Homes MSP Real Estate Blog

Should a Home be on the Market During the Holidays?

I just got a call from a Client who is taking her home off the market "for the holidays".  Her house has been on the market for a little while, she had an offer that fell through and now she doesn't think it will sell until after the holidays.  I wrote about this last year, but after this call, I thought I would write about it again.

So, should you list a home during the holidays? There are pros and cons, but my answer is always YES!!  There are buyers out there who need a home.....and they're serious buyers.  Plus, there is less inventory during this time, which means less competition. 

The same rules apply for staging a home now.....you want prospective buyers to visualize themselves in your home.  It's actually a great time to do that! Staged correctly, the home can look very warm and inviting. 

Did you know that most buyers have already looked at your home on line before they come to see it? Did you know that it takes less then 30 seconds for a buyer to decide if they want to buy your house?

So, it's important that decorations are not over the top.  I'll do another post about decorating, but here are some tips about setting the stage from last year:

• Switch out regular white light bulbs with amber-colored lights in the home for a rich, warm glow and feeling. Use seasonal items, such as poinsettias, evergreen branches and colored ribbons, but avoid displaying religious icons.

• Add velvet and silk to table tops for softness. By seeing smooth textures in the home, the brain registers the feeling of warmth and softness.

• Play gentle, well-known music without words. Music makes the buyer feel light and happy, and sets a positive mood.

• Simmer cider with orange slices and cinnamon and layout fresh-cut evergreen branches. Avoid using artificial sprays, however, because many people have reactions to the chemicals.

• And since the sense of smell contributes to the sense of taste, treat prospective buyers to chocolate chip cookies or cinnamon muffins taken out of the oven an hour before showing.

While it's a very busy time of year, you can have a house on the market and survive.  Consider times that you might not want your home shown (during parties etc) and communicate that to your Realtor.  And also talk to your Realtor about any concerns you have. 

So, do you list now or wait??  Just remember that you can't sell your home if it's NOT on the market.

Jeri Pischke, Tender Heart Transitions - Email - Website

Biggest Complaint about Realtors

Did you know that the biggest complaint about Realtors has nothing to do with competency? The biggest complaint is poor communication!

It never ceases to amaze me when our broker says the number one reason clients call him is they can't get in touch with their agent...or when clients tell me the reason they chose me was because I answered the phone...or text...or email!

As you narrow your search for an agent to represent you, communicate with your preferred agent in the way you like to communicate...whether it be by phone, email, text, fax, mail. Does the agent respond in a timely manner? You will be working closely together, do your communication styles and expectations match?

Keep in mind that agents do have lives in addition to selling real estate, and also usually do not respond to calls, etc when they are with other clients (the same courtesy which would be extended to you).  If you don't get an immediate answer, leave a message...and if you leave a message during the business day you should expect a response of some kind sometime that day. Occasionally a message can get lost so don't give up too quickly, but if you try a couple times and still don't get a response it could be a sign of frustrating times to come.

Communication is not only important with clients, communication with other agents is also vital. I  have a client who saw a property he is interested in around noon yesterday...I left both voice and email messages for the listing agent...still no word by the next morning. The listing said sellers were motivated...I wonder if the sellers know they have an interested potential buyer! 

I had another case recently where it took multiple attempts over several days, including a couple calls to the broker, before making contact with the listing agent of a property my buyer liked. My client liked the property, but chose another one partly because the poor communication raised questions about whether we would make it to closing! Whether buying or selling a home, communication on all sides is key to successful negotiation and closing...and don't forget that as a buyer or seller you are also part of that equation!

Check out what clients say about their experience with an agent. To quote some frustrated buyers and sellers, you don't want to feel like your agent "treats you like a mushroom...kept in the dark and fed crap!"

Sharlene Hensrud, RE/MAX Results - Email - HomesMSP.com

Freddie Mac's Open Access

Both Fannie Mae and Freddie Mac have special refinance programs available to consumers that have Fannie or Freddie mortgages.   These programs were designed to help those that want to refinance their mortgages, but their home values have decreased. 

