Real Estate Snippets

How to Buy a Bank Owned Home

Bonnie Erickson — Fri, 09 Oct 2009 18:29:05 -0500

Thanks to Maureen McCabe from Columbus, Ohio, for finding this satire of today's market!

The Letter of the Law

Bonnie Erickson — Tue, 25 Aug 2009 21:52:18 -0500

The State Park system throughout the midwest is pretty consistent with this one law:

I'm not sure this is what the writers of that law meant:

The dog IS on a leash. The LETTER of the law is being followed, but is the essence of the law?

The Ugly Duckling Becomes a Swan

Bonnie Erickson — Sat, 01 Aug 2009 01:49:00 -0500

When I was young, nursery rhymes and fairy tales were not politically correct, but they were most entertaining. The ugly duckling tale particularly impacted me as the poor little duckling had no clue how beautiful he would one day become.

Often in rehabbing houses, an ugly duckling becomes a beautiful swan. Such is the case with my own home in St. Paul. Our home was so ugly that our adult children questioned our sanity the day we moved in. In my mind, however, a swan was hidden behind the ugliness. For five years this was our home base:

Do I need to describe its ugliness? The roof was replaced the first week we owned the home because gallons of water poured through the ancient shingles. The fascia . . . ? We really think the last paint was applied in 1950! That ugly gray siding is "depression brick", the moniker for asphalt rolled roofing formed to look like bricks. It was popular in the depression making it at least 60-70 years old. Not to mention that it was missing in a bunch of places! The windows leaked, didn't stay open, and were riddled with rotten wood. That horrible beige paint on the basement foundation should have stayed in the store!

In my mind, however, the house looked like this:

The plan was to pay mega money to hire professionals to destroy the old siding and replace it with Hardi board, a cement look alike siding. Longevity was the key. My honey and I never wanted to paint this "painted lady" again.

But, the economy turned and the hubby was out of work. Lots of time combined with limited funds impacted our best laid plans. The hubby declared one day, "I'm going to remove some of that siding and see what's underneath. Maybe we can do a 'temporary' improvement with some minor repair and paint." I cringed. It was a huge project, but keeping the unemployed hubby busy was important.

The hubby, a reformed desk jockey, has outdone himself completely. What started as a temporary fix has become a permanent upgrade. Today our ugly duckling looks like this.

The ground work has been laid. The swan, complete with a golden sunburst for a brooch, is showing her beauty!

If you want to follow our progress, pictures can be viewed here.

When Houses Don't Sell . . .

Bonnie Erickson — Fri, 31 Jul 2009 00:56:30 -0500

it's easy to get distracted!

How Not to Sell A Home

Bonnie Erickson — Thu, 26 Mar 2009 23:38:55 -0500

Staging is all about dressing your home in its Sunday best (or maybe dressing your home for selling success?), but the current market downturn and the influx of short sale homes and foreclosures on the market are telling a sad story. Sellers who have lost their jobs, been unemployed for medical reasons, or got caught with rapidly rising mortgage payments are having a tough time emotionally. Staging a home takes a lot of energy and sometimes a few hundred dollars. Families in crisis may have to choose between a new can of paint for staging and a bag of groceries. If my kids were hungry I know which choice I would make.

Many of the short sale or foreclosed homes marketed in St. Paul are vacant. Many have been "swamped out" by a professional cleaning crew with big roll off dumpster boxes for the debris. Some homes clean up pretty well, but others need the attention of a new owner to regularly clean and love them back to their original beauty.

If, however, you are one of the home sellers still living in your St. Paul home and still hoping to find a buyer, clean your house until it shines. Whatever you do, take those cans to the recycling!

Hazards of the Trade

Bonnie Erickson — Sun, 15 Mar 2009 20:54:42 -0500

We looked high. We looked low. It wasn't there. Of course, the wooden bench it had been attached to wasn't there either! The tenant had moved from my Saint Paul duplex listing and with the tenant went the bench. With the bench went my $90 lockbox! Do you think I can write that off as a loss on my taxes?

Housing Fads

Bonnie Erickson — Mon, 02 Feb 2009 17:35:07 -0600

I'm older than dirt. Well, maybe I'm a tad bit younger than dirt, but not much! I am old enough, however, to remember when avocado and BROWN appliances were all the rage. Dark Mediterranean wood and avocado appliances were recommended for our very first kitchen remodel in 1973. The contractor looked quizzically at me when I declined avocado. Nope, not going there! Beautiful, pristine, white appliances were installed and moved to the next home because they had not gone "out of style".

