Tara O'Brien's Minneapolis Real Estate Update

Minneapolis Real Estate Blog

2012-04-03T10:17:00.003-05:00

Checklist for Getting Your Home Ready to Sell

2012-04-02T12:52:00.003-05:00

Most people who are getting ready to sell their home need a place to start. Here is what you can do to make your house stand out from the rest. A clean home shows. There are things in your home you most likely dont see anymore and this list will help you make sure you dont miss a thing.

• Remove and donate unwanted items, reorganize and clean closets,attic, basement and garage
• Power wash exterior walls, porch floors, deck, patio, driveway and sidewalks
• Clean outdoor furniture, umbrellas and outdoor light fixtures, wash windows (inside and out)
• Clean out gutters
• Clean out refrigerator and freezer, making sure to vacuum the grill and coil
• Remove lint from the hose attached to back of clothes dryer
• Vacuum baseboards, walls and ceilings, wipe down walls to remove all cobwebs
• Steam clean carpets and area rugs and upholstery
• Reseal natural stone surfaces (travertine, granite, etc)
• Reseal and repair grout in bathtubs and showers
• Clean window treatments, dust and clean blinds and shutters
• Remove items from all shelves, dust and clean
• Oil hinges

As always, I would be happy to come over and go over the rest of the items you will need to do, each home is different and each listing is important in its own way. Call today for a free market analysis or to get started selling your home.

www.taraobrien.com

No Snow Emergencies in Minneapolis This Year

2012-03-21T11:28:00.001-05:00

Minneapolis officials said Wednesday they are confident there will be no snow emergencies declared this season, a first for the city since 1987.

The official snow season ends on April 1, but the officials say they can make their judgment based on the forecast for above-average temperatures for the rest of the month.

The emergency-free winter of 1986-87 saw only 16 inches of snow. This season's tally stands at 22 inches.

The city says its savings from having no snow emergencies won't be known until the end of the year. The snow and ice control budget is about $9 million.

In the winter of 2010-11, however, snowfall of nearly 99 inches quickly pushed the city over budget and required eight snow emergencies. This season's spending is coming in about $2.8 million below the previous winter.

In neighboring St. Paul, there was one snow emergency called this season and nine the previous winter.

Snow emergencies are declared to allow for the orderly movement of parked vehicles along curbs so crews can plow the full width of streets.

Paul Walsh, Star Tribune Columnist.

4 Reasons Consumers STILL Need a Real Estate Agent

2012-02-29T14:06:00.003-06:00

In a world where the Internet makes marketing miracles possible and home data seems to flow free, every once in a while you’ll hear of someone attempting to buy or sell without an agent.

While some stories speak of success, they also reveal the time, expertise, and energy that go into a sale and the indisputable benefits of having an agent. Marketing and managing a home is a time-consuming undertaking and why now, more than ever, smart consumers need to use a real estate agent.

1) Online marketing takes time and expertise
Online marketing works, however, it takes hours of effort and knowledge of the successful websites to use in order to maximize exposure. It is also good to know the difference between third party aggregators and broker reciprocity in order to be using the most accurate and true data from the real MLS source in your area. Most sellers don’t have this level of expertise or the time to spend on the effort.

2) A home’s information alone is not enough – every home lives in a market
Most sellers think this, “I know my house better than any agent. Who better to sell the house than me?” This comment is typical of someone who doesn’t realize that knowing about a home is just the first step. The real key to moving a listing is knowing how that home fits into the market – and only a professional brings that kind of focus and real experience.

3) Showings and connections sell homes
Most real estate agents are already tapped into a network of people buying and selling. They are also constantly in contact with other professional real estate agents who they know in the same area that may have a buyer or seller that may match as well. Some real estate companies like Edina Realty have a network of homes that are not listed on the public MLS and can only be seen by and sold to other Edina agents who have access to them pre-market.

4) Even the smartest use an agent for expertise
There are many more factors that come into play when selling a home. Marketing a home is only the beginning. There are multiple forms needed, inspections required, title work that needs to be done and many more things. Realtors are the people in the transaction that make sure all the i's are dotted and t's are crossed. They will get you all the way through closing to make sure nothing is missed and you are taken care of.

If you are a buyer and wondering the same thing, "should I use a real estate agent?" The answer is still YES!!! Buyer agents in Minnesota work for you at no cost to you. You should have someone in your corner with expertise in negotiation, inspection and paperwork so you dont have to be the expert yourself. You will want someone working for you in your best interest, after all, the seller has someone working for them, shouldn't you?

www.TaraOBrien.com

Proposed Bill to Speed Up Short Sale Process and Prevent Foreclosure

2012-02-28T08:34:00.001-06:00

To avoid losing homes to foreclosure due to long response times for short sale transactions, three senators introduced legislation to speed up the short sale process.

Senators Lisa Murkowski (R-Alaska), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.

“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”

The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.

The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer
will be limited to one extension of no more than 21 days.

The bill will also allow the buyer to be awarded $1000, plus “reasonable” attorney fees if the Act is violated.

According to a release from Short Sale New England, short sale homes do not bring down neighboring home values like foreclosed homes do, and 83 percent of short sale buyers are satisfied with their purchase, according to a 2012 Home Ownership Satisfaction Survey conducted by HomeGain.

“The current short sale process can be time consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a homeowner from foreclosure,” said Moe Veissi, president of the National Association of Realtors. “As the leading advocate for homeownership, realtors are supportive of any effort to improve the process for approving short sales.”

Equi-Trax released a survey last year on the issues real estate agents face when completing short sales. Guy Taylor, CEO at Equi-Trax, said 71.9 percent of respondents reported that a short sale can take four to nine months to complete, and they think that is simply too long.”

The survey also found that 18.2 percent of deals require less than three months to complete, with 10 percent requiring more than 10 months.

