Posts tagged as:

twin cities

Turning Down a Listing

Contrary to what most might think, many real estate agents aren’t desperate for listings. Yes, there are those out there that will take a listing because they really need it, no matter how overpriced the home will be, but I am not one of those agents.

Recently I turned down an expensive home simply because the home owner and I could not agree on a price. He saw it as a million dollar home, but I knew it was not worth anywhere near his dream number. I did my research, showing him what similar homes in the area had sold for. I even went so far as to take him out into the local marketplace and show him active listings, comparing those million dollar homes to his, hoping the information would sink in that his home in no way compared to those high-end homes. But alas, he still felt his unluxurious home was superior to them. We parted ways that day with a handshake, and I wished him all the best in the sale of his home.

He seemed surprised that I was turning down the listing. “Wouldn’t you like this home to be showcased on your website?”, he asked. I would have liked to have plainly said “Yes, but only if it is priced correctly”, but I was nicer than that.  Here are some reasons why I don’t take overpriced listings:

  • I was asked how much marketing it would take to get his home sold and I flat out told him that no amount of money thrown into marketing the home would make it sell if it was overpriced. See, agents don’t get paid unless a home sells, so we have to put thousands of dollars into photos, brochures, marketing, etc before we see a dime in commission. If the home doesn’t sell, then we are out all those costs. Taking an extremely overpriced listing means that the odds of that home selling are so rare that it is just not worth wasting my hard earned money. Buyers are pretty savvy in today’s tech world and know when a home is overpriced. Looking at it is just a waste of their time.
  • Telling a home owner that their home is worth more than it actual is is a Realtor Code of Ethics violation. Standard of Practice 1-3 of the Code states that “Realtors, in attempting to secure a listing, shall not deliberately mislead the owner as to market value”. I don’t know about you, but I really don’t want to ever be accused of an ethical violation.
  • I believe in being completely honest with home owners, even if I know they are not going to like what I tell them. They might throw me out of the house (never have had it happen), but at least I walk away knowing I gave them legitimate information and that it is truly their problem if they don’t like the data.
  • Beating up a home seller every couple of weeks for a price reduction is not something I like to do. Instead, I choose to educate sellers that pricing their listing correctly from the beginning ensures them that I won’t be calling them and getting on their nerves. While markets do change during a listing period and price reductions do happen, I would rather be able to back my advice up with real market data, then make up some random number just to make a seller happy.
  • When selling a home, many times a home owners number one “enemy” is the real estate appraiser. If he can’t find evidence to support a contract purchase price, then you won’t be selling your home anytime soon. And waiting for a cash buyer isn’t the best strategy.  While many won’t order an appraisal since no lender is involved, million dollar cash buyers are pretty smart and know when a home is overpriced. Don’t pray for a stupid cash buyer – they don’t exist.

Getting back to my recent experience. Another agent ended up taking the listing, which doesn’t surprise me. What does surprise me is the listing price, which is extremely overpriced. Not only will the home never sell at that price, I can’t imagine how the agent justifies wasting everyone’s time. At least I can sit back knowing that I made the right decision in walking away. Let that listing be someone else’s headache. I won’t take part in overpriced listings.

0 comments

Remodeling Bang for the Buck

Over the years, home trends come and go. What was once ultra cool is now outdated. Remember those lovely 70’s orange countertops, or avocado green appliances? Most buyers today would shiver at the sight of them, but a simple kitchen remodel could be a home owners saving grace to successfully selling their home and having the buyers jumping for joy. While renovations can help your home sell faster, don’t expect to get much of that money back.

Each year Remodeling magazine comes out with a Cost vs. Value Report which highlights remodeling projects across the nation and by region, comparing their cost to the value retained upon sale of the home. The Twin Cities is one such region which gets its own specific report. Lucky us!

According to the Minneapolis report for upscale homes, the project topping the charts for greatest % of return is siding replacement with fiber-cement board. The next two top projects are garage door replacement and window replacement (vinyl). In contrast, the top projects for mid-range homes are minor kitchen renovations, front door replacement, and the addition of a deck.

