Edina-RealEstate

Weekly Market Activity Report

2011-02-22T08:38:00.000-08:00

Weekly Market Activity Report .. Market Pulse

For the week ending February 12, there were 710 signed purchase agreements, a meager drop of 0.1 percent from the same week last year. Although we fully expect to be down in year-over-year comparisons for the next three months due to last year's tax credit incentive, this is still interesting because it marks the first time we've had more than 700 Pending Sales since May 2010. Think about that. More sales activity in mid-February 2011 than mid-June 2010.

Similar to the week prior, there were 1,324 New Listings for the week, representing a decline of 24.9 percent from a year ago. Active Listings increased slightly from the week before to 21,553, just a 3.2 percent decline from last year.
As we work our way through these next three months of apples-to-oranges comparisons to last year, we will be looking back at 2009 and 2008 for further market understanding. This week's 710 Pending Sales compare well to the 714 for the same week in 2009 and 635 in 2008.

How much of this week's reported pendings can be attributed to unseasonably warm weather? Looking at 15-plus inches of fresh snowfall today, we're certain to find out in a couple of weeks.

Bad News Can Be Good News!

2011-02-09T07:46:00.000-08:00

WHAT DOES THIS MEAN?

What it means is that it is a great time to buy!

http://bit.ly/i4qZJY

Weekly Market Activity Report

2010-08-17T08:32:00.000-07:00

For the week ending August 7, we didn't stray from the post-tax credit trends in the Twin Cities housing market. Pending sales remained entrenched in a holding pattern around 600 per week, continually underperforming last year's activity. The 659 purchase agreements signed were 36.5 percent below 2009 figures.

Weak sales means rising inventory. There are 27,664 homes available for sale, up 7.4 percent from a year ago. In August, there will be 8.64 homes available per buyer, up dramatically from the mark of 5.28 seen a year ago.

For now, Days on Market continues to drop slightly from last year, down 6.8 percent from a year ago to 127, but Percent of Original List Price Received at Sale for July 2010 declined from a year ago for the first time in several years, an indication that home prices will remain soft in the months ahead.

Market Update

2010-06-15T05:27:00.000-07:00

Weekly Market Activity Report

Remember how we've been saying that the Twin Cities housing market has been getting successively slower in home sales every week since the tax credit ended? Umm, yeah, well that's still happening.

Pending sales for the week ending June 5 were another 57.0 percent behind the pace seen a year ago, dropping from 1,226 in 2009 to 527 today. This is the fifth consecutive week-to-week drop in signed contracts. While activity is down across the board, lender-mediated foreclosures and short sales are slowly increasing their market share of sales because traditional home sales have declined sharply. During this week last year, 37.8 percent of pending sales were lender-mediated; this year the share is 43.3 percent.

Thankfully, new supply is not growing in lock-step. The 1,521 new homes placed on the market for the most recent reporting week were 29.6 percent less than last year at this time. This has helped keep the Months Supply of Inventory metric at 6.9 months, down 9.3 percent from May 2009.

Discounted Price vs Overpriced

2010-05-20T10:05:00.000-07:00

As possible Buyer or Seller conversations … and what are your thoughts ?

Of course, not everybody agrees that homes selling well below list price can be considered discounted.

Maybe they were just overpriced, says Barry Nystedt, the president of the National Association of Exclusive Buyer Agents. "Home buying is not an exact science," Nystedt points out. "Discount," he says, "implies savings from actual value, as opposed to a price reduction from an unrealistic asking price."

Analysts at Redfin, an online discount brokerage, think so. Crunching data from sales of 9,053 single-family houses in Los Angeles County; Fairfax County, Va.; and King County, Wash., between April 15 and June 15, Redfin found most homes fetched within 3% of asking prices.

Market Update

2010-05-11T06:06:00.000-07:00

The expiration of the tax credit clearly motivated buyers to take action by April 30. Last week, there was a significant 31.2 percent jump in Pending Sales versus last year, bringing the total number of contracts written to 1,469. But for the first time this year the number of New Listings was down. A total of 1,803 of them entered the market, 11.5 percent lower than a year ago.

Some encouraging figures include a Days on Market count of 127, down 15.3 percent compared to last year, and Percent of Original List Price Received at Sale of 93.6 percent, up 4.0 percent over last year.

We expect buyer activity to continue over the coming weeks, although not with the same level of urgency due to the expired tax credits and a slight seasonal lull before we get into the heart of summer.

Market Update

2010-05-03T16:20:00.000-07:00

Well, the federal home buyer tax credit we've been talking about for the last 18 months has finally expired. All good (or bad, depending on your opinion) things must come to an end. Unfortunately, we won't have definitive evidence of how wild the final days of the credit were for another week as we wait for activity to be recorded in the MLS system.

In the meantime, we can still see that home sellers were far more active than home buyers for the week ending April 24, continuing a recent trend. There were 2,147 new listings during the week, an increase of 19.1 percent from a year ago. That's the seventh week of the last eight to show double-digit percentage increases in new listings.

Signed purchase agreements were also up but in a less extreme fashion. The 1,184 pending sales for the week were a 9.8 percent increase from a year ago.

As a result of the growth in new listings, we're projecting that the Supply-Demand Ratio for May 2010 will be 5.69 homes per buyer, a healthy balanced number but a smidge higher than the 5.23 mark of May 2009. Why point out such a subtle difference? Because that would be the first time we have seen a year-over-year increase since June 2008.