When agents in the survey were asked to how the short sale process can be improved, 57.6 percent said lenders should take less time to close transactions, 14 percent said borrowers should be better educated about short sales, and 40.4 percent said both of these changes are necessary to improve the process. By: Esther Cho

MinneapolisRealEstateTaraOBrien

In April 2011, a similar bill was introduced by Reps. Tom Rooney (R-Florida) and Robert Andrews (D-New Jersey), but this version requested a response deadline of 45 days instead of 75 from lenders. The legislation never came up for debate before a House committee.

Housing Crisis to End in 2012 as Banks Start Loosening Credit Standards

2012-02-01T13:40:00.002-06:00

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.
However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.
Krista Franks

Housing May Turn the Corner in 2012: CoreLogic

2012-01-24T10:07:00.002-06:00

CoreLogic’s chief economist Mark Fleming says housing statistics and the duration of the downturn to date indicate 2012 may be the year the housing market begins to turn the corner.

In the first release of CoreLogic’s new MarketPulse newsletter Wednesday, Fleming explained his rationale for such an assessment.

He notes that housing is an industry with long business cycles. Regional housing recessions have typically taken anywhere from three to five years to find their bottom, and Fleming says the national housing recession has behaved similarly in that it has bounced along a bottom for the past two years.

Fleming points out that housing affordability is rising dramatically due to a combination of home price deflation and rock-bottom mortgage rates. In fact, he says, after adjusting for inflation, this has been a “lost decade” for housing as prices are the same as at the beginning of the millennium.

“The time is right in 2012 for prices to begin growing again,” Fleming said, “and housing affordability will put a floor under any further significant declines.”

Fleming says he will be watching the spring and summer buying season closely for positive signs of demand.

He points out that households are paying off their debts and at the same time accessing credit more easily, with some even adding Home Equity Lines of Credit in the third quarter of last year – the first such movement for these second-lien mortgage products since the financial crisis began.

Fleming cites a quarterly survey by the New York Federal Reserve Bank, which shows total household debt continues to decline. At the same time, consumer sentiment rebounded strongly in the latter part of 2011, posting a six-month high in December – an indication that consumers’ confidence in the strength of the economy is growing, according to Fleming.

Most housing statistics basically moved sideways in the latter part of 2011, but Fleming finds several positives in the numbers. Although market indicators are coming off of very low levels, he notes that both existing-home sales and single-family housing starts have begun to increase, homebuilder confidence is improving, and affordability is at an all-time high.

Putting all of these statistics together suggests that while there is a very long way to go, the housing market is likely to sustain these upward movements in 2012, according to Fleming.

“While we cannot say with a high degree of certainty what 2012 has in store for us, indications based on the latter part of 2011 are that both the broad economy and the housing market are moving toward positive growth in 2012,” Fleming said.

He concedes that some impediments do exist, including slower global economic growth, a recession in Europe, and fiscal and political uncertainty in the United States.

But Fleming says when you look at the big picture, “we are bullish on the prospect of improving economic performance in 2012 from 2011.”
-Carrie Bay

MinneapolisCondosTaraOBrien

Victory Neighborhood Charmer

2012-01-17T13:56:00.001-06:00

Three bedrooms, two bathroom and tw car garage. Great home for the money. Third bedroom has a low ceiling height, would make a perfect kids room and play area. New fixtures throughout home, updated bathrooms, jetted tub, new carpet & paint, finished laundry room, gorgeous original woodwork, large garage with storage shed, updated windows & more!

MinneapolisCondosTaraOBrien

Minneapolis Updated Bungalow

2012-01-17T13:26:00.002-06:00

Gorgeous home with quality updates. New kitchen from top to bottom, New bathroom, some new windows. Beautiful Hardwood floors, built in buffet, loaded with original charm and character. Center island kitchen with ceramic tile, custom backsplash, new appliances, forced air heat.

MinneapolisCondosTaraOBrien

Happy New Year, Tips for Selling in 2012

2012-01-05T11:07:00.002-06:00

A stubborn overstock of households with loans higher than their value will continue to restrain prices and create some major obstacles for sellers in 2012, a year that's shaping up to be another homebuyer's market. In fact, recent studies indicate that more than 20 percent of all residential properties with a mortgage are still underwater, hinting that many foreclosures and workouts are still to come.

However, even the most conservative forecasts call for growth in home sales in 2012, with some select pockets around the country already busting out where there are competitive offers on new listings. More than one-third of home resales were made to first-time buyers in 2011 -- another good sign.

Meanwhile, here are 12 tips for 2012, aimed largely at the group that needs the most help -- home sellers.

Price it right from the get-go
The old-school strategy of real estate sellers crossing their arms and holding out for a better offer will be brushed off by most homebuyers. Consider that of the homes that took four months or more to sell in the past year, almost half of their owners accepted less than 90 percent of the asking price, according to the National Association of Realtors. For a gauge, have your agent produce the latest comparable sales including short sales and foreclosures as well as a recent summary of sales prices versus original list prices. But be wary that such information doesn't reflect the homes that failed to sell.

Put your best footage forward
Prep, paint, stage, scrub, improve, repeat. Efforts can include caulking, plastering, planting flowers, adding potted plants, making the windows spotless, pressure washing that oily driveway, edging the walks, trimming the bushes and trees, and mending the fences. None of these is excessively capital-intensive, but when applied en masse, they say "buy me."

Be flexible
I'm not saying bend over backward to accommodate real estate buyers. Bend forward and sideways, too. Be ready to negotiate and offer extras such as closing costs, paid property taxes, remodeling work (or a cash credit), appliances, paid condo association/homeowner association dues, a few months of mortgage payments or even seller financing. Home sellers who've been on the sidelines and who advised their agents to ignore offers by lowballers don't have that luxury now. Instruct your agent to listen intently to prospective homebuyers' misgivings about the home and adjust accordingly and immediately.

Trump your techno-fears
Hire a listing agent steeped in mobile platforms. Sellers and buyers are routinely using Facebook and other social media to sell and seek, not to mention dozens of online selling sites. Some owners are even making YouTube videos to showcase their homes, making it easier to quickly link to potential buyers via email. There's also an abundance of smartphone apps cropping up to review real estate listings and refine searches.

