows up to 3% seller’s assistance with fees and closing costs. They decide to ask the seller in their purchase agreement document for $5000, thus the net offer to the seller for the home is $190,000. 

If a seller does not want to pay the closing costs, the buyer in many cases will not be able to purchase the home. 

If the offer is accepted, the seller’s proceeds at closing would then be reduced by the $5000. Sellers do not have to come up with the funds in cash if there is sufficient equity in the home to cover both the buyer's and the seller's costs.

When an offer comes in on a home, it is sometimes confusing to sellers what the sale price versus net number is. In the case above, the $195,000 would be the sale’s price on the purchase agreement but by paying the $5000 in closing costs, the seller’s net number is really $190,000 less the seller's own closing costs including all fees and commission. And the home must appraise for the sales price of the home, in this example it would have to appraise for  $195,000.

If as a seller you decide to counter on the original offer, you can counter on the sales price of the home or the amount of closing costs paid. When counter offers are involved, a seller needs to make certain that they understand what the net proceeds will be in each offer and counter offer.

This is where the assistance of a professional REALTOR® comes into play. As a real estate agent, I provide my clients with a seller's net sheet that outlines all costs and fees that has been updated after receiving each offer and counter offer. When counter offers start going back and forth, I reiterate at each step what my seller's net number will be  to help eliminate the confusion.

Assisting a buyer with closing costs can be the ticket to getting your home SOLD in this challenging real estate market. With so many short sales and foreclosures, often it is the more traditional seller who has the ability to negotiate with a buyer and assist in their financing a deal. As long as a seller is happy with the NET number received, it doesn't matter whether some of the proceeds went to pay closing costs or not. Understanding the process is simple with the assistance of a knowledgeable real estate agent!

.

Copyright 2012 www.terieckholm.com

Real Estate Resolutions for Minnesota Home Buyers and Sellers in 2012

As 2011 comes to a close, I noticed a change in the real estate market across the north and east Minneapolis/St Paul metro area.  Home sellers were seeing a more active market during the last quarter and many received purchase agreements. Home buyers who for several years had the luxury of the upper hand in negotiations, suddenly found they were in multiple offer situations when they submitted a contract for a seller's consideration. While there still is a good range of inventory in the higher priced categories, first time buyers had less options than a year or two ago.  Yet a tenacious Twin Cities home buyer can still find good options in almost every price range throughout the metro area. Town homes, single family, split levels, ramblers, two stories, remodels, foreclosures, short sales and new construction.

As a REALTOR® serving Lino Lakes, Ham Lake and communities in the Forest Lake School District, I keep a close eye on the north and east Twin Cities real estate market. During the last few months of the year, I noticed bit of a change in the wind. Activity has continued to improve. Motivated sellers are pricing their homes to be attractive to the more educated home buyers of the current market. Buyers teetering on the edge of the proverbial home buying pool took the plunge and wrote offers as interest rates hit record breaking lows. Negotiations were made and offers accepted. The Minneapolis/St Paul real estate market took one tentative step toward as 2011 came to a close.

So what does that mean for those considering purchasing a home or selling their property in 2012? From Ham Lake to Forest Lake and Lino Lakes to Shoreview, we have begun to build a strong foundation in our real estate market again. Keeping the property value base strong is essential to all Minnesotans. In 2012, homeowners should  RESOLVE to be Real Estate Savvy!

Resolutions for Home Sellers

*Team up with a professional REALTOR®
*Set the right price when first listed
*Make all necessary repairs
*Declutter
*Make each showing count by staging the home for sale.
*Be ready and willing to negotiate.

Resolutions for Buyers

*Team up with a professional REALTOR®
*Get pre-approved for a mortgage  before you start your home search. Check in with your Loan Officer on a regular basis to discuss any change in your financial status or the loan market.
*Write realistic offers that encourage negotiation.
*Understand the foreclosure and short sale process—While prices can seem like a deal, the assumed risk to buyers on an as-is sale is great.

Resolutions for Homeowners

*Even if you do not plan to sell your home in 2012, there are things a homeowner should be doing to maintain and retain property value.
*Keep the interior and exterior of your home in good repair on a continual basis rather than deferring until time of sale.
*Stay current with your mortgage and discuss any financial problems with lender immediately.
*Be a good steward of your neighborhood.

