Homes MSP Real Estate Blog

Home Staging Statistics

I believe that the most important element for selling a home is finding a good Realtor that you trust.  And then, and the second (equally) important element is Staging the Home before it goes on the market. 

Since I'm in the Staging business, I've included National statistics on Staging from the Accredited Staging Professionals Website:

 

Sharlene Hensrud (the BEST Realtor I've found!!) and I have teamed up on some homes lately.  We found the above statistics to be true....even during the Holidays!

So if you are serious about selling your home, stage it.  Do it yourself, have a friend do it or hire someone....but stage it!  And then.....pick a successful Realtor that understands the market.  These two elements are your best chance for a faster sale!

Jeri Pischke, Tender Heart Transitions - Email - Website

Things you should know if you're planning to buy

If you are planning to buy a home this year you are not alone. Pending sales are up 13.2% over last year in spite of the frigid temperatures! Here are some things you should know about.

$7500 income tax credit

Buyers who haven’t owned a home in 3 years may be eligible for an income tax credit up to $7500  for home purchases closed by June 30, 2009. The credit is repayable at $500 per year for 15 years or in full when sold, making it essentially an interest-free loan. Click here for more information.

Credit score is important

More than ever before, your credit score determines your interest rate and the kind of loan for which you qualify. Make sure you keep 3-4 lines of credit open...without them, you may not even have a credit score! Click here to check your credit score...click here for more information about how credit scores relate to getting a mortgage.

3.5% minimum down payment

While the days of 0% down financing are gone, most people don't need 20% down to get a home mortgage in spite of what you might hear. FHA mortgages currently offer the lowest down payment option at 3.5%, up from 3.0% last year.

Finance closing costs

Most mortgages still allow you to finance your closing costs through a seller contribution of up to 3% of your purchase price...sometimes as high as 6%, depending on your mortgage.

Buyer FAQ ...why use a Realtor? what does it cost?

Today nearly 90% of buyers start searching for a home online. With more information readily available than ever before, it can also be even more confusing...and legal representation can be more important than ever. Did you know that the Realtor listing a property for sale is legally representing the seller? Did you know that most purchase agreements I write are 20-30 pages long?! Did you know that a buyer's agent is usually paid through the seller's listing contract? (That means no cost to the buyer!)  Click here for more information...and answers to common buyer questions.

Sharlene Hensrud, RE/MAX Results - Email - Website

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Getting a mortgage...

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Contingent Offers

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Finding 'Your Place'...Part 1

Finding 'Your Place'...Part 2

House Blessings

First Federal Reserve Meeting of ’09 Concludes with No Rate Changes

The Federal Reserve finished their first two-day meeting of 2009 Wednesday with no changes to their short-term interest rate policies.  The Fed intends to keep their Fed Funds rates close to 0% for now to help stimulate the weak economy.  The Fed controls the short-term lending rates between themselves and large banks.  Long-term fixed mortgage rates are controlled by financial markets.  They also remain at historically low levels.

 

None of us know what it will take to fix the current financial crisis we are in; what we do know is that with 30 year fixed mortgage rates at 40+ historic year lows in the mid-to-upper 4%’s, it could be a perfect time to consider buying a first home or upgrading to a new one.

 

There were many topics discussed at the Federal Reserve meeting, but the majority of the discussions dealt with how to repair the economy and the housing crisis.  The Fed said that they stand ready to take steps to help stimulate the economy and get it on track.

 

 

Nick Sivertsen, Summit Mortgage  nick@nicksivertsen.com

 

Wednesdays Unplugged - Pumpkin Soup with Homemade Salsa

Today is Wednesday, my day to be unplugged and cooking. It sounds like the air quality isn't going to be great today...a good day to be inside. Last week, after inspirational quotes from Martin Luther King, Jr and the Inauguration, I challenged each of us to bring ideas of things we can do to make a difference to put into the quote cup this week. I'm excited to find out what creative ideas emerge!

QUOTE OF THE WEEK

"Faith is taking the first step even when you don't see the whole staircase." ~ Martin Luther King, Jr.

RECIPE OF THE WEEK

Funny how last week's menu came to be. I looked in the cupboard and saw a big can of pumpkin...it inspired the pumpkin soup, which inspired the homemade salsa, which inspired a Mexican meal. My daughter-in-law asked if the soup recipe was going to be on the blog this week, so here it is! (My family likes corn better than beans and I happened to have one can of black beans in the cupboard and one bag of corn in the freezer so that is what I used...adjust proportions to taste.)

