Short sale myth #10

"Belief #10) It’s good to submit simultaneous offers on short sales.

Some agents believe this is a good way to go but I do not. The seller is in control of the transaction and has to make the decision on which buyer to work with. The bank will typically not make a decision on a short sale unless..."

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Short sale myth #9

"Belief #9) Anyone can help negotiate a short sale.

Sure if you want to end up in foreclosure! You have to hire an agent with experience to help you through the process but you need a good attorney for legal advice. As an agent like I had said before I can..."

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Short sale myth #8

"Belief #8) Short sales rarely get approved.
This one got steam from too many agents who didn’t understand the process helping their buyers write on a short sale that only had a few months left on the redemption period. It also happens when a third lien holder will not work to come to resolution. However if you..."

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Short sale myth #7

"Belief #7) Short sales are as financially damaging to my credit as a foreclosure.

Again not true. If you do a short sale your credit will show late payments and that the debt was satisfied. The average person according to several financial experts will lose 100 points or so on their credit score depending on how long the short sale drags out and how many payments are missed. It typically can take 3 years or so to be able to qualify for another home loan. A foreclosure on your credit shows up as..."

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Short sale myth #6

"Misguided Belief #6) You must be behind on your mortgage to qualify for a short sale.

Not true, it’s the hardship that is the main qualifier for a short sale. There are some banks that will actually listen to you if you have not fallen behind. Before you just stop making payments consult an attorney to discuss..."

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Short sale myth #5

"Belief #5) A short sale in not worth the hassle.

It doesn’t have to be a hassle. If you choose the right agent to represent you, get an attorney and tax professional involved things can go smoothly. It starts with a game plan with options. The first thing is be honest with your..."

o read the entire blog CLICK HERE

Short sale myth #4

"Belief #1) Short sale negotiations are adversarial.

This is not the case at all. The biggest issue or problem is the amount of paperwork and the number of files the asset manager who is representing the lender/investor has to deal with. They are just trying to..."

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Short sale myth #3

"Belief #3) A short sale = fire sale

The banks look at the bottom line or their net proceeds, that is it. The short sale will still be a deal for the buyer but in many cases will close close to the fair market value, unlike many..."

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Short sale myth #2

"Belief #2) Banks would rather foreclose than approve a short sale

This also false because up until a short time ago foreclosures were just easier to do that short sales. The banks have stepped it up and are becoming better equipted to handle short sales. It has taken banks.."

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Short sale myth #1

"Belief #1) There is not enough time to negotiate a short sale.

You always have a time line that has to be followed but banks are starting to realize as they become better staffed that they are in a better financial position to allow a short sale vs...."

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Short sale confussion, 10 myths

"If you are a buyer looking for a deal on a home they can be great but you have to understand the process going in. Please refer to my earlier blog The key to buying a short sale. This blog is directed more for the home owner who is on the fence about what to do.

You are in a position due to job loss, medical issue or..."

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Mortgage update 12/17/10

"Everyone wants a great deal on a home no mater if it is the tenth home you are buying. There are lots of home deals to be had all over the Minneapolis and St. Paul area. Finding a great deal on a home is not the issue, the interest rate is. They could stay the same for another year or go up tomorrow, no one knows for sure. If you want to buy a home and get a great deal and the best interest rate; one of the things you have to watch is the bond market. That is what..."

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Market update 12/15/10

"The market seems to be picking up steam as I am continuing to see a lot of online activity. I believe this is a good sign of things to come after the 1st of the year. The continued interest from buyers through the holidays should turn into showings after the New Year. The one item of concern I have is what the interest rates will do. They have been edging up over the last few weeks but historically January sees some of the lowest rates during the year. This is what helps to open up the spring market in the middle of January. The Fed is..."

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Interest rate update for home buyers 12/14/10

"No economic releases today, but the rest of the week brings a lot to consider when it comes to mortgage rates.　

We’ve witnessed a sharp rise in rates over the past several weeks.　The average 30 year mortgage is now in the 4.75% range.　Just a month ago it was closer to 4.25%.　This dramatic rise in rates has to be of some concern to the Fed, because if this happens..."

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Foreclosures and the impact on the housing market.

"All indicators are pointing upward for interest rates in the coming New Year. As a real estate agent this is to me the biggest thing that will impact you when buying a home. If you wait to see if a home drops buy another 5% to jump in the market, it could cost you more in the long run if rates go up. A good rule of thumb is for every 1% that the rates rises you as a buyer lose 10% of your purchasing power. To put it another way if you are buying a $250,000 home at 4.5% and rates rise to 5.5% the same payment now buys you a $225,000 home. There will be foreclosures to..."

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10/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 10- How many short sales have you closed?

This is a gut check question for the buyers agent as well as..."

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9/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 9- Do you have the complete “package” ready to go to the bank once you have an offer?

The complete “package” is all of..."

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8/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 8- Have you started the short sale process with the bank?

I know you are probably saying, “Are you kidding?” with this..."

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7/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 7- Has a sheriff’s sale been scheduled or taken place?

In the state of Minnesota there is a six ..."

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6/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 6- Will the seller consider signing a promissory note if asked to by the lender(s)?

Does the seller want to preserve some of their credit? Are they able and.."

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5/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 5- What is the total amount owed on all of the loans?

Getting this question answered will help you determine.."

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4/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 4- Who are the banks that are involved?

You always want to know who..."

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3/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 3- How many liens are on the property?

This is a biggie. The more liens..."

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1/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 1- Are there any offers on the property?

This one is obvious to..."

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2/10 Questions to ask about a short sale

"Today I am breaking down the 10 questions you should ask before putting an offer on a short sale. It’s worth knowing why you want answers to these rather than just asking because you think you should. Some of the reasons may surprise you.

Question number 2- If there is an offer already, can I still submit my offer?

Good to know ahead of..."

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Buying a short sale? Read this first

"The answer is patience, plain and simple. If you want a deal you have to wait for it. Please keep this in mind it will go along way to keeping you sane during the process. There are so many moving parts to a short sale that it makes things move slower than in other transactions. This doesn’t mean that you as a buyer can’t position yourself to cut out many of the unknowns before you make an offer. Making sure you have a check list as a buyer of specific questions that you get answers to before you write an offer will go a long way to helping you manage your expectations. The more you know going in the better off you will be. Starting with...."

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Market update 11/16/10

"We have seen a steep decline in new listings over the last week, which is very typical for this time of year. As I have said before this actually makes for a great market opportunity for the sellers who have kept their home on the market. The buyers this time of year have historically been more serious because they need to move. This in many cases will give the sense of urgency to the buyers who are on the fence as the choices of homes go down...."