Time for The Tax Fights to Begin

2010-04-17T07:45:00.000-07:00

There was a time when real estate values where on an endless escalation, household net worth was expanding, government coffers were getting fat, and all had no income restraints… or so it seemed.
Well, that was then and now is now. Consumers and homeowners know the reality of today but government is just now waking to reality.
One of the first skirmishes is about to begin on a local level - city and county sales and property tax bases. Sales and property taxes are the base line of local governments' budgets. Historically, local government has had little difficulty in meeting budgets. If they needed money they could just raise taxes, thus even if they were short this year their bonds were golden in the credit markets. But, oops something happened.
Their budget base lines increased with the property tax valuations of real property during the boom years. Many of these entities increased their sales taxes to cover expansion and debt service at the same time and now their baseline is falling faster than low tide at full moon.

SALES TAX

The first income stream to fall off is sales taxes… consumers who are losing income and net worth through job loss or shrinking home equity are not able or willing to spend as freely now as during boom times, so sales tax income is shrinking.

PROPERTY TAX

Secondly, the housing boom came to a screeching halt and values began to recede. Real Property tax income is tied to property values as the sale is recorded, triggering a reassessment of tax for that property. Thus, government spending increased in line with the increase tax valuation of properties and commitments were made against anticipated higher income streams.
While lower sale tax revenues are felt immediately. Property taxes revenues can lag for several months or even years, but they will also shrink. The tax revenue is tied to either the sale of a property or a reassessment is triggered by property owners who feel the values are lower than the earlier value used.
If the property value has truly fallen then it will benefit the owner to appeal the assessment with the appropriate agency and reduce their property tax bill. Sufficient time, nationally three to four years, has elapsed to establish a lower value for many property owners and the wave of appeals is about to begin.
This will further exacerbate the financial conditions of government and this time they cannot resort to raising property or sales taxes to raise revenue. We will soon be seeing the effects of cut spending, raising "fees" and the skirmishes in the property tax arena.

Market Activity

2010-02-09T05:33:00.000-08:00

As winter continues its streak of cold and snow, sales activity in the Twin Cities housing market is moving along at a pace you'd expect for the season and at about the same pace as a year ago. Pending sales for the week ending January 30 came in at 650, down very slightly from the mark of 673 seen during the same week last year. Over the last three months, there have been 7,038 signed purchase agreements, up a sliver-sized 0.7 percent from a year ago.

Despite the tax credit being made available to current homeowners, new listing activity has yet to show any noticeable jump. The 1,584 new listings for the most recent reporting week represent a dip of 3.1 percent from a year ago. Total inventory of available homes is still down from last year by 16.5 percent.

In related news, Days on Market Until Sale is still dropping while the Percent of Original List Price Received at Sale is still growing. While that's good news on both fronts for home sellers in general, different price points and neighborhoods are experiencing dramatically different market conditions.

The Skinny on the Twin Cities Real Estate Market

2010-01-26T12:16:00.000-08:00

Get up to the minute information on the Minneapolis & St. Paul Real Estate Market right here:
http://bit.ly/bD7Zw7

New Home Buyer Credit Form Released

2010-01-26T12:12:00.000-08:00

If you were a new home buyer and are looking where to go to get the forms for your tax credit, go here: http://bit.ly/9TXpVe

Tax Credit Extension is Approved!

2009-11-18T15:25:00.000-08:00

Here is everything you need to know about the $8000 & $6500 Tax Credits Now Available: http://www.edina-realestate.com/Nav.aspx/Page=Http://www.edinarealty.com%2fContent%2fContent.aspx%3fContentID%3d522920

Extension Passed For 1st Time Buyers

2009-11-05T14:26:00.000-08:00

Here is a nice comparison between the old & new tax credit:
http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

Update- Tax Credit For First Time Home Buyers

2009-10-31T09:07:00.000-07:00

There has been some encouraging news on the extension of the $8000 tax credit… however, it is NOT a done deal, as it still must be reconciled between the House and Senate and then voted on for final approval.
It is not only looking good for the extension, but there are some additional enhancements to the credit in the works as well. Yesterday, the Senate reached an agreement to extend the $8000 tax credit for first-time home buyers. They also added a $6,500 tax credit for other primary home purchasers, meaning that it is not just limited to first time home buyers.
They also raised the qualifying income limits in a very meaningful way – singles were increased from $75,000 to $125,000, and joint taxpayers from $150,000 to $250,000. Buyers must have executed purchase agreements in hand by April 30th, and then will have until June 30th to close.
More details are likely to come, and changes could be made as reconciliation and voting takes place.
I will keep you posted, but if you have any immediate questions, please feel free to contact me.

Seven New Rules For First Time Home Buyers

2009-10-21T14:31:00.000-07:00

Very good information for first time buyers:

http://www.nytimes.com/2009/09/12/your-money/mortgages/12money.html?_r=1

October 2009 Real Estate Outlook

2009-10-09T07:45:00.000-07:00

October Housing Supply Outlook

The October Housing Supply Outlook just hit your intertubenetz. As usual, here's some quick takeaways from this dense and detailed look at supply-demand dynamics in the Twin Cities housing market:

Takeaway #1: If you're buying a home in the price range below $120,000, you're gonna have to move fast. There's only 2.9 months of supply in that range, which places it in the extreme seller's market category. The reason for the tight inventory picture? There's been a huge upsurge in home buying activityâ€”sales are up 127.5 percent in that category over the last twelve months.

