Staging...what does it really mean?

If you've been looking into real estate lately you've no doubt heard about home staging. Have you wondered what 'staging' really means?



As you've looked at homes for sale, you have probably walked into at least one property and thought, "Oh my goodness, what were they thinking?" - or - "This place needs a lot of work!"

That's where staging comes in. The point is to clear away all the excess 'stuff', fix what needs fixing, update what needs updating, do a deep cleaning, and create a sense of space and light.

There's a big difference between interior decorating and home staging:

Interior decorating is tailored specifically to the owner's tastes and budget, as well as to the way the owner lives and uses the space. It should say something about the person who lives there and reflect the owner's style and personality.

Home staging is tailored to appeal to general home buyers who are trying to visualize themselves in the home, like a model home. Furniture is arranged in rooms as 'cues' for how to use the space, but with few extras so buyers can mentally replace what is there with their own things and visualize how they would use the space. You want potential buyers to focus on the space rather than on 'your stuff' and make an emotional connection with your home by suggesting a lifestyle to which they aspire.

Another difference is staging improvements are usually budget-minded. Only improve those things that will add to the bottom line, and keep improvement costs in balance with the cost of the home. For instance, if new carpet is needed you wouldn't install high grade carpet in a starter home, even if that's what you would choose if you were planning to continue living there.

Paint is the least expensive way to drastically improve interiors. If you have trouble selecting colors, it's relatively inexpensive to get a color consultation with a professional designer who will provide you with a suggested color palette for your home.

Only about 10% of buyers can use their imaginations to look beyond what is there to see the potenial in a room. Staging helps the other 90% visualize themselves living in the home.

As far as color is concerned, don't play it too safe...painting everything off-white is boring and a little color can make a dramatic impact. A recent client bought a home with a deep red wall in the dining room and kitchen. She said she really liked it and planned to keep it, but would never have dared paint it that color herself!

Have questions or need help with staging? Want to connect with professional stagers (can include de-cluttering, packing, getting rid of 'stuff', fixups and painting, adding/re-arranging furnishings and accessories as needed) or color consultants? I've had both sellers and buyers use their services. Just email for Help!

Foreclosures and REOs

Continuing on the topic of getting a deal, there is a lot of talk about foreclosure and bank owned properties (REOs) these days. People often think this is the best way to get a good deal.

Occasionally there are good deals to be had, but more often the properties are in disrepair and banks are not very open to negotiation. Their definition of TLC and yours could be worlds apart! Be prepared to invest both time and money, and be aware you are buying the property in 'AS IS' condition.

Banks also take their own sweet time. Even though our purchase agreements specifically state that 'time is of the essence', it's not uncommon to wait weeks to get a response during which time they collect multiple offers. Where negotiation usually is part of coming to an agreement, banks most often just accept or reject an offer...so make your best offer up front if you are making an offer on a bank owned property.

The best deals are still most often made buying from a 'real person' rather than a bank. They tend to be more motivated to sell, their properties tend to be in better condition and they are usually more willing to fix issues that may come up in an inspection.

Getting a deal

With all the buzz these days about foreclosures and the current buyer's market thoughts often turn to the deals that can be made.

It's a great time to be buying, but don't expect to buy for a price way below list price. In any market, list price is an indication of what a seller is willing to accept at that point in time... current market conditions have likely already been taken into account, and the current price may have already been reduced from original list price.

In any market, some properties are overpriced and some properties are priced below actual value. Before making an offer, do a comparative market assesment to get a sense of the property's current value... it could be that you're getting a good deal even at full list price!

Year-to-date average sale price in the 13-county Twin Cities metro area is 95.4% of list price. This means the metrowide average sale price for a home listed at $225,000 is about $215,000.

Keep in mind this is the metrowide average, and market conditions can vary significantly from community to community. Click here to find out current market conditions for 125 Twin Cities communities.

Going out of town? Have someone watch your home...

Yesterday was a good example of why it's important to have someone checking on your home while you're out of town.

We stopped at a client's home yesterday to take some measurements, and were welcomed by a fairly strong gas smell. We called CenterPoint Energy and sure enough...there was a gas leak! If we hadn't stopped by, there could have been signficant gas buildup by the time the owner got back home after a few weeks...a potentially dangerous situation.

When you smell gas inside your home or building:

1) Leave immediately! Do not use electric switches, telephones (including cell phones), or anything that could cause a spark.

2) Call CenterPoint Energy Emergency/Gas Leak Service - they check suspected gas leaks at no cost to you

Minneapolis/St. Paul Area: 612-372-5050
Toll-free: 1-800-722-9326

Click here for gas leak information from CenterPoint Energy.