Resolutions for Investors

*Team up with a professional REALTOR®
*If holding the property, offer a safe and maintained residence at a fair price to the renters
*If flipping or repairing/reselling the property, be realistic with the numbers. Don’t over invest in materials and curb enthusiastic inflated resale estimates. 2012 home buyers are educated in the value of real estate and won't over pay!
*Be a good steward of your properties and the communities in which they are located.
*Maintain the properties to retain value for your portfolio as well as the neighborhood.

If buyers, sellers, homeowners, investors and real estate professional alike work together to maintain slight momentum in the market that started at the end of 2011, 2012 could make additional strides toward recovery for the Twin Cities real estate market.

Copyright 2011 www.terieckholm.com

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

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

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

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

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

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

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

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

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

Copyright 2011www.terieckholm.com

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

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

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

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

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

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

How to Coming up with an Acceptable Starting Point:

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

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

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

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


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


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

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


Copyright 2011www.terieckholm.com

Foreclosure Inventory Down; House Prices Up—Are there Still Good Deals on Acreage and Lakeshore in Anoka County?

Absolutely! There are still GREAT deals on many acreage and lakeshore home throughout Anoka County (and Washington County too)!

The $8000 tax credit caused a flurry of activity at the end of the summer. With the original end of November deadline looming, people rushed to snatch up deals on acreage and lakeshore homes throughout Anoka, Chisago, Ramsey and Washington Counties. But now with the extension and expansion of the tax credit, many first time homebuyers and previous owners alike are excited that they too can STILL get a credit but wonder if they missed out on all the good deals. Not a chance. There are still deals to be found throughout the Twin Cities north and east metro!
Looking for a foreclosure, bank-owned or short sale but need to be able to live in the home immediately after closing?
Good news is that foreclosures are no longer always trashed, fixer-uppers. Today's foreclosures can be simply AWESOME! This economy has forced builders and responsible homeowners alike to let amazing properties go back to the bank. Many are still in pristine condition. Some still may require a bit of cleanup or a few cosmetic changes but there are many in move in condition too.
But not ALL deals are foreclosures!
Many homes priced to sell are people who have to sell do to a lifestyle change that is not financial. Whether relocating for a new job, getting married or having twins, people have to find new places to live. If a seller is motivated, they are pricing to compete with the foreclosure market. So don’t think the only deals are lender mediated or you could miss out on a beauty!
Here are a few of the treasures I noted while perusing the Twin Cities MLS in Anoka and Washington County today:

• New Construction on 2+Acres in Ham Lake. Wooded backyard. Walkout basement. Custom built two story 4BR/3BA/3Car home with over 2500 square feet of finished living space. Down $30K Offered at $361,900


• Like NEW Rambler on Egg Lake in Hugo. Beautiful views in awesome 2005 Built executive rambler w/granite, mstr suite and more. Awesome 4BR/3BA/3Car home with walkout and over 3000 square feet of finished living space. Sold for $539K in 2006 now offered at $399,900


• Almost NEW Coon Lake Treasure Lakeshore PLUS Acreage !! 2005 built 5BR/3BA on almost 3 wooded acres and 200ft on Coon. Home has 1700+ sq ft finished w/lower level sheetrocked and wired for 1700 more. Priced under $380K.


• 6200+Sq ft Ham Lake 2Sty on 3.5 Acres! 6BR/6BA/4 car built in 2005 with picture perfect landscaping, oak floors and huge master suite. Originally listed at $825K but short sale priced at $545K!


• BRAND NEW 2BR/1BA/3Car Linwood Rambler on 2.5 Acres Main flr laundry, hickory cabinets, landscaped yard and framed for 2 BR and bath in lower level! Originally listed at $249K now $235K!


• Amazing value on 100 Ft of Forest Lake shoreline. 1988 built 3BR/3BA/2Car remodeled inside and out with breathtaking views of Forest Lake available due to relocation. Tax valued at $530K and NOT a short sale but down $150K being offered at $374,900


• 3BR/2BA/3CAR on 7 ACRES in Linwood! Built in 2006 custom built rambler in almost new condition. 3 BR on main, private master with whirlpool, front porch. Original asking price $349K but priced short at $249K.

If you are in the market for a great deal on a lakeshore or acreage home, time to get organized because the rules to buy are a bit different in this changed market. Many times you can be submitting your offer to a bank rather than a traditional seller and how they assess your purchase agreement is all business and less heart.
Eight Tips for homebuyers in this CHANGED real estate market:

1. Don’t wait until after the holidays! Homes are being listed every day…even in November and December. If you wait until January 1st to contact a REALTOR and loan officer for preapproval, you will miss out on a deal or two. Many people choose to wait out until after the holidays…smart buyers will be ready to write an offer even if the home is listed a few days before Santa arrives!