Takeaway #2: The number of new construction properties available for sale continues to shrink rapidly as builders pull back from creating new inventory. The current inventory of 2,426 listed new construction properties in the MLS system represents a drop of over 1,200 units from a year ago.

Takeaway #3: Unfortunately for builders, new construction home sales have also rapidly declined, falling by 18.8 percent (over 800 units) in the last twelve months.

Crunch Time for First Time Buyers

2009-10-06T12:02:00.000-07:00

The rush is on for first time buyers trying to get into a house and get the $8000 tax credit. Check this out:

http://www.startribune.com/lifestyle/homegarden/63358102.html?elr=KArksUUUoDEy3LGDiO7aiU

Get The Skinny on the Twin Cities Real Estate Market

2009-09-26T08:59:00.000-07:00

Here is The Skinny on the Twin Cities Real Estate Market for September:

http://www.youtube.com/watch?v=DVmF9otaRbg

Twin Cities' Real Estate Market Looking Optimistic

2009-09-10T10:39:00.000-07:00

Median Twin Cities Home Prices Crawling Back Up

The median home sale price in the Twin Cities was $175,000 in August, down 12.5 percent from a year ago, but continuing its run up from this spring.
From March 2009 through August, the median sale price has grown from $154,125 to $175,000. It climbed $4,000 from last month, when it was reported at $171,000.
“Prices are stabilizing due to strong buyer demand – especially in the lower price ranges – buoyed by low mortgage rates and the federal tax credit for first time buyers,” the Minneapolis Area Association of REALTORS (MAAR) said in a press statement.

The tax credit expires in November and the number of sales that close should stay robust for at least the next two months, said Brad Fisher, president elect of MAAR, in a statement.

“Time will tell what the market looks like after that, but there will be less inventory left.”

Minneapolis is on Forbes list of best places to live.

2009-09-09T08:03:00.000-07:00

Best U.S. Cities To Earn A LivingFrancesca Levy, 09.03.09, 06:00 PM EDT
Forget New York and L.A. The best career prospects are in these places.

Best U.S. Cities To Earn A Living
For the exasperated job-seeker to whom employment opportunities seem bleaker than ever, salvation may lie in the Lone Star State. Texas, home to dozens of energy heavyweights and nearly as many innovative small companies, has three of the best cities to earn a living: Dallas, Houston and Austin.

When taking into account the cost of living, strength of industry, economists' predictions for the future state of employment and, of course, salary, these are some of the best U.S. cities in which to take home a paycheck.

In Depth: Best U.S. Cities To Earn A Living
It's no secret that, in general, jobs are tight: The U.S. Bureau of Labor Statistics reported on Aug. 7 that non-farm payroll employment sank further in July, and unemployment is entrenched at 9.4%. But some job markets manage to remain healthier due to one or more factors, like a concentration of top companies a resulting prospective annual jump in job growth. Such is the case for the Texas towns on our list.
And then there's Minneapolis-St. Paul. Cold weather, yes. Dismal employment landscape, no. The reason is that the area is home to 10 of Forbes' top-ranked companies--and comes out third on this list.
While employees everywhere are anxious about their jobs, they have less to worry about in cities with clusters of businesses in high-paying or growth industries, and there just so happens to be a relatively low cost of living as well. It all adds up to people earning a better living.

Home Valuation Code of Conduct (HVCC)

2009-08-31T09:10:00.000-07:00

The Home Valuation Code of Conduct (HVCC) establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. It is effective May 1, 2009, for any mortgage that will be sold to Fannie Mae or Freddie Mac; Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.

How HVCC Affects the Appraisal Process

REALTORS® and mortgage brokers are prohibited from selecting appraisers. Lenders are may use “in house” staff appraisers to conduct appraisals. However, the loan production staff is prohibited from:

selecting, retaining, recommending, or influencing the selection of an appraiser; and,
conducting any substantive conversation with an appraiser or appraisal management company regarding the appraisal assignment.

For the consumer, the appraisal process has remained largely intact. However, consumers may find the process takes longer than and may be more costly than it has been in the past.

For More Information

President's Podcast: Legislative Update on HVCC

NAR's HVCC FAQs

NAR's HVCC Myths and Facts Flyer

Complete Home Valuation Code of Conduct

Or contact me at:

www.edina-realestate.com/

Live Young! Live Long!

2009-08-20T11:12:00.000-07:00

About LifeVantage

Lifevantage Corporation is a publicly traded health products company based in San Diego, CA. Their vision is to be a leader in science-based health and wellness products. LifeVantage manufactures, markets, and distributes a patented dietary supplement, Protandim®, which is a unique antioxidant therapy, shown to reduce oxidative stress in a human clinical study.

