Are Realtors Relics Of The Past?

I recently came across an intriguing (or disturbing based on your perspective) statistic. And if you know a real estate agent, they LOVE statistics!

In a 2007 survey by the National Association of Realtors, Minnesota home buyers were asked where they found their newly purchased home.

A surprising number (39%) found their home on the internet. Only 30% said they found their new home via a real estate agent. Even less (15%) found their home at an ‘Open House’ or by way of a yard sign. (That makes me wonder why I spend so much to rent yard signs!).

With a majority of buyers seemingly finding their homes without a real estate agent, you would think my job would be going the way of the buggy whip or VHS player!

While it’s true that real estate agents play a lesser role in finding homes, they ARE privy to many tools that are unavailable to the common man.

At Edina Realty we have an program called “Network One” This proprietary program gives us a ‘heads up’ to new properties entering the market. This preview ability is an invaluable tool to find the freshest listings coming to market. Often these homes never hit the MLS having been ‘networked’ between agents and sold even before the neighbors had an inkling of the sale.

And nothing beats good old fashioned networking via agents in our office and even agents with competing companies. Sometimes not all knowledge is found via the internet.

So while it’s true we don’t have to work as hard dragging out the old MLS books and searching for homes the old fashioned way, we still DO earn our money!

Source: The 2007 National Association of Realtors Profile of Home Buyers.

Mortgage Fraud Comes To The Twin Cities

I recently read in the national media that the Twin Cities metro area (comprising 7 counties) is a hotbed of fraudulent real estate transactions. We rank in the top ten along with such tawdry company as Las Vegas, NV. Minnesotans pride themselves on being hardworking and honest, which might explain why so many people claim to have been duped by unscrupulous mortgage officials into signing onto what turned out to be fraudulent purchase agreements.

The scam, whether driven either by greed or sheer desperation, is easy to understand. Home buyers (called ‘straw buyers’) were recruited by unscrupulous mortgage people into buying homes using ‘stated income’. In other words, proof of actual earnings was not needed to buy a home. (Needless to say, these ‘no doc’ loans are nearly impossible to get today, thanks to the current foreclosure mess.) The buyers were told to simply ‘sign on the dotted line’ and the mortgage person would find renters for the properties and pay the mortgage. For their troubles, the buyers were paid around $5,000.

Buyers were attracted to the quick money for various reasons. Many needed the money to pay for their own home mortgages, due to the current economic conditions. In the end, $5,000 only bought them years of misery. Despite a wealth of promises, renters were rarely found for these properties and no payments were made to the bank. When the banks went looking for the ‘owners’ of these homes, they came across some very surprised folks, who either had no ability or inclination to make good on the mortgage.

For a measly $5,000 their credit has been tainted and their ability to borrow money, even on homes they already rightfully own, will be either difficult if not impossible for years to come. Not only are they losing their investment properties, they also stand to lose their own personal homes.

I wish I could say there was a moral to the story. But morals are for children’s fairy tales. There will always be people willing to prey on the greedy and the needy. Until that ends, there will not be an end to our foreclosure mess.

Time Is Running Out!

Don’t let time run out on the BEST opportunity in years to own a home. With low interest rates and a great selection of homes across the Twin Cities, there’s never been a better time to make the move to the home of your dreams! Whether uptown, downtown or clear across town, count on me to find you the PERFECT home.

Home Trends: Whats Hot In 2008!

Take a cue from high-end homes.

Luxury homes showcase the latest in floor plans, appliances and décor. Check out your local tour of homes or visit some open houses in new construction neighborhoods. Living spaces like mudrooms and home offices are all the rage; formal living rooms are not.

Stick with your style

Many experts agree that your remodeling projects should reflect they style of your home. For example, if you live in an ultra-contemporary condo, a quaint country kitchen might seem out of place and turn off potential buyers when you’re ready to sell.

Kitchen updates

The kitchen is the heart of the home for many families and in addition to food preparation, it’s also a place to pay bills and do homework. Today’s kitchens tend to be open and often include cabinets for TV’s, computers and small appliances.

Go green.

Eco-friendly materials like bamboo flooring are gaining in popularity. So are Energy Star appliances, windows and lighting products, which increase energy efficiency.

Go outside.

Outdoor living spaces are the latest trend in adding a room without adding four walls. At the high end of the market, outdoor living rooms, kitchens and fireplaces are becoming standard.

