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

Are Homes Really a Good Investment?—Is NOW the time to Buy a House?

Annual housing numbers were released this week and there were no surprises that the housing market was down in 2007. I say there were no surprises because the double digit increases in value seen a few years ago throughout the Twin Cities and Minnesota could not continue. Everyone working in the real estate industry knew the market was ready to correct.

In the north and east metro counties (Anoka County, Chisago County and Washington County), I have notice the market correction building for the past few years. In the northern suburbs we feel the trend sooner than in the heart of the metro. So the slower market is no big news bulletin. **View Twin Cities Housing Statistics Here**

The real news is that the real estate market is poised to turn in the other direction. Who wouldn’t want to get in on the ground floor of a historically-solid performing entity?

Though real estate has peaks and valleys, it is still a good investment. Even with the recent price drop, Twin Cities home values are up significantly from where stood in the mid-1990’s. The astronomical, unrealistic pricing is gone but the core value is holding strong. Real Estate remains a good investment if people once again start treating it as such.

Glenn Dorfman of the Minnesota Association of Realtors (MAR) suggests we all look at the real estate market with a dose of realism. His recent podcast, “Not optimism, not pessimism, but REALISM...” explores the idea that everyone must look at real estate as the long term investment that it is.

Facts and common sense are what a strong real estate market is built on. Outrageous increases in property value are an abnormality in the market. Historically, housing has shown continuous, MODERATE increases. Due to the outrageous increases in the past decade, the market needed to correct.

So what does this mean to the average home owner? Think of your home purchase as a LONGTERM investment. Almost every financial planner I have ever met would strongly advise against ever borrowing against a 401K program. It is a long term investment for your retirement and the penalties are harsh if not repaid.

Borrowing against the equity in your home has similar consequences. So why would anyone think that removing equity from their home is a smart option?

So is NOW a good time to buy? In a word, Yes! Smart buyers will get in the game! Low interest rates, negotiating sellers and massive inventory give a savvy buyer options! There is no way of telling whether any market has hit bottom until the prices start going up again. Work with a Realtor, knowledgeable in your community to find a good deal!

As Dorfman says, “residential homes are long term investments in the same way that stocks are...flipping, greed and making fast money is mostly myth.”

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

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

Showing Instructions—Lock Doors, Leave a Card and Bring Your Shovel and/or Snowshoes!

Yesterday the second of January, I was out showing houses throughout Forest Lake and Wyoming, MN. It was a blustery Minnesota winter day that perpetuates the myth that our state is located somewhere north of Canada. It was COLD…No, it was downright FRIGID! Though the sun was bright, the morning temperature was -4. After a day of sunshine, the mercury had risen to the single digits or maybe teens depending on your location.

Now the native Minnesotan that I am didn’t let this stop me. I was working with a buyer who is in town sporadically. Yesterday was a day that she was in town. Our showings were set so all I had to do was warm up the car for a little longer and dress warm.

Everything went along fine until the fourth home on our tour and this was the scene. That whopping foot of snow we received just before Christmas was still on the driveway of this home! (Note that 4 foot bank of snow left on the curb by the snowplow.)

I asked my client if she thought the home was worth the trouble from the exterior. My client was adventurous so we did blaze a trail through the snow to see the home. Inside the home was nice, but not for my client

The feedback I emailed off to the listing agent was short and to the point. Shovel the driveway!

So what if the home was perfect and my client decided forgo the winter snow climbing adventure? We saw five homes yesterday. Three were vacant. Only one looked like we needed snowshoes to get to the door! If it had been “the” home, our offer would have been lower to reflect the lack of maintenance.

Today the weather is warming up and temps in the mid-30’s and low 40’s are expected for Friday through the weekend. The snow at this property will melt , pack down and turn to an ice block when the refreeze, that undoubtedly will happen, comes!

Sellers even if you have relocated or are not in the area to shovel your driveway, hire someone to maintain the exterior of your Minnesota home. It can’t sell if the buyers don’t get through the door!