CLINICALLY PROVEN PRODUCT

LifeVantage’s Director of Science, Dr. Joe M. McCord, is one of the foremost authorities on the body’s antioxidant defense system and co-discovered the enzyme Superoxide Dismutase (SOD) in 1969.Protandim® triggers the cells in the human body to produce more of its own free radical-fighting antioxidant enzymes, SOD and Catalase (CAT). These enzymes effectively and efficiently neutralize free radicals inside the cells where free radicals are produced.Protandim® patented formula is a blend of high quality, herbal ingredients including:
Milk Thistle Extract (Silybum marianum)
Bacopa Extract (Bacopa monnieri)
Ashwagandha (Withania somnifera)
Green Tea Extract (Camilia sinesis)
Turmeric Extract (Curcuma Longa)
Herbal ingredients, sourced from around the world, are chosen for quality, purity and potency. Each herb undergoes a quality review process for potency, purity and identification prior to acceptance for production.About Protandim®Oxidative stress is a term you hear a lot these days. It refers to the imbalance between the production of highly reactive oxygen molucules, called free radicals, and the special antioxidant enzymes that neutralize the free radicals. This imbalance results in aging and health conditions. And as you age, this imbalance becomes even more significant as your body produces far more free radicals than antioxidant enzymes.True Science Anti-Aging CreamTrueScience anti-aging cream was formulated to fight your aging battles from the outside in. With cutting-edge science battling externally and the ingredients in Protandim proven to protect your cells internally, TrueScience is the complete anti-aging solution that gives your skin a beautiful, even tone, diminishes fine lines and wrinkles, and provides a vibrant, glowing appearance.

THE ANTIOXIDANT MYTH

Not all antioxidants are equal. Conventional or “consumable” antioxidants from food or vitamin-mineral supplements are used up on a one-to-one basis as each antioxidant neutralizes each free radical.We’ve been told that if we eat antioxidant-rich foods or consume vitamin pills, we’ll receive tremendous antioxidant rewards. But the fact is, scientific studies show that you can’t possibly ingest enough antioxidants to neutralize the free radicals your body produces every day. You would need to eat impossible amounts of foods rich in antioxidants (over 350 oranges, over 30 pounds of raspberries or 15 pounds of dark chocolate per day) to equal the antioxidant power you receive from one Protandim caplet daily.

For More Information

For more information contact me or got to:www.lifvantage.com

Make sure to watch the ABC Primetime Video

Twin Cities Real Estate Update

2009-08-18T08:58:00.000-07:00

The Twin Cities housing market continues to regain a semblance of
balance in supply and demand. For the week ending August 8, there
were 1,802 new listings, down 9.5 percent from last year. There were
also 1,037 purchase agreements signed (pending sales), up 15.2
percent above last year. The total inventory of homes available for sale
is down 21.5 percent from a year ago.
The Housing Affordability Index (HAI) of 195 has begun to taper off
from its high of 219 earlier this year, yet the current HAI still represents
an increase of more than 30 percent from the boom years earlier this
decade. Months Supply of Inventory currently sits at 7.2—down 31.4
percent from last year's mark of 10.5.
All in all, the see-saw is moving back towards equilibrium. This doesn't
mean that everything is hunky-dory; sellers still face a challenging
market, especially in the higher price ranges. But the overall shift is
welcome news.

The Skinny

2009-07-15T12:47:00.000-07:00

Get The Skinny on the Twin Cities Real Estate market:

http://www.youtube.com/watch?v=VwdCVLCS82A

Market Update

2009-07-07T07:53:00.000-07:00

The 1,719 new listings for the week ending June 27 is 18.9 percent less than a year ago. The 26,043 total listings available is 21.3 percent less than last year. However, the 1,121 pending sales for this week excels last year by a giant 31 percent.
Additional metrics worth paying attention to this month:

Supply-Demand Ratio: 4.9
homes per buyer; 32.6 percent below last year; lowest since 2005.
Days on Market Until Sale: 140; seemingly high but crawling down to a pre-bubble level.

Housing market improvement has been significant in the lower price ranges, while homes priced above conforming loan limits still face significant challenges. With fewer homes available than last year, the number of days on market dwindling, and the clock ticking on government incentives, the buyer advantage is not as great as it once was.

Where Housing is Headed

2009-06-29T09:20:00.000-07:00

WHERE HOUSING IS HEADING

The 2009 State of the Nation's Housing Report from the Joint Center for Housing Studies of Harvard University concludes:
Housing affordability has been restored - driven by low interest rates and home-price declines.
Home sales are stabilizing & inventory balancing - driven by temporary first-time buyer tax credits and low interest rates.
Home prices will drop further - driven by the record numbers of foreclosures entering the market, the increasing number of vacant housing units for sale and rent will put more downward pressure on prices.
Homeownership has fallen - gains in homeownership rates gained during the boom have been erased, falling from 69% in '04 to 67.8% in '08.
Debt-to-income ratio is up - Even with rising affordability the number of households paying more than half their incomes for housing shot from 13.8M in '02 to 17.9M in '07.
The near term - demographic forces favor the rental over the for-sale market. Job losses, falling home prices and tight lending standards will keep housing demand "very low", according to the study.
Steven A. Wood, Chief Economist at Insight Economics, LLC says, "The most recent New Home Sales showed a dip in May and a downward revision in April. However, the inventory of home available for sale dropped by 2.3% to 292k. This is 35.5% below its year ago level and 49.0% below its July 2006 peak level. As a result, the Months' Supply fell to 10.2 from 10.4 in April and a record high of 12.4 in January." Wood continues, "...Home sales appear to have bottomed. Although the inventory of unsold homes is falling, there is still a large overhang of unsold homes given the current sales rate...While the new home market is very weak, the recent data suggests that a bottom maybe at hand. However, there is no evidence that a substantial recovery is in the offing."