Technically speaking.

As our lives become more dependent on technology, homes will become ‘smarter’, allowing homeowners to remotely arm a home security system, turn appliances on and off, and control thermostats.

Artisan color trends.

The colors of 2008 turn over a new leaf encompassing the natural, the ethereal, the homespun and the restful. These vivid elements inspire sophistication, regality and simplicity. Courtesy Lowes

Another Opening Another Home

I am writing this article while I sit at another “Open House”. Needless to say, there has been more traffic on busy Portland Avenue than there has been at the open. And really, that is too bad, because a lot of folks are missing out on the opportunity to either move into their first home, move up to a bigger home or downsize into something more utilitarian and cozy.

Too often folks think that every house that’s for sale must be a ‘foreclosure’ with all the attached baggage. This is not the case of the home I am showing today. The owners moved out of state to follow their positions with a well known Twin Cities company.

Some folks are selling because they might’ve added a child to the family and they either need more room or are thinking down the road to school. Other folks are downsizing from homes that are just too large or too far away from work, and they no longer make economic sense. And a small portion of homes are estates.

Yes, it is true there are a lot of foreclosed homes for sale; especially in my neighborhood of Minneapolis. But rarely are they the bargain they seem. Most need a lot of work to make them even habitable. If the previous owners couldn’t make the mortgage payments, it’s very unlikely they kept up with much needed repairs.

More than ever it’s imperative you use a real estate agent to help you find the perfect home. Internet photos are deceiving and a single visit to a home may not tell the whole story. Rely on the experience and expertise of a real estate agent, and you are more likely to be satisfied in the sale or purchase of a home.

Preparing For Disaster

As tornado season kicks off in the Midwest, emergency preparedness is a concern for countless homeowners and renters. Here’s an important piece of advice for those at risk: Essential documents should be placed in a safe and easily accessible place.

All of your materials should be put in a little portable fire proof safe kind of box, small enough that you can pick it up and grab it and run with it and fire-proof in case something happens when you’re not at the home. There are three essential categories of documents every family should have with them in a time of crisis.

Insurance Information

It’s life, medical, fire--basically any kind of insurance you’ll need when processing a claim, as well as the name of the agent, how to get a hold of them, and all your policy numbers. You can photocopy them, or simply write down key information on another sheet of paper if you feel you may not need the whole document. Key information to keep handy is account information, policy number, what type of insurance it is, and the given amount the home or item is insured for.

Photographs may also be valuable items to include with insurance information, Take photographs of the things you are protecting, both to show what it was, and what condition it was in at the time of the photograph.

Birth and Marriage Certificates

With birth and marriage certificates, you can get almost any other document you need to get” such as a passport. Another reason to keep marriage certificates around is for visiting purposes at hospitals, to make sure loved ones and spouses are allowed to come into the hospital and visit people in the event of an illness or injury. .

If you have a legitimate birth certificate, you can recover other forms of identification from there. Replacing a driver’s license, while that can be difficult, is much easier than replacing birth certificate. It’s also smart to keep divorce papers and military discharge information on hand, if possible.

Bank Account Information

Items to include in an emergency box might include an extra checkbook, a bank statement or anything that has information as to how the account is titled and the account number. Keeping banking files on an external computer drive or a disk might also be an option. However, if you’re worried you might be in a situation where you don’t have access to computers, paper is just as good.

Other important items to keep stored securely are numbers for your doctor, lawyer, and children’s school.

Not everyone will have access to a waterproof or fire proof lock box, and that’s okay. A plastic bag that seals will serve just as well when evacuating a disaster area. The important thing is not the disaster itself, but how quickly you can recover from disaster.

Condition! Condition! Condition!

Did you know that Minnesota real estate agents sell over 62,000 homes a year? Some people think that’s a lot. Personally, I wish that number was a lot higher. Because for every home that is sold, there are up to 11 others that either won’t sell immediately or at all. Compounding the problem are the many foreclosed properties that MUST sell, regardless of price.

How can you hope to sell your home in an upside down market? In the old days (last year) the golden word was ‘location, location, location’. Today, the mantra is ‘condition, condition, condition’.

Think of your home much like a newly single person, who is entering the dating market after many years ‘on the sidelines’. We primp and preen, update our look, maybe lose a little weight and change our wardrobe. We end up looking years younger and more desirable than ever.