Featured Minnesota Listings:

3608 Woodland Drive
20685 Georgia Ave N



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


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

Real Estate Resolutions for Home Buyers and Sellers in Minnesota

2007 brought a changed real estate market to Minneapolis, St. Paul and the extended Twin Cities suburbs. Home sellers counted market time in months rather than days. Home buyers stayed hidden in the woodwork in the first six months of the year. Those who ventured out to open houses or showings with real estate agents were often confused by the smorgasbord of properties available. In every price range and most locations there were several OPTIONS. Town homes, single family, split levels, ramblers, two stories, remodels, foreclosures, short sales and new construction.

As a Realtor serving Anoka County, Ham Lake and communities in the Forest Lake School District, I keep a close eye on the Twin Cities real estate market. During the last few months of the year, I noticed bit of a change in the wind. Activity was starting to pick up. Frustrated sellers were tired of showings and lowered prices. Buyers teetering on the edge of the proverbial pool took the plunge and wrote offers. Negotiations were made and offers accepted. The Twin Cities real estate market took one baby step toward forward at the end of 2007.

So what does that mean for those considering purchasing a home or selling their property in 2008? From Ham Lake to Forest Lake and East Bethel to East St Paul we have a strong foundation to our real estate market. Keeping the property value base strong is essential to all Minnesotans. In 2008, we should all Resolve to be Real Estate Savvy!

Resolutions for Sellers

*Team up with a professional Realtor
*Price right from the start
*Make all repairs
*Declutter
*Make each showing count by staging the home for sale.
*Be willing to negotiate.

Resolutions for Buyers

*Team up with a trusted Realtor
*Get Pre-approved and check in with your Loan Officer regularly to discuss market change.
*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 can be great.

Resolutions for Homeowners

*Even if this isn’t the year for you to sell, there are things a homeowner should be doing to maintain and retain property value.
*Maintain the interior and exterior of your home and make repairs on a continual basis rather than deferring to 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
*Take advantage of the abundance of foreclosures that will hit the market in 2008.
*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. 2008 buyers are market wise!
*Be a good steward of your properties and the communities in which they are located.
*Maintain the properties to retain value for 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 2007, 2008 could be the cornerstone of a great recovery for the Twin Cities real estate market.

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

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

A Realtor’s Role—A Glimpse and Opportunity to Become a Friend

This holiday season I was blessed with a ringing cell phone. Not just one client or contact but several. New prospects. Current buyers and sellers. Past clients and friends. And of course other agents.

Each situation and reason for calling was unique. As I consider each of these contacts I realize once again how my position as a Realtor provides a glimpse like a look through the keyhole into lives. Each phone call is the beginning to a story and often the caller is asking me to play a role. When I answer a call, it could be a romantic love story and exciting adventure or sad tragic tale. As a professional real estate agent, I play this role throughout the year but during the past few weeks many stories tugged at my heart.

Just before Thanksgiving, I received a call from a young man asking to see a listing of mine in Forest Lake. He and his fiancé just drove by the home and wanted to see it the next day as they were excited by the idea of purchasing their first home. Over these past few weeks, I shared many evenings of showing homes and meeting with their families. This excited young couple decided on property and if all goes according to plan they will start the New Year in their new home.

A week before Christmas I received a response to a newspaper advertisement for a Ham Lake lakeshore home. The gentleman caller is looking for something private on a full recreational lake. During the conversation he shared that he had just finished building a beautiful lake home in Alexandria two years ago. He had lost his lovely bride of 61 years a short time ago and he didn’t want to go there anymore. He was contemplating a new lakehome nearer the cities.

Last week I showed a home a few days before Christmas. It was perfect for my clients! I called the listing agent and left a voicemail. A day later I receive a call. The agent had a family medical emergency. He had another agent to handle his files but that agent decided to go on a holiday leave. Patiently and professionally, I dealt with the original agent. Unfortunately, the medical situation was serious and the family member died. Negotiations though delayed at times have been successful for both parties.

The calls don't always go as expected and the topics do not always stay exactly on real estate. A Realtor works with people and families all in different stages of life. This is important to me and the part of real estate that I truly enjoy.

As I review the holiday cards I receive from past clients sharing photos of growing grandchildren or news of adoptions and births, I realize that the role of Realtor is more than being a sales person or processor of paperwork. As I step into my clients’ lives to assist them with the sale of their property or purchase of their first home, I get a glimpse of their world and the opportunity to become their friend.