2. Banks LOVE clean offers. Heck…traditional sellers love them too! Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won't be considered.


3. Banks reject lowball offers...often without negotiation. They are a business and know the value of the asset they are selling. Traditional sellers often will be offended by an unreasonable offer and less likely to negotiate. Make sure your agent provides comparable sales to review before writing your offer on the purchase agreement so it makes good sense to both you as a buyer and the seller.


4. Well priced homes get multiple offers. Serious buyers put in their best bid first.


5. Banks sell homes AS-IS. Homes held in an estate or owned by a relocation company will also routinely require AS-IS agreements.What you see is what you get. Buyers must be prepared to make all necessary repairs out of their own pocket after closing.


6. Banks will not pay for inspections in most cases. This includes the septic system and/or well. Be prepared as all inspections could end up being the buyer's responsibility. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500. Conversely, traditional sellers and relocation companies will often negotiate to determine who will pay for some types of the inspections. A basic home inspection is usually paid for by the homebuyer.


7. Personal property is not included as part of the sale when a lender owns the home. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don't guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace. This is not the case with a traditional sale. Make certain every appliance, as well as any other personal property, is listed in the purchase agreement if the home is sold by a traditional seller.


8. Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank or seller of the property. In many cases, banks do not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the seller...the listing agent is required to tell the seller and their representatives everything that you say about your financing and the amount you are able or willing to pay. But the listing agent is not required to tell you anything in return. The listing agent works only for the seller of the property. Having your own REALTOR® to represent your interests in the transaction usually does not cost anything…It is paid for by the seller.
   

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Forest Lake MN Real Estate Market Statistics 3rd Quarter 2009

Forest Lake, Minnesota is well known throughout the Twin Cities area. It was a favorite summer vacation spot, an annual ice fishing tournament tradition or as a destination when going for a Sunday a drive in the country in days gone by. Today, the lakeside cabins have been replaced with year round residences, the fishing tourney is but a memory and the farms are few and far between in this third ring St. Paul suburb.
Real estate in Forest Lake, MN in north Washington County and east Anoka County has seen homes priced under $200,000 continue to sell in the 3rd quarter which is consistent with most of the Twin Cities area. A total of 24 single family homes priced under $200K were sold in Forest Lake and Forest Lake Township during this time period. This is a 50% increase in unit sales from the previous quarter. The Cumulative Days on Market (CDOM) Statistic was again slightly lower than the previous quarter with 126 CDOM compared to 129 CDOM in the 2nd quarter. This is quite a bit better than what was seen in the first half of 2008 when the CDOM ranged from 211-286. This surge in home sales in the lower price points is almost certainly a result of the $8000 first time homebuyer tax credit.
It appears the high end homes will continue to struggle into 2009 with only 2 homes sold over $400,000. Obviously, there weren’t too many first time buyers looking at homes in THIS price range. And as most of the homes sold in the lower price points were foreclosures or vacant homes, there wasn’t the “move-up” activity seen in a normal market. When the lower value home sold in the past, a family generally moved to a larger more valuable home. Not the case in this market…and the statistics in Forest Lake back this scenario up. Forest Lake continues to have about 5-6 YEARS of lakeshore and executive home inventory…much of it on the very desirable Forest Lake's picturesque First Lake.
With this abundance of inventory, some sellers have aggressively priced their home to sell. Facing another winter with an empty home is not an option many home sellers want to consider so it is now a great time for buyers to get deals. There are a few beautiful homes are currently on the market in Forest Lake at amazing prices; many are lakeshore and acreage properties. With this much inventory, motivated sellers will need to be flexible on pricing.
There are 45 active lakeshore homes for sale in the Forest Lake area and some are at attractive and affordable price points. Many have been on the market for several months; some over a year. With the amazing low interest rates and few high-end buyers, it could be a great time to negotiate a deal on your piece of Forest Lake Minnesota shoreline!
3rd Quarter 2009 Forest Lake real estate statistics for single family homes:
Under $200,000~ 34 Active Listings, 10 Pending Listings, 24 Sold Listings, 126 CDOM (Lakeshore Subgroup ~ 0 Active, 1 Pending, 2 Sold)
$200,000-$300,000 ~ 56 Active Listings, 8 Pending Listings, 9 Sold Listings, 207 CDOM (Lakeshore Subgroup ~ 7 Active, 1 Pending, 0 Sold)
$300,000-$400,000 ~ 32 Active Listings, 4 Pending Listings, 4 Sold Listings, 87 CDOM (Lakeshore Subgroup ~ 4 Active, 2 Pending, 0 Sold)
$400,000-$500,000 ~ 13 Active Listings, 0 Pending Listings, 3 Sold Listing, 306 CDOM (Lakeshore Subgroup ~ 8 Active, 0 Pending, 1 Sold)
$500,000 and Up~ 38 Active Listings, 0 Pending Listings, 1 Sold Listings, 306 CDOM (Lakeshore Subgroup ~ 26 Active, 0 Pending, 1 Sold)
Lakeshore available in the Forest Lake area:
45 Active Listings, 4 Pending Listings, 4 Sold Listings
Forest Lake lakeshore price range:
$259,000-$2,600,000
41 Homes on Forest Lake
1 Homes on Clear Lake
2 Home on Comfort Lake1 Home on Shields Lake
**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 7 /1/09 through 9/30/09.

