Homes MSP Real Estate Blog

Preparing Your House For The Inspection

Home inspections can be a major source of stress for people selling their homes.  If you’re selling your home and want to make your inspection go better, the easiest and most obvious thing to do would be to hire your own private inspector to go through your house before the buyers have it inspected.  This is a seller’s inspection.  If you don’t want to have this done, there are still a few simple things you can do to make the buyer’s inspection go better.

Change your furnace filter.  This is the simplest no-brainer.  When I inspect a house and find a nasty furnace filter, I’ll often recommend having the furnace and ductwork cleaned.  A dirty filter also shows a lack of maintenance and care for your home, and can make first-time home buyers nervous.

Fix electrical hazards.  This seems like an easy one, but it’s a very common problem that sometimes has easy fixes. Any extension cords that are being used in lieu of permanent wiring should be removed, and outlets installed if necessary.  The two most common places are for garage door openers and water softeners.  Also, go through your home and look for missing cover plates – look at outlets, light switches, and junction boxes.  Here are the most common places to find missing cover plates:

• The garage, especially at the outlet for the opener
• The kitchen – behind the fridge, behind the stove, above the microwave, and under the kitchen sink.
• In the laundry room
• Unfinished basement areas

Fix plumbing leaks.  This should be another no-brainer, but to be sure, go through your home and test all of your plumbing fixtures for leaks.  Repair or replace your laundry sink faucet if it leaks around the stem or the handles.  Fill up every sink with four inches of water, let it drain, and carefully examine the drain lines for any leaks. 

Test your garage door opener.  Place a 2x4 flat on ground and let the overhead door close on it.  If the door goes back up, it’s working the way it should.  If it doesn’t, adjust the sensitivity settings on your opener so it auto-reverses when it hits the 2x4.  If you can’t get this happen, replace the opener.  Warning: this test could cause damage to your opener, and some home inspectors won’t do this test.

Check your gutters and downspouts.  Clean your gutters, and repair any leaking joints.  Make sure all of your downspout extensions are properly connected, and make sure they drain well away from the house – six to ten feet is ideal.

Make everything accessible. If your attic access is in a closet, move whatever personal belongings you have that would prevent access to the attic.  If you have a crawl space, make sure that area is accessible as well.  If it looks like items have been stored to intentionally block access to an area, it raises red flags.

Capitalizing on a bad market

I had an open house yesterday near several homes in the Parade of Homes. Most of the people coming through were simply out enjoying the afternoon...open houses, especially $1.5M Parade Homes, can be great entertainment. Some people were having fun dreaming, some were getting ideas and trying to decide whether to build or buy an existing home, and others were out looking to see what their money will buy in today's market.

In chatting with people, some were keeping their eye on the bailout, others were wondering if prices have hit rock bottom yet. The truth is, not all properties hit bottom at the same time...some have already hit bottom and been purchased, someone else got the deals. Others may never hit bottom...sellers will simply take them off the market and re-list later in better times. We won't truly know when we hit bottom until we can see it looking back...by then it will have already passed.

The bottom line is, it has been years since prices were this low. I remember a number of years ago that people were lamenting that they should have bought years earlier, when prices were low. Now you can. You have another chance. Take advantage of it.

As I was in the middle of writing this post I took a pause to look at today's paper...low and behold, one of my clients was pictured in the StarTribune checking out an open house yesterday in another part of the city! The article quoted another visitor as saying he was hoping the bailout would be delayed, hoping to capitalize on a bad market before prices start going up again. It would appear he thinks the time to buy is now.

By the way...my client's house will be open next Sunday from 1 to 3. It's a delightful Nokomis craftsman bungalow at 4320 11th Avenue South with beautiful woodwork and a master suite...come on over and let's make a deal!

Sunday's Site - St. Louis Park Sorensen Neighborhood

It's amazing how often buyers bring up St. Louis Park as we start working together. But I'm not surprised...its convenient location next to both city and suburbs, its affordable homes, parks, trails and nationally recognized schools all make it a great place to live.

Sorensen Neighborhood, located between Minnetonka Boulevard and Highway 7 just west of Highway 100 is one of 35 St. Louis Park neighborhoods. It contains some of the oldest development within St. Louis Park, with the original subdivision dating back to 1887. The St. Louis Park Trolley that ran from Minneapolis to Hopkins went through this neighborhood until 1907.

Our son and his family live in this neighborhood, and like other clients in the area they love its convenient location and quiet, family-oriented atmosphere. In fact, St. Louis Park was chosen as one of the "100 Best Communities for Young People" by America's Promise Alliance for the third time this year and 2008 also marks the 15th anniversary of their Children First initiative.

