Print This Post
Email This Post
At its August 15, 2006 meeting, the City Council will formally consider adopting exterior property maintenance standards for one- and two-family homes (eg, roofs, walls, and windows would be required to be in good repair).
Property maintenance issues are high on the list of City Council goals for the community. City staff takes about 40 property maintenance complaints each month, and due to the age of Golden Valley’s housing stock, that number is expected to escalate.
Click here to read more about the proposal from the city’s web site.
Related Posts:
Edina Realty’s Funny New TV Commercials-
Rates tick up, market shows balance-
West Metro Cities Post Crime Data Online-
Water Intrusion - Not Just a Caulking Issue-
Print This Post
Email This Post
Many buyers start off their home search alone by finding homes on the Internet and then visiting the home at an Open House. When you do go to an Open House, the real estate agent you meet at the house will be kind, courteous and answer all your questions. What you may or may not understand is that this agent is there representing the seller’s best interests, not yours. Anything you say to that agent may be relayed to the seller, so be careful what you reveal if you are seriously interested in the home.
State of Minnesota statute requires agents to disclose Agency at first substantive contact, like when discussing your price, terms and motivation, but it can be difficult for many agents to explain Agency before you discuss personal items. See here for the Minnesota Agency Relationships in Real Estate Disclosure Form.
Walking through an Open House without an agent has another potential pitfall. If you decide that you want to purchase the home you see at the Open House and have a different agent write the offer for you, that agent may have trouble collecting their commission from the listing agent, due to a term called Procuring Cause.
Members of the National Association of Realtors participate in a local Multiple Listing Service affiliation, known generally as the MLS. In the MLS there is a published commission offered to Realtors who bring forward a buyer to purchase the listing. So when a buyer’s agent shows a home listed on the MLS to their client, they are assured of receiving a commission if the transaction closes successfully.
Where the problem of Procuring Cause comes in is when a buyer is first introduced to the property without their agent present, as in when a buyer walks through an Open House or calls the listing agent directly to schedule a private appointment. In that situation the listing agent may argue that they were responsible for the buyer making an offer on the home and that the agent that wrote the offer for the buyer had no direct influence on the resulting sale. In these cases, a buyer’s agent may receive only part of the commission normally offered, or may receive no commission at all.
The third reason to be represented by an agent when visiting homes is that an agent working in your best interests will likely point out positives and negatives of each property that you may not have noticed yourself, and can provide valuable insight into specific things to consider when evaluating each home. That consultation may help prevent you from purchasing a home that you may later regret or give you further assurance that the home you picked was the right one for you.
Related Posts:
Spring Parade of Homes in Full Swing-
Buyers are Relaxed, Seller are Nervous-
Why a Web Site is Like an Open House-
April Market Update-
Print This Post
Email This Post
There’s been a host of articles, TV shows and books that have come out recently to educate sellers on how to stage their home for sale, but little focus on how sellers should cope with the changing reality of the housing market.
Appraisals are not necessarily an indicator of market value
Over the last few years many sellers have refinanced their homes to lock in lower rates or to take cash out for remodeling, a 2nd home, etc. I have seen some appraisals that showed significantly over-inflated values. If I turn my head sideways, squint out of one eye and hold the comparables far enough away, I could have come to that same number! Likewise, some appraisals can be lower than true value since unless otherwise instructed, many appraisers will stop counting once they’ve hit the value necessary for the transaction. While appraisals are helpful, I rarely see them as the definitive answer of true value.
Taxable values can vary greatly
Many people look to the Taxable Market Value in county records as a benchmark for value. Considering that most assessors are in the subject property for just a few minutes, and maybe see the home every 4-5 years, it is easy to see how the taxable market value can be off by 10% or more. I’ve seen many cases where two nearly identical properties that are just blocks from each other have market values that are more than $15,000 apart.
Homes currently listed for sale (and have not sold) are not your basis for value
Though a house like yours just down the street may be listed for $255,000, if one just like yours sold last month for $240,000, you should expect that your house will sell closer to the $240,000 price point. Just because the sellers are asking $15,000 more for a similar property does not mean they will get it. Price yours at $245,000 and interested buyers will come and negotiate with you instead of them.
