Tara O'Brien's Minneapolis Real Estate Update

Edina Realty and Tara OBrien have this beautiful Grant Park Townhome for sale.It has 3 bedrooms, 3 bathrooms and 2 car heated parking. Very exquisite upgrades throughout this home. Stainless steel appliances, granite countertops in kitchen and bathrooms, marble and slate custom shower with spa jets, cherry flooring and cabinets, gas fireplace in living room and more. Huge finished square footage with high ceilings and custom paint that is very tasteful. This is turn key and ready for a new buyer.

MinneapolisCondosTaraOBrien

Labels: buying a home, condo for sale, condos and lofts, homes for sale in minneapolis, homes for sale., minneapolis condos, minneapolis market, minneapolis real estate, minnesota real estate

Labels: buying a home, buying and selling a home, condos and lofts, home buying process, home for sale, homes for sale., housing, housing prices, market update, minneapolis real estate, minneapolis realtors

When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix.

1. Decide what you can do yourself
TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house.
Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.
Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

2. Price the cost of repairs and remodeling before you make an offer
Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do.
If you’re doing the work yourself, price the supplies.
Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house.

3. Check permit costs
Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it'll cause problems when you resell your home.
Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.
Factor the time and aggravation of permits into your plans.

4. Doublecheck pricing on structural work
If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full extent of the problems. Get written estimates for repairs before you commit to buying a home with structural issues.Don't purchase a home that needs major structural work unless:
You’re getting it at a steep discount
You’re sure you’ve uncovered the extent of the problem
You know the problem can be fixed
You have a binding written estimate for the repairs

5. Check the cost of financing
Be sure you have enough money for a downpayment, closing costs, and repairs without draining your savings. If you’re planning to fund the repairs with a home equity or home improvement loan:
Get yourself pre-approved for both loans before you make an offer.
Make the deal contingent on getting both the purchase money loan and the renovation money loan, so you’re not forced to close the sale when you have no loan to fix the house.
Consider the Federal Housing Administration’s Section 203(k) program, which lets qualified purchasers wrap up to $35,000 into their mortgages to upgrade their home before they move in.
6. Calculate your fair purchase offer
Take the fair market value of the property (what it would be worth if it were in good condition and remodeled to current tastes) and subtract the upgrade and repair costs.
For example: Your target fixer-upper house has a 1960s kitchen, metallic wallpaper, shag carpet, and high levels of radon in the basement.Your comparison house, in the same subdivision, sold last month for $200,000. That house had a newer kitchen, no wallpaper, was recently recarpeted, and has a radon mitigation system in its basement.
The cost to remodel the kitchen, remove the wallpaper, carpet the house, and put in a radon mitigation system is $40,000. Your bid for the house should be $160,000.
Ask your real estate agent if it’s a good idea to share your cost estimates with the sellers, to prove your offer is fair.

7. Include inspection contingencies in your offer
Don’t rely on your friends or your contractor to eyeball your fixer-upper house. Hire pros to do common inspections like:

Home inspection. This is key in a fixer-upper assessment. The home inspector will uncover hidden issues in need of replacement or repair. You may know you want to replace those 1970s kitchen cabinets, but the home inspector has a meter that will detect the water leak behind them.

Radon, mold, lead-based paint
Septic and well
Pest

Most home inspection contingencies let you go back to the sellers and ask them to do the repairs, or give you cash at closing to pay for the repairs. The seller can also opt to simply back out of the deal, as can you, if the inspection turns up something you don’t want to deal with.If that happens, this isn’t the right fixer-upper house for you. Go back to the top of this list and start again.

G.M. Filisko is an attorney and award-winning writer whose parents bought and renovated a fixer-upper when she was a teen. A regular contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Labels: buying a home, buying and selling a home, condo for sale, condos and lofts, home for sale, homes for sale., minneapolis realtors, minnesota real estate

Three recent surveys show continued turmoil in housing and financial markets have many Americans postponing decisions to buy or sell a home, but that they remain optimistic about the near-term prospects of a recovery and still consider a home to be a good investment.