To read the entire blog CLICK HERE

Why you should you buy a home before the end of the year

"I am sure you are probably getting tired of hearing now is the time to buy but you are reading this. I have spoken to so many buyers recently that want to buy a home but keep waiting for the market to bottom out. It has for the most part bottomed out at this point. The reason that most people don’t know this is because the media is always 8 months to a year behind what is going on in the real estate market. They also have a habit of looking at things from a national perspective vs. locally. Bottom line this can cost you money in the long run by waiting too long. Here are 5 reasons to buy now vs. waiting..."

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New Listing in Lakeville, MN 2 story $339,900

Looking for the perfect move-in ready home in model condition? Look no further than this! The home has so many wonderful things about it from condition to location. The neighborhood is conveniently located close to Cedar Avenue and Dodd Road. Only 30 Minutes to the airport and Mall of America. Close to shopping, parks and schools. This neighborhood is in the Lakeville South school district. All of the neighbors show pride in ownership which adds to the appeal of the neighborhood. Many of the homes are very similar in style and size which makes for a great investment.

The main level as you enter the home has a large foyer and beautiful hardwood floors that carry into the kitchen. To the left is a home office that could be used as a 5th bedroom. To your right is a formal dining room which makes hosting dinner parties very easy. The eat-in kitchen with its beautiful hardwood floors also features custom cabinets, center island with breakfast area and plenty of room for a kitchen table. The living room off the kitchen has large windows that add light throughout the day and a gas fireplace for those cold winter nights. The laundry room is also on the main level right off the large insulated 3 car garage.
The upper level has a master suite complete with vaulted ceiling, a large walk-in closet, full master bath with separate Jacuzzi tub and shower. Another full bath plus 3 more nice sized bedrooms all with good closet space.

The lower level is currently unfinished but has egress windows, bathroom rough in and lots of storage space. A large portion is being used as a work shop but if you choose to finish it you could add another 1000 square feet.

The entire yard front and back is beautifully landscaped with many different types of trees, plants and perennials. The in-ground sprinkler system keeps the lawn lush and very green. The back yard is very private and can be enjoyed on the raised paver patio. This is a very unique and beautiful feature that ties into all of the landscaping. It is 17 x 16 which is larger than most deck with plenty of room for a table, lounge chairs and a grill.

This home is a must see with all it has to offer and would be a perfect fit for many different lifestyles. Don't miss this rare opportunity to own this wonderful home; they don't come around very often.

Avoid the "pricing trap". 5 key points to consider when selling your home.

Top five tips when pricing a home for sale


Pricing decisions should be grounded in reality from the start. Here are some tips to consider before you settle on a listing price.


1. Put personal feelings aside. Think realistically about how much a buyer would willingly pay for your home, not what you think they should pay based on your bias. Buyers don’t care what you paid for your home or how much was invested in repairs and upgrades. All they care about is getting the best home at the best price.

2. Understand the concept of market value. The value of your property is determined solely by what a buyer is willing to pay in today’s market. You shouldn’t automatically expect to get more than you paid when you bought the home. You have to look at all of the information including lagging indicators, leading indicators as well as current indicators. Having an agent who can provide a regression pattern helps as well.

3. Know the competition. No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market. Many times buyers will be looking in more than 1 area at a time. Your best guide is a record of what the buying public has been willing to pay in the past few months for properties like yours in your neighborhood.

4. Price it correctly from the begining. If you're too high, you'll need to continually reduce the price until you hit that "magic" number, and by then buyers will begin wondering what is wrong with the house or might wait to see how low you will go. We call that chasing the market.

5. Don’t test the market. Testing the market is a poor idea because most showings occur during the so-called "honeymoon" period, or the first 21 days in which the property is listed. After those first few weeks, showings drop dramatically. If the listing doesn't sell it could be on the market for a very long time. It typically takes 25 showing to get an offer. If you have had 50 with no offers you have in essence lost 2 buyers. Timing is everything!

Pricing and marketing go hand in hand, one does not work without the other.

As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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New listing in Lakeville, MN Elegant rambler only $600,000!

VIEW THIS LISTING
Looking for an elegant home with quality craftsmanship and attention to detail throughout? Look no further; this could very well be the home of your dreams. Located in a very upscale quiet neighborhood Lake Villa, the location couldn't better. Only 5 minutes to shopping and I-35, only 20 minutes to the airport.
As you enter the home you see right away how open the floor plan is. A huge foyer with beautiful hardwood floors that flow to the formal dining room. The formal living room has floor to ceiling windows with a great view of the back yard. These two rooms are divided off with large pillars making them intimate yet open at the same time. The eat-in kitchen has hardwood floors, Center Island, breakfast area, bump out for a kitchen table and sitting room. Easy access to the 1st of 2 decks is right off the kitchen making it easy to entertain and barbeque. The laundry room, mud room and 1/2 bath are right off the insulated 3 car garage. The office to the right of the foyer as you enter the home has French doors for privacy. It is all finished with ornate woodwork from top to bottom including a coffered ceiling; it is a classic office/den. A 2nd 1/2 bath located right off the office for guests. The master bedroom feels like you are in a luxury hotel complete with a huge master bath. The master bath features marble floors, dual sinks, Jacuzzi tub, separate shower and a spacious walk-in closet with custom cabinets and dressing table.
The lower level walkout is very bright and open with lots of space and options. There are two large bedrooms both with walk-in closets, large storage area that could be a workshop or craft room, full bathroom and exercise room that can be used as a 2nd office or play room. The family room works as a home theatre along side a full wet bar and amusement or game room. You will be able to fit a full size pool table in this area along with another bump out for a game table. The home is set up perfectly for home entertaining. Large family gatherings or small dinner parties both work well with this floor plan.
The yard is private, beautifully landscaped and backs up to woods. You can enjoy the privacy of the back yard on 1 of two decks or the patio. The exterior has been redone with James Hardy siding and stone. Flexible closing and possession are possible. This unique home is a must see!

New listing! 1 1/2 story home in Richfield, MN

View Property Details

Spacious 1 1/2 story home located in Richfield, Mn. Large corner lot with fenced back yard. Located close to Nicollet Avenue and 494, which makes the location very convenient to shopping and major highways. Only 10 minutes to the airport, Mall of America and down town Minneapolis. Five minute drive to light rail and within walking distance of shopping and bus stop.
The main level has hardwood floors, 2 bedrooms with good closet space, full bath, eat-in kitchen, informal dining room, living room with wood burning fireplace and 3 season porch. The upper level is a huge master bedroom with lots of closet space and beautiful wood tongue in groove ceilings and walls.
The lower level is partially finished with a 3/4 bath, family room that would be perfect for a home theatre or game room and laundry room with lots of storage.
Enjoy the fenced back yard on the huge deck. The yard has plenty of room for a garden on play set.