It’s interesting that the areas of the home always thought to be the best renovation projects are not the chart toppers. Kitchen renovations get only 57% of their original cost for high-end homes, and one of the lowest bangs for your buck is a master suite addition. Of course home owners want to “live” in their homes and therefore will always do projects that makes their lives simplier, or more luxurious, not necessarily concentrating on if the project will be a good return on their investment.

If you are planning on a future remodel, and want to get an idea on the resale value of your efforts, take a look at the report. If you want to renovate your home for yourself, then does it really matter what the return on investment it? After all, replacing that roof might only get you 39% of your money back, but I am pretty sure having a dry home would trump any desire to recoup your costs.

0 comments

Newest Luxury Home Trends

If you haven’t had the chance yet to view the Parade of Homes, then today is your last chance to check out the newest trends in luxury new home construction. I was able to check out a few in my spare time this week, and I have to say that some of the homes are simply stunning. My favorite by far was the “Dream Home” located in Edina.

Luxury Home Edina Minnesota

Not only does it sit on a fantastic lot, the design inside and out is classic. Designed by Charles Cudd De Novo, one of the premier luxury home builders in the Twin Cities, the home boasts 8700 square feet.

From this home and others on the market, here are some of the newest trends found in luxury homes in the Twin Cities:

  • Deep, rich, and dark hardwood floors. Some almost look black giving a great contrast to the lighter colors of the home
  • Built-in cabinets and bookcases everywhere. Many are made to look like furniture, placed in nooks and along walls. These features are not only classic, but very functional on eliminating clutter and keeping a grand home organized.
  • Marble. For high end homes, granite is no longer the staple. The use of marble for counters and floors is being seen more and more, especially for tiled bathroom floors, tiled luxury showers, and kitchen/bathroom countertops.
  • White cabinetry and trim has made a dramatic comeback with a high end twist. Many of the most expensive homes available today feature white everywhere, which mixes well with dark furniture or colorful accessories.
  • Huge, organized closets worthy of Rachel Zoe.
  • Informal office space open to the home. For instance, in the home above, informal space is part of the huge mudroom off the garage giving easy access to computers and such to family and children.

There are tons of additional features highlighted in the newest luxury homes found in Minneapolis, St. Paul, Edina, and Lake Minnetonka, but if you want a first hand glimpse, take a free day and visit some of the local open houses on weekends throughout the area.

1 comment

Minnesota DNR Makes Lake Finding Easy

Lake Finder for Minnesota Lakes

Have you ever been driving around Minnesota and passed a lake who’s name you don’t know and wonder what it is? Well now the Minnesota DNR has created a phone application to help you out.

The LakeFinder contains data for more than 4,500 lakes and rivers throughout Minnesota and the application allows you to get the information on demand with an internet connection or save it to your device for off-line access. Have thousands of lake surveys, depth maps, and vegetation reports, plus water quality and clarity data literally in the palm of your hand. You can even save them as favorites.

Check it out on the DNR website, or visit your phone’s app store.

0 comments

Fall is Starting to Arrive in Minnesota

Autumn in Dakota County

The Beginning of Fall in Minnesota

0 comments

Most Expensive Condos for Sale in the Twin Cities 2011

They may not exist in vast numbers, but currently there are 51 condominium units available city wide priced over $1 Million. Here is the top five countdown for most expensive luxury condominiums in the Twin Cities area:

  1.  Phoenix on the River in Minneapolis – trying to live up to its luxury billing, the most expensive unit for sale in the Twin Cities could be yours for a mere $4 Million. It is located across the river and has fantastic penthouse views of downtown. With 3 bedrooms/5 bathrooms and over 6200 square feet this condo unit is under construction so right now it is only a dream.
  2. The Harrington House in Wayzata– this three bedroom/three bath unit has over 4400 square feet, with amazing views of Lake Minnetonka. A few years ago these units were topping $5 Million,  but this unit is listed for great price of $3.9 Million.
  3. Washburn Lofts in Minneapolis – $3.5 Million: Built in 2004, this 2 bedroom/3 bath condo unit has 4200 finished square feet and takes up the entire penthouse level. The night time views of the Minneapolis skyline are nothing but stunning, featuring 270 degree views of Minneapolis and the Mississippi River. Did I mention that is comes with its own terrace?
  4. Phoenix on the River– did I forget to mention that this development holds not only the number one spot but number four as well? This under construction unit has 4 bedrooms/4 baths and over 5800 square feet, but is a little cheaper at $3.5 Million
  5. The Manhattan House in St. Paul – oohhhh, this one is really pretty, not to mention the fantastic views! Located in downtown, this two level penthouse has 2 bedrooms/4 baths, and over 5000 square feet and is probably my favorite of the five. It will cost you just under $3 Million, but hey, that’s pocket change, right?

View More Information about these Luxury Condo Units:

[idx-listings linkid=”161245″ count=”5″ showlargerphotos=”true”]

 

0 comments

Going Prairie in Your Yard

Swamp Milkweed in Minnesota

Recently I was reading an article in the Star Tribune that just makes you shake your head in wonder.  The City of Edina and some of its residents seem to dislike the growing natural area around the new Public Works building as it looks too “weedy”. I guess people just can’t appreciate the pink blossoms of Milkweed (which is the only thing Monarch butterflies lay their eggs on), or the beauty of yellow sunflowers swaying in the breeze. The complainants prefer manicured yards to nature and rain gardens, and want the city to start mowing the area.

Now, I really hate to go into how stupid the Mayor and Council member sound in the article, but that’s what happens when you are not educated about a subject. They need to take a class on native wildflowers, grasses, and rain gardens before they go any further on this topic and discover how beneficial this green movement can be to their town.

I first learned about Rain Gardens when I moved to Minnesota through the Blue Thumb program. I attended a class as I was curious about how they work. Simply, instead of rain water going directly off streets into sewers, the rain water first goes through the rain garden and then into the ground, thus helping keep pollutants out of our rivers and lakes. Case in point, the City of Burnsville conducted a study of the benefit of rain gardens by implementing them in a test neighborhood, and the results show how beneficial such gardens are to storm water runoff.

There is a strong push in Minnesota to go native. Prairie planting with native wildflowers is becoming much more common. Instead of bushes, home owners are planting perennial wildflowers and quite frankly, I think yards are looking better. Wildflowers offer fantastic curb appeal, not to mention low maintenance.

 Sometimes rain gardens are new to city planners, so you might have to educate your town. I requested putting in a rain garden on our property easement due to the steep slope, as rain just pours down one side of our property line, but the city member I spoke with just looked at me with dumb look on his face and asked what a rain garden was. I was then told that plants could not be put in an easement. When I explained what a rain garden does, he stuck to his guns and said no, I could not get permission to put one in. Maybe he needs to see Burnsville’s case study, and other Minnesota towns success, to get a better idea on the benefits of natural plantings.

Going prairie in Minnesota seems to be the future. The low maintenence reduces city costs while adding natural beauty to the area.  If you are interested in learning more about native plantings, the best resource I have found is the Blue Thumb program or your local county website. Here are a few other resources to check out for more information:

1 comment

Twin Cities in the Eyes of the Census

The New York Times has a great interactive map which gives insight into population growth and decline, housing trends, and ethnic/racial concentrations.  Real estate agents are not allowed to comment on neighborhood/city demographics, so this interactive tool will answer many of the questions you might have. You are even able to zoom into Twin Cities neighborhoods to get a  more detailed look on what is going on in your neck of the woods.

0 comments

Helpful Hints on Home Descriptions

Properly Marketing a Home For Sale

Beautiful Flower Beds

Most real estate agents are not good writers, so it should come as no surprise that when you read through real estate listings the descriptions are lack luster. Some agents just don’t care, some just don’t know how to write well, and some agents are so “old school” that they know no other way. Sadly, home owners are the ones hurt because poorly written descriptions fail to attract buyers, so it is extremely important to choose an agent that writes well and takes the time to create a story about your home.