Well, your home is the same way. Much like someone who is trying to attract a new mate, you are looking for someone to fall in love with your home. With a little paint, and a lot of loving, your house can look better than ever!

Many longtime homeowners probably can’t remember buyers being so picky! But it seems like buyers today have less and less time to make it ‘just right’. It’s up to YOU to make it perfect for the next homeowner

If I had my way, I would personally represent every one of those 62,000 home sellers.

Seriously, I hope you will think of me when you, your friends or relatives are thinking about buying and selling a home.

Going! Going! Gone! (Hopefully)

By the time you read this, I am hoping we will have closed on this property in Saint Louis Park, MN. If anyone truly believes their Realtor does not deserve every cent he or she makes on a transaction, have them call me! It's amazing how many telephone calls, faxes, emails and just general paperwork is necessary to get a home into escrow and closed on time. Never mind all the work of listing a property and getting it sold in the first place! Based on my commission on this property, I might have been better off working the drive up window at McDonalds. But then again, it wouldn't be quite so much fun! I hope the new owner enjoys living in this home, because it's a real cutie!

A Superior Idea! North To The Shore!

To Minnesotans, the "North Shore" means Lake Superior, in all its majesty, its shining waters stretching to the horizon. The North Shore is where Superior's craggy shoreline meets Minnesota's forested wilderness.

Crowning the tip of giant Lake Superior is Duluth, Minnesota's largest city outside of the Twin Cities area. At Canal Park there is a unique aerial lift bridge rises to let massive seafaring vessels enter the harbor. A retired ore carrier, the William A. Irvin, offers tours, and the Lake Superior Maritime Visitor Center tells details of Great Lakes shipping, including tragic shipwrecks.

Nearby are The Great Lakes Aquarium, which has about 70 species of fish from the Great Lakes and other freshwater lakes and rivers of the world and The Depot, home to a train museum with an extensive collection of historic railroad cars.

On the east side of town, the estate Glensheen is open for tours of the 39-room mansion, carriage house and formal gardens. On the western end of town is the Lake Superior Zoological Gardens.

The North Shore Drive, Hwy. 61, runs for about 150 miles from Duluth to Canada. Along the way is some of the most spectacular scenery anywhere. Seven state parks show off the natural treasures of the shoreline, including Gooseberry Falls and Split Rock Lighthouse. The historic light house in Two Harbors was built in 1892. It is the oldest, operating Minnesota light station on the North Shore and is listed on the national register of historic places.

Another North Shore institution is “Betty’s Pies” which is conveniently on the way Split Rock. It all began in 1956 when Betty's father Aleck built a fish shack by the Stewart River on Highway 61. Betty thought it would be a good idea to have some goodies for the fishermen when they stopped in, so she started making donuts and later hot dogs and hamburgers. Customers didn't really like looking at dead fish while they were eating, so in 1958 Betty turned the old fish stand into a cafe that she named "Betty's Cafe". She also added pies to her menu. Eventually Betty expanded the café by adding a lunch counter. In 1984 after making thousands of pies and attracting customers from all over the world, creating a tourist destination of sorts, Betty sold the café and retired.

When news came that Highway 61 was going to be expanded and the old restaurant needed to be moved or rebuilt, a new Betty’s Pies was built and opened in May of 2000.The world famous pies have since returned to the original recipes with help from Betty herself. During the summer months approximately 300 fresh pies are made each and every day.

Home Ownership; The American Dream

Owning a home is a key to the American dream, but with foreclosure rates at a 50-year high in the U.S. it has never been more important to be a responsible buyer. Here are four steps first-time home buyers should take before sinking their life savings into a house:

1. Assess your credit. Most mortgage lenders use FICO scores to determine loan eligibility. In general, the higher your FICO score, the better your interest rates. With a score of 650 or above, you're considered a good risk and should have no problem securing a mortgage. If your score is 600 or below, you may want to consider improving it before applying for loans. Also, keep in mind that mortgage lenders are reluctant to lend money to people spending more than 36% of their gross monthly income on debt.

2. Determine how much to borrow. Many first-time home buyers make the mistake of borrowing as much as their banks or credit unions are willing to offer. While most lenders are comfortable issuing loans worth up to 33% of your gross income, many financial planners believe 25% is a more prudent number.