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In Foreclosure! New listing in Minnetonka, MN

View property details-http://allmnhomes.com/Twin_Cities_Home_Search_listings/3762FC53-A474-22DF-438A43D52A8AB5E4.shtml

Very private end unit located on a cul-de-sac. Large yard with plenty of space. Home backs up to privacy so you don't stare at a neighbor, this adds to the privacy of the deck. The home is incredibly well cared for with a very open feel and sunlight throughout the day. The eat-in kitchen has beautiful hardwood floors and lots of cupboard and counter top space. The informal dining room off the kitchen leads to the living room and the private deck. There are 2 bedrooms on the main level both with large closets along with a full bath. The living room also features beautiful hardwood floors and large picture window.
The lower level has a big family room with a fireplace. A large laundry room, extra storage, 3/4 bath and 3rd bedroom round out this level. The 2 car has extra room for storage. If you are looking for a great location this is it. Close to 101 and 62 you are only minutes away from shopping and 494.

New Listing in Lakeville, MN. 10.00 Acre hobby farm.

Looking for a place for your horses, home based business or just privacy? Look no further than here! The home is low maintenance with vinyl siding. Asphalt driveway from street all the way to the work shop. The home surrounded by beautiful trees and nature. Birds, deer, turkey and even chickens! If you want quiet and a place in the country this is the best of both worlds. The home and land include some wonderful features-

Updated eat-in kitchen with custom cabinets, tile counter tops, wood floors, new stainless steel appliances and breakfast bar. The home g=has a very open feel with the kitchen being the center of it all. The main floor is really set up well for entertaining.

Formal dining room with see through to the kitchen could also be used as a formal living room with its large picture window. There are beautiful views from every room and every angle! The dining room again flows to the kitchen, room to room its a great set up.

Living room has a fireplace, wood floors and lots of natural light. The sliding door leads to deck and back yard. The room flows to kitchen and is so large there is room for another full couch off the kitchen and can be set up as a separate sitting area.

The master bedroom is one of 2 bedrooms on the main level with wood floors, large closets and pass through to the full bath.

A large main floor bath is one of 2 baths in the home, the second is on the lower level. The main bath has dual sinks, tile floors and has been updated.

There are 2 bedrooms on the lower level which is a walkout to the back yard. All 4 bedrooms in this home are huge! Along with the bedrooms there is a large family room that would work great for a home theatre or game room. A bar could be easily added to this space as well. The exercise room has a tile floor and leads to the back patin and hot tub. The laundry room is unfinished and offers ample storage.

26 x 22 work shop on the lower level is under the garage. Its perfect for any hobby or can be used as storage. This is in addition to the workshop that is a separate building on the property. You can completely close it off from the rest of the lower level for ease of painting or anything lese you can use it for.

40 x 30 workshop is one of 2 exterior buildings on the property. This one can be used as a home business or to indulge in any hobby. It can be converted to a barn for horses but there is another pole barn that is 22 x 14 and can hold 2 horse stalls. The asphalt driveway is expended from the garage to the workshop. the floor is full concrete.

Everywhere you look is amazing including your own pond. More than enough room for pasture and plenty of land left over. The well is 250 feet deep and the septic is new. Mechanicals are good and the home is move in ready. Because there is 10 acrtes you have no buliding restrictions and can put up other outbuildings, indoor areans ect... This home is a great value and the lot is prime. Only 5 minbutes to I-35 tou can be in down town Minneapolis or St. Paul within 40 minutes.

New listing, new to market! This home has it all! Farmington, MN

Spacious and open floor plan in this split level home. The exterior of the home is a beautiful cedar that was just stained last summer so it is very low maintenance. Some of the great features are - concrete driveway, exposed aggregate side walks, stamped concrete, huge cedar deck, gazebo with hot tub, 1/2 acre lot and spacious flat back yard. The workshop 28 x 40 is partially insulated with electricity, garage door, side door and separate access from alley. This shop is perfect for a home business, storage or someone looking for a space to work on motorcycles, cars, furniture or any other hobby.

As you enter the home you are greeted with a sense of space due to the oversized foyer. The main level features include - eat-in kitchen with center island, custom cabinets, tile floors, vaulted beam ceiling and is adjacent to the informal dining room. The living room has a floor to ceiling wrap around brick fireplace, large windows and sling glass door to the front deck. The master bedroom has a private 3/4 bath and lager closet. There is a second and third bedroom along with a full bath on this level.

The lower level features include - Walkout to the back yard. Family room with brick fireplace that is perfect for a home theater or game room, exercise room, laundry room, storage, 3/4 bath, 4th bedroom, 5th bedroom that is currently being used as an office. The home is a perfect fit for all different types of lifestyles. Farmington is a wonder town with many different community events. The home is located within walking distance to downtown and the fairgrounds.

Call me today to see this incredible home!

Click HERE to see this home.

Large open spaces in beautiful rambler. Roseville, MN

This incredible home features 4 bedrooms & 2 bathrooms with over 2400 FSF. Beautiful hardwood floors and brick fire place makes the living room warm and inviting from the moment you step in to the home. A traditional formal dining room can be used as a sitting area. The huge eat-in kitchen affords you that option. The kitchen has a breakfast bar, room for a full size dining table & lots of counter top space for the cook in the family. A family room on ths level doubles as a sun room with large windows and natural light throughout the day. Three bedrooms and a full bath round out this level.

The lower level’s amusement room is great for a home theatre or game room. The full brick fire place gives the room a very intimate feel. The 4th bedroom has a walk-in closet and a 3/4 bath is just across the hall. The office or craft room can be accesed from the bedroom or large storage room. The cedar closet is great for storing out of season clothing.

A cozy deck/patio over looks gardens & a beautiful back yard. Located within walking distance to Central Park and Bennett Lake. Close to Rosedale Mall, restaurants and other shopping not to mention the state fair, puts this home in an ideal location.

Click HERE to view this home.

Spacoius rambler with private fenced yard and many updates. Burnsville, MN

This incredible home features 4 bedrooms & 3 bathrooms with over 2600 FSF. Extreemly well cared for, it as everything you could want in a home. Newly remodeled eat-in kitchen with Corian counter tops, hardwood floors, breakfast bar, informal dining room, double sided brick fireplace and lots of space to cook and entertain. Three sizeable bedrooms on the main level, the master has a private 3/4 bath. The formal living room features two large picture windows and brick fireplace.

Lower level is a mid level walkout with a lot of finished square footage. The family room which is curently a home office/library is easily converted to suit your family needs. The 4th bedroom with 1/2 bath is just around the corner. The amusement room with a large built-in would work well as a home theatre or game room. You could easily add a wet bar as well.

The back yard is fenced and private with extensive landscaping. Enjoy the deck as well as the patio in this private back yard. The home is located in a quite neighborhood only minutes to 35W and shopping. This home truly has it all! Don’t miss your opportunity to own this quality home.

Click HERE to see this home.