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 2007 Teri Eckholm http://www.terieckholm.com/

Twas the Week Before Christmas and all through the County—I’m Showing Houses!

Here it is a week prior to the Christmas Holidays and I am frantically getting ready as I always do this time of year. But in the midst of shopping for presents, sending packages, wrapping gifts and baking cookies, I have to set up and show homes to clients.

A normal year would see a slow down around the holidays but this year real estate has been anything but normal. Buyers have been out there all year long but with change on the horizon for 2008 in the mortgage industry, some buyers are very motivated to find the perfect home now!

So off we went this weekend for showings throughout White Bear Lake, Forest Lake and Hugo and Ham Lake….Surprisingly most of the homes we saw were well prepared for our visit. Christmas trees were lit and added extra sparkle. Sidewalks were shoveled at most homes. And the chocolate chip cookies were a nice touch…Hope they were meant for us and not Santa.

Not all stockings were hung with care in preparation for our visit. The one home owner that did not bother to shovel their driveway after the huge 8-12 inch snowfall last week, did miss out on a sales opportunity. The home was not bad inside but when a homeowner doesn’t bother to maintain the exterior, the interior is reviewed with an extra critical eye. The potential sale was lost as my buyers trekked up the hard packed uneven snow banks to the front door. The Rainbow Goldfish crackers left in a pile on the table were not as appealing as the cookies at the other home either.

Sellers make the most of this week and the opportunity it presents! If a buyer requests a showing on your home, make it available and make them welcome. Many buyers are very serious this time of year! A beautifully prepared home could mean the best present of all for a seller; an acceptable offer all wrapped up for the holidays!

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 2007 Teri Eckholm http://www.terieckholm.com/

Sleigh Bells Ring are You Listening?—Winter is a Great Time to BUY a Home!

A fresh blanket of snow covers the landscape across the Twin Cities from North St. Paul to East Bethel and Ham Lake to Scandia. Winter is not a time to hide from the elements and wait until spring to make a home buying decision! Although making a move in a Minnesota winter’s snow and ice is not ideal, the timing could not be more perfect to buy a home and get a GREAT DEAL!

Here are the Top Ten Reasons to Buy a Home THIS Winter!
Reason 10—Holiday Décor. Visiting homes this time of year will really put you in the holiday spirit. Many homeowners use this opportunity to deck the halls with hopes that there will be a purchase agreement in their Christmas stocking!

Reason 9—Check Window Efficiency. No that frost on the window is not a holiday decoration! Subzero temperatures really put windows to the test. Some windows will fog between the glass panes, others will ice up on the interior and then there are those that stay crystal clear in the cold. This energy efficiency test can only be done when the temperature is extreme outside.

Reason 8—Low Traffic/Less Competition. While most Minnesotans are shopping at the Mall of America for gifts or attending “A Christmas Carol” at the Guthrie Theater, savvy home buyers are visiting homes with their Realtor!

Reason 7—Realtors have Tons of Time. Most Realtors are not juggling several clients and will be able to spend more time scouring the MLS to find the perfect home for their buyers!

Reason 6—Tightened 2008 Mortgage Guidelines. In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will be required to pay more points at closing or incur a higher interest rate. The amount that a borrower could be forced to pay, even if they've never been late on a payment, could be as much as 2.00% in points or an interest rate that's 1.00% higher than the going rate.

Reason 5—Check the Heating System. Whether the home is heated with a forced air furnace or a hot water boiler, checking out the heating system in the summer is hard to do. On a cold Minnesota evening, a furnace problem is very obvious!

Reason 4—Builders Discounts. New Construction developments hoping to clear inventory before the end of the year will often slash prices. Buyers ready to buy non-contingent are in the best position for a deal…Especially when they are accompanied by their agent to assist with the negotiations!

Reason 3—Low Interest Rates. Just after Thanksgiving, interest rates dropped to the lowest point in 25 months! If you don’t buy now, you could miss a great opportunity to cash in on the lowest rates since October 2005.

