Home buyers left on hook to repair bad septic system

Click the above link to read the article from Startribune.com, and find out why The Aplikowski Team recommends complete home, well and septic inspections for our clients!

Who should you list your home with? The one who has all the tools and know-how to get your home sold!

Hiring a good agent to help you list, market and sell your home is the most important thing you as a seller can do to make the transaction as smooth as possible.  What is a "good" agent? 

A good agent is one who is effective at the following:

• Helping you prepare your home for the marketplace
• Helping you understand price positioning and why overpricing your home is the worst thing you can do.
• Helping you understand what repairs or upgrades will achieve maximum return on your investment.
• Understanding your market and how your home compares to other homes within that market.
• Marketing your home properly, including on the MLS, Internet, point of sale (signage), etc..
• Communicating with you and your family throughout the sale process
• Working effectively with other agents and brokers who may have buyers for your home.
• Effective at negotiating, and steering you clear troublesome agents, buyers and lenders
• Being honest with you, and having the courage to tell you what you need to hear, not necessarily what you want to hear.

What would constitute a "not so good" agent?

• The one who suggests the highest sale price (especially if that is the only thing they have to offer)
• One who does not use or understand technology (e-mail, Internet Marketing, enhanced MLS listings, virtual tours, call capture technology, color printed literature, etc..)
• The one with the lowest commission rates
• The one who does real estate "part time", or "on the side".
• The one who does not communicate well with you and your family
• The one who does not have the technology, systems and support to manage the effective marketing, negotiating, and succesful closing of your home.

Every agent you will meet with will bring a Competitive Market Analysis, and give you a suggested price for your home.  These are the LEAST important parts of the Interview!  Realtors used to command commissions because they controlled information, like sale prices of homes.  The Internet has made it impossible for Realtors to control this information anymore.  If you are an Internet savvy seller, you have access to nearly all the sale data that we Realtors do.  View sold data on our website here.

While going over pricing IS very important, it should not be the entire focus of the interview.  A skilled agent should be able to present price and market data to you in about 10 minutes.  The remainder of the interview is best spent talking about the agent’s marketing services, home preparation tips, what you and your family should expect during the sale process, and signing contracts.

New rules will impact buyers with low downpayments. Another reason to price your home competitively from the start!

The Twin Cities area has been determined to be a declining market by a major mortgage insurance company.  Major lenders are now instituting new guidelines to reduce their exposure in case of loan defaults.

The past real estate boom was fueled in large part by the ability of many buyers to use low or zero down financing to enter the marketplace and increase demand for housing. While this was a good thing, it is hard to argure that these highly leveraged loans, combined with declining values and rate adjustments on option/arm loan products all contributed to the current mortgage mess.

With these new lending guidelines, the ability of buyers to use this type of financing will be severly hampered if the price of the property is not priced slightly (about 5%) below the appraised value.

Keep this in mind when pricing your home!  Not only do we have to sell your home to the buyer, but to the appraiser and the mortgage comany as well!

Read below for details from US Bank Home Mortgage:

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REVISED USBHM DECLINING MARKETS POLICY

The industry is in considerable turmoil due to declining markets and the impact on Maximum Financing on properties located in those markets. U.S. Bank Home Mortgage Wholesale Division has distributed a memo clarifying their position on the issue. Highlights from the memo:

• If the appraisal indicates the subject property is located in a "Declining Market" or there is an "Oversupply" in the market or the AUS Feedback indicates Declining Values, then the loan will be subject to a 5% reduction if maximum financing is requested.
• Required private mortgage insurance must be provided by one of our three approved primary vendors: MGIC, Radian or RMIC. If required mortgage insurance is unable to be secured at the maximum requested terms, the loan must either be reduced by the required 5% or declined.

Trying to time any market is tough, especially real estate, because of so many variables in neighborhoods, price ranges, etc...

I am sensing some activity in our local market that leads me to believe the market bottom is here, or very near.  I believe that the near historical lows in interest rates, along with price cutting by motivated sellers is combining to finally get buyers off of the sidelines.

I personally bought two properties (one personal residence and one investment property) in the last 60 days because I believe they were real values.

If you have been waiting to time this market, don’t wait too much longer, or the great prices, as well as the low interest rates will pass you by!