Is this your dream home? Apple Valley, MN

This incredible home features 5 bedrooms & 4 bathrooms with over 4200 finished square feet. The upper level has 4 nice sized bedrooms and 2 bathrooms. The master bedroom has a private bathroom & spacious walk-in closet. The eat-in kitchen off the family room makes entertaining easy. The formal living room has a bay window. The formal dining room can be assessed through the kitchen as well at the beautiful 2 story foyer. This home has a stunning entrance & is perfect for any life style. The large 3 car garage enters to a large laundry room. The lower level walkout has an amusement room with a wet bar and fireplace. The amusement room is perfect for a home theater or game room. The 5th bedroom works well as a home office or guest room. A 3/4 bath, exercise room & storage room finish this level. Professionally landscaped yard makes this home stand out! Some of the many wonderful improvements, updates and features are; exterior and interior painted in 2008, professionally landscaped, all new windows, roof new in 2000, tile floors in bathroom and laundry room, fireplace and chimney tuckpointed, new light fixtures throughout home as well as the exterior, air ductwork cleaned in 2007, new water heater 2008, new microwave 2008, textured ceiling in garage, 9 zone sprinkler system, large master with his and hers closets, 2 story foyer, 2 story family room on main level, 3 season porch, deck, patio, lower level walkout, hardwood floors, granite counter tops, custom cabinets, main floor office, main floor laundry/mud room, formal dining room, 2 fireplaces, exercise room, wet bar, amusement room, 4 bedrooms on upper level plus much more! This home is truly move in ready, you will not have to do a thing to this home!

Click HERE to see this home.

Minneapolis Condo in the heart of downtown.

Awesome one bedroom 11th floor condo @ "the Crossings"! Unit beautifully maintained and painted. Community offers pool, exercise room, secured underground parking! Right on skyway system. 11th floor unit - vacant but not a short sale or foreclosure! Competitive, clean and ready to show. Quick possession possible.

Click HERE to see this home

New listing! Duplex blocks from Lake Harriet Minneapolis, MN

TWO BLOCKS TO LAKE HARRIET AND 4 BLOCKS OFF 50TH AND LYNDALE. THREE BEDROOM UNITS AND ONE FULL BATH, DETACHED TWO CAR GARAGE, STUCCO COMPLETELY RE-STORED IN 2000, ONE UNIT IS CURRENTLY LEASED - IMMEDIATE INCOME!! NEWER MECHANICALS, WINDOWS AND BRICK WORK.

PROPERTY IS AN ESTATE, AS IS ADDENDUM REQUIRED.UPPER UNIT IS VACANT, LOWER UNIT AVAIL FOR 2ND SHOWINGS, PREFER 24 HOUR NOTICE. TENANT MONTH TO MONTH. PROPERTY IN EXCELLENT SHAPE. KITCHENS NEED UPDATING. FOR INFORMATION REGARDING RENTS AND EXPENSES PLEASE CALL OR TO SEE THIS FANTASTIC DUPLEX.

Click HERE to see this property.

Why some buyers have to wait for days to move into their new home after closing.

Buyers beware when purchasing a foreclosure. If it has not been explained to you, you need to know this. Do to the ongoing amount of foreclosure sales and many banks inability to process all of the files, the last step is being delayed.

When you buy a foreclosure home you need to be prepared to wait to move in. Depending on which state you are in the closing process can be different. In Minnesota we a table funded state where the funds have to be at closing when all of the paper work is being signed. After a regular residential closing the buyers and sellers shake hands and the seller hands over the keys. With a foreclosure the bank is not there and requires the closer to send over the final HUD-1 for yet another "final" review. Until the bank representative reviews this and signs off on it, the listing agent in most cases is required by the bank to hold on to the keys. This is becoming a problem because some of the banks are taking 3 days to sign off on the HUD-1 and give the okay for the buyers to move in. Which means you have given them the money, you are paying interest on your loan but can't quite move in yet.

One way to avoid this disappointment is to go in to the transaction knowing you may have to wait to move in. The best approach is to close early in the week and no where near the last few days of the month or worse yet, close to a holiday. You have to keep in mind that the person signing off on the HUD-1 could have hundreds of files that they are in charge of. The homes could be all over the country and many closing on the same day. You can also ask your agent to check with the listing agent and request that the final HUD-1 be at the bank for review no less than 72 hours before closing. If they see it early and then get the same information from closing they are less likely to flag any items. This will lead to a much smoother closing.

As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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New Listing in Lakeville, MN

This beautiful home is filled with updates and unique features. Located close to Dodd Road for easy access to Lakeville and Farmington. The home is on a cul-de-sac that is very private and quiet.

The main level features an updated eat-in kitchen with new flooring, custom cabinets, breakfast area, Silestone counter tops and bump out for a kitchen table. The informal dining room off the kitchen is currently being used and a sitting room. That leads to the formal living room. This set up gives the home a very open feel and makes it perfect for entertaining large or small groups. The master bedroom has a walk-in closet and is one of two bedrooms on the main level. The full bath is a walk thru to the master.

The lower level has a family room which is perfect for a home theatre. It shares a beautiful brick fireplace with the adjacent amusement room that is a perfect size for a pool table or bar. The third bedroom could be used as a guest room or home office. There is a 3/4 bath and large laundry room as well. plenty of storage with a crawl space under the stairs as well as in the 3 car attached garage. The lower level is a walkout to the back yard and the deck.

The deck is a multi level deck that is just waiting to be used for summer parties. It overlooks the private back yard that backs up to a creek. The yard is very level, there is enough room for a garden, playset or even a touch football game. The roof is only three years old and the exterior of the home is low maintenance.
The home has been very well cared for and is move-in ready. Quick possession is possible. It has everything a home should have along with a great price! Please call me today to see this wonderful home!

Clich HERE to see this home!

2 Story home with 4200+ FSF Apple Valley, MN

This incredible home features 5 bedrooms & 4 bathrooms with over 4200 finished square feet. The upper level has 4 nice sized bedrooms and 2 bathrooms. The master bedroom has a private bathroom & spacious walk-in closet. The eat-in kitchen off the family room makes entertaining easy. The formal living room has a bay window. The formal dining room can be assessed through the kitchen as well at the beautiful 2 story foyer. This home has a stunning entrance & is perfect for any life style. The large 3 car garage enters to a large laundry room.

The lower level walkout has an amusement room with a wet bar and fireplace. The amusement room is perfect for a home theater or game room. The 5th bedroom works well as a home office or guest room. A 3/4 bath, exercise room & storage room finish this level.

Professionally landscaped yard makes this home stand out! Some of the many wonderful improvements, updates and features are; exterior and interior painted in 2008, professionally landscaped, all new windows, roof new in 2000, tile floors in bathroom and laundry room, fireplace and chimney tuckpointed, new light fixtures throughout home as well as the exterior, air ductwork cleaned in 2007, new water heater 2008, new microwave 2008, textured ceiling in garage, 9 zone sprinkler system, large master with his and hers closets, 2 story foyer, 2 story family room on main level, 3 season porch, deck, patio, lower level walkout, hardwood floors, granite counter tops, custom cabinets, main floor office, main floor laundry/mud room, formal dining room, 2 fireplaces, exercise room, wet bar, amusement room, 4 bedrooms on upper level plus much more!