Don't fall prey
Fraudsters are targeting distressed homeowners with "deals" that can sound perfectly legit. Some offer loan modifications for upfront fees while others offer fee-based "help" in navigating government housing assistance programs, sometimes claiming they're attorneys.

There are also con-artist "investors" compelling desperate owners to sign over their homes with quitclaim deeds in return for a typically empty promise to remain there indefinitely. Others are telling former owners they can get their homes back for a lump sum. Be forewarned: Never sign blank documents or documents with blank lines.

If you're unsure of an offer, have an attorney or other trusted adviser look it over. Keep in mind that a law barring firms -- except attorneys -- from charging upfront fees for mortgage relief or mortgage modification took effect in 2011. It's called the Mortgage Assistance Relief Services Rule.

Finance 101
Realize it's harder to qualify for loans these days. Credit records are under greater scrutiny, and lenders are often demanding a 20 percent down payment and some pricing flexibility from the sellers, especially if the lender's appraisal doesn't reach the asking price.

Consider cash offers, even if they're not the highest. Reject too-low offers from homebuyers gently and with encouragement, telling them they're oh-so-close. You don't want to give away the farm, but you don't want to give it back to the bank either. These days, meeting halfway usually means meeting buyers on their half.

Be your own spokesperson
Agents once advised home sellers to retreat from view during showings, lest they disclose something unsavory or otherwise botch the deal. That's changed. If you can control your ego and emotions and come off as an earnest, flexible seller, you can serve as your best spokesperson. Be ready to answer would-be buyers' questions about the neighborhood and area schools. Be careful about making verbal promises!

Flight to quality
Worried about durability? Buyers who place a heavier focus on brick or concrete-and-steel housing may find they're more enduring, safer and quieter.

Are you worried about sustaining value? Buy near a prestigious hospital, university, large government employer or newly vibrant central business district. These entities typically aren't going away, and the demand for good housing around them won't either.

Expand your buying universe
There's still an overabundance of well-priced inventory out there, which means you needn't immediately narrow your search to the first house you fancy. That's especially the case with short sale homes, which can be a nightmare to close in a timely manner. There are some for-sale gems that need only a little polishing.

Shop around. Don't dismiss foreclosures and other bank properties, pre-foreclosures, auction homes, for-sale-by-owner or lease-to-own homes. Pick at least three favorites and work from there.

'Site unseen' equals shortsightedness
Are you perplexed by the home valuation you did on your place on the website of a large, seemingly reputable real estate organization? Puzzled how that valuation can be 25 percent or more above or below a firsthand appraisal you've had done? Well, value estimates on these sites can vary widely, sometimes by hundreds of thousands of dollars, even by the admission of the companies themselves. There are way too many variables in the valuation game to give too much credence to blind, algorithm-based estimates that are impersonally calculated. Nothing beats a nuanced firsthand professional appraisal.

Expand your buyer's due diligence
Aside from the financial details, contracts, disclosures and protections you typically tend to as you prep to buy a home, add these to the list:

Hire a title company to check the house for liens and tax arrearages.
Hire you own inspector. Don't use the seller's!
Have the inspector check for unpermitted work such as illegal room additions and garage conversions.
Consider the overall energy efficiency of the home with an energy audit.
Be sure property lines are accurate. If there's any question, hire a land surveyor to research the original deed and to stake out the property's lines and your neighbors' property lines to avoid future disputes.

Make a quality-of-life due-diligence checklist
Go to the National Sex Offender Public Website at Nsopw.gov to search for neighborhood predators.

Spend some time around the neighborhood and briefly interview neighbors. Determine if there are noisy neighbors, signs of gang activity, nocturnal barking dogs, indigent lingerers, frequent loud parties and/or suspicious nighttime visits. Are there lots of rental homes? Is the block a cut-through point during rush hour? Does the school bus go past the block? Is there a restrictive homeowners association?
Determine what types of buildings can be constructed on vacant lots adjacent to the neighborhood. This helps avoid unpleasant future surprises. Is there constant noise from a nearby highway or busy street? Are there odors from nearby industrial plants?

Article first run in Bankrate.

MinneapolisCondosTaraOBrien

Top 5 Indicators that Will Give Americans Confidence About the Housing Market

2011-12-16T13:40:00.002-06:00

With the U.S. economy still struggling, over half of Americans (54 percent) aren’t sure the President can stabilize the housing market over the next year, according to Trulia’s latest consumer survey on American attitudes on housing policy.

Harris Interactive conducted this online survey on Trulia’s behalf and asked more than 2,000 Americans what signals will give them confidence that the housing market is getting back on track.

Jed Kolko, Trulia’s Chief Economist, says, “Americans won’t believe our economy is improving until they see real proof.” Luckily for agents, the proof that consumers are looking for lies in key data points that agents can present to clients to help give them the confidence to buy:

1. Fewer defaults and foreclosures
“Fewer defaults and foreclosures” tops the list as a key factor indicating recovery, suggesting that consumers will be more confident in the market’s recovery if they believe that their neighborhood as a whole is doing better.

“As long as there are foreclosed homes and lingering for-sale signs in neighborhoods across the country, people are faced with constant, everyday reminders that the housing market is still struggling,” says Kolko. For real estate professionals, showing potential clients and customers local statistics on decreases in defaults can be a major tool in building the confidence consumers need to make a market move.

2. More home sales
The survey data showed home sales matter the most next to defaults and foreclosures. With 38 percent of the votes, this data indicates that statistics showing increased home sales can be a major tool to get consumers to believe in the market’s recovery.

Soon, communicating local home sales data is about to become even more important because of a lingering National Association of Realtors’ revision to 2005-2011 national home sales data which will likely show national numbers have been to high due to inflation.

For agents who have local areas where sales have increased, data driven presentations can motivate clients who may be straddling the fence on the decision to purchase.