Reason 2—Amazing Inventory. Whether you are looking for a starter town home, a single family home, a private country estate, a McMansion or a lakeshore paradise, there are probably a slew of properties for you to select from. A search of lakeshore in Anoka, Chisago and Washington Counties alone, yields nearly 100 available homes. Now that is a great selection!

And, drumroll please, The Number 1 Reason for Buying in the Winter—Motivated Sellers. Homes that stay on the market in December and January in the Twin Cities are homes that need to be SOLD! If they are motivated enough to suffer through a Christmas Eve showing, they probably are willing to negotiate on the price as well!

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

Copyright 2007 www.terieckholm.com

Are Buyers and Sellers Psyched Out in the Minnesota Real Estate Market?

“Psychological factors are currently the biggest drag on the housing market, in addition to a disruption from tighter credit for subprime borrowers.”
— Lawrence Yun, senior economist for the National Association of Realtors
June 25, 2007

This statement issued three months ago by Yun is still true in Minnesota today. We have low interest rates and unemployment rates below the national average yet the housing market is flat. Areas of Anoka and Washington Counties including Blaine, Ham Lake, Lino Lakes and Forest Lake have been over developed. There are several new construction homes and developments sitting empty awaiting new home buyers for, in some cases, years. In this current real estate market situation, the basic economics of supply and demand applies. When prices are too high, demand will remain low.

Home sellers in Minnesota that have gotten the message have been able to sell their homes. Existing home inventories are still high but down a bit from earlier in the year. If your home is currently on the market and not selling, there is a 2-Step approach to getting SOLD:

1. Look at what needs to be done to get your home in tip-top condition. If you have been receiving feedback from showings about ugly counters, worn carpeting, gaudy paint, old roof, etc., take action! Buyers move on to the homes in move-in condition.


2. Check your pricing against what is on the market and what has SOLD. Don’t look at solds from last year! Look in the past 3 months and what is in pending. If nothing has sold, then others in your market are pricing their homes too high as well. Work with your Realtor to make certain your home is the “best deal” in the neighborhood.

If this seems too difficult because you do not want to “give your home away”, take it off of the market. I have heard several sellers make the “I’m not going to give away my home” statement. My questions to them are “when did you buy?” and “what did you pay?” Most often the answer is years ago and for substantially less than what they are asking for the home. But these homeowners felt the over inflated prices of the last few years were “money in the bank”. This is an unfortunate misconception that keeps people from moving on to their next home.

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

Buyers Continue to Have the Upper Hand in the Twin Cities Real Estate Market

The Statistics are out for August and the numbers show that in the 13 County Twin Cities metro, home buyers continue to have the edge over sellers in the real estate market. Affordability is up. Closed sale prices are down. Home inventory per buyers remains in the 10 to 1 range. The good news for sellers is that homes are continuing to sell but at lower prices.

Opportunity is knocking. Have you seen the new ads by the Twin Cities Builders Association? In the television spot, there are doorknockers gone wild--knocking endlessly to get out the message that it is time for buyers to buy. It is more than a promotion for their new blog/website, it emphasizes the fact that the market hasn’t been this good for buyers in years. Buying now is a great investment opportunity.
Compound the increased inventory with the Federal Reserve cutting the interest rates by half a percentage point yesterday; it is an awesome time for buyers to step into homeownership!
As a Realtor working in the north metro counties of Anoka, Chisago, Ramsey and Washington, I see these trends first hand. From Ham Lake to White Bear Lake and Blaine to Forest Lake, homes are selling when sellers take the time to prepare the home for sale AND price properly. With an abundance of inventory on the housing market, buyers have literally dozens of options. Overwhelmed, they will weed out the overpriced, overlook homes with bad photos, and take time to consider all options prior to writing an offer.


2 truths of the current real estate market:

1. It is a Great Time to Buy a Home!


2. Selling a Home takes Preparation, Patience and Willingness to Negotiate.

AWESOME Featured Listings:

• 1988 Robin Lane N, Centerville, MN 55038
• 3608 Woodland Dr. NE, Ham Lake MN 55304
• 20685 Georgia Ave N, Forest Lake, MN 55025

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/

Weighty Issue for Today’s Home Seller--Make Sure Your Scale isn’t Broken!

