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.