3. Fewer vacant homes
While empty homes mean opportunity, they are a downer when it comes to consumer confidence. ”Neighborhood vacancies are like second-hand smoke, hurting everyone around them,” says Kolko.

Survey data showed, with 32 percent of the responses, declines in vacancies are top confidence builders for consumers.

For agents, this means the value of placing a “sold” sign is not only a great moment for the buyer, but for the neighborhood as a whole. To track vacancies by states, check the U.S. Census Bureau’s quarterly release on home vacancies, which breaks down the information by both state and Metropolitan Statistical Areas.

4. Lower Mortgage Rates
The survey data says “lower mortgage rates” are another of the top five confidence builders and received 25 percent of votes. That means it’s important, not only to offer clients updates on the day-to-day changes in rates, but also to show the bigger picture.

When it comes down to visual representations of today’s market opportunity, mortgage rate changes over the past 30 years is probably one of the most dramatic graphs an agent can present to a client. To make your own graph of mortgage rates and see the dramatic change, visit Bankrate.com’s Graph Rate Trends Page.

5. Higher Homeownership Rates
Lastly, the survey showed nothing sells ownership like ownership. Higher Homeownership Rates received 23% of the votes when it came to building confidence among consumers.

This indicates that seeing reminders of sales activity in their area and ownership benefits are keys to motivate clients to make a move.
-Trulia

November Listing Inventory Lowest Since 2004

2011-12-13T12:29:00.001-06:00

Last month, the number of homes for sale in the 13-county Twin Cities metropolitan area plunged nearly 24.0 percent from last year to 19,516 – the lowest November inventory reading since 2004. In addition, November 2011 marked only the third month in more than five years (68 months to be precise) where there was less than six months supply of inventory. Sellers listed 4,102 new homes on the market, down 13.6 percent from last year. Buyers entered into 3,321 purchase agreements, up 30.2 percent over November 2010.

"Despite the dramatic drop in inventory, prices are still bound by distressed activity, budget-conscious consumers and a general sense of economic uncertainty," said Brad Fisher, President of the Minneapolis Area Association of REALTORS®. "Along with strong sales, these declines have moved absorption rates to levels only seen twice since 2006. This may have a considerable impact on the Spring 2012 market."

Some sellers are already starting to benefit from less competition. The share of asking price that sellers receive at sale has posted year-over-year increases for the fourth consecutive month. In November, sellers received an average of 90.9 percent of their asking price. That figure was likely helped by the 30.6 percent decrease in months supply of inventory – currently at 5.7 months. Generally, 5 to 6 months is considered balanced.

The median home price was down 10.1 percent from November 2010 to $149,250. Lender-mediated activity (foreclosures and short sales) comprised 44.1 percent of all closed sales and 41.9 percent of new listings.

The first and fourth quarters of the year tend to see the most distressed sales and listing activity. Consequently, traditional prices fell 9.2 percent to $187,400, foreclosure prices dropped 14.3 percent to $98,500 and short sale prices were down 11.5 percent to $130,000.

Market times were down 1.7 percent to 135 days, on average – the second year-over-year decrease in a row. The housing affordability index hit a new record high of 245, meaning that the median household income in the region was 245% of what is necessary to qualify for the median-priced home under prevailing interest rates.

"Prices don't reflect the improved supply-demand balance yet," said Cari Linn, MAAR President-Elect. "Although there are some reassuring patterns taking hold, it would be overly optimistic to say that all of the market's problems will be washed away by spring."

All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities 13-county metro area and western Wisconsin.

Weekly Market Update Ending Nov 26, 2011

2011-12-07T09:15:00.002-06:00

Tryptophan and chatty in-laws were not able to curb the appetite of local home buyers, as purchase activity easily gobbled up last year's levels. Sellers were apparently stuffed and lethargic, as they brought fewer new properties onto the market than during the same holiday week last year. As we approach the slowest time of year for residential activity, expect transacted dollar volumes and sales counts to weaken from the spring and summer of this year. Keep watching inventory declines; they could have a measurable impact on the Spring 2012 market.

In the Twin Cities region, for the week ending November 26:

• New Listings decreased 9.1% to 601
• Pending Sales increased 46.8% to 574
• Inventory decreased 22.8% to 20,318For the month of October:
• Median Sales Price decreased 9.6% to $154,500
• Days on Market decreased 0.5% to 134
• Percent of Original List Price Received increased 0.9% to 91.2%
• Months Supply of Inventory decreased 27.6% to 6.3

For the month of October:

• Median Sales Price decreased 9.6% to $154,500
• Days on Market decreased 0.5% to 134
• Percent of Original List Price Received increased 0.9% to 91.2%
• Months Supply of Inventory decreased 27.6% to 6.3
-MAAR

MinneapolisCondosTaraOBrien

Take Advantage of 5 Expiring Tax Deductions

2011-12-01T09:12:00.001-06:00

There are several tax credits and deductions set to expire at the end of the year, and given the federal deficit problem, there's a good chance they won't be extended. If you want to take advantage of them, you need to act before Jan. 1, 2012.

Mortgage insurance premium deduction
If you itemize deductions, you may deduct the premiums you pay for mortgage insurance, just like you do mortgage interest. However, this deduction is phased out if your income exceeds certain levels. To qualify for the full deduction, a couple or a single taxpayer must have an adjusted gross income of $100,000 or less. The deduction is phased out completely if AGI exceeds $109,000.

This deduction, which was first enacted for 2007, is scheduled to expire at the end of 2011. Thus, your payments are deductible only if you pay them during 2011; a payment after 2011 is not deductible.

Education expenses deduction
A deduction of up to $4,000 for qualified education expenses is available for 2011. All or part of the amount you pay can be for classes beginning in 2012. But you must make your payments during 2011, because the deduction expires at the end of the year. This deduction is not available if your modified adjusted gross income is more than $80,000 ($160,000 if filing a joint return). Nor is it available if any of education tax credits are claimed.