The surveys -- commissioned by real estate portal Zillow, real estate franchisor and brokerage Realogy Corp., and advertising firm J. Walter Thompson -- suggest that should government action to unfreeze credit markets succeed, consumers stand ready to participate in a housing recovery.

Zillow's quarterly homeowner confidence survey showed that when it comes to their own home's value, many Americans may be out of touch with reality.

Although Zillow's vast database of public records showed an estimated 74 percent of homes have lost value in the last 12 months, only 51 percent of homeowners polled believed their own home had lost value in the past year.

Asked to look ahead six months, 61 percent of homeowners said they expect their own home's value will hold steady or grow. But they evidently didn't think their neighbors' homes would fare as well, since 57 percent said they expect home values in their local market to decrease in the next six months.

Only 3 percent said they'd try to sell their home in the next six months, down from 5 percent of those polled three months ago. The percentage of those who said they planned to buy a home in the next six months also slipped from 4 percent in the second quarter to 3 percent.

The increased reluctance to buy into a market when home prices in some areas have seen double-digit price declines could be a reflection of worries about where the economy is headed. The Harris Interactive online survey of 2,021 adults (including 1,388 homeowners) was conducted between Oct. 7 and Oct. 9, a week the stock market saw historic drops.

Zillow's "misperception index" -- a measurement of the difference between those who think their home's value has increased and the percentage of U.S. homes that actually increased in value -- has been cut in half, from 32 in the second quarter to 16 in latest survey.

"We are seeing some movement toward more accurate perceptions of home-value declines, but there's still a significant gap between reality and perception," said Stan Humphries, Zillow's vice president of data and analytics, in a statement.

The survey also showed that worries about the economy have consumers cutting their household spending, "a fascinating distinction in consumer psychology" that demonstrates there's "clearly still some denial," about home-price declines, Humphries said.

Since the Zillow survey was conducted, the stock market has rebounded a little and there are some signs the credit crunch could be easing.

Realogy survey

In a survey of 1,023 homeowners conducted from Oct. 23-25 by Ipsos Public Affairs for Realogy Corp., 91 percent said they believed owning a home is still the best long-term investment they can make.

The survey also found that 27 percent said the current economic environment was causing them to put their plans to purchase a home on hold.

To jump-start home buying, Realogy is calling for the government to buy-down 30-year fixed-rate mortgage rates to 4.5 percent or lower for homes up to $1 million.

Interest rate buy-downs are sometimes used as incentives by sellers, who pay lenders extra points up front to obtain a reduced interest rate for a buyer. Buy-downs can be permanent or temporary -- they are often phased out over two or three years.

Realogy says there are a number of ways the government could structure and fund an interest-rate buy-down program, which could be included as part of stimulus packages now being discussed by lawmakers.

Richard A. Smith, the company's president and chief executive officer, said getting the government involved in buy-downs could have an impact on sales volume and home prices.

"We think the pent-up consumer demand for housing, if encouraged, is more than sufficient to stabilize housing," Smith said in a statement. "In our view, substantially lower mortgage rates will stimulate both existing- and new-home sales, reduce home inventory levels, stabilize home prices and, ultimately, help the overall economy."

In a separate poll of 1,500 real estate broker-owners, Realogy said 54 percent would expect a "significant increase" in home sales in their market from such a move. About 51 percent said lowering the cost of borrowing would also increase home prices. About one in 10 of those who expected price increases said they might be as much as 5 percent to 7.5 percent.

That might raise objections in some circles, as many economists believe home prices in some markets still need to fall further in order to restore affordability and reach levels where they are supported by fundamentals like income.

Realogy spokesman Mark Panus said the actual impact on prices would be "hard to handicap. It's nice to see what the response (from brokers) is, but we are not dealing in absolutes."

Panus said that while the government has taken many steps to prop up the financial system and help borrowers facing foreclosures, an interest-rate buy-down would stimulate sales.

"People are looking for a signal that it's OK to move forward," Panus said. Many are waiting on the outcome of the November elections and to see what additional stimulus programs Congress puts forward. "You wait until you see what all your options are, and until then, you may not act."