Sales activity is changing quickly
Because the housing market is changing quickly, your best comparables will be those that have sold in the last 90-120 days. Sales longer than 6 months ago are ancient history.
Each week, look to see what has just been listed for sale, what has received an acceptable offer (pended) and what has closed. Take a look at how your competition is doing; if many homes are selling in 3-4 weeks and you’re already at 5 weeks on the market, it’s definitely time to reevaluate your strategy.
Price it right from Day One
There are probably 2-3 (or more) houses very similar to yours for sale within a mile or two of your house. If you’re priced even $5000 higher than the other comparables for sale, buyers will likely go and negotiate with them and not with you. If you’re priced considerably higher than you should be, many buyers will not even schedule a showing to see your house!
Many sellers decide to “try it at this price and we can drop it later if we need to.” The problem with that is that most buyers will notice that your home has been on the market for a long time and will perceive your home as being overpriced or having some kind of problem even after you bring the price down to the correct level. In addition, the greatest amount on interest in your house will come in the first 30 days on the market… not the best time to be “testing” a price!
Provide a pre-inspection
If you complete an inspection of the house at the time you list it for sale, you get the benefit of being able to fix some of the problems before a buyer sees them. Additionally, this is a great way to stand out from the competition since your house has already been through a thorough examination, buyers will feel more confident about its condition. It may also speed closing as it eliminates one of the steps in the after-offer process.
I think the biggest benefit for sellers is that it eliminates a 2nd round of negotiation after the offer has been accepted. What would be worse than thinking you’re going to walk away with a certain amount of money at closing… only to find out a week after you’ve accepted the offer that there’s a list of items that are in disrepair and the buyer expects you to fix them? In some cases the inspection turns up such large unexpected problems that the buyer will decide to cancel the contract. Talk about a huge, and expensive, disappointment.
Any offer should be taken seriously
Some buyers are submitting lowball offers. While it may be upsetting to see an offer that is considerably below your asking price, remember that this is a negotiation and that you have a ready, willing and able buyer interested in the home. Talk with your agent about presenting a fair and well thought out counteroffer. An effective agent will work hard with both parties to find a solution that works for everyone.
When an offer does come in
Make sure that the earnest money is enough to motivate the buyer to follow through on the deal; 1% of the purchase price is typically appropriate. If a buyer only gives you $500 earnest money and then does not show up at the closing table, you only get $500 for your troubles.
Ask for the lender to provide a final underwriting commitment well before closing. Without a final commitment from the lender, the day of closing may come before you learn that the buyer can’t secure the financing to buy the home.
Check the loan officer/lender’s credentials. A quick call to the loan officer by your agent to verify the information in the pre-approval letter can sometimes uncover problems that you were not aware of. The pre-approval letter itself provides no guarantees whatsoever that the lender will fund the loan.
Related Posts:
Prices Are Officially Flat-
Week of May 22 Market Activity-
Wanted: New Sellers-
Minneapolis/St. Paul Housing Affordability Hits Highest Level Since July 2005-
Print This Post
Email This Post
As the inventory and days on market in the Twin Cities increase, smart agents and sellers are reassessing their price every 15-30 days. I’ve seen in two different townhome developments that new listings are being priced at or below the others currently for sale. This is smart pricing on the part of the new listing but has a negative effect on the other homes listed for sale.
For sellers that listed their home previously, they are now forced to reevaluate their pricing in the face of the new competition. If they do not adjust their price accordingly, any potential buyer is likely negotiate an offer with the better-priced seller.
Moral of the story: stay informed on your competition.
Related Posts:
Townhomes and Condos - They can be Easier to Sell Right Now-
Housing Market in Change-
This is as Good as it Gets-
Minneapolis in a Housing Crisis-
Print This Post
Email This Post
Barely a year after opening the Downtown Office, Edina Realty has doubled their market share in downtown and now the market leader for the burgeoning new residential market in that area.
In today’s changing real estate market, strength and leadership is key to success. Edina Realty has been a leader in the Twin Cities market for years and continues to show its leadership today. There’s a reason we’re #1!
Related Posts:
About the Blog-
Edina Realty Leads the Twin Cities Market-
$25 Gift Card for Application and up to $500 off Closing Costs with Edina Realty Mortgage-
Save up to $500 with Edina Realty Mortgage!-