A few years back there was a weight loss contest at our Keller Williams Premier Realty office in Vadnais Heights, Minnesota. It started as a way for people to inspire each others weight loss and help keep to New Year’s resolutions. A scale showed up in the office bathroom for participants to track their achievements. Though not a part of the contest, I stepped on that scale now and again. I hated that dumb scale…It seemed to weigh heavier than my scale at home by about five pounds or so. I didn’t like the numbers, so I avoided the scale.

Last week, I decided to give the office scale one more chance…I have been cutting back for the past few days. Maybe the scale could be my friend after all. Well, low and behold, the scale was my friend! So friendly in fact, that I weighed a whopping 50 pounds less than I had weighed on my scale at home this morning! For a split second, the sun was shining brighter, birds started singing; everything was right in the world!

Reality Check….This is the office scale. Somebody who didn’t like their numbers had probably kicked the darn thing against the wall after their weigh in. The Scale was BROKEN!! I knew this on an intellectual level; but on another unrealistic, basic feel-good level, I wanted to believe the incredibly low numbers that I haven’t seen my pre-teen years.

The euphoria of an unrealistic weigh-in was very short lived. A broken scale may give me a number I want to see, but not the number I need to know.
As I drove off to a listing appointment, I started to think about how some home sellers really prefer the unrealistic numbers of a few years back. They use a “broken scale” by measuring their home’s value by their neighbors’ sale price or a two year old appraisal. Some seem to think that they should get double the return of every penny spend on a remodeling project. And those who interview several agents and compare the competitive market analysis’s (CMA’s) will often choose the agent with the values their home the highest without question.

It’s time for a Reality Check. As a Realtor, I work diligently to get good numbers, to be your scale and weight the value of your home appropriately and correctly. In this market many people do not like the numbers. If you don’t have to move, you don’t have to get on the scale. If you are not moving in the next few years, don’t worry about the value of your home. The numbers will be different when it comes time for you to sell. Properly maintain your home it will retain a good market value.

Those have to move must step on the realty reality scale today. Due to a job relocation or change in family or financial situation waiting out the market is not an option. These sellers must be realistic when they step on the CMA value scale no matter how ugly the number is. They have to cut back on the junk and declutter their homes. They need workout hard to prepare the home for sale by making any and all repairs that potential buyers will find concerning. And they must have a proper realistic weigh-in with an accurate CMA from a professional Realtor. Take off the rose-colored glasses and listen to the professional advice of your real estate agent to get your home ready to sell and properly price your home from the start. Using a broken scale is not an option if you want to sell your home.
Other articles on Selling Your Home in a Buyers Market that might be of interest:Is the "Busy Road Factor" Affecting the Sale of Your Listing?
Home Sellers! You’ve Got to Know When to Hold ‘Em and Know When to Fold ‘Em!
Teri's Top 10 Tips for a Quick Sale!

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/

Myths of a Buyers Market

For the better part of two, maybe three, years, communities throughout the Twin Cities, Minnesota and the entire U.S. have been in the throws of a full fledged buyers market. Sellers have adjusted their minds and their prices. They have roll up their sleeves and worked to make their homes shine for the periodic showings. Homes are selling…Just not as quickly as they sold in the past decade. So when a Realtor shows a potential buyer a listing, the sellers want it to make the short list of second showing homes.

With years upon years of sellers running the show, it is hard for the average person to understand why a home is not selling. Heck, it’s hard for the average real estate agent. Basically, the homes-for-sale inventory is way up. Buyers have 50-100 homes that will meet their needs. They have become very selective when writing their offers. They want the best deal on a place to call home. Buyers in many cases are no longer buying with just their hearts; their heads are 100% in the game.

Working with both buyers and sellers throughout Anoka County in this changed market, I have noticed some interesting patterns of thinking on both sides of the transaction. Not all buyers or sellers have a firm grasp of what is happen in the real estate market which is causing some misunderstandings and frustration. It is not just in Ham Lake and Forest Lake that these situations arise, in speaking with other agents and several buyers and sellers, these misunderstandings are widespread.

