The Minneapolis Real Estate Blog: Jennifer Kirby, the Luxury Agent (Exit Realty Ventures)

Last year I listed a home in Minneapolis that was in so-so shape and turned into a short sale shortly after listing. Like a good agent should, I researched the market thoroughly in this neighborhood over the previous six months, and found a price range that worked for the home and its condition. After a discussion with the homeowner, a price was determined, and we charged ahead to find a buyer.

The day after the home hit the MLS, I received an email from an agent in regards to the list price:

"I'm an agent specializing in the Neighborhood and was really disappointed to see how low you've priced this home.  It should be about X to X dollars.  I know the family and of course I won't say anything but this is way off."

Her so called "expert" opinion was putting this home at a year ago prices, and was also $80,000-90,000 over the list price. She also felt the need to add that she knew the family, but wouldn't tell them about my bad pricing. Can you say, unprofessional? Of course I let her know what I thought of her email and how inappropriate it was, and she of course apologized.

Five days later, I had six offers on the home. Being a short sale, the closing took a few months, but we ended up closing a few thousand dollars less than list price at the end of it all. My list price was also confirmed by the appraiser, as he appraised it for two thousand less than list.

After closing, I just couldn't help sending an email to the neighborhood expert letting her know how off her expertise was, especially since she was so concerned that my pricing would effect future neighborhood sales in a negative way. The appraisal backed up my CMA and showed just who was more in-tune with the neighborhood.

Yes, this agent has sold more homes than me in this area, but that doesn't make her a neighborhood expert.   I think I'm most happiest that this agent didnt' get the listing, as she would have had the home listed at a price over market, and most likely the home would have sat for months as the price was slowly reduced over time, becoming old and stale in MLS.

If you think you are a neighborhood expert, or a specialist for that matter, please make sure you really know what you are talking about. In an instance like this, the thing you lose first is your credibility, and in this field, that is the one thing you never want to lose.

If you are looking for a place to view fall color around the state of Minnesota, a great place to check out is the Minnesota Department of Natural Resources (DNR) website. They update what is happening around the state, and give a lot of information on how/what causes the leaves to change color. Typical peak color for the Twin Cities area is Late September to Mid October.

Taken from Lake of the Isles, just minutes from Downtown Minneapolis.

One of my favorite places in Minneapolis.

Ok, so I would hope people would know by now that one of my biggest pet peeves is real estate photographs. It really drives me crazy with all the terrible photos I see constantly in the MLS database. I can understand terrible photos for $100,000 homes (but even those tilted photos get under my skin), but when it comes to terrible photographed homes priced in the million dollar range...I just don't get it.

Homeowners - When you hire real estate agents to sell your home, do the agents even tell you about their marketing plan? Better yet, do you even ask? Do you ask them how they will be photographing the home? Do you ask to see the end result?

Why does this matter? Because photos sell a home. Let me tell you something...agents have NO excuse for not paying for a professionally photographer to come into your luxury home. If you are letting them get away with walking into your home with their point and shoot camera, then there is probably a really good reason your home is not selling. Your photographs stink!

Agents - Who do you think you are? Professional is NOT the word that comes to my mind. If you are listing a high-end home, then you better be shelling out the dollars for high-end photos. You are doing a huge disservice to your client and not giving them the proper exposure they need for an expensive home. Either spend the money for a professional, or leave the luxury home market.

In this post you will notice the photos I have used. All were taken from active homes in the MLS system, high end homes currently listed for more than $2.4 Million. See the problem?

• the first photo is pretty dark and not too inviting. A professionally photographer would have lit up this room with his equipment, lit the fireplace, and created a photograph that presented a cozy living room space.
• the second photo is always the main feature of the home which buyers want to see - the kitchen. This tilted photo makes the room look narrow and small, most likely scaring buyers away. If a wide angle lens was used and the room professionally lit, then the kitchen would look like a gourmet space, without having an ugly flash bouncing off the far cabinet.
• the last photo, just makes you want to jump in that tub...I don't think so. The room is dark, and I just "love" the shadow of the agents head taking up a quarter of the photo.

So hopefully, you can now see my points. Professional photography MUST be used when listing an expensive home. I see well known agents in the Twin Cities shooting million dollar homes themselves, and I am amazed that they keep getting hired. Sellers really need to understand that to attract buyers who can afford luxury real estate, you need to present the home as a luxury property. If your home photos stink, then maybe you should think about hiring another agent, one that specializes in selling luxury homes.

Last night I took the chance to photograph the fireworks show in downtown Minneapolis for the annual Aquatennial celebration. It was my first time shooting fireworks so it was actually pretty fun trying to time the bursts. Out of 100 shots, I probably have five photos that are worthy of keeping.

I know many of you won't believe this, but the dirty little secret that the local media isn't reporting is that homes in the lower price range are flying off the racks. Yep...just like a bridal store having a super cheap sale on gowns with women knocking each other out of the way as they try to snatch up the latest deal, so too are investors and first time home buyers trying their best to win that little cottage home, out doing each other with above list price offers.

Like I said, you don't believe me, do you?

Last month I experienced this phenomenon first hand with a duplex I listed. With-in five days, I had five offers, all above asking price. There must have been some telepathy in the air because almost all of them were around the same price. I actually had to tell them to resubmit their "highest and best" offer. Who ever did the best, gets the house. Let me tell you, it was competitive bidding and I was truly surprised at how high some of the offers got.

Even better, I know an investor couple who are snatching up dilapidated foreclosures and rehabbing them to flip. Not only do they have to bid against other offers each time they find a home, but when it comes time to sell the property, they have to deal with multiple offers from first time home buyers. (They do fantastic rehab work by the way!)

So yes Virginia, there are some segments of the real estate market that are doing quite well. Multiple offers do exist and are getting more common.

It makes is hard to explain to a buyer why they need to offer above listing price if they want to get a home, especially when all they hear about is how cheap homes are. But if you want to purchase a home in decent shape and at a great price, be prepared to pay for it because in this market you'll be just like those brides you see on television...pushing and yelling your way to that perfect find.

One of my favorite spots to visit in Minneapolis is Minnehaha Falls. A few weeks ago, I took the camera out on a cloudy day and was able to capture this silky effect of the waterfall.