SOLD!

With all the talk of the downturn in the real estate market one would think buyers can take as much time as they want to make a decision because the property will still be available while they make up their minds.

Well, my experience just the last few days has shown that not to be the case. I had one client write an offer on a property to find that she was competing with another buyer...it happens in any market. I can't tell you how many times I have shown a property that has been on the market for a long time then ends up in multiple offers.

The lesson here is...if you find a property you really like, don't wait...it only takes one person to buy and you never when that person is going to come along. If you're thinking about making an offer on a property, ask yourself how you would feel if you decided to buy and it was gone. If you find yourself feeling extremely disappointed or have knots in your stomach...it's time to make an offer!

I'm going out with a buyer today who had selected three properties to view. Since yesterday morning, one by one all three have sold! Now we're starting over with a new list...hopefully we'll have some properties to see today.

Interest rates have been on the rise...could that be inspiring the buyers who have been waiting to see what the market is doing to make the move?

Location, Location, Location

You've probably heard it said that the three most important things in real estate are location, location, and location. It's usually spoken in regard to property value and resale value, which has validity.

What you don't hear as often is how important location also is in personal value. It's so important because it's something you can't change. You can create interior place in your home that reflects you wherever you are...but you can't change the location of your home. That's something you choose but can't change unless you move, and if it doesn't fit it can have a profound impact on your sense of well-being.

If you're considering a move, it could just mean moving to another part of the area where you already live, but it could also be that you are looking for a whole new place experience. If you are considering a move to a different city, area or country think about the different factors that make up that sense of place and what impact they will have on you. Sense of place includes things like:

• Geography, climate
• The way people live on the landscape
• The sights, sounds, music, smells
• The people, myths, stories and other intangibles that give it a specific 'feeling'

If you're ready for a change but don't know where you want to go, a couple of fun sites that can help you find a place that's a good fit for you are linked below. They both have a quiz to take to help you identify possible locations that could be a good fit for you.

• http://www.bestplaces.net/
• http://www.findyourspot.com/

As far as I'm concerned, I continue to love the sense of place in the Twin Cities of Minneapolis and St. Paul. Our walk yesterday on the Stone Arch Bridge over the Mississippi River in downtown Minneapolis demonstrates the wonderful mix that creates our Twin Cities sense of place...water, trees, parks, walking/riding paths, flourishing arts community, thriving city.

Market Update

Last week's market report compiled by the Minneapolis Area Association of Realtors shows that new listings are relatively flat compared to last year, but newly signed purchase agreements continue to decline, now over 20% behind this same time last year.

When you look at this year's activity in the chart below, you see that the trend is for increasing listings but relatively flat sales...resulting in the buyer's market you have heard so much about.


One factor contributing to the decrease in buyer activity is a tightening in lending standards. In recent years "subprime" mortgages opened up homeownership to people who traditionaly couldn't buy because of weak credit or little money for a down payment. The volume of "subprime" mortgages is expected to drop by about 30% this year, according to the Mortgage Bankers Association in Washington, DC. This means a smaller pool of qualified buyers.

The after effects of those lending practices are also causing a sharp increase in short sales and foreclosures due to a combination of declining values, no appreciation, 100% financing and unaffordable monthly payments due to increasing adjustable rate mortgages. This means an increase in the number of homes for sale, especially bank owned properties.

Many people seem to think that bank owned properties are the best way to get a good deal. My experience has shown that while that may sometimes be the case, you'll more often get a better value buying an owner-occupied property. Not only will you usually get a home in better condition, you may also get a better price. While owners may be willing to negotiate to get a sale, banks are often in no hurry to sell...they know what price they want for a property and are often willing to wait until they get it. They are also often slow to respond to an offer, with response time sometimes stretching into weeks.

In spite of public perception that the housing market is anything but certain right now, this is a good time for buyers if you're ready to buy. Homes in the Twin Cities are more affordable than in recent years, interest rates continue to be historically low inspite of the recent increases and there continues to be a big selection of homes from which to choose.

Market conditions aside, buying a home is about finding a comfortable, safe place to live...something that is always a wise investment when you're financially ready to buy.

Gardening

Last Saturday I gave a seminar on 'Third Age Life and Housing Transitions'. One of the many things we talked about was thinking about what you would miss about your current home and what you would look forward to in a new home if you were to move.



My husband and I moved from a house to a townhome about 8 years ago. Although many people love gardening and working in the yard, that was one of the things we were all too happy to leave behind. However, that doesn't mean we don't appreciate beautiful gardens. We now have the best of both worlds...beautiful grounds and gardens throughout the complex, tended by residents who love to garden. Hardly a day goes by that I don't think about how much I love living here!