Our grandson loves the neighborhood park nearby (one of 51 in St. Louis Park!), which will be the site of Sorensen Neighborhood's annual autumn get together next weekend. Neighbors get together for an afternoon of fun in Webster Park in the fall. The neighborhood association also distributes a regular neighborhood newletter and hosts a garage sale and summer picnic.

This weekend was another annual get together in the neighborhood...our son and daughter-in-law's Outdoor Movie Night. He created a huge outdoor screen which they set up in their backyard and invite friends and neighbors over for a feature movie each year. Some years have better weather than others but it's an annual event come rain or shine...so far we have never had to endure snow! In keeping with the spirit of a family friendly neighborhood, this year they featured 'Enchanted'...a delightful movie for a delightful fall evening. A good time was had by all.

Click here to see properties currently for sale in this area of St. Louis Park, Minnesota. (Please be patient while the link searches for the most current listings...pass your cursor over the dots on the map for property information.) 

Rooms Should Look as Big As Possible

When staging, my goal is to make sure rooms look as big as possible.  Why?  Bigger rooms look more inviting and brighter.  You need to scale the furniture to fit the size of the room and don't block walking pathways.  Oversized sofas or too much furniture will make the living room look smaller.

Here are some pictures of a home I just staged that is 480 sq. ft.  I loved doing this house.  It was fun to stage:

I left plenty of space in the living room, using smaller furniture.  The walls were painted one neutral color throughout the home, making it look larger.  We installed blinds, but they are left open during showings, to bring in light.

In the bedroom, I installed valances only.  The open windows make the room feel more spacious.  Note, I left the room "simple"....no chest of drawers.

The bathroom was a challenge, but we removed the door and replaced it with a folding door.   This made the hallway between the bath and bedroom much larger.

When staging you own home, remember.....less is more.....

Jeri Pischke
TENDER HEART TRANSITIONS INC.
www.tenderhearttransitions.com

Selling or Buying a Home from a Distance

It's not unusual that properties are sold while the sellers are away...whether living somewhere else or away due to work or vacation. It's less common but also happens that properties are bought from a distance. With the magic of technology it's easier than ever to sell or buy a home remotely...I recently negotiated a transaction with the seller in Italy!

Sometimes the parties involved are so scattered that it looks somewhat like an airline route map pulling everything together! Reasons can vary, here are some of the most common reasons I have experienced long distance transactions...

• Seller has moved out of state due to a job or lifestyle relocation
• Buyer is relocating from out of state or country
• Senior has moved due to illness and/or to be closer to family
• Scattered heirs are selling estate property
• Banks are selling foreclosure property
• Sellers and/or buyers are temporarily gone for various reasons

Purchase agreements are easily negotiated long distance. Closings require more planning, but don't worry...you won't have to hop on a plane to be present when it comes time to close in Minnesota. Closings also frequently take place long distance.

When selling from a distance in Minnesota documents are overnighted back and forth to be signed and notarized prior to closing...advance planning is required. It is especially important that the Deed be signed by the owners of record. If they are incapable of signing you will need an original (not a copy) Power of Attorney document specifying the signer (Attorney in Fact) has full power for real estate transactions.

Plan to give someone who will be present at closing limited Power of Attorney to sign any small changes/additions that may arise at closing. Don't worry, this Power of Attorney is very specific and limited to this pupose for this transaction only.

Closings with the seller not present are actually fairly common, not just when selling long distance. Sellers sometimes decide to pre-sign at a time and place that better fits their schedule and location. Most often this is due to work or travel schedules but there can be other good reasons to pre-sign as well. I once had a very pregnant couple pre-sign because they were afraid they might be in the hospital giving birth at closing time!

Buyers are usually present at closing...it's exciting to leave with the keys to your new home! If you are a buyer and cannot be present at closing be sure to talk to your lender and/or closer in advance to make arrangements. Some mortgages require that buyers be present to sign the documents on closing day so you may have to do some rescheduling.

Is the $700 billion mortgage bailout the answer?

We’ve all been seeing in the news lately that the federal government is trying to pass a $700 billion proposal bill to rescue the financial companies and markets.  This proposed government bailout would be using $700 billion in American’s tax dollars to primarily buy up bad mortgages that are currently owned by various investment firms and banks.

These bad loans have also been termed “toxic mortgages.” Toxic mortgages have been so named because their value has been severely discounted due to how badly they perform. Many of them end up in foreclosure and all or much of the value of the loan is lost. The government is trying to persuade the politicians to vote this proposed bill into law. If passed, it will allow our federal government to use up to $700 billion of American tax dollars to buy a lot of these loans from various private investment firms; thus, it will remove a lot of these bad loans off the investment firms’ books. This will potentially help strengthen the investment companies that currently own these bad loans.

