The Minneapolis Real Estate Blog: November 2007

C-R-S

For the last three years I have been working toward obtaining one of the most prestigious real estate designations available, that of the Certified Residential Specialist(CRS). This week it finally happened and I got confirmation that I am being awarded the CRS designation. I had to throw a party for myself, so I threw up some left over Halloween confetti and blew my son's kazoo.

It's not an easy one to be awarded. For one, an agent has to have production numbers that are verified by a broker. You have to sell alot of homes in order to be considered...no "one home a year" sales allowed. An agent must also complete classwork and additional education that can take years to finish. Classes only come into town so often and sometimes we have to fly to them in another state.

I have to say, the classes have been some of the best I have seen, and I have learned many new things that will help me to continually strive to be a better agent. Remarkably, less than 38,000 Realtors hold the CRS designation nationwide. With over 1 Million members in the nation, those that are Certified Residential Specialists are rare to say the least.In Minnesota, only 3% of Realtors have the production to be a CRS.

So, I am curious, who else out on Active Rain is CRS?

If you hold the CRS designation, let me know in comments and I will start a list in this post. The first 20 agents get link love to the blog of your choice, either here on Active Rain or on your outside blog. Don't waste time, get your entry in before everyone else does! (This is a great way to let AR members know you are CRS and make contacts for future referrals).

Yesterday I was able to sit in on a real estate statistic class offered by the Minneapolis Area Association of Realtors. It was a very informative class, even though it was about numbers. But I'll come back to that in a minute.

Later in the evening, I was cleaning out some articles I had saved from a few years ago and putting them in the recycle bin. One column that caught my eye was from late 2005 and it concerned whether or not the Twin Cities market was going to burst. Written by a regional director of a national franchise here in Minneapolis, the author states that the Twin Cities will not deflate like markets across the nation. In fact, he stated that 2006 would see an increase in the number of home sales and the dollar volume, as well as an appreciation rate of 4-6%.

Now fast forward to reality and yesterday's class. A fantastic resource offered by our Realtor association is the years worth of data they possess on the real estate trends over the Metro area. They can show trends from years, to months, to weeks...and the data isn't boring.

What actually happened in 2006 was that records were set for listing volume, but home sales and dollar volume declined to levels seen back in 1999. Home appreciation was dealt a blow as well. Instead of the 4-6% appreciation rate served up by the author of the article, actual home appreciation rates came in at a meager 0.6%. Yep, that's right, less than 1%. Talk about missing the mark and ignoring the signs on the wall. After some discussion yesterday, the market is showing that 2007 might produce negative appreciation in the Twin Cities and 2008 could be a repeat of this year.

Now I am not trying to be all doom and gloom, because frankly, the doom is over. We just have to wait out a little more gloom. Some things that are changing and helping the area recover are:

• Builders are pulling back on new developments with the number of building permits down 35% from 2006.
  
• Sellers are getting the hint and pulling homes off the market, choosing to sit and wait the necessary time for the market to normalize. Super-saturation is disappearing and now the market is just "saturated" with listings.
  
• Home prices are coming down to points where buyers can actually afford them. Housing affordability was nearly non-existent by early 2006. While home prices sky rocketed 2001-2006 by 151%, income did not keep pace and only increased by 51%.
  
• Negotiating is back!

While this isn't a detailed statistical analysis of the market, I hope it has shed a little light on what has happened to the Minneapolis market, without boring you. In February of 2008, this years annual report will be coming out and it will be interesting to see mathematically what has happened. Stay tuned in a few months for my summary of the findings and feel free to send in any questions you have about data in any area of the Twin Cities Metro area and surrounding 13 counties.

I never really gave child vaccinations much thought until I had my own children, nor did I give any thought about the possible harm that multiple shots could bring to my child. I did some reading up on childhood vaccinations and found that there are serious side affects that can result from allergic reactions. Thankfully, my children did not see any of these effects.

In Minnesota, there are numerous shots that are required in order for your children to attend school. Thankfully, Minnesota is one of the few states that allows parents to opt out of shots for two reasons:

1. It goes against parental religious beliefs
   
2. A parent does not personally believe in giving the child the shot

Most states give the parents no option. In fact, on the national news a few nights ago, there was a story about a town in Maryland that sent out notices to 2300 parents warning them that if they did not bring down their children to the county courthouse for vaccinations by a certain date, then the parents would be sent to jail. Are you kidding me? Threatening jail time over a shot! What has our country become that parents no longer have parental rights in deciding what is right for our children?

One shot that I have a hard time believing in is the relatively newer Chickenpox shot. I am of the belief that it is good for our kids to get sick. What good is an immune system if you don't give it the natural chance to build up resistance to disease? Yes, I understand that it is mostly a convenience thing and keeps kids from weeks out of school. But chickenpox is almost a right of passage for kids...I still have a small scar on my forehead. Currently only one shot is needed, but starting in 2008, a second Chickenpox shot will be required in Minnesota for kids entering kindergarten or the 7th grade. I think I will be opting out of that one, siting " conciencioulsy opposed" to it.

Now don't get me wrong, some shots are great and have erradicated childhood diseases that affected thousands...like polio, but as medical science knowledge increases and new cures are found, more and more immunizations will be required for our children. My question is, when does the need to be disease free actually begin to hurt our bodies? Another problem I have is the government telling me as a parent how I need to raise my kids. Just my opinion.

If you have children and are planning on moving to Minnesota, below is a list of immunization shcedules you might want to reference:

Minnesota Immunization Schedule for Babies

Minnesota Immunization Schedule for Kids

Minnesota Immunization Schedule for Teens

If you would like to read more about Minnesota's Law and history on childhood vaccinations, view this pdf.