Top 10 Neogtiating Rules

2009-06-24T06:22:00.000-07:00

Top 10 negotiating rules for Realtors
Perspective: Don't gloat, don't act hastily
BY RICH LEVIN, WEDNESDAY, JUNE 17, 2009.
Inman News
Editor's note: The following is a guest perspective by Rich Levin, a real estate coach and speaker.
Most agents have little or no specific training in negotiating, though it is a major component to an agent's success.
Negotiating is a skill like any other that is awkward at first and improves with practice. Some of these rules will take some time to implement effectively. Others you will be able to apply immediately. (Some of these rules refer to a situation in which you are presenting and negotiating directly versus through the other agent.)
Rule No. 1: Do not go back and forth between the buyer and seller more than twice or you make them crazy. At and after the third round, your chance of making the sale drops dramatically.
In the first round the buyer and seller are thinking about buying and selling the home.
In the second round the buyer and seller stop thinking about buying and selling the home and start thinking about the money.
At and after the third round they begin to resent each other. Both buyer and seller lose sight of the home and money. They begin to make it personal and focus on the other party.
Your buyers and sellers are not experienced negotiators. In fact, most have only experienced the often-negative negotiations when buying cars. So, they are predisposed to fear and discomfort in a negotiation. Others get caught up in the fight and just want to win no matter the cost or loss. Either way, these predispositions make it a lot harder for you. And you can avoid it if you shorten the negotiation.
Rule No. 2: Don't let the buyers and sellers come to dislike each other.
You take responsibility for what you convey to all parties. The most frequent reason buyers and sellers come to dislike each other is because the agent talks about one party to the other. So if you hear your client or yourself beginning to disparage the other client, intercede and suggest that whatever the reasons for the client's behavior might be, let's focus on putting together the sale and getting the move completed.
Rule No. 3: Stay focused on the goal of completing the sale.
Never let interruptions, the other party's emotions, emotional outburst, personality, position, or anything else distract you from the issues and the concessions that lead to completing the sale.
Stay calm. Listen. Empathize. Do not get involved in conversations about the party's personalities. Do not get emotionally hooked by the emotions of the client. Be a professional. Whether your clients know it or not, they want and need that kind of focused objectivity from you.
Rule No. 4: People believe what is in writing.
So, support your position in writing. If a comparative market analysis supports your position, prepare it. If certain comparables support your position, provide them. If a report supports your position, copy that portion and use it.
And most of all put your offer in writing. Don't negotiate verbally. I realize that it can work many times. I realize that some agents will insist on it and there is little you can do at those times. Please for your sake and for your client's sake make those times rare. Verbal negotiations are fraught with potential problems, misunderstandings, misinterpretations, omissions, as well as simple changing of minds. Put every step of the negotiation in writing.
Rule No. 5: When you give a concession, ask for something in return.
You may not get anything in return but asking dampens the motivation to ask for more. The seller wants another $3,000 in price and the buyer says, "If I accept that, I want the kitchen appliances." The seller says, "OK," and so the buyer says, "We have been thinking about it and we want the washer and dryer, too." The seller says, "OK."
So the buyer then asks for ... you get the idea. If the seller says "no" the first time, even if he or she ultimately ends up giving up the kitchen appliances to make the deal, asking for something in return dampens the buyer's motivation to ask for more.
Then, at the structural inspection or at the pre-closing inspection the earlier dampening of the buyer's motivation carries forward and dampens the buyer's motivation to ask for too much later.
Rule No. 6: Never take the first offer too quickly or easily.
It sends a message that may make your job more difficult later. When you have an offer accepted quickly, wait a few hours to call the buyer. Then, don't emphasize that it was easy.
On this same topic, don't tell the buyer they have bought the house or the seller they have sold the house just because they have an accepted offer ... because they haven't. The house isn't sold until there are attorneys' approvals, approved inspections, a mortgage commitment and all other contingencies are removed.
Instead of saying, "Congratulations, you got it," say, "Congratulations, you are on your way. We want to get the attorney's blessing, get through the structural inspection and get through the bank process. I don't expect any problems so I think you have a great home."
Rule No. 7: Never gloat.
I remember walking into a seller's house with a full-price offer, all cash, and only attorney's approval as a contingency. It had the closing date the seller wanted, no personal property. I was proud and pleased. This one was going to be easy.
So I strutted in with swagger and a smile. I said, "You guys are gonna love this offer."
Well, as you might expect, they questioned me and challenged me about everything from the legitimacy of my buyer to where their cash was coming from -- all because I didn't have the good sense and sensitivity to realize these people are moving their lives. I treated it like a game and they quickly reminded me of the offer's importance to them.
The next time I had the situation I talked about how hard I worked to get them as much of what they wanted as I could. I couldn't get it all but I hoped we were close enough to come to an agreement. They looked at the great offer and said, "Rich, you did great. We can accept this as it is." Lesson learned.
Rule No. 8: When you hit an impasse, settle everything else first and return to it.
As you present the offer to the seller and you reach an item they don't accept, make a note to come back to it and get agreement on everything else first. Then, once you are through the offer completely, you will have isolated all the items, if there is more than one, that requires negotiation. You will find that at that point the negotiation goes easier. There is nothing else on their mind and they know that this item or these items will complete the transaction. By doing this you create a momentum that carries you to success more easily.
Rule No. 9: Get the other party to negotiate with themselves. Never negotiate with yourself.
This is a more aggressive rule. Above, in Rule No. 4, I said to always get your negotiations in writing. This is the exception that proves the rule.
Watch. I am sitting with the seller reviewing an offer by the buyer's agent. The seller is willing to accept it and doesn't want to lose the buyer or the sale. I say to them, "Let's see what I can do without risking the sale."
I call the other agent and ask if the agent can reach their buyer. They say, "Yes." I tell them that the sellers are in the room and they are really close to accepting the offer. If we could get another $1,500 it's a done deal. Could they check with the buyers and see if they would move at all? And if they will, I want to get it wrapped up tonight while everyone is in agreement.
Ten minutes later the agent called to tell me they'll do it or they'll do $500 or $1,000 or nothing. A vast majority of the time I'll get more and make the seller very happy with me. If the buyers won't move I call the buyer's agent back in five minutes, tell them that their offer was accepted as is, and compliment them on their smart negotiation.
You may or may not approve of this methodology. I am not condoning or condemning it. I am just using it as an example of, "Get the other party to negotiate with themselves. Never negotiate with yourself.
Rule No. 10: Do not use these rules and approaches carelessly.
When these rules are applied or are done awkwardly or carelessly they cause your clients to distrust you. Be careful.
Done with care and confidence (and practice), you are going to have a lot more fun, be a lot more productive, preserve more time, and get the admiration and referrals from your clients because you will make them more comfortable in addition to getting them more money with your negotiating skills.