Myth 1~A home with a high DOM (Days on Market) is a “problem” house.
Agents are as guilty of this assumption as their clients. Often in this market, homes just slightly overpriced can sit for months with nothing wrong per say, except price. When the price is adjusted, the DOM is still there, but the “problem” is gone. There are many GREAT homes now properly priced with high DOMs.
Myth 2~ Sellers are desperate and will take ANY Offer.
Everyone seems to have heard of someone who got that great deal on a house. Stories of sellers who needed to sell and gave away the property just to get out are running rampant over the proverbial office water cooler. When I hear a story like this from buyers, I ask them if they actually saw the paperwork. If they have not, I remind them not to believe everything they hear. Contrary to all of the stories flying around, people don’t give away houses. They just don’t. Reality is sellers will accept a fair price for their home based on current market conditions. If a seller has their home priced fairly, they won’t want to come down another $20,000-$40,000.

Myth 3~ Buyers who write “lowball” offers should be looking for homes in that lower price range.
Again, sellers and their agents alike often think that a very low or “lowball” offer on a home is a junk offer. They will often send it back without a counter offer assuming the buyer is looking out of their price range and can’t afford to spend more. Hence, the low offer.

But in many cases, the buyers are not writing an offer at the top of their game. Consider the situation of an entry level buyer in a starter home. It is imperative that a first time buyer not overpay. If their game plan is to sell again in 3-5 years, they will never have enough equity as the market is expected to stay flat for several years. Interested buyers want to start the negotiations at a lower amount and if they believe the home is not priced correctly, it might appear to be a lowball offer. A smart buyer’s agent will submit the offer with a competitive market analysis (CMA) to support the low offer. Sellers receiving an offer with a CMA attached would be wise to carefully consider the offer before throwing it back. The first offer could be the best and only offer a seller will see for months.

The bottom-line here is that we are in a changed market where buyers have a bit of the upper hand. But that doesn’t mean that buyers and sellers cannot find common ground and negotiate purchase agreements that are acceptable to both sides. Agents play a more important role than ever by making certain that clients have an understanding of the market and how their offer or pricing is being perceived. Choosing to work with a professional Realtor has never been a more important decision than it is today.


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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 Teri Eckholm 

Open Houses—Do they Work in a Buyer’s Market?

A homeowner just put their house on the market and their real estate agent recommends an open house every Sunday until the home sells. Is this a good idea?

A different homeowner lists their home and their agent refuses to do open houses since they just waste time and money. Which agent’s system is correct?

Frankly, I don’t think either of these systems is a good idea. Too many open houses can make a seller look desperate. But refusing to do open houses because they don’t work might not be in a seller’s best interest. As a Realtor, I assess each home and family situation to come up with an open house plan that will work for my sellers.

Homes do sell at open houses!

Do you live in a high demand neighborhood with lots of drive by traffic? Will families be passing by on their way home from church or on their way to restaurants and shops? Is your home priced correctly for the neighborhood?

If you can answer yes to these questions, an open house may be an effective marketing tool for your home. Potential buyers who like specific areas will stop to see what is available. If the home is well priced, I have seen buyers write offers on the spot.

One thing to consider is the internet has changed the real estate market. It allows buyers to be very informed by doing research prior to attending open houses. Often net savvy buyers are working without representation and see the insides of homes only at open houses.

If your home is well off the beaten path or you were the only one in the development to add all of the upgrades, open houses might not be successful. Buyers won’t follow more than 3-4 directional arrows and travel more than ½ a mile out of their way. Likewise buyers are frustrated when they do stop but realize that the price tag is $50K higher than the rest of the neighborhood because there are granite counters, cherry wood flooring and custom birch cabinets. If your home falls in either of these categories, open houses might not be successful.

Does your family situation make open houses convenient?
If the only family time you have at home is Sunday afternoons, it is ok to say no to open houses. Some homeowners want scheduled showings with qualified buyers only. This limits access to your home and keeps “looky-lou’s” to a minimum!

Timing and Duration of Open Houses
For most homeowners, I suggest one open house per month and not longer than 2 hours. (I will do two per month, if the homeowner’s schedule allows.)You should schedule the open house at least one week in advance. This allows time to place ads in the paper as well as on the internet.

Open houses are a valuable tool in selling your home. To be effective, they must be combined with other tools in a complete marketing plan to sell your home.