This home is truly move in ready, you will not have to do a thing to this home!

Click HERE to see this home.

Fantastic starter home close to Downtown & Lake Nokomis

Great starter home with many great features including beautiful hardwood floors, 2 good sized bedrooms on the main level, full bath, eat-in kitchen with lots of all wood cabinets, living room with brick fireplace and large picture window. The lower level; has a 3rd bedroom, bath, family room, laundry room and plenty of storage. The exterior is maintenance free. Private driveway, large 2 car garage, patio and flat back yard. Walking distance to Target. Close to Cedar Avenue, Crosstown and best of all Lake Nokomis.


Click HERE to see this home

Spacious Rambler in Burnsville. New listing!

This truly incredible rambler has it all. From the open tile foyer as you enter the home you can see all of the updates and the care throughout this home. The main level features an eat-in kitchen with granite, new stainless steel appliances and breakfast bar. The informal dining room off the kitchen ties the living room in with the space making it perfect for entertaining. The beautiful hardwood floors continue throughout the rest of the main level into all 3 bedrooms. The master suite has a private bath and there is another full bath on this level. The 2nd or 3rd bedrooms could be used as a home office or den. A very unique feature is a main floor family room with a gas fireplace that opens up to the back yard.

The lower level has a large amusement room that will hold a pool table or a home theater. The adjcent game room would be perfect for a bar. There is a 4th (non-conforming) bedroom that could also be used as a home office or storage. The exrecise room could also double as a tv room or work room. The exterior is low maintenance. The back yard is fenced and ready for pets. Located in a quiet neighborhood, it is close to Highway 13 and Cedar Avenue. Due to the location it is less than 20 minutes to downtown St. Paul or Minneapolis, 8 minutes to the Mall Of America and 10 minutes to the airport. Less that 3 miles and you have many restaurants to pick from along with shopping.

Click HERE to see this home

Huge 2 story home on the nicest lot south of the river. Savage, MN

This is a gem of a home for a buyer that wants privacy, lots of landscaping and beautiful views. Large rooms, open floor plan, cobblestone driveway, deck with gazebo and tons of storage. Private 3/4 acre lot with extensive landscaping, beautiful views of backyard & river. As you enter the home you are treated to a huge 2 story foyer with beautiful hardwood floors. The main level features a 2 story formal living room, formal dining room, powder room, 2 story family room with gas fireplace and many windows that give natural light throughout the day; not to mention the beautiful view of the back yard. The eat-in kitchen has granite counter tops, new stainless steel appliances, hardwood floors and center island/breakfast bar.

The upper level has 3 large bedrooms, a full bath and loft. The master suite has a full bath, walk-in closet and 2nd closet.

The lower level is a walkout to the back yard patio. There is a bar room, amusement room with fireplace, 4th bedroom, bath room and craft room/office. There is plenty of storge on this level as well.

Because of the set up it could easily be converted to a mother in-law apartment. Enjoy all of the amazing landscaping on the deck, patio or gazebo. The landscaping includes a rock path down to the back of the property, many indigenous plants, stream with pond, sitting areas and room for a fire pit. A large storage area under the gazebo is perfect toi store all of your gardening tools and supplies. It would be great as a play area as well. The home is located in a quiet neighborhood towards the end of a cul-de-sac with local traffic only. The large 3 car garage has lots of storage and the paver driveway adds to the charm of this truly wonderful home. This is truly a must see home!

Click HERE to see this home

NEW LISTING that is a must see! Apple Valley, MN

This beautiful home has it all! Let's start with the location, fantastic neighborhood, close to Cedar so your commute is short, 15 minutes to the Mall Of America and the airport. Close to everything Apple Valley has to offer from shopping, schools and parks.

The home is a beautiful 2 story with 4200 FSF. The main level has many wonderful features including large 2 story foyer, 1/2 bath, hardwood floors, huge eat-in kitchen w/ center island, Corian counter tops, breakfast bar, desk, french doors, kitchen dining table, beautiful wood cabinets and lots of storage! This kitchen is the perfect size for a professional chef. The family room has a fireplace and is 2 stories high with a vaulted ceiling. The formal dining room can be closed off from the kitchen with the french doors as can the formal living room. Due to all of the space this home has the formal living room would make a perfect main floor office. The main floor laundry room is very spacious with plenty of room to hang and fold clothes. The bonus room over the large 3 car garage could be used as a 5th bedroom, office or art studio.

The open floor plan of this spacious home continues on the upper level with a loft that over looks the family room, master suite with walk-in closet and full bath with dual sinks, separate tub and shower. There are 2 other bedrooms on this level along with a full bath and linen closet.

The lower level is a walkout to the private back yard. There is no shortage of living space or storage on this level. The unique design of this level is that it is open and flows in a circle. Start with the home office at the bottom of the stairs which can be used as a home theatre. Move on to the amusement room with a fireplace can be used as a game room, just add a pool table. Adjacent to the amusement room is a full wet bar and seating area perfect for a card table and designed to entertain! The sunroom with tongue in grove cedar was designed as a spa area. All of the plumbing and electrical is in place to drop a hot tub into the floor. You could also convert this room with a simple sub-floor to any other use you would like. The large sliding glass door walks out to a patio.

The yard is beautifully landscaped and very private. Enjoy many hours in privacy on the deck or patio. Plenty of yard left for a play set and other outdoor activities. This home is truly perfect for all different lifestyles and is a must see!

Click HERE to see this incredible home.

Strategic Defaults? What next?

For those of you that are not familiar with the term "strategic default" here it is- The decision by home owners who are currently upside down on their mortgages, that have no problem continuing to pay are just throwing up their hands and walking away from their homes. They are choosing to pay off credit cards, cars and other debt. The idea is by walking away from a home that they can not make a profit off of for the next several years, will put them in a better financial position by doing a short sale on their current home. They will then turn around and buy another home when their credit is repaired. Thus cutting their debt and their payment all at the same time.

If this becomes more popular as the option arms in 2010 and 2011 come due it will make the housing recovery slow even more. The current statistics in Minnesota is 29%of home owners are currently under water and owe more than their home is worth. I believe a home is similar to a stock in that it will go up, it will go down. The thing to remember is that the value is only an issue if you are selling at that moment. Walking away for no reason other than you don't want to pay anymore is poor judgement.

The home market is recovering but we are climbing out of a huge hole. That takes time and it doesn't just happen overnight. Hopefully this is not a new trend and just a small group of home owners that don't get it.

As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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So where are all the foreclosures?

That seems to be the question that is constantly being asked by agents and buyers. I would like to offer some speculation. The word on the street is everything has come to a grinding hault because of the the governments moratorium on foreclosures. Now that the moratorium has been lifted, its back to business. The idea that the so called "tidal wave" would hit last November was a bit over done. In reality it makes sense when looking at the time line, the "tidal wave" may still be on its way but not until the 3rd quarter of this year.