American Dream survey

A third survey that addressed public perceptions about homeownership during the economic downturn was conducted from Sept. 11-19 by J. Walter Thompson.

The survey, of 2,112 adults, found homeownership ranked as one of the most important elements of achieving the "American Dream."

Although financial security, finding happiness, personal independence, "fulfilling my potential" and freedom of speech ranked higher, those surveyed said homeownership was a bigger component of achieving the American Dream than "a better life for my children," freedom from fear of oppression, and a comfortable lifestyle.

The so-called "American Dream in the Balance" survey found homeownership was important to all age groups, but slightly more important to baby boomers than any other group.

The survey found that only 65 percent of Americans with household incomes below $40,000 a year believe in an American Dream, compared with 75 percent of those earning $40,000-$70,000 and 82 percent of those with incomes above $70,000.

www.minneapoliscondostaraobrien.com

Labels: condos and lofts, minneapolis condos, minneapolis market, minnesota real estate, real estate sales

THINGS YOU'LL NEED AFTER BUYING A HOME

You may be planning to scrimp and sacrifice to save enough for a down payment on a home, but don't forget to save for the items and services you'll need to purchase after you've signed on the dotted line...

Change your locks: Even with a brand new construction home, it's safest to change the locks after closing. Find a locksmith in the area you intend to buy and get a quote on lock-changing services.

Check out home security options: Depending on your location, you may want to contract with a home security service. Research security system installation and service fees.

Price lawn equipment: If you’ve never had a garden or lawn before this, you’ll need to purchase a lawn mower and gardening tools. Research top rated lawnmowers and prices at http://www.consumersearch.com/www/lawn_and_garden/lawn-mower-reviews/

Plan for snow removal: Depending on the time of year and your location, you may need to purchase snow removal equipment. This can range anywhere from a basic snow shovel to a snow blower. Research top rated snow blowers and prices at http://www.consumersearch.com/www/lawn_and_garden/snow-blowers.

Build your tool kit: Every homeowner needs a tool box and basic tools for small home maintenance projects. You can purchase the box and tools separately or all at once as a complete kit. Visit your local hardware store and note the prices of what you will need.

Make sure you have the basics: Obviously you'll need to stock your pantry and refrigerator after you move in. But some household items would be handy to have with you on moving day. Purchase these items and move them in with you:

Toilet paper
Paper towels
Hand soap
Floor cleaner
Kitchen/bathroom cleaner
Sponges and rags
Duster
Light Bulbs
Glass cleaner
Garbage bags
Disinfectant
Bleach
Note pad and pens
Batteries
First aid kit

Labels: condos and lofts, minneapolis condos, minneapolis market, Minneapolis Neighborhoods, purchasing condos, real estate sales, urban living

I’d want someone who wasn’t trying to sell me. Sell me anything so they could make a buck. I’d want to think that they were looking out for my best interest and was really listening to me. How do you develop that kind of trust in a relationship? I would want to know the whole deal, start to finish, be honest with me, don’t tell me stuff just because you think it’s what I want to hear. Educate me. People don’t buy real estate every day. It’s an alien experience for most. Tell me the truth.

In the past, being honest has cost me, but I know that honesty in the long run has paid my bills, and made me more money then its cost me. Plus, I’ve never (touch wood-did I mention I have stupid superstitions from my mom), have I had anybody sueme in 23 years. I hear that’s pretty good.

As a buyer, I’d want to know all, and maybe I wouldn’t know the questions to ask. In other words, I wouldn’t know what I don’t know. Makes sense doesn’t it. I’d like to think I treat everyone that way. No falsehoods, no wasting their time. What concerns me, is that other practitioners don’t do business that way. I think they should. It really messes it up for the rest of us. Again, as a buyer or seller, I want to be told the deal, no holes barred, lay it out. If you decide for whatever reasons this doesn’t work, I’d like to think I am professional enough to say, “just remember me to your friends, and remember also, that I helped you make this informed decision”.