Obviously, the cost of this proposed bailout is not free. This bailout proposal, coupled with the Fannie/Freddie & AIG bailouts of the last couple of weeks, will add approximately $1 trillion dollars to the national debt. That extra debt will be required to be paid back by our children and grandchildren, with interest.

The bill is set to be voted on either late this week or early next week.  Whether you choose to support this bill or not, you may want to consider letting your elected officials know how you feel about the proposal.

Nick Sivertsen, Summit Mortgage  nick@nicksivertsen.com

Wednesdays Unplugged - Lemon Bars

It looks like another beautiful Wednesday...a great day to be unplugged and enjoying my day cooking.

QUOTE OF THE WEEK

"Be who you are and say what you feel because those who mind don't matter and those who matter don't mind." ~ Dr. Seuss

RECIPE OF THE WEEK

This week's recipe is from my cousin in Sacramento, California...yummy lemon bars!

LEMON BARS

from Carole Martinson

CRUST

• 1 1/2 cups flour
• 3/4 cup butter
• 1/4 cup plus 1/8 cup powdered sugar

Mix together and pat into 9 x 13 pan. Bake at 350 degrees for 20 minutes.

FILLING

• 3 beaten eggs
• 1 1/2 cups sugar
• 4 tablespoons lemon juice
• Grated rind of 1-2 lemons
• 3 tablespoons flour
• 3/4 teaspoon baking powder

Mix, pour over crust and bake at 350 degrees for 25 minutes.

FROSTING

• 2 1/4 cups powdered sugar
• 3 tablespoons melted butter
• 4 tablespoons milk or lemon juice
• 1 1/2 teaspoons vanilla

Natural Gas Information You Won’t Hear Anywhere Else

On Sunday, September 21^st, a gas explosion demolished a vacant fourplex in north Minneapolis.  This was the second north Minneapolis home to have this happen since March.  I’ll go out on a limb and say I’m sure both explosions were caused by natural gas leaks, which were both the results of copper thieves doing their thing.  In both cases, neighboring residents reported strong natural gas odors before the explosions.  Natural gas is obviously dangerous, but really, how dangerous?

I believe that the utility companies cater to the lowest denominator when it comes to public service announcements about gas.  I’m sure we’ve all heard the saying; “If you smell gas, get out!”  I’ve heard the same radio commercial many times saying not to turn on a light switch, use the phone, a computer, etc… just leave the area immediately.  I’m not going to say this is bad advice – better safe than sorry, I’m sure, but I’d like to share some of my experiences with natural gas.

To start, I find gas leaks in about one out of every three houses I inspect.  These leaks are very small – sometimes so small I can’t smell the leak unless I’m very close to the pipe.  I use an electronic gas detector to find these, and I spray the suspected leak with a soap and water solution to verify that it’s really a leak, and not just a false reading by my detector.  If I see little bubbles, I report it as a minor leak, and recommend repair by a plumber.  I’ve never evacuated a house because of a leak, and I’ve never called the gas company.

How serious are these minor leaks?  To find out, I did a little testing at my own house.  I feel like I need to preface this with Don’t Try This At Home (there).  I started my test by spraying soap and water on a gas fitting and slowly loosening the connection until bubbles started forming (pictured below, left).  At this point, I could barely smell gas by putting my nose to the pipe.  I held a lighter to the gas leak… nothing.  I opened the nut more and more, and was finally able to get a small blue flame about half the size of the flame on my lighter.  At this point, I could faintly smell it from a few feet away, and got a bubble about two inches wide (pictured below, right).

With this much gas coming out, about half of what a cigarette lighter would emit, I would recommend immediate repair and would also notify the owner of the leak so they could get it fixed right away.  For the smaller leaks that are barely noticeable, I note them in my inspection reports and recommend repair, but I don’t consider them an imminent safety hazard.  So there, I said it; not all gas leaks are hazardous.  If you walk in to a room and smell gas, that’s a problem, and you should heed the gas company’s advice. 

Condo vs Townhome vs House

When you buy a house you own a piece of land and all the structures on in, including the house and garage. Restrictions about what you can do with your property are primarily dictated by the city in which you live.

When you buy a townhouse you own a section of a building from the ground to the sky and have your own private entrance from the street, much as with a house. You usually have at least one shared wall and may share up to three walls. This means outside light may be limited and the direction you face could be more important depending on your natural light preferences. Some townhomes have no private grounds, some do...but all include some shared grounds. Rules about what you can do with your exterior vary from association to assocation and can include what color you can paint your front door and whether or not you can plant any bushes or flowers. If you want to do something outside normal standards you must request approval from the association board.

When you buy a condo you are buying air space in a building and a share in the common areas. It is much like an apartment that you own. Top level units are often preferred because you have no one above you so overhead noise isn't an issue. It is not uncommon for condos to have restrictions on flooring because of noise...for example, some require carpet and some require a certain percentage of the floors be covered with area rugs. Both townhomes and condos may have rules regarding pets, but condos are usually more restrictive.