One thing we don't have in our gardens, however, is rhubarb. Our son and daughter-in-law brought us a treasured package of freshly picked rhubarb so of course I had to bake a rhubarb custard pie to share. Maybe one day they'll bring us another treasured package...maybe even one of rhubarb plants so we can share with our gardening neighbors! YUMMMM....

City Inspections

As I went for my morning walk today I was reminded of our Minnesota seasons...often laughingly called winter and road construction!

We live in Golden Valley and I was also reminded of the new city ordinance effective January 2007 requiring all properties to have a sanitary sewer inspection BEFORE they are advertised for sale. It's called the I/I Point of Sale ordinance.

My experience has been that nearly all properties require some work be done, often at a cost in the thousands of dollars. If you are planning to sell, be sure to add this to your to-do list. In addition to budgeting $'s, be sure to allow ample time to have both the inspection and work completed...it's a new program and the system is somewhat overwhelmed.

A total of 12 cities in the Minneapolis/St. Paul metropolitan area require homes to be inspected before they are offered for sale, whether the sale is public or private. You can find a complete list of cities requiring inspections, with phone numbers and links to detailed information from the cities involved, at my website at HomesMSP.com.

Why RE/MAX Results?

This past month has been a whirlwind of the rites of spring... helping people buy and sell real estate... celebrating special birthdays... starting spring grilling season... watching grandkids watch the ducks in the creek.... aah, the joys of spring!

Speaking of the rites of spring...are there any other fans of Stravinsky's 'Rite of Spring'? Amazing to think it caused a riot when the ballet performance first debuted in 1913...we saw a live performance with the original Nijinsky choreography a number of years ago...what an experience! But I digress...

I have had occasion a number of times this past month to reflect on why I choose to be affiliated with RE/MAX Results. We pay a price to be affiliated with RE/MAX...is it worth it? My answer is a resounding, 'yes'! With nearly 7,000 offices in 67 countries worldwide, no one sells more real estate than RE/MAX. That means it's a name recognized and trusted worldwide. You may not know that while RE/MAX is a worldwide company, it's offices are franchised and locally owned. That means you get the best of both worlds...a respected international company plus privately owned local offices with local experts.

RE/MAX Results, a Twin Cities metro area franchise, is Minnesota's largest independently owned real estate firm. RE/MAX Results sells more homes per agent than any other real estate brokerage in the Twin Cities metro area...and also ranked #1 in the nation per the annual list published by REALTOR magazine last July!

The benefit to you as buyers and sellers is that when you work with a RE/MAX Results agent you can be assured that you have a highly knowledgeable and efficient team of professionals working with you every step of the way. Our long-term satisfied client relationships rank among the highest in the industry.

The benefit to us as agents is that we have a strong professional team supporting us, as well as a strong network of fellow agents to call upon for assistance with wide-ranging needs and questions for both us and our clients. I was reminded of this again this morning when this email came through from a fellow agent in response to a broadcast question...

"Thanks to those of you who took time out of your busy schedule, and called...I know that I can count on and trust the opinions of you folks, and it sure feels great to work among all of you! REMAX Results is the best!"

Are you ready to buy?

Market conditions are favorable for first-time buyers, but that doesn't necessarily mean you're ready to make the leap. Here are some tips to help you decide if you're ready for home ownership.

1. Take a first-time home buyer class. It will give you an overview of the steps you need to take to be ready to buy a new home and cover items such as the Pro's and Con's of buying, the hidden costs of home ownership, and Do’s & Don'ts for the home buying process. Here are some upcoming classes offered through Minneapolis Community Education.

2. Get pre-approved. Talk to a lender at the beginning of the homebuying process. They can advise you if there are some things you should do to improve your credit score first, then pre-approve your financing. By arranging for financing before you start looking for a home, you'll know exactly how much you qualify for. It may save you the heartache of falling in love with a home you can't afford or losing the right home for you because your financing isn't ready. Here's a mortgage checklist to help you prepare for your loan application.

3. Be conservative. The longer you plan to stay in the home you're buying the more you may want to stretch, but be careful not to stretch too much. Borrowing too much can mean stretching and sacrificing to the point that it's hard to enjoy life in your new home.

4. Consider all the costs. Remember that it's not just a mortgage payment you have to worry about. Be sure to also budget for utility costs, maintenance and repairs.