There is also some rumblings going on by The Fedral Reserve and Economists that inflation is starting to creep up, and that means interest rates will soon go up as well when they attempt to keep that in check, and avoid a stagnant economy along with inflation (stagflation).

If you have been waiting for the "pefect storm" of low prices and low interest rates, it is here right now!

The truth about how homes are sold in the Twin Cities! (1st of a series)

In life it can be said it is best to be the 1st born son, the 2nd wife, and the 3rd Realtor!

As good as my team and I feel we are about helping sellers properly condition, price and market their homes, we still are feeling the sting of the sluggish market, and Sellers are demanding answers and action!

Extended market times are testing the patience of sellers and their agents (and we are no exception!)

When a client’s home is not selling these are some of the things that come up:

Has your Realtor done a Realtor’s Open?

Has your Realtor advertised in the newspaper?

Has your Realtor done “Networking” with other agents?

How many Open Houses has your Realtor done?

What “Outside the Box” ideas has your Realtor come up with?

What about Craigs List?

Agents that are proposing these marketing concepts are doing so because that is what they were taught to say by their broker, because not only is it good market exposure for the Broker, they can be good prospecting sources for the agent to meet other buyers & sellers who really were not going to buy your home anyway.  Statistics & data show that these do not sell homes…

If another agent or company can prove me wrong, I’m all ears, but when interviewing other Realtors, ask them how many of their own listings they sell with their “unique methods”, or have them prove that it wasn’t MLS that actually procured the buyer in some manner!!!!

Here is a fact about how homes are sold in the Twin Cities.   The Twin Cities has one of the oldest and yet most sophisticated MLS systems in the US, perhaps the world.  Cooperation among Brokers in showing & selling each others Listings is unprecedented compared to other markets.  Over 95% of homes are sold because of them being listed on the MLS.  This is because the MLS is the “backbone” database that all Internet reciprocity sites (Realtor.com, Yahoo, Edina, Remax, etc…) pull data from.  So, a lot of buyers are first seeing the homes they buy because of the MLS, even though they may have selected and are working with an agent.  In addition, over 90% of homes in your price range (under $200,000) in St Paul are sold with what is called a co-brokerage, or Coop sale, where each party to the transaction (buyer & seller) have their own agent, and the buyer and the property got matched up because of the MLS, and the commission is split between brokers and their respective agents.  This means that 10% of homes or less are sold by the listing agent doing open houses, newspaper ads, etc…and I don’t believe it is even that high when you take new construction out of the mix.

If another agent or company can prove me wrong, I’m all ears, but when interviewing other Realtors, ask them how many of their own listings they sell, or have them prove that it wasn’t MLS that actually procured the buyer in some manner!!!!

So what I am saying is this:  I believe in making your home look as good as possible on the MLS because that is where the buyers & agents are ultimately are seeing your home.  Professional photography and virtual tours are a must!   Do you know any other Realtors beside me who have invested in their own equipment and been trained in shooting professional photos and virtual tours, and how to use them and link them on the Internet?

The Shoreview Historical Society has published a book, title "Shoreview Reflections" to coincide with the 50 year anniversary of Shoreview being incorporated

Book signing November 16th….click here for info

excerpt from the introduction to this book, by author John Koblas

While the City of Shoreview turns fifty years old, its history and its peoples go far back to before the coming of the first European.  And during the last half century, so many of us have witnessed Shoreview evolve from a rural, "out in the country" woodland sprinkled with dairy farms and the pioneer spirit to a popular modern residential area known for its lakes and parks and natural beauty.  All of those that have come before us have left their footprints, and while we cannot go back from where we have come, we can go into the future preserving our heritage, casting our own reflections for the many generations that will follow.  By understanding our past and the many changes which have affected our lives, we should find that there is one thing time can never change:  overhearing someone say with a  smile, "Yes, I am proud to live in Shoreview."  For reflections do come from the heart.

Be Careful Who You do Business With!!!

There has been a lot of media attention focused on the Twin Cities real estate market recently. What does it all mean?

While the market has definitely changed, in my opinion there is no cause for alarm.  The Twin Cities’ economy remains strong, mortgage rates remain affordable, and despite what you may be hearing, homes ARE selling!

The market is being tough on Home Sellers, find out how you can make your home stand out from the heavy competition of excess home inventory.