I continualy write on this blog about the importance of good listing photos and how they are the first things buyers look at when searching for a luxury home in the Twin Cities. Photos are the window into the soul of the home, but to make them even better, you must have a description that tells a buyer what they are looking at.

What to Do

  • Accurately describe the home. Calling it the “Best” home in the neighborhood might not be a bad thing, but you better make sure you can back it up with photos and reasons on WHY it is the “Best” home.
  • Use good adjectives that attract buyers like “Beautiful, Lovingly Maintained, Great Landscaping, Spacious”.
  • Include longer descriptions of photos that highlight great features of your home.

    • 

What Not to Do

  • Don’t use negative adjectives to describe your home. Words like “As-Is, Motivated Seller, Small, Needs TLC, Good Value” might not sound all that negative, but they can be a “red flag” to buyers who might think the home is not worth seeing, or needs too much work.
  • Don’t put photos of your listing on the MLS without descriptions. Simple words like “living room” no longer cut it. Buyers want to know exactly what they are looking at and the best way to attract them to your home is to provide ample descriptions.
  • Don’t be lazy. Check up on your Realtor and make sure they are giving your home the marketing it deserves!

(Of course if you pick the right agent from the beginning, you probably won’t have to do much. A great agent will make your listing shine!)

0 comments

Comparing Market Value with Assessed Value in the Twin Cities

I think the answer to this post on comparing Market Value vs. Assessed Value can be summed up in four simple words, “Just Don’t Do It“. In the past few months I have seen an increased objection voiced by some buyers over home prices. When I ask them to justify their reasoning, I am quickly told something along the lines of “Well, the home is only assessed for X. Why should I pay more than that?”

To make it simple, Market Value in Minnesota is what a buyer is willing to pay for a home, where Assessed Value is a valued placed on a property by a governemnt tax assessor for the purposes of taxation. The two are not the same. Every state is different in how they calculate property assessments, and Minnesota uses a system that is different from any state I have lived in.

Take for instance Dakota County.The current 2011 tax statements that were sent out this year are not based on current home prices. Instead, they are taken from home sales that occured between Oct. 1, 2009 and Sept. 30, 2010, data that no home appraiser would be able to use under financial guidelines as the sales are too far into the past. So if I were to buy a home towards the end of 2011, the “values” used by the county assessor could be off by two years!

Now look at homes currently for sale on the open market. The most important job of a real estate agent is determining what the Fair Market Value of a property is by comparing it to other properties that have recently sold in the area. This “market snapshot” is a more accurate, not to mention more up-to-date, representation of a home’s value. If buyer’s are willing to pay “X” for a similar home down the street, then there is a good chance another buyer is willing to pay around the same amount for your home.

While homes that are priced in lower tax brackets tend to show assessed values and market values closer together, homes in the upper-bracket real estate market, especially waterfront properties and historic homes, tend to be further apart when comparing the two values. County tax assessors generally have poor to no knowledge of what the true value of an expensive home might be, as they rarely have direct access to the interior of homes. Take for instance a large historic home I sold in Minneapolis. It was a truly unique home with nothing remotely like it on that side of town. The historic elements inside the home were priceless and would be near impossible to duplicate, but according to the tax assessor, the home was assessed well below its true market value. When a buyer did come in with an offer, they had it priced at the assessed value. I literally laughed when I saw the exact number and had to do the buyer’s agent’s job for her by showing where proper comparable home’s would come from (she was an out of town agent). After some negotiating, the seller and buyer were able to come to an agreed to price, which was up considerably from the assessed value first proposed by the buyer.

So please, when you are shopping for a home, do not use the assessed value of a home as the basis for an offer. Instead, look at what other comparable homes in the area have sold for and go from there!

0 comments

← Previous Entries

Next Entries →