  PUMPKIN SOUP with HOMEMADE SALSA

• 32 ounces chicken broth
• 2 tablespoons minced garlic
• 2 tablespoons chili powder
• 1 teaspoon cumin 
• 29 ounce can pumpkin
• 1 can black beans, drained and rinsed
• 1 bag (16 oz) frozen corn
• 1 1/2 cups salsa

Combine chicken broth, garlic, chili powder and cumin in Dutch oven or large crock pot. Add pumpkin, beans, corn and salsa. Bring to a boil and simmer for about 10 minutes in Dutch oven or cook on low in crock pot.

HOMEMADE SALSA

• 28 ounce can crushed tomatoes
• 8 ounce can tomato sauce
• 15 ounce can diced tomatoes
• 4 ounce can chopped green chiles
• 2 diced fresh tomatoes
• 2 minced cloves garlic
• 1 1/4 teaspoons cayenne pepper
• 1/2+ teaspoon cumin
• 1/4- teaspoon ground rosemary
• 1 medium onion, diced
• 1/2 bunch fresh cilantro leaves, diced
• 1 fresh jalapeno pepper, diced

Mix all ingredients in large bowl. Chill and serve. This is a large recipe, you will have enough for both the soup and a generous amount of salsa dip.

Sharlene Hensrud, RE/MAX Results - Email - Website

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Whole House Humidifiers Harm Houses

Whole house humidifiers can cause serious problems, especially in Minnesota.  Sometimes, they even destroy houses.  This topic gets a lot of people whipped up, and I always hear the same arguments for having a humidifier: they prevent your hardwood floors from cracking and splitting, they make the house more comfortable, you’ll get nosebleeds if you don’t… etc.  I admit, those are all valid arguments.  Nevertheless, the damage caused by an improperly used humidifier can far outweigh the benefits, and humidifiers are almost never used properly.  From all the houses that I inspect in Minneapolis and the surrounding areas, I know this.

A whole house humidifier gets installed in the furnace ductwork, adding moisture to the air that gets distributed throughout the house.  The amount of moisture that's added is manually controlled with a dial that is usually located next to the thermostat, or next to the furnace.  To maintain the proper level of humidity, you need to know what the temperature is going to be, and then adjust the settings on the humidifier accordingly.  This is why I have such a problem with whole house humidifiers!  Here’s an excerpt from an owner’s manual:

"it is important to anticipate a drop in outdoor temperature and reduce the setting  accordingly to avoid excessive condensation. For example, with an outdoor temperature of 20°F the correct setting will be 35% RH. If the temperature is expected to fall to 0°F that evening, then merely reduce the setting to 25% several hours prior to the temperature change."

Get out!  Nobody does this!  Ok, one person does.  A buyer’s father attending an inspection got defensive about humidifiers when I told his son that I don’t recommend them.  When I explained that most people don’t use them properly, he said he adjusts his humidifier twice a day.  My jaw dropped and I told him I was impressed.  This is definitely the exception, and if you’re one of the few that use a humidifier properly, give yourself a pat on the back.

The biggest problem with whole-house humidifiers is that too much moisture gets added to the air, and the moisture condenses on the windows, walls, and especially in the attic.  Excessive moisture in the home causes mold growth.  Excessive moisture on the windows stains the finish and damages the wood.  Excessive moisture in the attic causes condensation, which can rot the roof boards.  I’ve inspected many attics with rotted or delaminating roof boards, and in every case there was a whole-house humidifier present.  If you've read my previous blog about attic bypasses, you know how moisture gets in to the attic.

My recommendation is usually to not use whole house humidifiers unless you’re an extremely ‘type A’ homeowner, which means you’ll check the weather forecast and adjust your humidifier all the time.  I do have a bit of good news about humidifiers though- the newest ones come with automatic humidity controls, so you don’t need to adjust the settings all the time!  I learned about these at Aprilaire’s web site, and I think they’re a great idea that will probably save a lot of homes from damage.  If you must use use a whole-house humidifier, use one of these.

