Real Estate Word of the Day: Assessed Value

First Time Homebuyer Real Estate Word is Assessed Value

So many real estate terms can be confusing to home buyers and sellers alike whether it is an acronym like FSBO or an often used word like equity or foreclosure. As a REALTOR® I am not surprised when that look of confusion comes over a buyer’s eyes when I mentioned escrow or earnest money. These terms sound so much alike when being bombarded with new terminology like, mortgage, deed, easement, appraisal, and association dues, etc. It is understandable that homebuyers that are more interested in room sizes and kitchen counters to be confused with the everyday real estate jargon like down payment or cash to close. This confusion is very understandable because for most people, buying a home is a once in a lifetime experience.

This REALTOR® jargon is so prevalent, I thought a First Time Homebuyer glossary of real estate terms might be helpful. From time to time I have been adding to this list of terms used often by REALTORS® in a series of posts. This way you can skip buying that big “how to buy a house” book or attending that First Time Homebuyer Class and have a quick resource at your fingertips. I am continuing the series with Today’s Real Estate Term:

Assessed Value (or Tax Value) Every home has a value assigned to it by the county assessor which is the assessed value. This value is updated on regular basis (usually once a year) and it is used for determining your property tax. This value should not be confused with an appraised value (value determined by an appraiser) or market value (value determined when listed on the market), since it is often a year or two out of date. Usually the assessor will determine a separate value for the land and the structures. This value does not add for landscaping which would be included in a values determined by appraisers and homebuyers.

 
Copyright 2013 www.terieckholm.com

6 Essential Spring Repairs to get YOUR Minnesota Home Ready to SELL!

It is hard to miss the media reports this spring that REAL ESTATE is back in the Minneapolis/St Paul area!  This good news has many Minnesota homeowners thinking about selling. If you will be listing your home on the market this spring, it will take some preparation and repairs.Even though we seem to be in a never-ending winter this April, it may be time to make the "honey-do" list of spring projects. 

Keeping your home in optimal condition is essential in maintaining property value. Whether you plan to sell your home this summer or not, there are a few essential things to check, repair and or replace after every Minnesota winter. As a REALTOR®, I often have to show properties that have not been properly cared for. Throughout Anoka County, Chisago County and northern Washington County, the areas where I work extensively, I have seen houses with interior ceiling damage from leaking roofs,  cracked driveways and unmaintained decks that can be downright scary to walk on.
Surprisingly, these are not all foreclosure homes. While I understand it can be frustrating to have to make repairs just prior to selling your home, not making the repairs means being priced to compete directly with foreclosure homes for thousands less.
If repairs had been made in a timely manner and the home properly maintained, this expenditures before selling might have been avoided. 

With hindsight being 20/20, I often hear sellers lament about how they wish they had chosen to keep the home in better condition all along and had more of an opportunity to enjoy the benefit of a well maintained home. It is much more beneficial and cost effective to assess your property for required repairs on an annual basis than to be hit with everything at one time when you sell.
Here are 6 spring maintenance tips that will not only beautify your home, but also aid in retaining your home’s value for years to come:

Roof—Walk around the exterior of your home with binoculars if necessary and check for any missing shingles that may have been blown off during a winter storm. If any are missing or you see other concerns, bring in a contractor to assess the damage and make repairs before you have water damage on the interior of your home.
Siding—Power wash debris buildup from vinyl or aluminum siding. Buildup can stain siding overtime.

Deck Settling—Check for any settling or worn boards on your deck especially if it is several feet off of the ground. If the supports of your deck appear to be pulling away from the home or if the boards are weather-worn, have it reviewed by a professional before that first summer barbeque.

Paint and Stain—Did the harsh winter sleet, snow and ice cause the paint or stain on your siding, trim or deck to start to peel? Now is the time to assess the damage.

Gutters—Gutters filled with leaves? Take the time to clean out to prevent water backups. Keeping water away from the foundation is the best way to keep water out of your basement. If your gutters are clogged, they cannot do the job and the rains will pour right over the clogged-gutter’s edge near the walls of your home. Consider adding screens or guards to prevent leave buildup in the future.

Driveway—The winter’s freeze and thaw cycle can do damage to an asphalt driveway. Cracks need to be filled or they will get worse. It is recommended that blacktop driveways also be seal-coated every 2 years when there in an open area with extreme sun exposure to extend the life of the driveway.
  
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Copyright 2013 www.terieckholm.com

Six Essential Spring Exterior Repairs to Maintain the Value of Your Minnesota Home

As the spring real estate market starts to heat up a bit due to excitement over the $8000 first time home buyer credit, many Minnesota homeowners start thinking it's time for the "honey-do" list of spring projects. Keeping your home in tiptop shape is essential in maintaining your property’s value. Even if you don’t intend to sell your home this summer, there are a few essential things to check, repair and or replace after ever Minnesota winter. As a Minnesota Realtor, I see many properties that have not been properly cared for. Throughout Anoka County, Chisago County and northern Washington County, the areas where I work extensively, I have seen houses with interior ceiling damage from leaking roofs, potholed, cracked driveways and decks that are downright scary to walk on.
Surprisingly, these are not all foreclosure homes. It is frustrating to have to make repairs just prior to selling your home. Some traditional sellers are faced with having to sell in this slower market and are frustrated in having to make thousands of dollars in repairs in order to sell due to lack of maintenance. Not making the repairs means being priced to compete directly with foreclosure homes at thousands less than expected. Neither choice is appealing to sellers when values are depressed.