5. Play house. Try banking the additional amount you'd have to pay if you owned a home each month for a few months to get a better sense of what the payments will feel like. It can help you determine if you're ready for the real thing...as well as build a cache of funds you can use for your move.

Quality Living

I've been spending a lot of time in St. Louis Park lately, a first-ring suburb of Minneapolis. For one thing, that's where our son's family lives and we had fun hanging out with them yesterday, spending a rainy afternoon at the Minneapolis Institute of Arts (MIA). Our grandson was fascinated by the Chihuly glass Sunburst, especially appropriate when looking for the sun on a cloudy day.

From a real estate perspective, I've been working with several people buying and selling in St. Louis Park lately and am reminded how the decades-long explosion out to the suburbs and beyond seeking bigger and newer may be coming to an end.

Today's focus seems to be shifting to higher quality...not just in materials and living spaces but also towards a higher quality of life. Although that translates to different things for different people, for many it means not spending so much time commuting and trying to keep living expenses more in check to allow more time for things like spending an afternoon at MIA. It also means living in a neighborhood that has a sense of communty.

A recent article from REALTOR Magazine Online headlines that 'Buyers Say Size Doesn't Matter'. Although the size of the average home grew from 1,500 sq ft in 1973 to 2,495 last year, architects, builders and designers are saying buyers are now choosing to put more focus on quality living spaces rather than ever-increasing size. Predictions are formal living rooms will evolve into a library or music room...master suites will increase...and new homes will continue to have high ceilings, meaning homes will still have a feeling of spaciousness even with smaller square footage.

This echoes the 'Not So Big House' philosphy of Sarah Susanka, whose inspiration came from a growing awareness that new houses were getting bigger and bigger but with little redeeming design merit. The problem is that what makes a house feel like home has almost nothing to do with how big a space is...it has to do with how we shape our homes to fit the way we really live.

As you prepare to buy a home, think about what quality living means to you...what is important to you not only in a home but also in community and lifestyle. Think about your daily rhythms...what you want to keep, what you would like to change with your move...and thoughtfully make your choices in both location and housing accordingly.

To Buy Now or to Wait...that is the Question

There's no doubt the market has been putting buyers to the test trying to decide whether it's the right time to make a move or whether they should wait a bit longer.

I was talking with a trusted lender who said he had been thinking about this very question and felt it was rarely beneficial to wait if you're ready to buy. The two primary factors to consider are rising interest rates and falling housing prices. He calculated that if interest rates rise .5%, housing prices would have to fall another 5% to make up the difference. Overall housing prices are currently relatively stable, neither rising nor falling significantly, indicating waiting isn't likely to be of benefit.

The past decade has been one of low interest rates coupled with unsustainably high home price appreciation as the supply of homes available for sale struggled to keep up with demand. As a result, home prices increased a dramatic 50.6% from 2000 to 2005. Unfortunately, consumer income didn't keep pace with housing prices, rising only 12.9% during the same period. This resulted in decreased housing affordability, which planted the seeds for our current market conditions.

In 2006 we saw a needed pause in the market...not only natural and expected after unsustainable price growth, but much needed to put our market back in balance. Home price growth stabilized in 2006, with prices relatively unchanged over 2005. Jeff Allen, Minneapolis Area Association of Realtors Research Manager, predicts that 2007 should be pretty stable with 2006 overall, with a bounce back beginning in the later part of 2007.

Flat housing prices and continued historically-low interest rates have improved affordability, creating a good environment for first-time homebuyers...a necessity for a continued healthy and growing housing market. If you're ready to buy, it's a good time to make a move.

Click to see the full Twin Cities Metro 2006-2007 Market Analysis by Jeff Allen, MAAR Research Manager.

Open House

The weekend was a forerunner to this beautiful week...it topped 60 degrees today!

People were out enjoying the weather this weekend, a perfect time for an open house. I had 28 groups of people through the house I had open on Sunday. It was interesting seeing the mix of people coming through... from just starting to look to ready to buy... from trying to decide whether to remodel or buy another home to getting ready to sell...from checking out neighborhoods to checking out other open houses while theirs was open...from looking around without their agents to searching for an agent...

Open houses are a great way to check out agents...it's a non-threatening way to get a feel for an agent. It's also a good way to get to know the market, both for pricing and for getting a feel for neighborhoods. One of the first steps after securing financing is deciding the area where you want to live.

Location is vitally important because while you can change the appearance of a home, you can't change it's location. If you don't like the neighborhood, the traffic, the view, the surroundings, there isn't much you can do except live with it anyway or move to a new location.

Don't skimp on your homework selecting WHERE you want to live...your sense of place can have a profound effect on your whole sense of well-being. Once you have that figured out you can focus on finding the specific property that's the right fit for you.