What’s better, happy customer/clients that trust and value your opinion, or being this hard sale real estate agent that brow beats someone into a decision that maybe they will regret. It gives real estate agents a bad name.

I have sold to customer and client’s friends, family, co-workers, and gosh I have been around a while, now their kids, but I feel a sense of pride. I work with my husband, Kevin. A great man, who is the best person I know. I think that’s pretty good after all these years of working and living a life together. I’ve heard him tell people they shouldn’t buy something because it wasn’t right for them. I use to look at him funny when he said something like that. Occasionally I would cringe, remind him of what we do for a living. But guess what…. he’s been doing this longer then me, and he’s right. By my calculations he’s been in this business about 34 years. His entire adult career.


The gist of what I have to say, is that if more individuals in our profession, could think of others before their bank account, our profession, would have a whole different rep (my kids word for reputation). In some cases with other agents that I’ve had the unfortunate experience of working with, it has been extremely negative and, oh god, painful and depressing. I feel sorry for the people they are representing.

My personal campaign is to continue to increase the perception of the integrity of our overall industry. We would all benefit. We all spend mucho time, money, educational pursuits, etc. to stay alive and thrive in our careers. We deal with people who are making the single biggest investment of their lives. Don’t they deserve the best of the best? Absolutely.

I have some solutions, o.k. maybe not all the answers, but some of them. Increase the c.e. requirements. Charge usmore to stay in business. Probably not a very popular opinion. What other profession, can you get into with little or noinvestment? You don’t need to buy or lease an office, hire staff, office equipment, purchase inventory and more. You take a class, sit for a test, come out with a license and “voila” you hold yourself out as a “real estate professional”……pleeeease……… some of these agents are retired from other careers and they profess to know more about assisting a buyer or seller then I do about performing a root canal. Let’s raise the bar. Get the dead wood out and be the experts we profess we be.

Enough of my opinions. But I think they are very valid opinions. Let’s weed out the garbage.

Who do I think I am, just someone who thinks people should be treated fairly.

Monica – Ocean City, Maryland

Labels: condos and lofts, minneapolis condos, minneapolis market, Minneapolis Neighborhoods, real estate sales, urban living

Beautiful custom loft in the North Loop.

2 bedrooms plus den, 2 full baths, 2137 finished square feet. Fitness center, great location, rooftop deck.

You wont find another loft like this. This is as custom as they get. Larger room sizes, custom millwork, doors, and lighting. $90K in upgrades done after closing. Upgraded custom bathrooms and California Closets. Every available kitchen upgrade including stainless steel appliances, granite countertops, cabinetry, custom built pantry, book case, hardware and more. Hand woven blinds and upgraded carpet.

Priced to sell at $549,900. This is less than the seller paid in 2005 when built.

www.minneapoliscondostaraobrien.com

Labels: condos and lofts, minneapolis condos, Minneapolis Neighborhoods

Edina Realty in and around Downtown MinneapolisAre you looking for a home in the Minneapolis, Minnesota area? Our real estate professionals are ready to assist you with all your home buying and selling needs in Minneapolis and surrounding communities. At the Edina Realty Downtown Minneapolis Office, we're not just wired, we're personally connected. Successful outcomes depend on access to real information and value-added service that enables effective decision-making for the best results. We deliver insight, analysis and expertise that provide our REALTORS® and clients the competitive edge. And we do so in the manner and medium of our customers' choosing.At Edina Realty Downtown Minneapolis, we offer a wide variety of services for all of your home buying, selling and ownership needs. Whether you're looking for a single family home near a good school or you have your heart set on lakefront property, our network of experts can help. Our REALTORS® work directly with builders, rural properties, upper-bracket homes, condos and townhomes, are familiar with auctions, and much more. We specialize in the following areas: Downtown Minneapolis, Northeast Mpls, Camden, South Mpls, Edina and St. Louis Park, and are happy to serve your real estate needs wherever and whatever they may be.

Labels: condos and lofts, minneapolis condos, real estate sales, urban living