Get The Skinny on the Twin Cities Real Estate Market

2009-05-27T09:06:00.000-07:00

Here is The Skinny on the Real Estate Market for the Twin Cities for the month of May:

http://www.youtube.com/watch?v=KXbOx925NbM

2009-05-18T11:08:00.000-07:00

I just became an Independent Distributor for an exciting new business opportunity. Watch this 5 minute video and ask me how you can get involved.http://www.youtube.com/watch?v=CdRVs8MRa8U

April 2009 Skinny Update

2009-04-22T07:13:00.000-07:00

Click here and get the Skinny on the April 2009 Twin Cities Housing Market:

http://www.youtube.com/watch?v=eKGPtUsWvXo

Dance Like Nobody's Watching

2009-04-22T07:07:00.000-07:00

Weekly Market Activity Report

Hopeful signs of a Twin Cities housing market recovery carry on thanks to a combination of no growth in the spring supply of homes for sale and still-improving sales figures.
Helping to keep inventory down is slow new listing activity, a metric that has been sluggish all year. For the week ending April 11, there were 20.7 percent fewer new listings than there were during the same week in 2008. Pending sales are still trending in the opposite direction, up 21.9 percent in year-over-year numbers to 1,046 for the week. That's only the second week of 1,000-plus pending sales or more since May 2007. If these two metrics persist, the market could be in for some serious re-balancing.
With the Housing Affordability Index reaching 218—an increase of 40.8 percent over last year—it seems to be an awfully good time for buyers to get off the wall and on the dance floor...being mindful that 29.1 percent of the dance partners are lender-mediated.

There is a Silver Lining

2009-04-05T07:12:00.000-07:00

For the week ending March 21, pending sales in the Twin Cities were 13.0 percent higher than the same week last year, while the number of new listings on the market was basically flat. Over the last three months, there have been approximately 1,200 more signed purchase agreements than there were a year ago and 3,000 fewer new listings. During this time, 58.1 percent of pending sales have been lender-mediated foreclosures and short sales, while 37.1 percent of new listings have been lender-mediated. The fact that the share of lender-mediated sales easily exceeds the share of new lender-mediated listings is a hopeful sign.
New buyers entering this market will be met with strong affordability but will have less to choose from compared to previous years. There are currently 26,064 homes for sale in the metro area, which is down 15.7 percent and 4,840 units from this time in 2008.

Kiss The Blarney Stone

2009-03-12T14:06:00.000-07:00

Weekly Market Activity Report

As we approach St. Patrick's Day, there's reason to take advantage of our Blarney Stone kisses and impart some eloquence (or "gift of gab" if you prefer). New listings continue to trail year-over-year numbers in our local housing market, coming in at 1,628 for the week ending February 28, which is 19.2 percent behind this week last year. Total active listings are roughly 5,000 below this time in 2008. In an oversupplied market, this is cause for celebration. Continued growth in home sales adds to the festive spirit, with pending sales showing a healthy 12.1 percent increase over the doldrumish numbers of last February.

There are several important monthly indicators to look at in this week's report. Days on Market Until Sale in February stood at 157 days, down 4.8 percent from last February. This is the third consecutive month of downward year-over-year movement. The Housing Affordability Index (HAI) continues its yearlong improvement with a March 2009 HAI of 206—31.2 percent ahead of its March 2008 mark of 157. Months Supply of Inventory is holding relatively steady at 7.8 months, down 15.2 percent from the mark of 9.2 months we saw a year ago.

According to John Tucillo, one of the foremost real estate economists in the U.S. and former Chief Economist for NAR, there are three necessary phases that must occur for the housing recovery to launch:

1) a decline in new listing activity
2) a decline in days on market
3) an increase in sale price to list price ratio

The first phase came about last summer and the second phase began in the fourth quarter of 2008. Hopefully the third phase will occur sometime this year. Strong affordability, improving chances for a housing recovery and a federal tax credit for first-time buyers equates to a welcome home-buying environment—a little Irish luck for real estate.

Where Is The Lone Ranger When We Need Him?