Fads come and go in housing just like in fashion. Skirt hems lengthen and shorten. Sleeves billow and become sleek. Necklines are jewel, cowl, crew, and turtleneck. Housing is the same. There is always something new to entice the consumer to make a change.

Some changes in housing occur because our lifestyles change. Examples of this kind of change include formal living and dining rooms being replaced by kitchens that open to great rooms. Master suites have supplanted the single shared bathroom and small closets taking up one bedroom wall.

Other changes occur because society gained wealth and home buyers could afford more oppulence. This kind of change includes hardwood floors, granite countertops, vaulted ceilings, and bedroom suites. Unlike the 1950's rambler which made housing affordable for the middle class, today's middle class is buying more square footage per person with many more amenities built into the home.

The January 21 edition of REALTOR® Online, a professional publication for REALTORS®, listed home fads that are becoming passe´. The list included:

Fireplaces
Carpet - hardwood floors are "in"
Kitchen desks
Skylights
Upscale kitchen finishes including granite countertops
Living rooms

Since the article is written for a national audience, some of these trends may not apply to the Saint Paul real estate market. For instance, granite is still a positive feature here although skylights never have been a real selling point because of Minnesota's snow. Carpet has lost favor compared to hardwood floors. Fireplaces? I can't imagine that they will ever go out of style in Minnesota, but one's budget is still the operative word in deciding whether to add one or not. Living rooms have lost favor compared to great rooms as we merge our formal and daily lives together calling for more family friendly homes.

Stainless or commercial appliances were not mentioned in the article. I truly wonder if they will become the avocado of the future!

The Cold Facts about Bank Owned Properties

Bonnie Erickson — Fri, 30 Jan 2009 18:36:00 -0600

No matter how much we protest or dislike the impact of the lender mediated real estate sales on the Saint Paul housing market, it is a fact of life. Lender mediated real estate sales are any sale in which the bank or lender has input into the decision about accepting an offer for the sale of the house. Prices in many neighborhoods have drastically decreased because of the number of homes on the market that are either bank owned (foreclosures) or are being sold for less than what is owed on the mortgage (short sale). Often the lender mediated prices are less than the sales from traditional owners who are not in financial trouble (Often the condition is less satisfactory as well.).

The following list ranks the Minneapolis/St. Paul Multiple Listing Service areas based on the percentage of lender mediated listings found in each metropolitan community during the 4th quarter of 2008. St. Paul neighborhoods are scattered throughout the list with the highest being St. Paul Central at 59.1% followed closely by Phalen at 58.8% and Hilcrest/Hazel Park/Dayton's Bluff with 56.0%. The lowest number of lender mediated listings was downtown Saint Paul at 10.8%. Statistics are quoted from "Foreclosures and Short Sales in the Twin Cities Housing Market Q4 2008 Update".