Open Access allows you to refinance your home if:

• If your loan was sold to Freddie Mac originally
• If your loan doesn't have mortgage insurance right now
• If you don't owe over 105-125% of what the house is worth today - not what you paid for it
• If the loan is a rate/term refinance, not a cash out
• Then you can probably take advantage of the Freddie Mac Open Access program.

This has been going on for several months now, but with Freddie Mac until now, you had to use the lender that wrote your loan.  For example if you had a loan that was bought by Bank of America, you had to work with Bank of Amercia, now you can work with any lender that is approved to do the Freddie Mac Open Access program.

Fannie Mae has allowed this from the beginning.  Fannie's rules are basically the same as Freddie's and their program is called DU refi plus.  If your loan is with a different bank, some banks are requiring a value of not more than 95%.  The best part of that is if you qualify for the loan and you are not currently paying mortgage insurance, when you refinance you will not have MI on the new loan. 

If you currently have mortgage insurance, it is more difficult to almost impossible.  You must still keep mortgage insurance on your loan and it has to be transferred in accordance with the MI providers transfer policies.  Standard MI is not allowed.  Many lenders are only doing these loans if the borrower currently does not have mortgage insurance.

To find out if you have a loan that will qualify for these programs, you need to contact a lender that is approved to do these loans.  If you aren't sure if your current mortgage is a Fannie or Freddie loan, you can go to their websites and put in your address.   Fannie Mae is www.fanniemae.com and Freddie Mac is www.freddiemac.com.  Both sites have spots for you to put in your address and it will tell you if your loan is owned by that company.

As long as your house appraises for 105% or more of your current mortgage, you should be able to refinance with these programs - as long as you qualifywithin income and credit guidelines.  Both Freddie and Fannie allow for up to 125%, but most lenders are capping the program at 105%.  So if you bought your home for $200,000 and have a mortgage of $160,000; the appraisal would have to be at least $168,000 for you to refinance with these programs.

Leslie Vanderwerf, Advisors Mortgage - Email - Website

Wednesdays Unplugged - Fresh Pumpkin Pie

NOTE: I spend my Wednesdays Unplugged from appointments. It's my day to stay home, enjoy cooking and welcome our kids and grandkids for dinner in the evening. We end our meal with quotes from the Norwegian 'Quote Cup' passed on to me from my grandmother. I share a quote and a recipe here each week, and sometimes some photos of family fun. I love trying new recipes...and love getting recipes you would like to share!

QUOTE OF THE WEEK

"I always find it more difficult to say the things I mean than the things I don't." ~ W. Somerset Maugham

Last week we spent a few days on the south shore of Lake Superior, visiting dear friends who have a stunning home in a beautiful setting on Bark Point. It was a wonderful fall getaway, complete with crashing waves and the vibrant colors of fall. 
We arrived on our friend's birthday, and when I asked what kind of cake she would like me to make and bring for her she said she didn't want cake at all...she wanted pumpkin pie! So...thus began my quest to make my first pumpkin pie made from a fresh pumpkin. I must admit, it will be hard to use canned pumpkin again!

RECIPE OF THE WEEK

First step was getting the pumpkin. I learned pie pumpkins are not the same as jack-o-lantern pumpkins, which are too large and stringy. A pie pumpkin is a sugar pumpkin, surprisingly small. You should pick a pumpkin that is firm, well-shaped and heavy for its size with a hard, tough skin...or stop at Sweet Corn and More and have them help you pick out a good one! My husband stopped to pick up the pumpkins and was told he didn't really want the ones he picked out...the owner hand selected a couple for him!

After researching various ways to prepare the pumpkin, I decided to bake it. It was very easy, and the skin slipped right off after it was baked. I followed one recommendation to drain the pumpkin after pureeing it and would highly recommend it. I was surprised how much liquid was in the bottom of the bowl the next day. One thing that has always bothered me about many pumpkin pies I have had is they get 'slimy' after the first day. This one did not at all. The filling was deliciously 'bulky', and did not 'leak' even after several days!

The pie crust recipe I used was from allrecipes.com, a prize winner with a rating of 4.7 after over 200 reviews. It uses butter for flavor and shortening for flakiness. Rolling it out between two sheets of plastic wrap was neat, clean and easy.