Home energy credit
First, any homeowner may qualify for an energy credit of up to $500. You can qualify for the credit if you purchase during 2011 solar panels to generate electricity or for water heating, or install wind energy equipment, a geothermal heat pump, or certain types of fuel cells to generate electricity. The credit is up to 30 percent of the amount you spend, up to the $500 limit. This credit is not available for purchases in 2012.

Sales tax deduction
If you itemize, you can deduct either your state and local taxes or your sales taxes paid during the year. This deduction is a boon for people who live in states with no or low income taxes. However, the deduction for sales and use taxes instead of state income taxes is scheduled to expire at the end of 2011. To maximize this deduction, you should make any large purchases before the end of the year.

Adoption credit
A tax credit for adoption expenses (adoption fees, court costs, attorney fees, travel, etc.) has been available for many years. However, an enhanced adoption credit is available for adoptions finalized before 2012. The credit is up to $13,360 of adoption expenses. For 2011, this is a nonrefundable credit, meaning you qualify for it even if it exceeds the amount of your 2011 tax liability. This means that you could qualify for a tax refund even if you did not have federal income tax withheld.

-Stephen Fishman, LinkedIn

MinneapolisCondosTaraOBrien

Camden Minneapolis 4/2 BACK ON THE MARKET

2011-11-22T10:21:00.003-06:00

This cute bungalow is back on the market. Inspections are done, city approval given, many repairs made and charming as can be. This home boasts original character the minute you walk in the door. Coved ceilings, gorgeous woodwork that hasnt been painted, original hardwood floors. Updated kitchen with breakfast nook and built in buffett. Huge bedrooms for this age of home, finished basement and two bathrooms. Three levels of home for a ridiculously low price of $100,000. This is truly a great street with nice homes and neighbors. Blocks to the Parkway and easy access to freeways. A great starter home in the Cleveland neighborhood.
MinneapolisHomesForSaleTaraOBrien

How to Avoid the 5 Most Common Holiday Disasters

2011-11-22T10:09:00.002-06:00

Imagine you’re preparing to host your annual holiday party, and you’re past the point of no return. The veggies and meats have been bought. Guests are already braving busy airports and crowded highways to get to your home—and then your oven won’t turn on. Your home-cooked meal has quickly turned into a microwave dinner.

That’s just one of many hosting nightmares that can end your holiday party before it even begins. Thankfully, some of the most damaging mishaps easily can be avoided. We collected five of the most prevalent issues and give you preventative tips to keep your holiday party on track.

Problem: The oven doesn’t heat
For any holiday occasion, the oven is the most important appliance in your house. If it fails to work, the centerpiece of your meal could go from roasted beef, ham, duck, or Tofurky to Peking Duck from the local Chinese takeout joint.

How to avoid:
There are any number of reasons a stove can break, but one common cause of disaster is easy to prevent. Don’t self-clean your oven until AFTER the holidays. You risk blowing a fuse or a thermostat, and tracking down an oven technician around the holidays can be tough.

Problem: The kitchen sink clogs
The day after Thanksgiving is the busiest of the year for plumbers. The prime cause of this clog-a-thon is the mistreatment of drains when cooking holiday feasts. We hope your Thanksgiving went well, and that you avoid clog-a-thons for the rest of the holidays.

How to avoid:
Fats and cooking oils can solidify in your pipes, so never dispose of them in your kitchen sink.
If you have a garbage disposal, make sure it’s running before anything goes in it, and never feed it any stringy, fibrous, or starchy foods like poultry skins or potato peels.
To fix, don’t rely on chemical drain-clearing products that can harm your pipes. Use a snake instead, available for $15 at your local hardware store. Best to keep one on hand.

Problem: The heat goes out
As the party’s host, you’re supposed to hang guests’ coats—not apologize to them for having to keep them on. A lack of heat can stop a holiday party dead in its tracks.

How to avoid:
The key to avoiding freezing your party to a standstill is regular maintenance of your HVAC. Every 90 days, a new one-inch pleated furnace filter should be installed. If you haven’t done it in a while, now’s a good time to replace it.
Also inspect insulation on refrigerant lines that are leading into your house. Replace them if they’re missing or damaged.

Problem: The toilet stops up
Toilets have a way of clogging up at the worst times, such as during parties and when you have overnight guests. This is especially true if you have a low-flow toilet from the early 1990s.

How to avoid:
Don’t flush anything other than sewage and toilet paper down the toilet. And there’s nothing wrong with putting up a polite note to remind your guests to do the same.

Problem: The fridge doesn’t cool
Without a properly functioning refrigerator, your meat could get contaminated, your dairy-based treats could go sour, and you may not be able to save your yummy leftovers. To avoid discovering a warm fridge after it’s too late, take these simple precautions.

How to avoid:
Get a thermometer for your refrigerator to make sure each shelf stays below 40 degrees and you can be aware of any temperature changes.
Also make sure the condenser coils located on the back of the unit or beneath it are free to breathe. Coils blocked from circulating air by cereal boxes atop the fridge, or dirtied by dust or pet hair can prevent a fridge from keeping cool.

-HouseLogic
www.taraobrien.com

What are you waiting for, Twin Cities Ranked #1 in Housing

2011-11-08T10:42:00.000-06:00

Many of the housing markets projected to have the biggest gains into 2012 tend to be the home to major universities, strong private sector employment, or have nearby military bases, according to a list of the healthiest housing markets by Builder Magazine. Builder teamed with Hanley Wood Market Intelligence to compile its annual list of the healthiest housing markets in the country, factoring in housing projections from Moody’s Economy.com. The list was based on projected price appreciation, population growth, income growth, and improving employment picture.

The following are the eight cities that topped Builder’s list, including projected housing permits in 2011 and 2012.

1. Minneapolis-St. Paul-Bloomington Minn.-Wis.

2011 Building Permit Forecast: 4,511

2012 Building Permit Forecast: 10,118

Home prices here are expected to rise 8 percent next year, the highest growth projected in the 100 cities analyzed. As a hub for medical technology and headquarters for several large companies, employment is expected to grow 2.5 percent in 2012.