2009-03-09T11:06:00.000-07:00

Did the stimulus package provide the "silver bullet" we were looking for to stimulate the real estate market? Well I think it will help but we needed more than a $8000 tax credit for first time buyers. The National Association of Realtors (NAR) estimates that the stimulus plan along with lower interest rates and other mortgage relief measures, could help trigger an additional 900,000 home sales in 2009. In 2008, the available tax credit for first time buyers was $7500 and had to be paid back over a 15 year period. The new $8000 credit is truly a credit and comes off your income tax with no re-payment provided you live in the home for more than three years.

With job losses mounting and more households feeling insecure about the future, sales growth will be held back. New listings in 2009 will be down compared to 2008 which will be a good thing. We should also see a decline in short sales and foreclosures in 2009. If foreclosures and short sales do begin to reach a price bottom this year, we can expect some month-to-month price stabilization in the overall market in the second half of the year.

There has been a lot of uncertainty in the housing market, but there is more cause for optimism heading into this year than there was last year. Mortgage rates have not been this low in decades. Financing is still available and with downpayments as low as 3.5 percent. Affordability is improved. Foreclosures are showing signs of reaching the downside of the peak. Home sales are finally on an upward trajectory. Inventory is in decline. This is all happening as we speak.

Weekly Market Activity Report

2009-02-10T14:16:00.000-08:00

Weekly Market Activity Report
For the week ending January 31, new listings continue at a lower level than seen last year, clocking in at 1,635—a 15.3 percent drop. Conversely, pending sales continue to raise sand with 673 recorded for this week's report—25 percent above last year. Basically, this is all welcome news. Having fewer listings on the market, combined with an increase in pending sales, helps to reduce the Months Supply of Inventory to 13.5 percent when compared to last year at this time—down from 8.9 to 7.7 months. This means it will take the current supply of houses for sale 7.7 months to sell (on average).The Percent of Original List Price Received at Sale continues to fall, with the January figure of 89.5 sitting at 1.6 percent less than 2008. It's important to consider sales prices of foreclosure homes and how they affect this figure.Our new Housing Affordability Index jumped to 202 in February. This is a new record and means that the median family income is 202 percent of what is necessary to qualify for the median-priced home. Again, we must consider how the sales prices in the lender-mediated market are affecting this figure, but we can say with some confidence that there are a number of very attractive buying opportunities in the local housing market. If we are able to maintain these trends, we'll be well on our way to killing the blues. And to this current market malaise, we'll be singing "gone, gone, gone (done moved on)."

The Good News Is That The Bad News Is Wrong!

2009-01-28T13:30:00.000-08:00

We may be on the verge of and economic Pearl Harbor but there are some silver linings out there. Home prices are falling for the first time since The Great Depression. There is a decline in units and pricing for the first time ever. History never repeats itself it just mirrors the past. Housing is a great investment and Edina has out performed the market. Check out the article in the 1/24/09 edition of the Startribune:

http://www.startribune.com/homes/38151509.html?elr=KArksUUUU

2009-01-08T11:13:00.000-08:00

The temperature is dropping and so are the Interest Rates!

Interest rates are at historic lows. Pricing is down. Do we have a perfect storm for a great real estate market in 2009? Time will tell but in the mean time....It's a great time to buy or sell real estate. Warren Buffet once said "When the tide goes out, you will know who has been swimming naked." Don' t get caught and look back at this time and say " Darn I should of done it back then!" It will not stay this way forever. Here is a sampling of today's interest rates:

Edina Realty Mortgage
Conventional 30 Year Fixed 4.625% (4.771% APR)
FHA 30 Year Fixed 5.000% (5.150% APR)
VA 30 Year Zero Down 5.000% (5.201% APR)
15 Year Fixed 4.375% (4.628% APR)
Rates as of 1/8/09 11:12:00 AM