I decided to use a filling recipe from Moosewood Restaurant. I read many comments on what a difference fresh ginger can make in any pie recipe so substituted fresh grated ginger for powdered, doubling the amount. Next time I may try powdered to compare...may also experiment with different spice variations. I used dark molasses, may try light next time. I loved the consistency of the filling, with 4 eggs making it more like a custard. I baked it just until the center no longer jiggled, then turned off the oven and let the filling finish setting as the oven cooled.

FRESH PUMPKIN PIE

PREPARING THE PUMPKIN - 1-3 days before baking the pie

Select a firm, well-shaped sugar pumpkin that is heavy for its size and has a hard, tough skin. One pumpkin will make one pie. Cut it in half from top to bottom by the stem. Remove the seeds and lightly oil the cut surface. Place cut-side down on a baking sheet lined with foil that has been lightly oiled. Bake at 325 degrees F until the flesh is tender when poked with a fork, about 1-2 hours. Cool until warm, then slip off the skin. Puree the pumpkin in a food processor. Line a large strainer with cheesecloth, place the strainer in a large bowl, and pour in the pureed pumpkin. Lay a piece of plastic wrap directly on top of the pumpkin and put it all in the refrigerator overnight. Puree can be refrigerated up to three days before use.

BAKER'S SECRET PIE CRUST - single crust, 9 1/2" deep dish

• 3/4 cup cake flour
• 3/4 cup all-purpose flour
• 1 teaspoon white sugar
• 1/2 teaspoon salt
• 1/8 teaspoon baking powder
• 4 tablespoons unsalted butter
• 5 tablespoons shortening
• 1 egg yolk
• 2 teaspoons distilled white vinegar
• 3 cubes ice
• 1/2 cup cold water

Measure butter and shortening onto a plate, put into freezer for about 20 minutes.

Measure cake flour, all-purpose flour, sugar, salt and baking powder into the bowl of a food processor. Pulse for a few seconds to mix. Take 1/2 of the cold butter and shortening, put into processor with dry ingredients and pulse off and on for about 1 minute, scraping down a couple times. Add the rest of the cold butter and shortening and pulse briefly, leaving pea-sized chunks. Do not over process.

In a measuring cup, mix egg yolk and vinegar together, add ice cubes and water and chill 3-4 minutes. Remove mixture from food processor, place in large mixing bowl and sprinkle with 4-5 tablespoons of the egg mixture a little at a time, mixing gently with a fork until it clings together. You do not want the mixture to be wet or over-mixed.

Wrap dough in plastic wrap and refrigerate for a few minutes. Roll out between two sheets of plastic wrap and mold to a 9 1/2 inch deep dish pie plate. Let it rest in the refrigerator for 40 minutes to relax the gluten and reduce shrinkage, then place it in the freezer for 20 minutes to increase flakiness. Take it from the freezer, add filling and bake immediately.

PUMPKIN PIE FILLING

• 3 cups pumpkin puree
• 3/4 cup honey
• 2 tablespoons molasses
• 1/4 teaspoon powdered cloves
• 3 teaspoons cinnamon
• 1 1/2 teaspoons powdered ginger (I used 3 teaspoons grated fresh ginger, gives a slightly different flavor) 
• 1 teaspoon salt
• 4 eggs, slightly beaten
• 1 can evaporated milk (or 2 cups scalded milk)

Mix in order given. Pour into pie shell and bake 10 minutes at 450 degrees F, then reduce heat to 350 degrees and bake 40 minutes or longer, until set.

Sharlene Hensrud, RE/MAX Results - Email - HomesMSP.com

RELATED POSTS

• Wednesdays Unplugged - Pumpkin Soup with Homemade Salsa
• Sunday's Site - Golden Valley's KDPGA Pumpkin Weigh-In

Top 10 Home Inspection Defects For Old Houses

10.  Tree Branches Rubbing On The Roof  Tree branches do a lot of damage to roofs.  Just think about branches rubbing on the roof all day long while the wind is blowing.  This adds up to a lot of damage.  Tree branches too close to the roof will also give squirrels, raccoons, and other pests very easy access to the roof.

9.  Double-Tapped Circuit Breakers  Every circuit breaker in the main panelboard should have only one wire connected to it, unless the circuit breaker is designed for more than one wire.  Most aren't.  Sometimes the fix for this defect is very quick and easy, sometimes it's a major project.