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Spring Wildfire Danger in Anoka County—This was TOO Close for Comfort!

Yesterday was a beautiful, almost spring weather day. Strong winds were blowing the cold air out and there was a promise of spring weather around the corner for later in the week. Those of use who live in Anoka County near wetlands and prairies realize the windy spring weather has some drawbacks. The winter has left grass dry and dormant. One lit cigarette or untended bonfire can spark a huge wildfire. The Minnesota DNR always has spring fire restrictions and we are always aware of them until that first spring rain. DNR Spring Fire Restrictions.

In the morning we were concerned to hear that a few fires had broken out along Lexington Avenue from Blaine to Ham Lake. Usually along the road the fires are started by carelessly tossed cigarettes but several within an hour along the same stretch of road was suspicious. The fires were contained but when they mention Carlos Avery and fire, I don’t like it at all. We live near the Carlos Avery Preserve. It is a huge area that stretches from Lino Lakes to Wyoming. I know of several homes that abut the preserve and so fires in the area are very scary….Especially on a windy day.

So as I headed down my road a few miles away late yesterday afternoon, imagine my concern as I saw smoke across the sod field in the Carlos Avery area. My commute takes me on Broadway Avenue, a main thoroughfare that bisects the preserve in Columbus. As I travelled east, I knew the danger had not past. The south side was ablaze.





It was frightening. I snapped a few pictures as I approached but figured the deputy directing traffic would frown upon by distracted driving so didn’t get any as I went by the area where the fire was so close I could feel it heat up the inside of the car. I also resisted the impulse to pull over for additional pictures as so many others had.








Wildfires are dangerous and unpredictable; winds change.
It was a scary afternoon. We were diverted on our way home about 10 miles south to Lino Lakes on our return trip. The fire spread. 1500 total acres burned. Friends we know were being evacuated. The smoke filled the air. Fortunately the wildfire was contained without losses of homes or lives. But the scars will remain.




As I commuted down Broadway this morning, the scorched land was still smoldering. A Forest Lake firefighter was arrested in connection with starting the blaze at around 1pm in the ditch along Broadway. The story becomes even stranger when it is revealed that he was a former business owner, award winning volunteer fire fighter, coach. What goes through someone’s mind when they put so many others at risk?
Spring fire restrictions in place for a reason. Heed the warnings.

Fire Facts

• Approximately 80 percent of all wildfires in MN occur during April and May.
• The burning of yard debris is a major cause of wildfires in Minnesota.

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Wetland, Lakeshore and Foreclosure--What Does a Minnesota Homeseller Have to Disclose?

Last week I received a text inquiry from someone who had read my blog asking if I had any homes currently listed on any of Minnesota's wetlands. I was excited as though I didn’t have any current listings on one of Minnesota’s greatest resource; I know there are many well-priced homes currently listed throughout Anoka, Chisago and Washington Counties on beautiful property with views of our Minnesota lakes and wetlands.
I made the connection and my “buyer” was calling not to buy, he had already bought a Minnesota wetland property. It was another question on Minnesota disclosures. What should have been disclosed to him before he purchased. As this was turning into a legal question, I directed him to call an attorney for legal advice.

But his question is valid, “What does need to be disclosed when selling a home in Minnesota?”

