Tami and Steve's I-94 Minnesota Real Estate Blog: December 2009

Spending an entire day listening to FBI investigators, prosecuting attorneys, and Minnesota Realtor representatives detailing the statewide fraud cases turned out to be a valuable experience. The variety and depth of housing fraud schemes is overwhelming and mind-boggling. Mortgage fraud has had an impact that has rippled through and crippled several Minnesota communities. The end result has left us, the Minnesota taxpayer, with enormous debt and substandard neighborhood conditions to be rectified. As our market changed from the high appreciation years to one of foreclosed homes, and now the advent of short sales, so have the fraud schemes.

I discovered a bright spot, however, in this dark cloud lurking over Minnesota housing. The Realtor Association is releasing a new form, Short Sale Notice, for home sellers. This one page form gives a concise explanation of the risks and ramifications for a seller pursuing, or at least considering, the short sale of their home. It is excellent awareness and education which we highly recommend.

If you have questions or interest in this new form, feel free to comment, or contact us today for a copy.

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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Enjoy the space of this well-maintained home with over 2000 finished square feet. The vaulted and open floor plan features a kitchen with center island, dining space with a slider to the deck, a spacious living room, a lower level family room with three-way gas fireplace, a finished laundry, and an insulated and rocked garage. Outside, enjoy overlooking the private and fenced back yard from the 12 x 14 deck. Priced to sell at $165,000! View this listing at: 1804 3rd St. North, Sartell, Minnesota 56377

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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This walk-out rambler has a great main level layout, perfect for entertaining and family gatherings. It additionally boasts over 3800 finished square feet, a main floor family room with gas fireplace and formal sitting room, formal dining and an eat-in kitchen, hardwood floors, high ceilings, three main floor bedrooms, and an owner suite with private bath and walk-in closet. The cul-de-sac lot features mature trees, a maintenance-free fence and deck, and professional landscaping. View this listing at: 3612 Lisa Circle, St. Cloud, Minnesota 56301

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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I recently tasted my first yak burger at a fundraiser for the Central Minnesota Sustainability Project, and it got me curious to learn a little more about the yak and yak meat! Some interesting facts:

• There are twelve million grazing yaks in China. That makes China the world leader of yaks.
• The long-haired bovine grows a dense undercoat for warmth. The heavy coat is especially important in the Himalayan region of Tibet.
• The female yak is called a dri or nak. English-speaking countries simply call both sexes "yak."
• Cattle and yak belong to the same genus, Bos. They have been interbred for 3000 years.
• The grazing of grasses is a vital process in sustainable agriculture. Domestic livestock, including the yak of China and our small North American yak herds, are used to convert grass and other foliage into meat, milk and other products.
• A yak burger is lean and has a pleasant taste. It is neither greasy to the pallet nor gamey in taste. The texture compares to grass-fed beef and is a perfect match for an amber beer.

I was happy to support the Central Minnesota Sustainability Project and learn more about sustainable foods. Grass-fed beef and other sustainable foods are becoming more and more common in Twin Cities area restaurants, enriching our community and making it an even more livable place. If you have an interest in sustainable farming, remember that we can always assist you in locating land or a hobby farm in a great location!

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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The majority of home sellers base their selection of a Realtor on two criteria: 1) The price an agent recommends for a seller's home and 2) the commission the brokerage charges. It is interesting to note that overpriced homes take longer to sell and generally net the seller less money in the long run. The second criterion, commission, can be viewed as either a value-added or value-subtracted commodity. The cost to do business is an expensive and constantly increasing factor in marketing and servicing homes for sale. That being said, consumers get what they pay for.

So what do wise consumers base their choice of a Realtor on? The answer is a combination of three factors: 1) The marketing and exposure the property will receive. 2) The response interested potential buyers receive. 3) The service the home owner receives throughout the marketing, negotiations, and closing process. Top Realtors realize exposure, response time, and service are the difference-makers that cause them to stand out from the crowd.

As easy as it is to focus on two numbers--price tag and commission rate--more and more home sellers are looking beyond the surface and asking questions concerning a Realtor's plan for their home. Top Realtor marketing plans always include maximum exposure, quick response time, and quality service. This is where the selection of a Realtor pays off.

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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Check out this great article by Kara McGuire from today's Star Tribune: Home buyers holler: 'Show me the money!'

Summarized, what McGuire tells us is that the large number of amended tax returns has caused a bit of a backup for the IRS. With 12 to 16 weeks of stockpiled tax credit requests, home buyers are beginning to demand their money. To compound the problem, 2% of the pending refunds are under examination for fraud. The best action to get your money is to wait and e-file your 2009 return. The IRS believes you will probably see your home buyer tax credit sooner than if you amend your 2008 taxes.

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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The 2009 tax credit was a success and had a remarkable impact on our local housing market. There were twice as many homes sold this November as there were in November 2008. My personal "fav-four" indicators are the real proof that the housing market has stabilized and is moving toward a more favorable position.