It happens over and over again that people 'feel' the right property almost as soon as they walk in...they don't even have to see the whole home before they know it's the right fit. Be patient and listen to what your body is telling you as you visit different homes...if you listen, you'll know when you've found the right home for you!

Spring

It's hard to believe that last week we had a dump of more than a foot of snow and now we're heading into the 40's and 50's. That, along with the daylight savings time shift tonight and the vernal equinox less than 2 weeks away means spring is really coming!

My compter went into hibernation...actually worse, the hard drive crashed and I've been 'making do' with various computers while bringing mine back to life...a slow process. The worst part of the whole thing was the discovery that the new website I'd been working on for the last couple months wasn't backed up!! Oh, well...it will be re-built even better...only much later!

Spring season is starting...I was out with clients yesterday slopping through muck and mud...a true sign of spring. We also had multiple offers on a new listing this week...another sign that spring is on the way.

If you're thinking about buying, it's time to spring into action. Don't neglect getting pre-approved before seriously looking, you never know when you're going to find the home you want to buy! Case in point...in reviewing the offers this week the buyer that was chosen was already financially underwriting approved, just waiting for a property.

You've no doubt heard the news stories about mortgage horror stories and companies going out of business. This makes true pre-approval, not just 'looks good' approvals, even more important.

A reputable mortgage company and trustworthy loan officer are also vitally important. Buyers need to know they will truly be able to afford their home and won't face rising payments and/or interest rates that may force them out in the future. Sellers want to feel confident their home will not just get a signed agreement, it will actually close!

Clutter Control

When you're getting ready to sell your home, one of the first steps is getting rid of the clutter. This is all part of home staging, which involves cleaning, organizing, rearranging, updating and preparing your home for sale.

A large part of why people buy a particular home is emotional. This is one of the reasons home staging is so effective - you create an atmosphere that projects pleasant times to come in a well-cared for, fresh, bright and uncluttered home.

A good way to start is to walk through your home and make a list of every spot, chip, area that needs cleaning, de-cluttering, repainting, sanding, updating, etc. Then check them off your list one at a time as you complete the tasks. It's not so overwhelming when you tackle one thing at a time, and checking them off your list demonstrates the progress you are making so you can reward yourself!

I can't tell you how many times people have told me they wished they would have done the work they did to prepare their home for sale years ago...so they could have enjoyed it while they were living there!

If you are ready to start getting your clutter under control but need some help and encouragement, you might find a new offering by professional organizer Kathy Franzen helpful. She found so many people looking for this kind of support that she is starting a 'Clutter-Free Life' encouragement group. It's an ongoing small group that meets every other week to share ideas, support one another and receive expert advice as they work on their own home or office organizing projects at their own pace. For more information, call Kathy at 651-486-2720 or visit www.ProjectPartnerServices.com.

Sellers, I want to show your home!

Sellers, are you wondering why you aren't getting any showings? It could be due to any number of factors, including slow market conditions.

However, don't let it be because agents can't get an appointment to show your home!! I am currently working with a well-qualified buyer who is planning to make an offer on a home this weekend. He has a few properties he is considering, but there is another one he would really like to see...it could be a contender. Only problem is, I haven't been able to schedule a showing. I've been leaving messages at the contact numbers in the listing for a whole week...not a single response! Today I tried again and didn't even get voicemail...perhaps it's full.

Agents, answer your phone and return messages! Buyers, make sure you know the procedure for setting up showings...if they go through the listing agent, what happens if the agent is unavailable? Is a backup plan in place?

I could be bringing a buyer for your home...but none of us will ever know unless we can get in to see your property!

A Living Dwelling

A friend sent me an article the other day about creating a beautiful home, saying she thought of me when she read it. I talk about transforming 'space' into 'place' that nurtures and sustains you. This article talks about filling our homes with love to create homes that feel soulful and alive. I think we're on the same track! Read on...

"The homes we occupy are seldom ideal. A space that satisfies our basic needs may nonetheless leave us wanting where location, decor or style are concerned. Yet every home has the potential to be beautiful....

"Turning a space into the beautiful outward expression of your inner warmth is as easy as projecting your love into it... It is up to you, whether you want your personal spaces to be peaceful and quiet or lively and inspiring. Begin by cultivating awareness within yourself. This will allow you to see your home as an integral part of your existence rather than somewhere you simply return to at the end of each day...