Looking at the time line this is what I see. The moratorium ended last November and at that point the banks were still behind working on the loan modifications. Now that many are not working out the foreclosure process has started. As that increases so does the demand for the Sheriff sale. That will put the courts behind further slowing the process. In Minnesota there is a 6 month redemption period after the Sheriff sale. At the end of that time the home is fully foreclosed on. From that point it can take a bank anywhere from a week to several months to get that home on the market. Add all the these delays up and you are now looking at July as the possible starting point were we will start to see an increase in foreclosures hit the market.

For a buy the upside of missing he $8,000 tax credit will be more homes to choose from and perhaps a really great deal as well. Just something to consider.

As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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To stage or not to stage? That is the question.

Do you know how long it takes a potential buyer to form an opinion of your home? Some buyers will decide in about 15 seconds whether your home goes on the "Rule this one out" list or the "Keep this on the potential list".

When it's time to sell, it doesn't matter how much you love your home's decor or how much it cost to get the look. It's not going to be your home any more. It's a commodity which must appeal to the largest number of people. It's not personal it just business. There are lots of great homes on the market so if you want to see that sold sign, it's time to get to work. The goal is to appear to give the most value for the dollar. One way to do this is to visit open houses or the parade of homes looking at homes that are twice the value of your home. Try to find a wall color to paint throughout the main level or other upgrading idea that will not empty your wallet but will make your home stand out above the rest of the competition.

By now, you have no doubt heard about staging and what an effective tool this can be when used properly. A recent poll of real estate agents indicates homes that were staged sold much more quickly and often for more money. You can hire an expert or do it yourself. The reason this is effective is you are not only selling your home but a lifestyle. You want to potential buyers to enter you home and see themselves living there.

The basic elements are simple, starting with depersonalizing your home. We tend to fill our homes with memories, including photos, knick knacks from trips, kids artwork and other items that declare to visitors, "I own this home". That's not what a buyer wants to see. They want to imagine themselves in this home for years to come making their own memories. It may be tough to do but you must remove family photos, religious objects and teddy bear collections. The last thing you want is for the buyers to spend more time looking at the people who own the home than the home itself.

The best selling advice you'll ever get is summed up in two words – de-clutter and Clean. Newspapers, magazines, books, lost socks, homework and mail are referred to as “visual dandruff” by decorating experts. It is the first thing a buyer will see and will visually impair the selling points of your home. Clear it away and while you're at it, remove any furniture that sticks out in walkways or obstructs doorways. If your sofa is a little too comfy, consider a slipcover or renting something more presentable. Arrange furniture to take advantage of a room's focal points, including windows or fireplaces. Try to make the rooms appear as big and open as you can.

Everything must look fresh and updated. One of the least expensive updates is paint. Choose neutral colors. Remove wallpaper it can be a turnoff along with pastel colored paint. Invest in new hardware for cabinet doors and take down the heavy drapery. Counter tops should be completely cleared except for maybe a small green plant or the coffee pot. Enhance your home's space even further by clearing out the closet and utility areas. Light, bright and airy is the look you're going for. Wash your windows!!

Continue your staging efforts on your home's exterior. Nothing is more important than a first impression. An attractive planter, new welcome mat and freshly painted door is an invitation to explore what's inside. Remove the dirt and cobwebs from last fall. Make sure all of your doors and windows open properly. A little bit of WD40 never hurts. I am sure you have heard the old saying "You never get a 2nd chance to make a 1st impression". It was probably said 1st about selling a home.

Staging will take a little time and money, but the results are worth it. In today's competitive market, it's a must. Remember staging is a word that means many different things, most important it means improvement. It does not have to cost thousands of dollars. Sometimes the smallest changes make the biggest differences.

As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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How important is the $8,000 tax credit? Maybe less important than you think.

With the $8,000 tax credit scheduled to come to an end at the end of April, word on the street is it will not be continued. I am on both sides of the fence of this issue. From a real estate agents perspective it would nice to see it continue to encourage 1st time buyers to buy a home. On the flip side as a tax payer it has to end to keep us as a country from going even further into debt.

So the down side if it ends you have missed your opportunity as a 1st time home buyer to get the tax break. However there is a big upside to this in the short term. The home affordability is through the roof right now and the interest rates are still incredible. Both of those factors are bound to change sooner or later. If some of the buyers fall out of the market because they don't understand the opportunity, several things could happen.

The amount of buyers per home will go down, which will increase you leverage as a buyer. In the Minneapolis/St. Paul area as of February 2010 there are 4 homes for every buyer. That is where we as agents like to see the market because it is balanced. If buyers drop out and inventory goes up your options improve. If the interest rates go up a good rule of thumb is to remember that for every percentage point the interest rate increases, you lose about 10% of your purchasing power. Meaning if you were to buy a $250,000 home at 5% and the rate goes up to 6%; the same payment will now buy you a $225,000 home. Once we have hit the bottom of the market and it is acknowledged by the press, it will already be on its way up again. Prices as well as interest rates can change quickly as we have seen in the past.


This is a wonderful time to buy a home with or without the tax credit, so get out there and find a home for yourself!

As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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Why the short sale contingency addendum is important for sellers as well as buyers.

This is a newer form in the state of Minnesota to further attempt to clarify issues in a purchase agreement, when dealing with a short sale. This is a great form because it does clarify 3 points that keep coming up. All of these points are negotiable. Below is the main language from the front page of the form.

SHORT SALE CONTINGENCY ADDENDUM

This form approved by the Minnesota Association of REALTORS®,
which disclaims any liability arising out of use or misuse of this form.
© 2009 Minnesota Association of REALTORS®
PART 1) The proceeds of the will not be sufficient to fully pay off all mortgages and other liens against the property. As a result, Seller must obtain “short sale” approval from one or more creditors. There may be various lien holders from whom Seller may need approval: this includes but is not limited to senior and junior liens, if any, homeowner’s associations or tax liens. Short Sale Approval in this Addendum is defined as a mutually acceptable agreement between the creditor and Seller to release their liens. This Purchase Agreement is contingent on the Short Sale Approval by Seller’s creditors. Seller shall obtain the Short Sale Approval(s) and notify Buyer, or licensee representing or assisting Buyer, in writing of the approval(s) no later than ______________. If Seller fails to obtain the necessary approval(s) and provide Buyer, or licensee representing or assisting Buyer, with written notice by this deadline, this Purchase Agreement is canceled, in which case Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement directing the release of the earnest money to Buyer

The following provision(s) modify and supersede any conflicting term(s) in the Purchase Agreement and any Addenda there to ONLY IF the corresponding box is marked (Select appropriate option(s)

PART 1 EXPLAINS THAT THERE IS A TIME LIMIT ON HOW LONG THE BUYER WILL AGREE TO WAIT FOR THE SELLER TO GET THE NECESSARY APPROVAL IN WRITING FROM THE BANKS TO MOVE FORWARD WITH A SHORT SALE. THIS IS A VERY NEGOTIABLE POINT BECAUSE IT HAS TO BE LONG ENOUGH FOR THE SELLER TO OBTAIN APPROVAL BUT NOT LOCK THE BUYER IN FOR 6 MONTHS. IT ALSO MAKES BOTH PARTIES AWARE THAT THE BANKS DO AVE TO GIVE APPROVAL. SOUNDS OBVIOUS BUT TO SOME IT IS NOT. IF THE SELLERS DON'T GET APPROVAL WITHIN THAT TIME LINE CONTRACT IS CANCELLED.