2. Fort Collins-Loveland, Colo.

2011 Building Permit Forecast: 1,004

2012 Building Permit Forecast: 1,650

With Colorado State University the major employer here and often ranked as one of the best cities to live in the country, households are expected to grow by 2.7 percent in 2012 and employment is expected to grow 2.6 percent. Housing permits are expected to rise 50 percent as well, according to Moody projections.

3. Salt Lake City, Utah

2011 Building Permit Forecast: 1,294

2012 Building Permit Forecast: 1,181

With lots of high-tech businesses, Salt Lake City is poised to have some grains in employment and income in the coming year. After a drop in home prices, prices are expected to rebound and increase 4.7 percent next year.

4. Jacksonville, Fla.

2011 Building Permit Forecast: 2,284

2012 Building Permit Forecast: 4,363

Jacksonville has a strengthening employment picture, with a military presence and a growing financial services sector. Employment is expected to increase 3.2 percent in 2012. With stabilizing home prices already, prices are expected to rise 5 percent next year and housing permits are expected to double.

5. Miami-Fort Lauderdale-Pompano Beach, Fla.

2011 Building Permit Forecast: 2,708

2012 Building Permit Forecast: 7,522

This metro area is expected to reverse course with jobs forecasted to grow by 2.7 percent, home prices stabilizing, and housing permits expected to double. The rebound is expected to be mostly driven by two major projects, the CitiCentre and Resorts World Miami, are expected to add tens of thousands of jobs in coming years.

6. Charlottesville, Va.

2011 Building Permit Forecast: 634

2012 Building Permit Forecast: 798

The city is home to the University of Virginia and also continues to attract a surge in second-home buyers from the Washington, D.C., area. Home prices are expected to rise 1 percent in 2012 and median income is forecasted to grow by 3.7 percent.

7. Colorado Springs, Colo.

2011 Building Permit Forecast: 2,099

2012 Building Permit Forecast: 3,639

The biggest employers in Colorado Springs are military bases and the Air Force Academy, which are expected to see big growth when the troops from Afghanistan return. Home prices are expected to rise 2.6 percent, employment to grow by 1.4 percent, and households to increase by 1.8 percent in 2012.

8. Oklahoma City, Okla.

2011 Building Permit Forecast: 3,417

2012 Building Permit Forecast: 5,284

At 6.1 percent, Oklahoma City has one of the lowest unemployment rates in the country. Furthermore, the job market is expected to continue to rise there, and incomes are projected to increase 3 percent next year. While the area has a seen a drop in home prices recently, housing prices are projected to rebound and increase 2.6 percent as Oklahoma City’s low cost of living continues to attract businesses and new households.

-Realtor.com

New Listing in Mpls, Edina Realty

2011-10-28T11:28:00.002-05:00

Gorgeous home with quality updates. New kitchen from top to bottom, New bathroom, some new windows. Beautiful Hardwood floors, built in buffet, loaded with original woodwork and character. Center island kitchen with loads of storage, ceramic tile, custom backsplash forced air heat. Wonderful fenced yard, three bedrooms on each level, and much more. Too cute to miss.
MinneapolisCondosTaraOBrien

About Southwest Minneapolis, Minnesota

2011-10-20T19:11:00.000-05:00

Southwest Minneapolis contains the fine communities of Armatage, East Harriet, Fulton, Kenny, King Field, Linden Hills, Lynnhurst and Windom.

ArmatageLocated in the southwest corner of the city, Armatage neighborhood is bounded on the north by 54th Street West, on the east by Logan Avenue South, and on the south and west by the city limits at Highway 62 and Xerxes Avenue South. The neighborhood grew around the school named for Maude Armatage, a distinguished community leader. Armatage is built up with mostly single-family housing and some multifamily buildings. The neighborhood also has a park with a community center. The retail space in the neighborhood consists of individual neighborhood stores and is mostly located along Penn Avenue South. The great majority of housing was built between 1949 and 1969, while about 5 percent of the dwellings were built before World War II.

East HarrietThe East Harriet neighborhood is located in Minneapolis' Southwest Community. It takes its name from Lake Harriet, which Fort Snelling builder Col. Henry Leavenworth named after his wife in 1819. The neighborhood is bordered by 36th Street on the north and 46th Street to the south. Lyndale Avenue is the eastern boundary; Lake Harriet and Lakewood Cemetery largely make up the western border of the neighborhood. In addition to these Minneapolis landmarks, the Lyndale ParkRose Garden and the Thomas Sadler Roberts Bird Sanctuary are located within East Harriet. Many houses in the neighborhood are two-story homes, set back from the streets.

FultonFulton neighborhood in the southwest corner of Minneapolis borders the suburb of Edina. It's bound on the north by 47th Street West, on the east by Penn Avenue South, on the south by 54th Street West and on the west by France Avenue South. Lake Harriet sits in Fulton's northeast corner and Minnehaha Creek runs through it. The neighborhood takes its name from Robert Fulton, the engineer and artist who invented the steamboat in the 19th century. Fulton is bisected by 50th Street West, a busy thoroughfare with a commercial district that extends well into Edina. A largely residential neighborhood, houses were built here mostly in the 1920s and 1930s.

KennyKenny neighborhood is located in southwest Minneapolis. It is bordered by Highway 62, 54th Street, Lyndale Avenue, and the alley between Knox and Logan avenues south. The neighborhood, its park and its elementary school were named for Sister Elizabeth Kenny, an Australian nurse who developed the Kenny method of treating polio. The neighborhood has a lake on its south end called Grass Lake. Houses in the neighborhood tend to have been built in the 1940s or later and are generally larger than the houses in adjacent neighborhoods such as Armatage and Windom. The neighborhood has a balanced mix of longtime and new residents.