Fourth Quarter Market Update 2008

2008-12-21T09:54:00.000-08:00

Market Update- Fourth Quarter 2008

Consumer activity in housing appears to be making a comeback thanks to a combination of declining mortgage rates and downward movement of home prices largely as a result of lender-mediated and foreclosed home listings. Pending sales continue to trend ahead of last year with the last four to five months seeing an increase and the last three months posting a healthy 25 percent more pended sales than the same time in 2007 according to the Minneapolis Area Association of REALTORS (MAAR). We also continue to see improvement in the months supply of inventory with absorption rates declining to 8.5 months from 10.5 months in August.
According to MAAR, the November Home Affordability Index (HAI) is up by 19 points over October to 180 (up 27.7 percent from last December). Its the highest recorded HAI since MAAR began tracking in 1990, making homes more affordable than we've seen them in recent history, especially when combined with low mortgage rates. What a great time to be a buyer!
Edina Realty in the Marketplace
YTD November 2008, homes priced under $250,000 comprised nearly 70 percent of our total units sold compared with 63 percent of our units in 2007.
Edina Realty continues to lead the market with 19.3 percent market share YTD; our closest competitor has 13.1 percent market share according to the Regional Multiple Listing Service of Minnesota (RMLS) for the previous 12-month period.
Appointment activity in October and November measured by Edina Realty's Appointment Center was up nearly 5 percent over 2007 and 5.5 percent ahead of 2007 overall.
From Jan. 1 to Dec. 5, 2008, Edina Realty was mentioned in an estimated 325 newspaper articles, radio and television segments. Around 275 press releases and media pitches went out touting new products, services, technology, events, agents and Foundation grants.
In a report listing the most popular national real estate search terms, Edina Realty showed up 26th among 56,220 search terms. The data is based on a sample of 10 million U.S. Internet users and was collected by Hitwise within the Business and Finance “ Real Estate" industry for the four weeks ending 10/25/2008.
Consumers are increasingly using Edina Realty's foreclosure search. Since it was launched in July, the landing page has seen nearly a 40 percent increase in traffic.
This year, the Edina Realty Foundation awarded 197 grants totaling $342,000; offices and departments held 37 fundraisers that brought in more than $50,000. Note: these figures are for the 2007- 08 fiscal year running from 10/01/2007 - 9/30/08.
The Marketplace
As of Dec. 11, mortgage rates fell to 5.0 percent. That means, on an average $250,000 home loan, a consumer can expect to save $238 per month â€“ more than $85,000 over the life of the loan - at a 5.0 percent rate versus a 6.5 percent rate that we had in July. On a related note, there are some consumers who may be waiting for the rumored 4.5 percent rate to make their move. We'd like to discourage them from waiting for a number of reasons: it may not happen, inventory levels may change as a result of it, and home prices may be driven up. Essentially, you get your choice: price or terms. Customers can either take advantage of the current rate at lower home prices or a lower rate at higher prices. Let your clients know that there are options to lock and roll their mortgage rates with Edina Realty Mortgage for a fee if they're concerned about missing out on an even lower rate.
According to MAAR, the median sales price in the 13-county metro area is $175,000 - down 19 percent from 2007.
We see a growing number of foreclosures out there, but we're working our way through them and are not experiencing the same inflated rates locally that the population is experiencing nationally.
Overall median sales price of homes is being pulled down by foreclosures. However, according to MAAR, Foreclosures and Short Sales in the Twin Cities Housing Market: Q3 2008 Update, traditional properties that aren't lender mediated are experiencing more subtle price declines about -4.6 percent compared with -9.1 percent for lender mediated.
The Mortgage Bankers Association reports that for all of Minnesota, the 2008 foreclosure rate is expected to be 1.39 percent; 1.81 percent in the metro area.
According to RealtyTrac, six states accounted for more than 60 percent of all foreclosure activity in the third quarter: California, Florida, Arizona, Ohio, Michigan and Nevada. Minnesota and Wisconsin ranked relatively low on the list at 25th and 31st respectively.
We expect next quarter to look very similar to last quarter in terms of buyer activity. According to MAAR, we should expect a decline in overall supply to continue into January, with an anticipated increase in the supply of lender-mediated market share.
Brainerd Lakes Area
According to the Greater Lakes Area Association of REALTORS (GLAR), YTD sales of all homes in the area are down 17 percent from 2007 and down 30 percent from 2006; lake properties are down 32 percent over the last two years.
New listings overall are down 8.5 percent from 2007; lake home listings are up 12 percent.
Foreclosure rates are below the Twin Cities.
Average days on market have increased 19.6 percent over the last two years.
Lake property sales $200,000 to $900,000 are down 30 percent from 2007 and lake properties priced over $900,000 are down 39 percent from 2007.
45 percent of sales over $1 million (33) were cash sales. Depreciation factor of lake properties over the last two years is approximately 20 percent.

2008-12-18T06:35:00.000-08:00

If you would like more information about homes for sale, recent sold homes in your neighborhood or foreclosures, go to our web site at:

http://www.edina-realestate.com/

Mortgage Rates Drop, Affordability Jumps

2008-12-17T11:42:00.000-08:00

Monthly stats for November were released last week. These were main points:

A combination of substantial declines in mortgage rates and the continued downward movement of home prices is leading to an unusually attractive affordability environment. Rates declined well into the 5 percent range in the last month the best rates of 2008 and the most attractive since 2003. Add Novembers tantalizingly low median sales price of $175,000 down 19.2 percent from the same time last year and the lowest November showing since 2001 and you have extremely healthy affordability.
MAARs Housing Affordability Index (HAI) jumped 19 points in the last month, and currently sits at 180. This is up 27.7 percent from last Decembers mark of 141 and is the highest recorded HAI since we began tracking the data in 1990.
Lender-mediated home sales, which accounted for 53.5 percent of pending sales and 47.3 percent of closed sales, posted a November median price of $130,881. This is a drop of $5,000 from last month and a decline of 20.7 percent from last year. Traditional properties, which exclude foreclosures and short sales, had a November median sales price of $225,420, a decrease of 2.0 percent from last year.

Weekly Market Activity Report

2008-12-17T09:29:00.000-08:00

As fall turns into winter and winter turns dark and cold activity in the Twin Cities housing market has entered its annual hibernation. On a weekly basis, new listings, total inventory and sales are all declining as consumers batten down the hatches and prepare for the holidays. Relative to this time last year, however, activity is stronger. For the week ending December 6, there were 597 signed purchase agreements (pending sales), which is up 27.6 percent over the same week last year. Roughly half of these sales 54.7 percent were lender-mediated foreclosures or short sales.
On the supply side, new listings were relatively flat, up only 0.7 percent for the same time period comparison. The total supply of homes for sale currently sits at 27,035, down 8.2 percent compared to this time last year. Expect the decline in overall supply to continue into January. At the same time, expect the lender-mediated market share of that supply to increase.