363	Brooklyn Center	65.90%
305	Minneapolis: North	64.90%
742	St. Paul: Central	59.10%
714	St. Paul: Phalen	58.80%
754	Big Lake Township	56.80%
301	Minneapolis: Camden	56.30%
716	St. Paul: Hillcrest/Hazel Park/Dayton's Bluff	56.00%
771	Spring Lake Park	54.10%
308	Minneapolis: Powderhorn	53.90%
364	Brooklyn Park	52.70%
728	St. Paul: Riverview/Cherokee	50.00%
602	South St. Paul	49.70%
713	Bethel	49.60%
767	Coon Rapids	49.40%
600	West St. Paul	48.70%
720	Southeast St. Paul	48.00%
361	Crystal	48.00%
310	Minneapolis: University	46.70%
770	Hilltop/Columbia Heights	45.40%
738	St. Paul: Home Croft/West 7Th	42.90%
769	Anoka	42.20%
378	Richfield	41.50%
306	Minneapolis: Northeast	41.20%
303	Minneapolis: Longfellow	41.00%
640	Shakopee	40.40%
340	Buffalo	40.00%
366	Champlin	39.90%
760	Ramsey	39.70%
722	Newport/St. Paul Park/Cottage Grove	39.60%
758	Northwestern Anoka County	39.00%
307	Minneapolis: Phillips	38.90%
756	Elk River	36.10%
744	St. Paul: Como	35.90%
772	Lexington/Circle Pines	35.20%
746	St. Paul: St. Anthony/Midway	35.10%
608	Inver Grove Heights	34.60%
362	New Hope	34.50%
646	Jordan	34.20%
768	Fridley	34.20%
624	Farmington	34.10%
780	Sherburne County	34.00%
764	Blaine	34.00%
612	Burnsville	33.80%
304	Minneapolis: Nokomis	33.60%
711	Southern Chisago County	33.30%
712	Maplewood/North St. Paul	33.00%
386	Hopkins	33.00%
367	Hennepin-North	32.60%
341	Wright County	32.30%
707	Ham Lake	32.20%
379	Bloomington-East	32.20%
725	Pine Springs/Lake Elmo/Oakdale	31.90%
616	Rosemount	31.70%
762	Andover	31.50%
650	Belle Plaine	31.30%
644	Savage	30.90%
748	St. Paul: Town & Country/Merriam Park	30.20%
614	Apple Valley	29.70%
709	Forest Lake Area	29.40%
766	Moundsview/New Brighton/St.Anthony	28.90%
632	Rice County	28.40%
648	New Prague/New Market/Elko	28.10%
397	Chaska	27.20%
610	Eagan	26.50%
710	Northeast Anoka County	26.20%
360	Robbinsdale	25.20%
705	Lino Lakes/Hugo/Centerville	25.20%
617	Hastings	25.00%
752	St. Paul: Highland Area	25.00%
708	White Bear Area	23.90%
706	North Central Surburban	23.10%
642	Prior Lake	22.90%
626	Lakeville	22.40%
365	Maple Grove/Osseo	22.30%
765	Arden Hills/Shoreview	22.20%
368	Hennepin-Northwest	21.60%
726	Woodbury	21.30%
392	Eden Prairie	21.00%
373	Golden Valley	18.90%
394	Carver County	18.90%
721	Lakeland/Afton/Denmark	18.70%
380	Bloomington-West	17.90%
391	Saint Louis Park	17.30%
387	Minnetonka	17.30%
740	St. Paul: Crocus Hill	17.20%
309	Minneapolis: Southwest	17.10%
374	Plymouth	16.60%
750	St. Paul: Mac/Groveland/River Road	15.70%
381	Lake Minnetonka Area	14.90%
727	Stillwater/Bayport	14.70%
630	Northfield	14.50%
702	Falcon Heights/Lauderdale/Roseville	14.50%
604	Mendota/Lilydale/Mendota Heights	14.30%
660	Goodhue County	14.30%
396	Chanhassen	14.10%
398	Victoria	12.50%
300	Minneapolis: Calhoun-Isles	11.60%
741	St. Paul: Downtown	10.80%
302	Minneapolis: Central	7.90%
385	Edina	5.20%

Additional posts about short sales can be found here:
Short Sale Woes
Short Sale Purchases
Short Sale Cautions
Queen of Short Sales

Spring Is Coming

Bonnie Erickson — Thu, 29 Jan 2009 18:28:00 -0600

The days are getting longer and we've finally had our first day above freezing since who can remember when! The sun has been shining in St. Paul and it feels like a harbinger of good things to come. When the mounted police start clopping by the neighborhood, you know summer will soon follow.

Historically real estate sales begin to increase in the Twin Cities after the Super Bowl. Hopefully, this year will follow that same pattern as the snow melts and people begin to come out of their winter cocoons again.

Minnesota Certificate of Rent Paid - CRP's

Bonnie Erickson — Mon, 26 Jan 2009 12:38:24 -0600

It's CRP time again. Actually, it's almost past time, because Minnesota residential rental property owners and managers have just one week left (due January 31, 2009) to complete Certificates of Rent Paid for each of their tenants. That includes any tenant that paid rent in the last year, even if it was for one month only.

So, get out the books, or Quick Books, or Quicken, or Peachtree, or whatever system you have and devote a few hours to sorting through the dates of occupancy and amount of rent paid by each tenant. Then, of course, you have to find a current address or send it off to the address your tenant rented and have it returned to you. When it comes back, hold on to the thing until you get a call and then forward it to the correct address of the tenant. Yes, that's just a bit of sarcasm, but it's a duty that I dislike. It's bad enough sorting through the dates of occupancy if you've had a high turn over, but having to sort through which tenants had adult roommates and divide the CRP's between the roommates (even if THEY didn't pay), etc., is tiresome at best. It must be done or the landlord can incur a fine for each incident.

The State of Minnesota has made the small landlord's job a tad bit easier, though, by giving us the forms online with the ability to fill them out ONLINE. That thrills me because I can type faster than print and I only have to change the tenant specific information on each form I print. Regrettably, the form cannot be filed online, but they can be completed and printed for distribution to the respective parties. The form and instructions for filling it out can be found here. (It only works with Internet Explorer, however.)