"Appearance and other superficial qualities can be deceiving. An aesthetically beautiful home can prove unwelcoming. And a home that seems mundane in every characteristic can be as comforting and cozy as a beloved relative or friend. When you nurture and care for your home as if it were a loved one, it will absorb your tender intentions and project a love so touching you will soon come to feel a great affection for it."

Read the full article at DailyOM.

Rehabs done right

Flipping houses has been in the media a lot, with both good and bad reviews. Sometimes they are done well...unfortunately, more often they display poor workmanship, cheap materials and no thought about how one will actually live in the property.

As a Realtor, I get to see lots of rehabs from the buyer's perspective. When even the new facade looks sloppy it makes one uneasy about what is hiding underneath the new paint, fixtures, trim that doesn't meet properly, etc.

Yesterday I had the pleasure of meeting to list a rehab that's been done right. It's a 1950's 1 1/2 story expansion bungalow, and when they bought it the upper level had the traditional big open room. To convert it to a true master suite they added a dormer the whole length of the upper level, creating a full bath, walk-in closet, generous office, sitting alcove and huge bedroom area...it's truly an inviting space.

In addition to adding a new bath on the upper level, the main floor bath was also rehabbed...and not just with fresh paint, new sink and new light fixtures. It was gutted to the studs and rebuilt with quality tile and fixtures, just like the new upper level bath. This attention to detail shows throughout the home

It's a privilege to represent rehabs done right...and while they obviously need to make a profit, they're not out to make a killing. This is going to make a wonderful new home for some lucky buyer.

Moderating Buyer's Market

The weekly market activity report from the Minneapolis Area Association of Realtors came out last night. While the supply of homes for sale in relation to buyers (Supply-Demand Ratio) is higher than it was last year at this time, it's lower than it has been since last August.

And "while sales are slower than last year at this time, they are behind at a lower rate than the market has seen in recent months, indicating a settling in the decline of buyer activity... The year-to-year inventory comparison reached a peak of 40-plus percent growth in the summer of 2006 and has been steadily declining ever since."

The updated Supply-Demand Ratio (SDR) of 7.54 means that in the month of February there will be 7.54 homes available for purchase for every expected new purchase agreement.

Click here to view the full 18-page report.

Top defects found during home inspections

A home inspection , which involves a comprehensive examination of the structure and components of the home (electrical system, plumbing, heating/cooling, etc), is a vital part of the home buying and selling process. It's fairly obvious that it can protect the buyer from purchasing faulty property, but perhaps its biggest value is in giving the buyer a better understanding of the property. No property is perfect, and it's good to have an idea of what to watch out for and help make plans about what you might do with the property in the future. A home inspection is also good for the seller because it establishes a baseline in case anything comes up after the closing.

In a recent article published by the Minneapolis Area Association of Realtors, home inspector and instructor Denise Williams lists the following as the top 7 defects found during home inspections.

1) Poor drainage
This is the most common problem found by home inspectors. To improve drainage, you may have to install a new system of eaves, troughs and downspouts or have the lot regraded to better channel water away from the home.

2) Leaky roof
If the ceilings have water damage, older or damaged shingles or improper flashings may have caused it. It's inexpensive and relatively easy to repair shingles and small amounts of flashing, but if the roofing is old, you may face a much larger expense to replace the whole thing.

3) Unsafe heating system
An older heating system or one that has been poorly maintained can be a serious health and safety hazard. You may have to repair or replace the old furnace. This is a major expense, but new furnaces are more energy-efficient, which will probably save you money in the long run.

4) Poor maintenance
Examples of poor maintenance include cracked or peeling paint, crumbling masonry, broken fixtures or shoddy wiring or plumbing. You can easily repaint a wall, replace a fixture, or repair a brick wall, but makeshift electrical or plumbing situations are serious and potentially dangerous problems. Replace any such wires and pipes.

5) Minor structural damage
This means the house is not likely to fall down, but you should deal with the problem before it becomes more serious. Such damage is usually caused by water seepage into the foundation, floor joist, rafters or window and door headers. First you need to fix the source of the problem, then repair and replace the damaged area.

6) Plumbing problems
The most common plumbing defects include old and incompatible piping materials and faulty fixtures or waste lines. These may require simple repairs such as replacing a fixture, or more expensive measures such as replacing the plumbing system itself.

7) Exterior lets in water and air around windows and doors
This usually does not indicate a structural problem, but rather poor caulking and weather stripping that require relatively simple and inexpensive repairs around windows and doors.

The lure of children and grandchildren

I just read an article that talks about how Gen-Xers (born roughly 1961-1981) work at balancing their priorities, emotions and aspirations. An increasingly popular choice of Gen-X parents has been to reverse the trend of two-income households by having one parent (either one) stay home to raise children. My experience with both Gen-X clients and our Gen-X children and their friends has proven that to be true...I think of it as the lure of children.