8.  Bath Fans That Don't Exhaust Properly I start my home inspections by turning on every fan in the house, and I make sure that air gets exhausted to the exterior.  I find a ridiculous amount of fans that make plenty of noise, but don't move any air.  The problems can be caused by disconnected ducts, ducts that aren't continuous to the exterior, blocked internal dampers, stuck external dampers, or kinked ducts.  A bath fan exhausting in to the attic is always the worst.

7.  Missing / Improperly Located Smoke Detectors  Smoke detectors should be present in a common area on every level and in every bedroom, and the installation instructions need to be followed.  I can't tell you how many smoke detectors I see tucked away in to corners - this is never an acceptable installation, because smoke won't get there fast enough.  

6.  Missing Cover Plates  Missing or broken cover plates at outlets and switches are shock hazards, period.  Common problem, easy fix.

5.  Improperly Wired Outlets  Ungrounded three-prong outlets and outlets with reversed polarity are very common defects.  These are shock hazards.  You can check the outlets in your own home with an outlet tester that costs about five dollars.

4.  Missing Carbon Monoxide Alarms.  Minnesota requires carbon monoxide alarms within ten feet of every sleeping room.  Lots of people put them in the same room as the heating plant; that's fine, but it's not required.

3.  Poor Water Management  This consists of the same thing every time - negative grading and improper downspout extensions.  This is almost always the cause of wet basement and foundation problems.  The grading around the house needs to slope away, and downspout extensions should take water well away from the house.  Improper downspout extensions are worse for the foundation than no gutters at all.

2.  Missing Anti-Tip Devices At Ranges  Ranges have been sold with anti-tip brackets since 1991, but it's pretty rare for me to find the brackets installed.  These are required to prevent ranges from tipping over, which could cause serious injury or death to a child.

1.  Attic Bypasses  I find these all over the attic on almost every old house I inspect.  Attic bypasses allow conditioned household air to leak in to the attic space, and they can reduce the effectiveness of insulation by as much as 70%.

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

Choosing a Realtor to get your home not just listed, but sold

If you are like most people, the sale or purchase of a home is the highest dollar transaction in which you will ever take part. That reason alone means choosing the right Realtor to represent you in the sale of your home is critical. You may have already learned that all Realtors are not created equal...and that getting your home sold often involves more than just listing it for sale.

If your goal is to get your home sold, not just listed, it is crucial to connect with a Realtor whose goals match your own...and who has the knowledge and skill to carry it out.  In making your decision consider these three major areas...

1. Market knowledge

In today's evolving real estate market it is more important than ever that the person you choose to represent you has a good grasp of what the market is doing not only in your broad community, but also in your immediate neighborhood. All real estate is local, and that includes not only pricing but also condition. Who is your target buyer? How should you prepare and price your home to best appeal to that target market in your specific neighborhood?

Listen to how agents critique your home and come up with an estimated market price. The agent who says everything about your home is great and suggests the highest market price is likely not the best agent for the job...unless they offer good supporting evidence. The agent who is willing to risk offending you and losing your listing in order to help you get it sold will more likely be the one who will be able to bring you to the closing table.

2. Internet marketing presentation

With the vast majority of buyers doing most of their home searching online, your Internet presence is critical. Ask for examples, then put on your 'buyer' hat. Would what you see make you want to visit the property? I have had clients tell me they had family and friends contact them after they saw their home online, asking "is that really your house"?! That is exactly as it should be...it should look the best it can be...and better than your competition!

3. Communication

The single biggest complaint people have with Realtors is communication. When you call a prospective Realtor and leave a message or send an email, how long does it take for the agent to get back to you? It can also be an indication of how long it will take the agent to respond to potential buyers...you don't want to miss any opportunities. Another important indicator is the response itself...does the agent actually answer your questions when he or she responds? What do other clients say about their experience?

You may have noticed that commission was not on the list of primary factors to consider when choosing a Realtor to represent you. That is because choosing the right agent is different from choosing the cheapest agent. A lower commission often also means lower levels of service in the important areas above. It could also mean a lower commission to the buyer's agent, which could result in decreased interest in your property. Be sure to consider all factors involved and don't let the commission sway you too much. It doesn't matter what the commission is, if your property doesn't sell your proceeds are zero!