PART 2) Not withstanding any provision of this Purchase Agreement to the contrary, Buyer shall not be required to provide earnest money until Short Sale Approval has been obtained. Buyer shall pay the earnest money within three business days after Seller provides written notice to Buyer, or licensee representing or assisting Buyer,
that said approval has been obtained from all mortgagees and lien holders.

PART 2 EXPLAINS WHERE THE EARNEST MONEY STAYS. TYPICALLY IN THE STATE OF MINNESOTA IT IS REQUIRED THAT THE EARNEST MONEY BE DEPOSITED IN TO A BROKERS TRUST ACCOUNT WITHIN 3 BUSINESS DAYS OF FINAL ACCEPTANCE.

PART 3) Not withstanding any provision of this Purchase Agreement to the contrary, the time frame to perform inspection(s) shall commence on the date that Seller provides written notice of Short Sale Approval from all mortgagees and lien holders to Buyer, or licensee representing or assisting Buyer, rather than on final acceptance of this Purchase Agreement.

PART 3 EXPLAINS THAT THERE WILL BE NO INSPECTION UNTIL APPROVAL OF A SHORT SALE HAS BEEN OBTAINED RATHER THAN WITHING X NUMBER OF DAYS FROM THE FINAL ACCEPTANCE. THIS WAY THE BUYER IS NOT SPENDING MONEY ON A HOME THEY MIGHT BE ABLE TO BUY.


PART 4) Notwithstanding any provision of this Purchase Agreement to the contrary, Seller, or licensee representing or assisting Seller, SHALL or SHALL NOT have the right to continue to offer the property for sale until this contingency is removed.

PART 4 EXPLIANS THAT SOME BUYERS FEEL THE HOME SHOULD BE PUT INTO PENDING AS SOON AS THE BUYERS AND SELLERS AGREE TO THE CONTRACT. DUE TO THE LENGTH OF TIME TO GET AN APPROVAL FROM THE BANK, THIS MAY NOT BE A WISE MOVE ON THE SELLERS PART. IT ALL COMES BACK TO NEGOTIATION AND WHAT THE OTHER PARTS OF THE CONTRACT SAY.

THIS PAGE IS PART OF A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S).
IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.


This form has saved a lot of hassle and misunderstanding for me on both sides of a transaction and is some thing to consider.

As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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Short sale seller information. Some facts you should know before making a decision.

I am continuing with short sales in many of my blogs due to the continuing confusion about them completely understandable. There seems to be so much misinformation floating around about them. Not to mention the amount of calls and emails I receive from both buyers and sellers wanting information. They usually begin with I heard from my friend or read some where about x, is that true?


Even though both sides of the transaction feels the pain of the whole thing, there are very different things to consider if you are a seller vs. a buyer. Below is a basic outline of what I typically cover with a seller when we sit down the first time to discuss the selling process. The one thing you always want to keep in mind is every transaction is different and there are many unknowns that come up. That is something you can't control no matter how prepared you are. An experienced agent will be very helpful in that regard. Again I can't stress enough how important it is to speak with an attorney and tax accountant before making a decision to short sale your home. Every states laws are different and you need to know where you stand.


A short sale occurs when the proceeds of your home sale will not be sufficient to fully repay your creditors. Because of this, it will be necessary to come to an agreement with your creditors to accept less than the full amount of the debt you owe in order to release the liens on your property. Without this agreement, your home cannot be sold (unless you are able to bring money to the closing). If you are facing foreclosure, the decision to proceed with a short sale or to allow the property to be foreclosed is a difficult one. You should consult with an attorney or tax advisor before making your decision. There are also several nonprofit organizations that may be able to help with this decision.
Should you choose to pursue a short sale, there are a number of issues to keep in mind:


Your creditor will likely communicate with you by mail to indicate whether it will accept less than it is owed. If the creditor approves, the creditor will agree to release the liens on the property. But you should also determine whether the creditor intends to waive its rights to any shortfall, or whether it intends to pursue you for the shortfall after closing. If the communication regarding this issue is at all unclear, it is very important that you contact the lender for clarification before continuing with the sale.


If you are in the process of foreclosure, it is important to understand that the process will continue even though you are pursuing a short sale. Typically, a foreclosing lender will not delay the foreclosure process because you have the property on the market or even if you have a purchase agreement signed. Therefore, you need to stay informed about your foreclosure process, and in particular understand the redemption period deadline that may apply.


There may be tax consequence to you as a result of the short sale. For example, if your short sale involves the sale of property that is not your primary residence, you will be taxed on any “forgiven” debt. Other rules apply; it is important that you contact a tax consultant before making your decision.


In Minnesota we have a longer redemption period than many states which can work in the favor of both the sellers as well as the buyers. It can take a long to get all of this sorted out, so know as much about the process going it. Believe it or not the more you know of your situation the easier it will be to make the right decision for you. Don't just jump into it without all the facts, the process is hard enough on a family already. By doing the research first it should ease the burden a bit.


As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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Short sale buyer information. Some facts you should know before making a decision.

I am continuing with short sales in many of my blogs due to the continuing confusion about them completely understandable. There seems to be so much misinformation floating around about them. Not to mention the amount of calls and emails I receive from both buyers and sellers wanting information. They usually begin with I heard from my friend or read some where about x, is that true?


Even though both sides of the transaction feels the pain of the whole thing, there are very different things to consider if you are a buyer vs. a seller. Below is a basic outline of what I typically cover with a buyer when we sit down the first time to discuss the buying process. The one thing you always want to keep in mind is every transaction is different and there are many unknowns that come up. That is something you can't control no matter how prepared you are.


When we are talking about a short sale, we are not talking about a bank-owned property. A short sale occurs when the proceeds of a home sale will not be sufficient to fully repay the seller’s creditors. Because the creditors cannot be paid in full, the seller will need to obtain an agreement from the creditors that they will accept something less than what they are owed. While it is possible to get a good deal on the price of a short sale property, there are a number of issues unique to short sales that are worth considering:


First and foremost, you typically need to have a lot of patience when trying to purchase via short sale. Even though you may have signed a purchase agreement with the seller, it will take some time before you know whether the transaction will close. It can easily take 30-60 days to get a lender to respond to a request for a short sale. It may take longer. And there are sometimes multiple creditors from whom approval will be needed. This can further extend the wait time.