My experience with grandparents proves the lure of grandchildren is also very strong. As my generation of Baby Boomers assess what we want to do and where we want to live in our 'third age' I find over and over again that children and grandchildren play an important role.

I recently worked with a couple who have a lake cabin 'up north' and decided to sell their Twin Cities home, buy a place in Florida and split their time between the two. Sounds like a great plan...and they tried it for a number of years. Only problem was, they missed their grandchildren. Guess what...they moved back!

Right now I'm working with a couple from Long Island moving the other way. They're planning to buy a condo in the Twin Cities while keeping their home in NY so they can come and visit their children and grandchildren for extended stays. They're considering a more permanent move, but this is a good way for them to test it out first and work at making some community connections outside their family before making a final decision.

Personally, I experience the lure regularly. Our children and grandchildren live nearby and as part of my 'Wednesdays Unplugged' we have family dinner at our house that night so we connect every week. Fortunately, we don't have to move...we're lucky that we're already close, but I think it's pretty easy to see why the lure is so strong!

Sometimes it's good to pre-sign

Closing is when you sign all the papers that actually transfer the ownership of a property and the buyer gets the keys to their new home. It usually takes place about 3 to 6 weeks after the purchase agreement is signed and the inspection is completed.

Buyers and sellers usually all sit around the table with their closers and real estate agents as everyone signs the documents required for the transfer. Occasionally, however, not everyone can get together in the same place at the same time and pre-signing is a good idea.

Sellers have an easier time pre-signing because they don't have to sign any mortgage documents as most buyers do. They often pre-sign if they can't get away from work, have a hard time getting around or are going to be on vacation at the time of closing...they may even be living in another part of the country or the world. They arrange with their closer to sign documents prior to closing in the presence of a notary, and someone else (usually their real estate agent or a family member) is given Power of Attorney to sign the final settlement statement and any other last-minute items that may come up at the actual closing.

Buyers rarely pre-sign because most lenders require that they sign their mortgage papers on the actual closing day. Some lenders do allow pre-signing, however, and if you think it may be a problem for you to be present on closing day it's something to discuss with your lender.

We had a perfect example of when it's good for buyers to pre-sign last week. Our buyer was pregnant. Her due date was still a few weeks out, but she started having signs that she might deliver early. Their lender allowed pre-signing, so they signed several days before closing just in case they were in the hospital on closing day!

Winter Sense of Place

In case you were wondering...no, I didn't vanish...just went on vacation to sunny California...and didn't bring my laptop for a true vacation experience!



Lucky for us that it really was sunny rather than precipitating, as is more typical for this time of year in central California. It probably tells a lot about our sense of place that we didn't head for warm beaches...we traded our snowy creek view for snowy Tahoe lake and mountain views! It is worrisome, however, that they also have less snow than normal.

I was thinking about our sense of place before we left...we had such warm weather and little snow...I was wondering how it would affect us if these changes become the norm. Winter is such a wonderful time to cozy up inside, I think I'd miss not having that time away from the bustle of outside activity to spend more indoor quiet time thinking, planning, creating, learning. It does feel like winter today, (it's cold outside!) and although yesterday's warmth felt good I must admit it feels good to be back to winter.

We didn't spend all our California time in Tahoe...we also spent time in Sacramento, Napa and our favorite San Francisco Bay area. The hills/mountains in both SFO and Tahoe offer a very different housing experience. I love looking down to see your neighbors, and out to such magnificent vistas

There has been so much talk in the past year about inflated and declining housing prices. We're lucky to be in the Midwest, where prices rose nicely but not outrageouly and have dropped some but are now relatively stable...expecting a modest rise of 1-2% this year. Housing prices went through the roof in California, and they are now positioned for more significant price decreases...I just read an article listing the 10 markets with the highest risk of declining prices and 8 of them are in California (the other two on the opposite coast in Massachusetts).

It feels good to be back and settling into 'real' winter in the Midwest...although sitting out for lunch and fine wine in the Napa valley was a wonderful winter getaway experience.

I hope you find your own way to relax and refresh in this new year...I'm ready to get back to the joy of my work helping people fulfill their real estate dreams!

Does 100% financing mean I don't need any cash to buy a home?

Well, yes and no. 100% financing usually means your mortgage covers the total purchase price of your home, and often covers your closing costs as well. However, you will need some cash up front for your earnest money and optional inspection costs.

Let's walk through a typical 100% financing scenario...