In addition to professional competency, perhaps the most important final deciding factor is how you feel. You will be working closely with this person. Is this someone you feel comfortable working with and feel you can trust...or do you feel uneasy?  Trust your gut.

Sharlene Hensrud, RE/MAX Results - Email - HomesMSP.com

RELATED POSTS

• Price vs Value...what you pay vs what you get
• Dual Agency...and other agency relationships in real estate transactions

Sunday's Site - St. Croix Boat & Packet Co, Stillwater

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

If you live in Minnesota, water becomes a part of your life and also becomes a part of many special occasions. In the metro area, boat cruises are often a part of special events and are available on Lake Minnetonka on the west side of the metro, on the Mississippi River through the central part of the metro, and on the St. Croix River on the east side of the metro.

  
Last weekend we enjoyed a celebration on a paddlewheel boat of the St. Croix Boat & Packet Co. in Stillwater, Minnesota, a charming historic river valley town on the Minnesota-Wisconsin border. Although not part of the core of  Minneapolis-St. Paul, it is close enough that it is home to many people who work in the city but prefer Stillwater's small-town feel. 

In spite of snow earlier in the week it was a beautiful afternoon, but the fall colors weren't as vibrant as they often area...a dry summer and early freeze are likely taking their toll.

 
This trip we didn't have time to stop and enjoy downtown Stillwater with its unique shops and fine restaurants, but we enjoyed the river, the crisp fall air and a sense of place that defines Minnesota. A good time was had by all.

Click here to see homes currently for sale in the area around St. Croix Boat & Packet Co on the riverfront in downtown Stillwater, MN. Please be patient while the link searches for the most current listings...click on the map to zoom in until you see icons on the dots, then pass your cursor over them for property information, click for property details. 

Sharlene Hensrud, RE/MAX Results - Email - HomesMSP.com

RELATED SITES

• Sunday's Site - Aamodt's Apple Farm, Stillwater
• Sunday's Site - Wayzata on the Bay
• Sunday's Site - Excelsior on Lake Minnetonka

Selling in the Fall

For those of you who have your house on the market right now or are thinking about listing, I'm re-publishing a post I did from last fall.  The same holds true for this year and it's important to think about how your home is perceived when decorated for a Holiday.  So here goes:

It's fall and it's almost Halloween!!  I say this every year, but I really don't know where the summer went!

Next month, I'm going to do a blog about how to decorate for the Holidays and still sell your Home.  But today, I thought I would just talk about this month.....

Selling in Fall means LOTS OF LEAVES and IT'S HALLOWEEN!!

As I've always said....Less is More when it comes to Staging.   So, my best advice for October selling is to rake, rake and rake some more.  Curb appeal is everything and can make the difference between a Buyer walking in to your home or simply passing it by. 

We all love Halloween, but when you're trying to sell, keep it clean and classy.  I love some of the decorations that are out there...just don't make it overwhelming.  These are too much!

You don't want a Buyer to focus on the leaves or Halloween decor....you want them to love your home. 

You can still enjoy the Fall season and have your home on the market....less is more!

Jeri Pischke, Tender Heart Transitions - Email - Website

3rd Quarter Foreclosure and Short Sale Market Update

The total number of lender-mediated homes for sale has dropped by about 60% since third quarter last year, but they still make up about one quarter of total inventory (25.2% vs 26.6% last year) because the number of traditional homes for sale is also down.

What is perhaps most notable is the difference between lender owned and short sale properties. The supply of lender owned properties has fallen precipitously while the supply of short sale properties is still high, as dramatically illustrated in this chart published by the Minneapolis Area Association of Realtors.

As first-time homebuyers have scrambled to take advantage of the $8,000 tax credit they have passed over short sales because of their uncertainty and potentially long time frame. If the properties don't sell as short sales, they will eventually become lender-owned (foreclosure) properties.

Last week, in reviewing September stats, I talked about how "there usually is an arc in the number of homes on the market, as it surges up in the spring and back down in the fall and winter. This year's arc is so flat it's almost unrecognizable as 'traditional' sellers have been holding back."