Many short sales are not approved. Just because you might have the highest offer for the property does not mean that it will be approved by the lender. Many purchase agreements fail because the lender chooses not to approve the short sale or because the lender grants approval on terms unacceptable to the seller.
You could have expenses that are not reimbursed. For example, if you incur the costs of an inspection or an appraisal prior to creditor approval, you will typically not be able to recover those expenses.


Unless otherwise agreed in the purchase agreement, the seller may accept offers that come in after your offer. Just because you had the first offer that was accepted by the seller does not mean that you have a superior right to the property. All purchase agreements will typically be contingent on bank approval, and the bank will approve only one, normally the highest and best offer.


As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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Foreclosures vs. Short Sales, what is the difference?

I thought it was worth revisiting this topic even though is is well covered ground. Besides if you were not interested you would not read this. If you don't know the differences or can't remember, then this blog is for you. Real estate in and of itself can be confusing with all of the different terms, laws and other issues. Being that these are still very much apart of the real estate landscape at least in the metro area of Minneapolis/St. Paul, I felt it never hurts to review.

The easiest way to remember the main difference between the two is a foreclosure (as is property, lender owned, corporate owned, ect...) is the bank owns the home out right. The foreclosure process is now over and the bank can sell it to a perspective buyer without issue. Please understand when the bank puts a home on the market it as been assigned to an asset manager. That is the go between of the bank and listing agent. The listing agent answers to the asset manager and the asset manager answers to the bank. They have set it up this way and you as a buyer can't change this. If your agent feels compelled to try and bully any of these parties, it could cost you the home.

Please stop watching late night TV. Those people are NOT in the real estate business, they sell cd's and dvd's. For all you know a year from now those same people will be selling how to get rich selling crap on the Internet. Find a local real estate professional to help you. If you are not sure how to choose one please read my blog on how to hire a buyers agent and the questions you should ask. This is a critical step in the process. A great agent will be worth heir weight in gold when t comes to helping you put a deal together, foreclosure or short sale. Point is the bank does NOT want to talk to you. They want you to go through proper channels to present your offer.

A short sale is typically a situation where the seller has fallen behind in their payments for a variety of reasons. They can no longer afford to stay in the home and ask the bank if they would accept less than what is owed to sell the home. Why would any bank agree to this you ask? Because statistics have shown that the 1st lien holder will recover about 80% of what is owed. With a foreclosure that drops to about 55%. But this does not mean banks will always make the right decision.

Laws vary from state to state so you need to know how the state you live in views foreclosures. In the state of Minnesota there is a 6 month redemption period after he Sheriff's sale. It is very important to know where the property currently stands in the foreclosure process. Here is the general time line in the state of Minnesota. Seller falls behind on payments. They get a few months of late notices in the mail. If the sellers do not get current the bank will typically send another letter informing them that the bank is starting the foreclosure process. Then the sellers will be served by the county sheriff or someone hired by he bank. From that day the sheriff's sale is scheduled to take place in 30 to 45 days. From the date of the sheriff's sale in Minnesota here is a 6 month redemption period where he seller could still redeem the home by paying all they owe in late payments, interest and penalties. If at the end of he 6 months they have not redeems the home, the bank takes it over and the foreclosure is final.

You as a buyer can try to buy that home on a short sale anytime during this process up until the end of the redemption period. Once that ends if your purchase is not final and closed, the purchase agreement becomes null and void because the seller no longer has rights to the property. Be careful when you hear the term "pre-negotiated short sale", I don't believe that it exists. Sure the bank may tell the listing agent that they have agreed to allow the seller to try to sell the homes short but in my experience no bank will agree to anything more than that until the offer is in front of them with every last detail.

My feeling as a real estate agent is that both can be great and both can be bad. That can be said about any real estate transaction. Be prepared, hire a qualified agent to represent your best interests and above all understand as much of the process as you can. It will make you a better buyer and help to make things work out much easier for you.

As always please consult a real estate attorney with any legal questions you may have and your accountant for any tax questions.

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Looking back on 2009 in the Minneapolis St. Paul Real Estate market. What does 2010 look like?

I like to review the year that was to see where we have been and hopefully get some insight as to where we are going. In looking over the stats for the year I am starting to see some balancing of the market. I don't know if we have at this point but we appear to be headed that way. I think by June we should have a good idea of where we stand.

A lot will depend on the so called "tidal wave" of foreclosures that is headed our way. Ask anyone heavily involved in that from the banks to the listing side and they all seem to agree on two key points. First that the "title wave " is coming. Second that most will be higher priced homes. Typically the answer to that is $400,000 plus. That is the part I am most curious about is will that number hold up? It seems that many of the lower priced homes were involved in some of the fraud that was taking place along with entire neighborhoods. My guess would be a larger section will be affected from $2500 on up. The reason being is the job loss and another group of arm products that are set to expire. The word on the street is that there are 7 million foreclosures on the horizon. If that is correct it could be roughly 5 1/2 times larger than 2005. The 2nd half of 2009 seemed to finally clear a lot of that up. So if there are that many more homes coming on it will really affect values in all areas of real estate.

The other question will be how much of that will be commercial buildings? With the shift in the job market many business' had expanded to far and are now scaling back. Below is year end data for The Minneapolis St. Paul real estate market. There are always differences from Lakeville to Bloomington to Anoka so this is just an over all view.


13 County Metro Area


According to data released by the three Twin Cities area REALTOR® associations:
In the 13-county metro area, total pending sales for 2009 ended at 52,167 – up 18 percent over 2008 and the highest number of units sold since 2005.
The median sales price in the 13-county metro area in 2009 was $166,000 - down 14.9 percent from 2008. However, prices have seen stabilization recently. December’s median sales price was only down 3 percent from one year prior.
2009 traditional median home price: $204,000 (-8.3 percent from one year ago)
2009 median sales price for lender-mediated: $124,000 (-14.2 percent from one year ago)
In 2009, 43 percent of closed sales were lender-mediated compared with 31.4 in 2008.
2009 closed sales were up 16.7 percent over 2008.
At the start of 2010 active listings were down 22.3 percent from a year ago.
2009 new listings decreased 11 percent from 2008, the lowest showing since 2003 and the third consecutive year of substantial decline.
Average days on market were at 132 in Dec. 2009 compared with 148 in Dec. 2008.
Based on information from the “2009 Year End Housing Sales Statistics Press Release” published in concert by the Minneapolis Area Association of REALTORS® (MAAR), Saint Paul Area Association of REALTORS® (SPAAR) and North Metro REALTORS® Association (NMRA). Data collected from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC. for residential properties in the 13-county region exclusively.

I think it is very encouraging but there are still a lot of unanswered questions at this point. One thing is for sure, it will be an interesting year in real estate for sellers as well as buyers.

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