King FieldKing Field is named after Dr. Martin Luther King Jr. The neighborhood is located in Minneapolis' Southwest community between Interstate 35W on the east and Lyndale Avenue on the west. The northern extent is 36th Street, and 46th Street is the southern boundary. The King Field neighborhood became part of Minneapolis in 1887 when the southern border of Minneapolis was extended from 38th Street to 54th Street. King Field is mainly a residential area with three-fourths of its single-family houses built before 1920. The King Field neighborhood has a number of amenities including churches, schools, a park also named after Martin Luther King Jr., and three- to four-dozen small businesses.

Linden HillsLinden Hills is located in southwest Minneapolis. It's bound on the north by 36th Street West and Lake Calhoun, on the east by William Berry Drive and Lake Harriet, on the south by 47th Street West, and on the west by France Avenue, which is the city limit. The neighborhood, named by the developer for the linden trees and rolling terrain, was developed in the 1880s to entice homebuyers to leave downtown for cottages on Lake Calhoun and Lake Harriet. Most of the original cottages have been replaced by large bungalows and Tudors. The Lake Harriet-Como Streetcar ("Trolley") line runs through the neighborhood. Built at the end of the 19th century to connect downtown Minneapolis with the lakes, the historic rail line now only operates between Lake Harriet and Lake Calhoun.

LynnhurstLynnhurst neighborhood is located in southwest Minneapolis at the southern edge of Lake Harriet. Minnehaha Creek runs from north to southeast, bisecting the neighborhood. Lynnhurst extends from Lyndale Avenue to Penn Avenue and from 46th Street to 54th Street. It gets its name from a neighborhood park, located at the intersection of West 50th Street and West Minnehaha Parkway. The park was named for its location in the Lynnhurst Planning District, which was most likely named for the abundance of linden trees in the area. The park's name was adopted in 1921, the same year the 8.21 acres of parkland were purchased. Lynnhurst is a residential neighborhood with most of its housing stock built before 1940.

WindomWindom is located in southwest Minneapolis. It is bordered by Lyndale Avenue S, Highway 121, Diamond Lake Road, 54th St W, Interstate 35W and Highway 62. This highway is also at the southern city limit. Like its elementary school, Windom neighborhood was named after William Windom. Windom served from the mid- to late-1800s as a United States senator from Minnesota and as secretary of the treasury. The southern portion of the neighborhood houses a sizeable industrial area, about 15 percent of the neighborhood's land.

SouthWestMinneapolisTaraOBrien

New Listing in Crystal, $160,000, Open Sunday 12-2pm.

2011-10-19T11:12:00.003-05:00

Tara O'Brien, Edina Realty have a completely remodeled home for sale. 4 bedrooms, 2 full bathrooms with high end finishes, new 42 in cabinets, stainless steel appliances, undermount sink, granite counters, new flooring, ceramic tile, custom baths, new fixtures & carpet. Updated windows, maintenance free siding, patio, 2+ car gar, shed and concrete driveway. Price for sale at $160,000. Open house on Sunday 12-2pm. You will be home in time for the Vikings/Packers game.

MinneapolisCondosTaraOBrien

3164 Ensign Ave, Home for Sale, New Hope

2011-10-19T10:56:00.004-05:00

Tara O'Brien and Edina Realty Present

Huge rambler loaded with updates. Main floor family room w/fireplace & walkout to backyard, granite counters, tile backsplash, new doors, hardware & stainless steel appliances in kitchen. Fresh paint & updated light fixtures. New roof, garage door & carpet. Hardwood floors & more. wonderful New Hope Neighborhood. Walk to Hidden Valley Park & Northwood Pkwy.

MinneapolisCondosTaraOBrien

A Look Ahead at New Homes of 2015

2011-10-12T13:26:00.002-05:00

If you had asked someone in the 1960s what the home of 2015 would look like, chances are they imagined something akin to The Jetsons’ home complete with Rosie the Robot and other space-age appliances that dressed and fed the family.

But, rather than space-age technology, the biggest thing that is expected to change in future single-family homes is the size.

“Homes will get smaller,” says Stephen Melman, Director of Economic Services at the National Association of Home Builders (NAHB) in Washington D.C. “We asked builders, ‘what do you anticipate the new home size would be by 2015?’ ”

According to the results of the study, surveyed home builders expect new single-family homes to check in at an average of 2,150 square feet. Current single family homes measure around 2,400 square feet, which is already a decrease from the peak home size in 2007 of 2,521.

While the decrease in home size has a lot to do with the recession, many believe that the real estate changes will stick around even after the economy and home values get back on solid ground.

“Although affordability is driving these decisions, smaller homes are a positive for builders,” said Melman. “It allows for more creative design, more amenities, better flow. It’s an opportunity to deliver a better home.”

Other things that make up the home of 2015? No more living room. According to the survey, 52 percent of builders expect the living room to merge with other spaces and 30 percent believe that it will vanish completely to save on square footage. Instead, expect to see great rooms — a space that combines the family and living room and flows into the kitchen.

Expect to see more:
1. spacious laundry rooms
2. master suite walk-in closets
3. porches
4. eat-in kitchens
5. two-car garages
6. ceiling fans

Expect to see less:
1. mudrooms
2. formal dining rooms
3. four bedrooms or more
4. media or hobby rooms
5. skylights

Many of these changes reflect a desire for builders and consumers going green. Smaller space means more efficient heating and cooling. Ceiling fans distribute heat evenly while skylights, on the other hand, release heat.

However, as builders look to go green, they’ll be installing energy-efficient windows and compact fluorescent and LED lighting, as well as water-efficient appliances and plumbing.

Additionally, many new homes will have the baby boomer population in mind with walk-in showers, ground-floor master bedrooms and grab bars.

“A bigger share of the new homes will be purchased by people 55 or 65 and older,” said Melman. “They’re more likely to have more cash for a down payment, but they’re empty nesters, so they don’t need five bedrooms.”