If you are going to make a move in the current Twin Cities Real Estate Market, not only do you need consultation about the buying & selling process, but you will need time to prepare your home for sale as well.

There is more to marketing & selling your home than putting a sign in your yard.   When you put your home on the market, you need to move away from the notion that you are selling “your home”, and move toward the concept that your home is a “product”, and needs to be prepared and marketed as such.

When you go to the store to shop for a product, you compare a product’s features and price with competing products.  The product you will choose will likely be the one that is priced right and looks the best.  Your home is no different.  Your home will be one of many on the market, and it must look and feel better than the competition to attract an offer from a qualified buyer.

There are several things you can do to help turn your home into a “product” that will stand out from the competition and speed up the sale process, and ultimately put more money in your pocket at closing.

Pre-Sale Inspection:  Having a pre-sale inspection by a qualified home inspector can discover potential hidden problems in time to get them corrected prior to marketing the home.  A pre-inspected home will look that much more attractive to a potential buyer, and may result in a higher sale price and less complicated contract terms.  I believe so strongly in this concept that I offer these inspections FREE to my clients!  Click Here for more info from our preferred Home Inspection Company, Amerispec.

Home Warranties: Offering the buyer a warranty from a Home Warranty Company on the major components of the home is a great way to overcome buyer objections to aging appliances & mechanical systems.  A home with a warranty will stand out from the competition, and may also result in a higher sale price and avoid disputes after the sale. The warranty can even cover you, the seller, during the marketing period of the home at no additional cost.  The best thing is that the premium for this coverage does not have to be paid until the closing of your home sale.  Click here for more info about AHS Home Warranty

Staging:   Getting your home in condition to sell may mean more than a simple spring cleaning.  Neutralizing your decor and re-arranging furniture can make your home feel larger, brighter, and more appealing to buyers.  Some of the highest return on your home-improvement dollars can be realized by removing dated wallpaper, re-painting, and replacing carpet & flooring.  While simply offering buyers a decorating allowance may work in some situations, in a competitive marketplace, actually replacing these items for a buyer can mean the difference between a home selling or not selling.

If you want to know how your home will stack up in the 2007 marketplace, give me a call.   I will help you determine the proper way to showcase and maximize the profit from your home.   If we decide that your home needs some tuning up, I will help you through that process prior to going on the market.  We have many relationships with service providers and contractors who can make your home sparkle!

Buying a Home?  No matter what your Real Estate Needs are, give us a call, we can help!  While this article has primarily focused on home selling, we offer full representation to buyers as well.  Our services to buyers are always free of agent sales commissions, and we offer FREE Home Inspections and the FREE use of our moving truck to all clients!

Avoid fraudulent business practices in your Real Estate Transaction

For most people, Buying or Selling a home will be the largest financial transaction they will make in their lifetime.    When you engage in a real estate transaction, it will require you to have direct or indirect business relationships with practitioners of several different areas of specialization (Realtor, Real Estate Broker, Mortgage Originator, Title/Escrow Company, Home Inspector, Appraiser, etc…)

Throughout time, in all professions, there have always been practitioners who have done things that are unethical or illegal.  Taken as a whole, this has always been a small fraction of practitioners, and the Real Estate Industry is no exception.

That said, a practitioner who wants to bend the rules or engage in unlawful practices can have a devastating effect on your life if you are unfortunate enough to get involved with one of these people.   Even here in Minnesota, in the Twin Cities, there have documented cases of such scams as equity stripping, straw buyers, appraisal fraud, mortgage fraud, escrow funds fraud and the list goes on.  Some of the affected parties in these cases had no idea they were being taken advantage of until it was too late.  See this article from the Star Tribune.

Your real estate transaction all starts with your real estate salesperson.  A good agent who has a history of successful transactions will also have relationships with professional of every other related field you will need to complete your transaction smoothly and safely. While all real estate salespeople have to be licensed by the MN Department of Commerce, not all salespeople are Realtors.  Realtors have to join the Board of Realtors and abide by the Realtors Code of Ethics.

As experienced Realtors, we have relationships with reputable mortgage brokers, title/escrow companies, home inspectors, appraisers, etc…  We have helped hundreds of families complete their real estate transactions smoothly.  We have the track record, testimonials and references to prove it.