With hindsight being 20/20, many of these sellers lament about how they wish they had chosen to keep the home in better condition all along so they could have enjoyed the benefit of a well maintained home. It is much more beneficial and cost effective to assess your property on an annual basis and make repairs as necessary.

Here are 6 spring maintenance tips that will not only beautify your home, but also aid in retaining your home’s value for years to come:
Roof—Walk around the exterior of your home with binoculars if necessary and check for any missing shingles that may have been blown off during a winter storm. If any are missing or you see other concerns, bring in a contractor to assess the damage and make repairs before you have water damage on the interior of your home.
Siding—Power wash debris buildup from vinyl or aluminum siding. Buildup can stain siding overtime.
Deck Settling—Check for any settling or worn boards on your deck especially if it is several feet off of the ground. If the supports of your deck appear to be pulling away from the home or if the boards are weather-worn, have it reviewed by a professional before that first summer barbeque.

Paint & Stain—Did the harsh winter sleet, snow and ice cause the paint or stain on your siding, trim or deck to start to peel? Now is the time to assess the damage.
Gutters—Gutters filled with leaves? Take the time to clean out to prevent water backups. Keeping water away from the foundation is the best way to keep water out of your basement. If your gutters are clogged, they cannot do the job and the rains will pour right over the clogged-gutter’s edge near the walls of your home. Consider adding screens or guards to prevent leave buildup in the future.
Driveway—The winter’s freeze and thaw cycle can do damage to an asphalt driveway. Cracks need to be filled or they will get worse. It is recommended that blacktop driveways also be seal-coated every 2 years when there in an open area with extreme sun exposure to extend the life of the driveway.

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

Close Look at Short Sale & Foreclosure Market—Twin Cities Homeowner Equity Safer than Indicated

Most media reports have been exclaiming the double digit drop in housing values in the Minneapolis/St. Paul metro area since the beginning of 2008. The RMLS numbers showed a drastic decline in the values of homes from Anoka to Ramsey to Washington Counties. It seemed that no area in the 13 county Twin Cities metro area was completely immune to the pressure the reported up to 2% foreclosure rate was putting on the housing market.

The numbers are staggering when looked at as a whole…but what if the foreclosures and short sales could be filtered out? Reality is that in most areas few than 2% of properties are in foreclosure in the metro market. But many more homeowners are sitting at home nervously watching the news reports touting the ‘gloom and doom’ and believe the equity is draining from their homes like a flood prone levee. Is this picture accurate?

Intuitively, I knew the answer was no. Or at the very least it was incomplete. Homes being sold in the market by a traditional seller, without a bank or corporate entity involved, are appearing to hold their value somewhat better than other homes. But I had no way to back up what I believed I was seeing until now.

A local Minneapolis Realtor, Aaron Dickinson and Jeff Allen, the research manager of the Minneapolis Area Association of Realtors (MMAR) teamed up to find the answer. They created a report entitled Foreclosures and Short Sales in the Twin Cities Housing Market. This report shows that significantly more bank-owned and mediated homes are currently listed than two years ago…nearly 10 times more! The report also goes on to show that while the median sales price for the foreclosed homes are down almost 16%, homes sold by traditional sellers is only down about 3.5% from 2006 to 2008. 

This is awesome news for Twin Cities homeowners frightened that their largest single investment is draining in value daily as more foreclosures hit the market. Rest assured that while this changed housing market IS affecting the property values during this time of correction, we are not in a freefall throughout the metro area.

Other Real Estate Related Articles that might be of interest:

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


• Why Some House Flips are Flops


• Think You are Ready to Buy a Foreclosed Home?—Take the Quiz!


• Foreclosure Disclosure—Do I Really Need An Inspection?


• Doctor! Doctor! Give Me the News! I’ve got a Bad Case of Real Estate Blues


• A Snapshot of Real Estate Across the Twin Cities and the US


• Real Estate Resolutions for Home Buyers and Sellers in Minnesota

If you are buying, selling or relocating to Minnesota and need help from a professional Realtor to better understand this changed real estate market, 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

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

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

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

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

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

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

Are you planning a spring move and need to know what your home is worth? Do you want expert advice from someone who knows the Anoka County and Forest Lake District #831 area? Let me help you! CLICK HERE to schedule a FREE market value assessment. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

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

Ham Lake, MN Real Estate Market Statistics 3rd Quarter 2007

The sluggish real estate market continues to affect Ham Lake, MN and Anoka County in the third quarter of 2007. Homes are staying on the market longer with an average Days-on-Market (DOM) of 157 days for homes sold in the 3rd Quarter in the Ham Lake area. While homes under $300,000 have a manageable inventory level similar to other areas of the Twin Cities (about a 10 month supply), high end homes are selling at a much slower pace. Note the abundance of existing inventory in the over $500,000 category. With 47 homes on the market and two homes selling every 3 months, it will take over five years to sell the entire inventory if home sales do not pick up in this high end category.