The charts below, also from the Minneapolis Area Association of Realtors, clearly illustrate this distinction. You can see that the normal seasonal arc in traditional listings and sales going back to 2005 is totally absent in lender-mediated listings. While the arc of traditional listings is still there, the number has been decreasing each year since its peak in 2006. Conversely, lender-mediated listings and sales started increasing at about the same time.

It is interesting that traditional sales actually increased last quarter, while past third quarter sales have dropped or held steady with the second quarter. It could have to do with foreclosure inventory being down and first-time home buyers passing over short sale properties for traditional ones.

Median sale price for traditional sales continues to be higher than for lender mediated sales, which is also influenced by a higher percentage of lender mediated homes in the lower price ranges. While the overall median sale price for third quarter was $174,000, it was $125,000 for lender mediated sales and $207,500 for traditional sales.

 

Compared to last quarter, the percentage of lender mediated inventory is down slightly for houses and up for both condos and townhomes, which has the largest share of lender-mediated homes for sale of the three property types.

 

Click here to see the full report compiled by the Minneapolis Area Association of Realtors...and click here to see interactive, sortable data by localized area.

Sharlene Hensrud, RE/MAX Results - Email - Minneapolis-St. Paul Realtor

RELATED POSTS

• Market Update - September Stats
• Time is getting short...time for a short sale?
• 2nd Quarter Foreclosure & Short Sale Market Update
• What's the difference between a foreclosure and a short sale?
• Free Foreclosure Listings - 10 Common Misconceptions about Buying Foreclosures
• 10 Common Misconceptions about Buying Short Sales 
   

Interest rates and good faith estimates

When you are comparing mortgages, some of the questions that come up are what is your interest rates and what are your closing costs?  I always tell clients that you should compare rates and closing costs, but you also need to compare at the same time.  Rates change daily and lately more than once a day!  If you talk to a lender on Monday and talk to another one on Thursday, there is a really good chance that the interest rates won't be the same.  If you call me and you call another lender at the same time, the rates may still vary - but shouldn't vary by very much.  Today I had one investor that changed rates 3 times.  It's become very common for rates to change more than once a day.  If you are shopping rates, ask how long that rate is good for.  Most of us will tell you that they are subject to change.  I keep an eye on the mortgage bond market so if it is changing rapidly, I will try and let you know that it may change quickly.

One other item to compare is the closing costs - every lender is slightly different.  Most appraisals are about the same and credit reports are about the same.  When you look at a good faith estimate there are numbers by the fees.  The 800 numbers are the lender fees (usually numbered 801 to about 825), the title fees are section 1100 and the government fees are section 1200, additional settlement fees are section 1300.  When you are comparing lenders, compare the 800 section and make sure the other fees make sense at the same time.  Each title company will vary slightly. 

I had a client call me last week and he had two different lenders he was talking to along with me.  He needed an FHA loan and one lender couldn't do FHA loans, so that was easy.  The other lender had sent him a good faith estimate and as we compared numbers, that lender was charging fees that many in this area don't typically charge.  His costs were substantially higher and my client was so glad he called around.  If he hadn't, he would have been overcharged.

We have a client right now that is comparing 5 different lenders for a purchase closing in November.  We have told him that he needs to make a decision soon as he is going to run out of time for his closing!  The lender will have to order title work and an appraisal and still get the file underwritten before his closing date!  It's a great idea to shop and compare, but try to know which lender you are going to use by the time you write your purchase agreement.

In January 2010, all lenders will be required to use the same good faith estimate.  It is going to look very different and will allow buyers to know what fees they are being charged by the lender, title company and any other fees involved.  I have seen a quick copy of it and it is very different from what most of us use today.

When shopping for mortgages, make sure you are comfortable with your lender, you will have to give them a lot of information and trust that they are making the right decisions for and with you.  Make sure you compare rates at the same time and ask for a good faith estimate to compare costs.  If a rate seems to good to be true, it may be or it may be that the lender is charging you points or additional fees to get that rate.  Ask questions and feel comfortable with the lender that you choose.  Get referrals from friends and your real estate agent.  Your agent has worked with different lenders and will have some very good suggestions. 

Leslie Vanderwerf, Advisors Mortgage - Email - Website