Reuben Saltzman, Structure Tech Home Inspections - Email - Minneapolis Home Inspections

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How long should my furnace (roof, appliances...) last?

Buyers often ask how long a furnace, roof, water heater, appliances, etc usually lasts... it's a big help in factoring in upcoming costs when considering making an offer on a home. While actual longevity depends on many factors, including initial quality, maintenance, type of use, quality of installation and climate conditions, it is useful to know some national averages.

A new study by the National Association of Home Builders estimates the life expectancy of 100 household applances and building materials.  Below is a summary of some of the products reviewed...click here to see the full report.

100 YEARS OR MORE

• Brick siding: Lifetime of the home
• Solid wood floors: Lifetime of the home
• Cellulose insulation: 100+ years

50 - 100 YEARS

• Slate, copper, clay & concrete roofs: 50+ years
• Kitchen cabinets: Up to 50 years
• Vinyl floors: 50 years

30 - 50 YEARS

• Thermostats: 35 years
• Wooden windows: 30 years
• Wood shake roofs: 30 years
• Wooden doors: 30 years to lifetime

10 - 20 YEARS

• Decks: 20 years (up to 30 years in dry, northern climates)
• Aluminum/steel gutters: 20 years
• Built-in audio system: 20 years
• Asphalt shingle roofs: 20 years
• Furnaces: 15-25 years
• Gas boilers: 21 years
• Asphalt driveway: 15-20 years
• Aluminum/vinyl clad windows: 15-20 years
• Central air conditioners: 15 years
• Interior and exterior paints: 15+ years
• Faucets, kitchen sinks: 15 years
• Ranges: 13 years (electric) - 15 years (gas)
• Range hoods: 14 years
• Refrigerators: 13 years
• Dryers: 13 years
• Garbage disposals: 12 years
• Garage door openers: 10-15 years
• Window air conditioning units: 10 years
• Water heaters: 10-11 years
• Washers: 10 years

5 - 10 YEARS

• Carpet: 8-10 years
• Dishwashers: 9 years
• Microwave ovens: 9 years
• Humidifiers: 8 years
• Security systems: 5-10 years
• Smoke detectors: 5-10 years

Sharlene Hensrud, RE/MAX Results - Email - Website

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Sunday's Site - Edina's Edinborough Park

NOTE: see bottom of Sunday's Site posts for homes for sale in the area around the site

We took care of our 3-year-old grandson on Friday. It was too cold to go outside and play (yes, we live in the land of sub-zero temperatures)...a good day for a visit to Edinborough Park.  

This Edina city park, not far from Southdale Center, is a unique combination of indoor park, playground and health club. Built as part of an office, senior apartment and hotel complex you have to know it's there to find it, but people with children know it's there...it was filled with kids having a great time on Friday!

This completely enclosed, one-acre park has a bubbling brook and more than 6,000 plants, trees and flowers...a junior-Olympic size swimming pool, running track and fitness area...a 250-seat amphitheatre...a huge indoor playground with an inflatable air bounce...AND one of the largest indoor play structures in the country. Click here for general information on how to get there, hours and fees. As I write this, they feature free concerts in the amphitheatre on Sundays and Tuesdays at 7 pm and Thursdays at noon.

Click here  to see properties currently for sale in the area around Edinborough Park in Edina, MN. (Please be patient while the link searches for the most current listings...pass your cursor over the dots on the map for property information.) 

Sharlene Hensrud, RE/MAX Results - Email - Website

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How To Live In Your Staged Home

While doing a staging consultation this week, the Home Owner asked me how they were going to be able to live in their home after it's staged?  I've been asked this before, and my explanation is always the same.....

Staging a home is similar to selling a car.  Before you sell the car, you declutter it and clean it inside and out.  It may not be the way you usually "live" in your car, but you keep it clean until it's sold.  You don't leave items on the floor or seats.....it becomes habit to have it look like it just came off the showroom floor.

Once your home is decluttered, cleaned and prepared for sale, it needs to stay that way for showing purposes.  That doesn't mean you can't live. 

As an example, once staged, you will probably have new towels on display......just use your regular towels and when it's time for a showing (or you're leaving for work) put your towels away and put the new towels back out.  It's probably a little hassle, but it's so worth it!

It's very important to keep the house as clean as possible.  Some Clients actually like to live in a staged home because it feels so much better.