Let's say you're buying a house for a purchase price of $193,300 and financing the total amount, including closing costs and prepaids.

Estimated closing costs (financing and closing fees) would be about $5,000 and prepaids (interest, taxes and insurance) would be about $1,700...for a total of $6,700...adding this total amount to the sale price gives a total financed purchase price of $200,000.

The most common amount allowed in financed closing costs is 3% of the purchase price. In this case that would be $6,000...leaving an additional estimated $700 for you to pay out of pocket.

This means that nearly everything is financed at closing, but you still need some cash for earnest money to submit with your offer to purchase the property. Earnest money is usually about 1-2% of the purchase price (about $2,000 in this instance), and is held in escrow for you until closing...it's the money that says you're serious about purchasing this property because this is money the seller would keep if you change your mind and back out of the transaction before closing.

If your purchase agreement is subject to an inspection, you should also budget about $350 for this cost, payable at the time of inspection at the time of the purchase agreement. If you cancel the agreement because of the inspection your earnest money will be refunded to you.

When you finance 100% of your purchase price and closing costs, most of your earnest money should be refunded to you at closing...based on the difference between estimated financed costs and actual costs at closing.

Questions? Want more information? Just let me know...we're here to help!

Everything in this example is used for illustrative purposes only, is based solely on estimates, and is not guaranteed.

Wednesdays Unplugged

Time seems to be such a rare commodity in today's hectic world. We're so technologically connected we tend to be on call 24/7, but our personal connections seem to suffer...as does our time to nurture ourselves and just 'be'.

My response for 2007 is 'Wednesdays Unplugged'...a day when I am unplugged from my computer, my cell phone, my appointments (my assistant is capably in charge for the day!) and simply 'Take Time'...time during the day for me and time in the evening for our children and their families to gather with us around our table to connect and share a meal during the middle of a busy work week.

Yesterday was my first 'Wednesday Unplugged'. It was interesting how strong the urge was to go down to my computer as I always do first thing in the morning. As the day went on, it became ever more apparent how great a gift these days will be...and how much it will challenge me to be truly 'unplugged' for the day. It made me think that this is what was meant by the admonition to 'remember the sabbath day, to keep it holy', counseling us on how important it is to take a day of rest from whatever our normal daily pursuits may be to refresh and nurture our souls.

Years ago my mother gave me a little hand-typed note which I still have on my bulletin board right next to my desk...I've copied it below. This is how I plan to focus my 'Wednesdays Unplugged'...never mind if it spills over to the rest of the week!

TAKE TIME

Take time to think - it is the source of power
Take time to read - it is the foundation of wisdom
Take time to play - it is the secret of staying young
Take time to be quiet - it is the moment to seek God
Take time to be aware - it is the opportunity to help others
Take time to love and be loved - it is God's greatest gift
Take time to laugh - it is the music of the soul
Take time to be friendly - it is the road to happiness
Take time to dream - it is what the future is made of
Take time to pray - it is the greatest power on earth

Search Sold Listings

More real estate property information is now available online. Now you can search for information on sold properties as well as active listings.

This doesn't include pending listings, which means you won't be able to look up information when there is a 'SOLD' sign in front of a property...wait until the sign is gone, which usually means it has closed and the sale price has become public information. Prior to that point the negotiated sale price is confidential and known only by those parties involved in the transaction.

You can use this data to help you determine the value of your home...or satisfy your curiosity and find out what your neighbor's house really sold for. Use search criteria that matches your home to find comparable listings to help establish your home's value. Although this data is fairly accurate, keep in mind that it doesn't tell you if the seller made any contributions to buyer closing costs, etc. This is fairly common, particularly in lower price ranges, so if a property sold for more than other comparable listings it's possible the sale price includes closing costs the seller paid on behalf of the buyer.

To check it out visit www.HomesMSP.com and click on 'search SOLD listings' under the search area listings header...or just following this link... http://www.minnesotahomes.com/Search.aspx?SearchType=20

Happy New Year!

New Year's Eve brought a beautiful blanket of snow, what a beautiful and gentle way to end 2006. We brought in the New Year with our tradition of fondue and games with friends and family. This year we played Sleuth and Quiddler...and managed to make it to midnight to watch the crystal ball drop and enjoy champagne, strawberries and dark chocolates.

I awoke to this idyllic view out my window this morning...what a special gift to welcome the new year. The ducks were even frolicking in the creek...pretty unusual for New Year's Day in Minnesota but nevertheless delightful.

Our wish for 2007 is that you will sense how important you are to the people in your lives, as well as to those you meet each day. The way we live has an impact far beyond what we'll ever know.