3. Factor in ongoing costs. One of the upsides of renting is that when the pipes break or the refrigerator goes kaput, you can simply call your landlord to have it repaired. As a homeowner, you'll be charged with these responsibilities. So, before taking out a mortgage, be sure to factor in expenses like home improvements, basic maintenance and property taxes.

4. Save up to buy. Buying your first home isn't just a matter of bidding on a house and signing on the dotted line. Before you make an offer on a home, be sure to set aside enough money for a home inspection and appraisal. These fees vary from region to region, so ask your real-estate agent how much you can expect to pay. And don't forget about closing costs! They generally run you around 3% of the cost of the house.

Minnehaha Falls Park In Minneapolis

As one of Minneapolis’ oldest and most popular regional parks, the Minnehaha Historic District features Minnehaha Creek with its falls and glen. This cascade and stream have attracted Native Americans, settlers, tourists and entrepreneurs since the beginning of Minnesota history. The central feature of the park, Minnehaha Falls, rests near the original mouth of Minnehaha Creek where it formerly emptied into the Mississippi River. Once called Little Falls or Brown’s Falls, the cataract was a popular tourist attraction on the “fashionable tour” by steamboat up the Mississippi River during the 1840s and 1850s. The falls have always been a favorite subject of artists and pioneer photographers, beginning with Alexander Hesler’s daguerreotype in 1852. One who never visited them, however, spread their fame worldwide. In 1853, Henry Wadsworth Longfellow commemorated Minnehaha Falls in his famous poem, “The Song of Hiawatha.” Minnehaha Park shows inspired foresight in urban planning. Noted American landscape architect Horace W.S. Cleveland sketched the master plan in 1883, as part of the Grand Rounds system of parks and parkways. The plan emphasized the natural beauty of the riverbanks and lakes, and proposed a linked series of open spaces, woods, vistas and recreation areas along the waterways. The park also includes several historic sites within and surrounding Minnehaha Park. The Minnehaha Princess Station is an ornate Victorian train depot built in the 1870s by the Minnesota Central Railway. The John H. Stevens House nearby was moved to the park in 1896 from its original location west of St. Anthony Falls. The Greek-revival house was built in 1849 and is regarded by some as the birthplace of Minneapolis. The Longfellow House also stands within the vicinity of the park. Robert F. Jones built the home in 1906 to complement his Longfellow Gardens and Zoo. The 10-room, two-story Georgian house is a replica of the Henry Wadsworth Longfellow House in Cambridge, Massachusetts. Source City of Minneapolis

No Bag Days In Real Estate!

I wrote this article for a corporate newsletter in October 2007. But the gist of the piece still holds true.

Fall is the traditional time of year for raking leaves, picking apples and visiting state fairs. Another tradition is the church rummage sale, which is often held before the holiday craft bazaars take over the church basement. The last day of the rummage sale is often called ‘bag day’. Whatever buyers can cram into a shopping bag can be yours for say $5.00.

Happily, there are no ‘bag days’ in real estate. While it’s true there may be end of season bargains to be had, most homeowners de-list their properties until spring, rather than risk losing thousands of dollars in home equity.

By winter, the selection of homes can resemble the waning hours of a farmers market. The good stuff is long gone, leaving baskets of squeezed tomatoes, bunches of overripe bananas and lots and lots of eggplant!

If you are thinking of buying, there is no “best” time to buy. The best time is when you find the home of your dreams at a price you can afford. If you are selling, the market is always hungry for the ‘cream of the crop’ homes. When is the best time to call me? How about today!

10,000 Lakes and 1 sculpture garden

Another awesome day in the twin cities of Minneapolis and Saint Paul, host cities for the 2008 Republican national convention. Note to self; plan a vacation during that week! The photo was taken in 2007 at the Walker sculpture garden in Minneapolis. This summer they have created an artist designed miniature golf course. So many things to do in the Twin Cities.

41,000 And Counting

The Minneapolis Association of Area Realtors (MAAR) is estimating that over 41,000 homes will sell in the Twin Cities area. Now for the advertisement. I sell homes! Whether uptown, downtown or clear across town, I can help you find your perfect home. Have a home to sell? No fear! I am here! Just write me at; Mikeemery@edinarealty.com and soon that moving van will be parked outside the home of your dreams!