I try to leave my Clients a checklist of items to do before a showing....and really, that's all it takes!

Once you declutter and depersonalize, just remember that you are selling a piece of property that will sell faster in this condition! 

Jeri Pischke
www.TenderHeartTransitions.com

Multiple offers? In this market?

When people find out I am a Realtor they almost always ask if houses are selling. When I tell them I sold several of my non-foreclosure listings with multiple offers in the last year they are often incredulous.

This week I was involved in two multiple bid transactions. In one I represented the buyer on a foreclosure property, where multiple bid offers are not unusual. My client was thrilled that hers was the offer that was accepted.

What was more unusual was a property I had listed that was not a foreclosure also had multiple offers this week. Every one will tell you that even in 'good' years sales are slow in January. I won't lie to you, some of it is luck...the right buyers coming along at the right time...but when it happens multiple times it is likely there are some other factors involved as well.

Here are some tips to help you go trolling for good offers, possibly even multiple bid offers...

1. Make sure your property is in tip-top condition...that means fixing the squeaky doors and leaky faucets and everything else that needs fixing, including addressing the BIG THREE items my clients ask about: roof, furnace and windows
2. To compete in today's market your property must not only be in good condition, it needs to look fabulous...that means de-cluttering, cleaning and staging...it may also mean fresh paint, kitchen and bath updates, new flooring, etc...living in your home and staging it for sale can be  two completely different things!
3. Not only does your property need to look better than the competition...it must also be priced better than the competition...it is no longer enough to be priced similar to comparable homes...your price must be lower than the comparables
4. After you have invested time and energy into preparing your home, you need to promote it to potential buyers. With the number of buyers searching online approaching 90% it is vital that you have outstanding pictures to showcase your home. They shouldn't only be good photos...they should tell the story of your home and give enough of a feel of  it to be appealing but leave out enough to compel a personal visit. Buyers agents have told me my photos were a big factor in bringing them to the property...in fact, one buyer had only seen the property online before making an offer!

Sharlene Hensrud, RE/MAX Results - Email - Website

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Credit reports and mortgage loans

Your credit report is very important when it comes to getting a mortgage.  Now more than ever before, your credit score determines your interest rate and what kind of loan you can qualify for.  Until the past few months, if you were able to get an underwriting approval on Desktop Underwriter or Loan Prospector, you usually were able to get the best rates possible even if your score was in the 600's.  Now we are seeing rates changing based on your score and there are more  programs that require specific credit scores.

When you are thinking about buying a house, you need to look at your credit report.  For a valid credit score you need to have at least 3-4 tradelines.  That means that you need 4 open credit accounts, it can be a student loan, a car loan, credit cards, etc.  If you close a lot of accounts, that will lower your score as you have less available credit.  If you open a lot of accounts, it can also lower your score as you now have more credit available without a history of making the payments.

In the last couple of months I have told some clients to make sure they are using their credit cards (and that was hard to do!!).  I have had clients with years of credit history, but only 3-4 open accounts and most of those didn't have a balance.  What we are hearing is that you need to use the card to keep it active.  So use the account, pay it off, but keep the accounts open.  These clients have had credit scores in the 780-820 range, but I had to search the report to make sure it was a valid score.  If they did not have 4 tradelines, some mortgage underwriters would not accept the credit report.  About a year ago, we had a client that had an approval in the spring with a 700+ credit score, in the fall she went to update her pre-approval and her credit score was blank.  She had not used any of her credit cards and didn't have a car loan, so there had been no activity on her report.  In today's market, she would have a very difficult time getting a mortgage.

The other issue that we are hearing about is credit card issuers may lower your available credit on your credit card if you do not use it.  This can lower your credit score as the available credit is very important in scoring.    This also goes along with people consolidating their credit cards into one account and closing their other cards.  When you do that, your available credit is much lower and so it looks worse than having several accounts with smaller balances.

Make sure you look over your credit report so that you know what you have.  You can ask a mortgage loan officer to help you or you can go to a website that will give you a copy for free.  One site is www.annualcreditreport.com, I know there are also other ones out there.  Make sure there are no mistakes and it is a good idea to check it once a year.  Your credit report can also affect your insurance rates and many employers check it before they hire you.

Leslie Vanderwerf, Advisors Mortgage - lvanderwerf@advisorsmtg.com  - Website