• Inventory: There are 11% fewer homes on the market today than in 2008. November 2009 experienced 30% fewer new listings entering the market than November 2008. Fewer homes to compete with is good news for home sellers.
• Average Sales Price: Although the average sales price is still on the decline, -2% in November, the foreclosure market is 13 percentage points lower than the overall market.
• Number of Units Sold: The total number of units sold in 2009 is up 2% over 2008. The tax credit helped this year’s November sales exceed turkey time in 2008 by 100%.
• Absorption Rate: The benchmark of all market statistics indicates the true health of the market. Absorption rate is the number of homes available per buyer.

Currently we have seven homes per buyer in Central MN. A balanced housing market would offer between five and six homes to every active buyer. In a balanced position, neither buyer nor seller has the upper hand in negotiations and there is a good selection of homes to compete with and to select from.

With two of the indicators in the plus column and the other two moving in a favorable direction, we can presume the bottom has passed and now is the time to prepare for a very vibrant spring housing market. We expect a robust level of buyer activity fueled by the new buyer tax credit. There is strong evidence of pent-up desire to sell by many home owners, motivated by a desire for more space, one-level living, job relocation or a simple lifestyle change. Again, the extra push for home owners is the new seller tax credit. Now is the time to buy, sell or sell and buy!

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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The National Association of Realtors recently completed and released a comprehensive study focusing on today's home seller and home buyer. The results gave very specific profiles on who is buying and who is selling. The study also included data on home sellers who chose to not use a Realtor to market and sell their homes.

How successful are for-sale-by-owner sellers? What are the odds of selling your home on your own? Take a quick look at the facts:

• 92% of Minnesotans used a Realtor to sell their home.
• 8% of the sales in Minnesota were for-sale-by-owner compared to the national average of 13%.
• Over a third of the for-sale-by-owners personally knew their buyer, i.e. parents selling to their children.
• 70% of the for-sale-by-owner sellers who closed reported having difficulty selling their homes themselves.
• The most difficult task for-sale-by-owners had was in understanding and performing the necessary paperwork to complete the transaction.
• Other problem areas for the for-sale-by-owner included preparing the home for sale and pricing of the property.

Difficulties and problems aside, the odds are one in twenty that you will sell your home on your own, unless you personally know your buyer. Remember, consult your Realtor if you want your home sold in the least amount of time with the least amount of inconvenience and worry to you.

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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Stop, look, and listen if you would like to be both penny-wise and dollar-rich. If 2010 tax credit buyer behavior mimics the 2009 tax credit buyer behavior, we have three money-saving tips for 2010 buyers and sellers.

Stop and take note of the current interest rates. Take the time to get pre-approved today; know your payment comfort zone, and expect rates to creep up by mid-year. Your payment comfort zone will determine what homes you want to tour. Looking at homes above your comfort zone usually leads to a series of disappointing negotiations and the loss of vital time.

Look at as many homes as possible in your payment comfort zone; learn the market firsthand until you know what a real value looks like. Do no procrastinate; set aside plenty of time to tour homes; start today, and do not delay.

Listen to your Realtor, lender and inspector; they are your hired experts. An experienced Realtor will serve as your guide during the home search, provide you with up-to-date market data, execute negotiation strategies on your behalf, and represent your interests throughout the process. An informed lender will know the direction of the interest rates, the innuendos of various loan options, and will be able to advise you accordingly. A thorough home inspector will be able to highlight problems and items of necessary maintenance.

In short, stop what you are doing and meet with your lender; look at homes in your payment comfort zone; and listen to your hired experts. These simple tips will save and make you money.

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
---
St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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Enjoy the easy lifestyle of this one-floor patio home. With over 1500 finished square feet, an eat-in kitchen with island, a dining room with a slider to a covered porch, a spacious living room with gas fireplace, a master bedroom suite with private bath and a main-floor laundry, you will not be disappointed in this new home. Priced at $184,900! View this listing: 519 Graceview Drive, St. Joseph, Minnesota 56374.

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
---
St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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Enjoy the easy lifestyle this two-story townhome community provides. The home features over 1400 finished square feet, convenient upper level laundry, a kitchen with high snack counter, 9' ceilings and cherry-stained maple cabinetry, elegant dining, a spacious living room with a gas fireplace, a complete appliance package, and an insulated and rocked garage with storage shelves and cabinets. Priced affordably at $134,900. View this listing: 745 Willow Glen Drive, Buffalo, Minnesota 55313

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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My son was deployed to Iraq in July 2006. His wife was left behind to sell their home in Hawaii. When he returned from his overseas service to his grateful family, he was stationed in Ohio where he and his wife rented a townhome. In February 2010 they will be moving into their new home in Maryland. Question: Are they eligible for the new tax credit? The answer is: Yes and no.

Yes, they are eligible for the $8000 buyer credit, because my son and his wife had not owned a home for the previous three years.

No, they are not eligible for the $6500 seller credit. They sold and closed their Hawaiian home prior to the passing of the new home seller tax credit. The spirit of the seller tax credit is to stimulate new activity in the housing market and the larger economy of the country.

The new home seller tax credit calls for an incentive for homeowners who have owned their current homes at least five years. Owning for five years makes sellers eligible for credits up to $6500 when they purchase a new home. With more buyers like my son and his wife entering the real estate market, it's an ideal time to move.

--Steve

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Tami DeLand and Steve Hansen
Saint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for Sale
Central Minnesota Real Estate
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