When I start working with buyers I often hear complaints about the association fees associated with condos and townhomes. In reality association fees are just a different way of assuming the responsibilities of homeownership.

When you buy a house you assume responsibility for everything. In addition to electricity, gas, water, sewer and trash removal you also are responsible for hazard insurance, mowing the grass and shoveling the sidewalks and driveway. If the roof or siding needs to be replaced or the furnace goes out you have to deal with it yourself. In a condo or townhouse some of those costs are shared and covered by the monthly association fees. Typically condo fees are the highest and cover the most.

Townhouse association fees usually include:

• Snow and lawn care
• Outside maintenance
• Sanitation (trash removal)
• Hazard insurance covering the building structure and exterior (you should secure your own separate insurance for the interior and your personal property)
• Water/sewer (some townhomes include it, but many don't - condos include it)

Condo fees usually cover all of the above, plus some or all of the following...typically the higher the fees the more that is included:

• Heating (often, but not always, central heating plant for the whole building)
• Security system (for the building, not individual units)
• Shared amenities, such as a pool, tennis courts, party room, exercise equipment, woodworking shop, car wash (some townhomes also have shared amenities)
• Laundry (can be no charge or coin operated)
• Cable television
• Air conditioning (if central for the building)
• Electricity (pretty unusual, but I have seen it included)

Associations are most often managed by a professional management company. However, some associations are self-managed by elected members of the community. They all establish their own bylaws and governing rules and regulations.

It is important to know whether the association has enough money in reserve to cover ongoing maintenace...if improvements are needed and there isn't enough in reserve it may result in a special assessment. Sometimes low association fees aren't a good thing if they aren't saving up for future expenses.

Here are some questions you might ask about the association...

• Are there any pet restrictions? (usually more restrictions with condos than townhouses)
• Are rentals allowed? If so, any restrictions and what percentage is currently rented?
• Do they have a long-term repair/replacement/improvement plan? Will there be enough reserves to cover the plan or do they plan to pay for them by special assessment?
• What and when was the last major project, and how was it funded? Any upcoming plans?
• What kind of soundproofing is in between the units?

The maximum monthly payment you are approved for when you apply for a mortgage includes association fees. This means that you will qualify for different price ranges for a condo, townhouse or house. Click here (and scroll down) for more information, including side-by-side examples of what price condo, townhouse or house you might qualify for with the same qualifying monthly payments...and for another comparison including regular budgeted expenses for each.

All three forms of ownership are good options...it's a matter of finding the best fit for you. A house gives you more independence, but also greater responsibility. A condo or townhome has the security of more regular expenses and freedom from snow and lawn care, as well as outside maintenance.

Sharlene Hensrud, Minneapolis-St. Paul Townhomes and Condos - Email

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• No Dogs Allowed...about CIC association restrictions
• House vs Townhome vs Condo - Historical Market Overview
• Common Buyer Questions
• How much difference does interest rate make in my monthly payments & the price home I can afford?
• Buying your first home...
• Things you will need when you apply for a mortgage
• Credit reports and mortgage loans
• First-Time Home Buyer Tax Credit - 2009 Highlights

Sunday's Site - Franconia Sculpture Park

This week's site was a new discovery for me...and a wonderful one! When our son invited us to join them at the arts and music festival at the Franconia Sculpture Park yesterday I thought it sounded familiar...but I had never been there. It will be on our calendar again for next year!

Located on 16 acres of restored prairie between Lindstrom and Taylors Falls, Minnesota, and about an hour's drive from the Twin Cities, Franconia Sculpture Park is a unique, living blend of grand scale sculpture on display combined with an outdoor studio of working sculpture artists. Created to nurture the artistic growth of both emerging and established artists, its rotating residents include 15-25 artists and up to 15 intern artists each year. Its display of 75 sculptures rotates as new works are being created.

What struck me as we approached is that the whole park is a 'work in progress'...it really feels like a living entity. The first photo I took was the one on the left above with three figures. It immediately grabbed me, and I wondered why it was just lying in the grass. I later learned in talking to one of the co-founders of the park that it may be cast to become the only permanent sculpture in the park. The artist, Michael Richards, created it while he was in residence at the park in 2000. In 2001 Mr. Richards was killed in the attack on the World Trade Center. Casting the sculpture in bronze is one idea they are considering to pay tribute to his memory.

The park and festival were wonderful for people of all ages. It was a treat to see so many children running around, enjoying the art and music...even creating their own sculptures. Another fun feature was a graffiti wall, which evolved during the course of the day as people added spray paint and artists used the additions to create something new. It was a magical afternoon.