-Yahoo Real Estate and Zillow

Weekly market update

2011-10-12T08:15:00.001-05:00

With the final week of the third quarter in the books, buyers posted solid gains over last year's activity levels while sellers listed fewer properties on the market. As is typical for this time of year, expect some seasonal changes to start taking hold. Market activity may slow from one month to the next but should still show favorable year-over-year progress. The lending climate improved even more last week as interest rates dipped below 4.0 percent for the first time ever.
In the Twin Cities region, for the week ending October 1:
• New Listings decreased 21.0% to 1,219
• Pending Sales increased 32.7% to 926
• Inventory decreased 22.8% to 23,177
For the month of September:
• Median Sales Price decreased 6.0% to $156,000
• Days on Market increased 4.6% to 137
• Percent of Original List Price Received increase 0.5% to 91.2%
-MAAR

MinneapolisRealEstateTaraOBrien

5 Home Improvement Projects that Will Get You Top Dollar For Your Home

2011-09-30T16:03:00.000-05:00

It’s a highly competitive market for home sellers right now. More homes to compete with means that the impression your homes makes - from the curb, and on the inside - matter now more than ever. You can increase your chances of selling faster - and at today’s top dollar - by investing in a select few home improvement projects that have been shown to make a big impact on buyers.

Bad news alert: it might cost you a little time, effort and cash. The good news, though, is that the best projects for quickly increasing your home’s resale value tend to be cosmetic and fairly simple and inexpensive to do. Here are five projects with big-time return on investment for home sellers-to-be, in terms of their power to attract buyers, and to attract dollars from those buyers.

1. Painting: Adding a fresh coat of paint to ceilings and walls is a tried and true way to increase your home’s appeal to buyers. Go for white or neutral tones that help lighten your rooms. (Now is not the time to show off your fascination with fuschia and lime green.) Buyers will have an easier time envisioning how they will infuse their own personalities into your home if they’re looking at a relatively blank slate.

Painting lightens and brightens rooms, instantly removes scuffs and dings and gives every room a fresh, polished feel.

Fresh exterior paint - even if your time or cash budget limits your efforts to accents like eaves, shutters, doors and trims - is also a quick, inexpensive way to polish the look of your home from the curb.

2. Landscaping: Everything you’ve heard about curb appeal is true. First impressions matter - especially if your house is one of eight or nine a buyer has seen in one day. Buyers will be more excited to look at the inside your home if the outside looks clean, charming and inviting. Mow the lawn, trim the hedges, pull the weeds and plant some flowers, bushes or shrubs for the biggest impact - and be diligent about keeping your landscaping very well-manicured throughout the time your home is on the market.

Be sure to keep it low-key, relatively low maintenance and neutral, though. This is not the time to indulge your personal fantasies of living in an exotic paradise, unless that matches the existing look and feel of your home, nor is it the time to install a time-intensive English garden that buyers will love, but not want to take on. Think clean, simple and elegant for the biggest boost in value.

3. Cleaning and de-cluttering: Start by removing all your family photos from the walls and all sorts of tchochkes and clutter from the tops of tables, desks, dressers and counters. Buyers want to be able to envision their lives in the house, not yours. Personal items - and the visual clutter they create - have been shown time and time again to block buyers’ ability to create this vision.

Also, remember that buyers are coming to see the house and evaluate its space, not to bear witness to all the fabulous furniture that means so much to you (no matter how amazing your personal taste). Remove furniture that takes up too much space and fills up rooms. Get rid of clutter such as clothes, boxes, piles of mail and other items.

And then clean - and keep cleaning obsessively, the entire time your place is on the market. Kitchens, bathrooms and bedrooms should look unlived in when they are shown. And don't forget to clean less obvious places like windows, walls, doors and and floors, to dust off shelves and furniture, and to polish appliances.

4. Plumbing repairs and water stain/damage repair: Paying a plumber to make a few stops throughout your home can be well worth the investment. Leaky faucet in the master bathroom? Get it fixed. Does the space under your kitchen sink look like a science experiment? Leaks and water stains definitely provoke disgust and exasperation on the part of the buyers you want and need to impress. And they can be pretty cost effective to fix - ask your agent for a referral, if you need one.

5. Staging: Staging your home can make a dramatic difference in the price for which your home sells. Good staging is equal parts:

(a) removing your personal belongings and replacing it with more artwork, decor and cleaner-looking furniture,

(b) and tweaking the home’s paint, wall coverings and even landscaping to show the place in its very best light.

When done well, staging can convert your home from just another listing on a buyer’s list to the setting for a fresh, new start to the fresh, new life of their dreams. Professional stagers, in particular, have special skills and materials they use, from convincing you to get rid of a bunch of things you value (but read: junk to a buyer), to items like mirrors, plants, art work, lamps, pillows and even furniture that tells a visual story of the life buyers can fantasize about living in your home.

Talk to your agent about staging - some agents have the skill to do this on their own, while others might have a professional stager they frequently work with.

In some cases, you might want to take on even larger projects. Before you go that route, talk with a local real estate agent; they are well-positioned to know what sort of updates and features will make the most impact on local buyers. Not all major, non-cosmetic upgrades to your home will create a significant difference in the price it commands, so take advantage of your agent’s expertise as you make decisions about whichproperty preparation investments to make (and which to forego).

-Trulia

Weekly Market Activity

2011-09-29T09:28:00.001-05:00

"How's the Market?" (Elevator Edition): New listings remain subdued with 15 weeks in a row of year-over-year declines. Buyer activity is strong with 19 straight weeks of year-over-year gains. Inventory has posted 31 consecutive weeks of year-over-year decreases.

"How's the Market?" (Dinner Conversation Edition): New listings were down 22.5 percent to 1,311 and pending sales were up 40.6 percent to 883 contracts. The inventory bins contained 23,453 active listings at the start of last week – down 22.2 percent from last year. The Percent of Original List Price Received and Months Supply of Inventory metrics suggest a slowly improving landscape for sellers although they are still entrenched in buyer-favorable territory for the time being.

-MAAR
www.taraobrien.com