The advice I give to my clients, is to disclose anything and everything you would want to know as a prospective buyer. If your property is near lakeshore or wetland, there is a good chance the Minnesota Department of Natural Resources has restrictions on what can be done to the landscaping. This is something that I would recommend that my sellers disclose as most buyers would want to be aware of any building restrictions.

These days so many properties are now bank-owned and lender mediated sales. Do foreclosures, REO properties and short sales have different disclosure requirements in Minnesota?

In a word; no. But sellers who have limited knowledge of the condition of the property do have options available. Often a bank will require that a buyer waive their rights to a disclosure and buy the property AS-IS I came across a great YouTube video from the Minnesota Association of REALTORS® where Chris Galler, COO of MAR, explains the Minnesota disclosure law as it relates to foreclosures in great detail.






Still confused about real estate disclosures? Let me help! If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website.

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Time is Running Out! Trim Oaks by April 1st to Prevent Oak Wilt!

The snow is quickly melting away and spring has sprung! If your oak trees require trimming, do not delay. Oak wilt is devastating to the landscape across Anoka County. Oak trees should be trimmed in the late fall or winter months. If you have overgrown oak trees, trim them this week or wait until fall to avoid exposure to this tree-killing disease!

As a REALTOR who lives and works in the areas of Blaine, Ham Lake and Lino Lakes, I am very aware of how this tree-killing disease affects property values throughout Anoka County and the north metro. Two years ago I shared photos of a property in our Ham Lake neighborhood where the owners had been dealing with oak wilt for the past several years. In one summer alone this property lost 11 trees. While the amazing thicket of mature oak trees is gone, the new owners took the initiative to save the remaining oaks and with treatment and proper care no additional trees have been lost in nearly two years.

Oak wilt is not just a Ham Lake problem. It is prevalent in communities from Lino Lakes to North Branch and Forest Lake to Stacy. Whether you live in Anoka, Chisago or Washington County, if you have oaks on your property, you need to take precautions to protect them from this deadly disease.What is Oak Wilt?
Oak wilt is a disease caused by a fungus which attacks the central system of the tree from the roots to the leaves. The tree attempts to block the fungus, but also blocks all water and nutrients to the branches and leaves. Eventually, the trees leaves wilt and it dies.

Oak wilt spreads through the root systems of near by trees and by fungus beetles that carry the oak wilt spores from tree to tree. For additional information on oak wilt from the University of MN Extention Service CLICK HERE.

How to Protect YOUR Trees

The fungus beetles infect trees that have been recently injured or trimmed. These beetles are very active in the spring and summer months. Oaks should be protected from damage and not trimmed from April through July.

Trim large mature oaks now. As a preventative to spring storm damage, have your large oaks trimmed now so that heavy, dead branches won’t fall during tornado season and break other healthy limbs.

Tree trimming of mature oaks is best left to professionals especially near the power lines. The trimmer should use a bucket truck or a line/pulley system, NOT spiked climbing boots which can damage the tree.

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Copyright 2009 Teri Eckholm http://www.terieckholm.com/

MN Property Tax Forms Assistance Schedule for Anoka County Seniors

The postcards won’t be in the mail this year but the tax assistance clinics will go on.

If you are a senior citizen, aged 65 or over or a disabled person who needs assistance filing your M1PR form for a property tax refund, the help clinics will go on all over Anoka County as in past years, but the reminder postcards will not be sent. The schedule was mailed as part of the Anoka County News that was sent to every resident in March. If you recycled the newsletter without saving the schedule, here are a few of the dates in the communities that I serve.


What to Bring? You will need to bring a copy of your Federal Tax 1040 form showing your 2008 total household income.

• Homeowners will need to bring a copy of your 2009 real estate tax statement.
• Renters need the Certificate of Rent Paid or CRP that is given to you by your landlord.
  

Need to know additional dates and times? Contact the Anoka County Community Social Services Department at 763-422-7070
Need Help with Your 2008 Taxes? Free forms assistance is available for seniors, disabled adults and low to moderate income households at locations in Anoka County from February 2 through April 15, 2009. 

Copyright 2009 terieckholm.com

Anoka County Tax Forfeited Properties Available Online

Did you know that you can see the properties that have been forfeited to Anoka County and available for sale right on the Anoka County website?

Currently there are three properties available in communities spanning the county. One is to the north in Linwood, while another is located in the south community of Fridley and then to the west in Coon Rapids. The site features links to both plat maps and aerial views.

Homes are sold with a sealed bid system. Complete instructions on how to properly submit a bid are posted. 

Copyright 2009 terieckholm.com