3rd Quarter Ham Lake residential real estate statistics for single family homes:

Under $300,000~ 51 Active Listings, 4 Pending Listings, 12 Sold Listings (All existing homes)

$300,000-400,000 ~ 30 Active Listings, 1 Pending Listings, 2 Sold Listings (New Construction Subgroup ~ 2 Active, 0 Pending, 0 Sold)

$400,000-$500,000 ~ 30 Active Listings, 1 Pending Listings, 4 Sold Listings (New Construction Subgroup ~ 4 Active, 0 Pending, 0 Sold)

$500,000 and Up~ 47 Active Listings, 1 Pending Listings, 2 Sold Listings (New Construction Subgroup ~ 13 Active, 0 Pending, 1 Sold)

Lakeshore available in the City of Ham Lake:

5 Active Listings, 0 Pending Listings, 1 Sold Listings

Ham Lake lakeshore price range: $274,900-$945,000

2 Homes on Coon Lake
2 Homes on Lake Amelia
1 Home on Mallard Lake
**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 7/1/07 through 9/30/07.

Featured Lakeshore Listing in Ham Lake Minnesota: 3608 Woodland Drive

Articles on Ham Lake, Lakeshore and Minnesota that might be of interest:
Where's the Playground? A Key to Parks in Ham Lake Minnesota
What Makes a House a Home-Ham Lake, MN
Does "Minnesota Nice" Affect the Real Estate Market? "Yah, You Betcha!"
Dreaming of Life on MN Acreage?--What YOU Need to Know Before YOUR Move!
Affordable Minnesota Lakeshore

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage properties! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 www.terieckholm.com/

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

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

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

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

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

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

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

Copyright 2007 terieckholm.com

Something Smells Funny! Is YOUR Pet Destroying Your Home?

We Americans LOVE our Pets. Dogs, Cats, Bunnies, Monkeys, Rats…you name it. We let them sleep in our beds and eat in our kitchens. We buy and cook them special foods. We dress them up and treat them like the members of the family that they are. But have you ever considered the damage pets can do to your most important investment, your home?

As a real estate agent working in Minnesota, I have seen some strange pets inside of some homes…everything from pot-bellied pigs to monkeys and bunnies with the run of the house. Oh, yeah and then there are the people who have dogs and cats too. Many homeowners take great measures to protected their homes and property but some do not.

I have walked into vacant homes and had potential buyers pick out the exact location of where the previous owner had the litter box. I have seen puppy’s teeth marks on the sides of oak cupboards and cedar decking and claw marks on wood floors. I have walked through extensively landscaped yards destroyed by holes dug by chained dogs. I have witnessed a family whose cat jumps up and hangs on screens to notify their owner that they want to come inside. One seller had a sign posted in the furnace room on a terrarium full of large, noisy crickets announcing that it was food for the lizards and snakes that were kept in the bedrooms and family rooms of the home. And then there was the family that let the horse wander in the front yard and let the bunny have the entire house to roam…you can just imagine the damage left behind on that one.


While amusing to read about, pets can be hard on your home. When you go to sell, you could have to make extensive repairs or discount your selling price to reflect the condition.

The smells are the worst. People who keep pets in carpeted rooms even in cages or kennels can have serious problems. Often the odors will not be removed with a simple steam cleaning. In most cases, I recommend that the carpet be replaced. But homeowners with serious damage find that they are not only replacing the carpet, the padding and sometimes even the sub-flooring needs to be removed to eliminate the smell.

It is possible to have your beloved pet and to protect your home.

• Keep your pet well groomed to reduce odor, hair and nail damage.



• Get a pet bed for your dogs and cats. (Several are available at www.olddogpaws.com). Our dog loves the extra comfort and it keeps dirt and sweat from his coat from going into the carpet fibers. We will move his from room to room during the day so he can stay with us. If this is too much trouble, buy several. They are considerably cheaper than replacing carpet. Our cat uses his bed daily too. It is positioned for his easy access in front of his favorite window so he doesn’t jump and leave marks on the woodwork.



• Have a proper sized kennel or cage for exotic pets and clean often.



• Clear all accidents immediately. Use special pet cleaners to remove odors and stains.



• Cover all exposed woodwork especially around windows. Pets love to jump up and look out windows. Use gates to limit your pet’s access to soft wood floors like birch or cherry wood. Nail marks require the floor to be completely sanded down before refinishing. It can get very costly.



• Don’t chain your dog to the side of your house. Chains and bolts can cause both cosmetic and structural damage to your home.
  

If you are relocating to Minnesota, are looking for Homes for Sale in Forest Lake and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties real estate in Minnesota.


Copyright 2007 terieckholm.com