Winter will be on us before we know as temperatures continue to drop over the next month. Are you prepared?

Survival Kit for Your Car
It can get very cold here in Minnestoa, so consider putting a survival kit in your vehicle in case you are in an accident, or find yourself in a snow storm and have to pull over. Here are some items to keep in your car:

• First Aid Kit
  
• Shovel (for snow removal)
  
• Sand Bags
  
• Warm Clothing and Additional Boots
  
• Blankets
  
• Water and small food items
  
• Tow Chain / Tire Chains
  
• Road Flares and Reflectors
  
• Jumper Cables

Also make sure that your windshield washer fluid contains antifreeze. This will keep any ice from building up on your windshield. Don't forget to SLOW down and watch for "black ice". Black ice is ice that cannot be seen when driving and is a huge hazard in the winter, causing your tires to slip and your car to slide out of control.

For more great Winter driving tips in Minnesota, check out the Department of Public Safety website.

Ok, I have been on Active Rain for most of 2007. I remember when times were easier.We didn't have more than 20,000 members, moderators were Active Rainers, and it was alot easier to get noticed as a Newbie.

But times have changed.

So what do I miss most? I miss the fruit.

Fruit you say, what is that? Oh, that's right, some of you may not know about the fruit. Active Rain used to see fruit on every comment. Some special friends were:

• Persimmon
• Boysenberry
• Crabapple
• Blackberry

But after they were squashed and abused by SPAM and those evil people posting advertising comments, I guess the gurus on the rain decided to make it harder for comment codes to be cracked. They threw out the fruit.

Fast forward to Today

Now I have to actually look at the keyboard when I try and type in the new "words". Ha! They don't look like words to me. Must be some new form of ActiveRainish. I haven't been able to decipher it quite well yet, but here is a stab at some of the gibberish, referencing the dictionary for help. And believe is or not, some are real words!

The New Active Rain Dictionary

Ananasnaja- ( a-nan-as-na-ja) noun, meaning: a tropical fruit eating cobra

Salal - (suh-lal)noun, this is a real word for an evergreen shrub

Kawa- real word: the polish word for coffee

Champedek -(champ-addict) noun, meaning: those addictive to getting the most features in a month on AR

Galumpi- (gal-ump-ee) noun, meaning: the feminist version of a male umpire

Zubrovka-(zoo-brav-ka) (hint: trill the "r"), adj, meaning: better than the best, outstanding

Sarvisberry- (sarv-ish-berry) - ok, this one tried to fool me. It's got the berry behind the name so the AR gods were trying to make me feel better. But this isn't a berry at all. Sarv is the Estonian word for "horn", so my only conclusion for definition is: noun, meaning: a horny berry

Now see what all these hard words have done? I have to figure out how to pronounce them in order for my fingers to type them correct. I feel like a high school kid learning to type.

So there you have it, the first compilation of new words in the English language. I hope this has helped your understanding...I know it has been a difficult transition for us old timers. If you have any words to add, please treat this post as a wiki and add them into comments.

Just stick a sign in the yard and wait..the house will sell in a heartbeat, right? Yeah, two or three years ago it would have, but with our changing market, agents are realizing it takes more than an entry into the MLS and a yard sign to sell a home.

Buyers have a lot of choices available to them. When they view a home, they want to be inspired, hit by that special feeling that tells them immediately that this house IS THE ONE.  Are you creating an atmosphere with your listings that will do that?

I know some of you are saying that some homes can never create that tingly sensation I am talking about. We all no there are some real dogs out there, and smelly ones, too. But I am not talking about those.

What I am talking about is creating a story that will sell a home, and you can do this in a couple of ways:

1. Write up a great description of the home with flowery words and make a flyer for distribution.
2. Actually include any history of the house in marketing pieces that might give the house character. This is especially helpful on historic homes.
3. Or, do what I love best, and tell the story of the home through pictures.

Since many buyers find a home on-line that interests them, photos are probably one of the most important things an agent should invest quality time in producing. The perspective you use could make or break the deal.

Perspective can be defined in one of two ways:

• Visual, like how an object appears to the eye
• Cognitive, one's point of view

Which one do you use when it comes to photos? Or do you use both?

I tend to use both. I love photography and pretty much have my camera with me every where I go. Even bought the wide angle lens for those tight room shots. One thing I have found through my real estate career, is that taking shots of a home or building that are against the norm makes the home more interesting. Everyone walks into a home and takes a photograph while they stand in the doorway. How boring!

Next time, try changing your perspective (the visual one) and:

• take a shot while sitting on your knees
• take a shot of the sunbeams coming in through a window and landing on the floor
• take a shot of the exterior of the home from an angle
• take shots both in the early morning and late evening. You will be amazed by the ambiance that the diffused light creates.
• take shots of architectural details
• and most importantly, take shots that give a feeling of the life one will have by living in a home, not shots "just of a house"

If you have been looking at the photos in this post, you can see that each photo is different. Each photo tells it's own story. But if you look closer, you should see that each is a photo of the same thing, a walking path behind my home. What is different is the perspective, (the cognitive one).

I want to tell a story about this path that invokes a sense of peace and a sense of adventure. My point of view is that this path can cause someone to meditate about the surrounding nature, and it can also be thrilling by making someone walking down this path wonder what is around the bend.

Out of the four photos, I feel that the second photo possesses the qualities I am looking for...the point of view I feel is most important. The other photos can give alternative perspectives...it just depends on what type of story you are trying to weave for the reader (buyer). For example, I might use the last photo to portray a long and winding road or a sense of distance.

So next time you get a listing, think about the story you want to create about the home. What feeling do you want to give buyers when they walk through the door? Stories do not have to be written, and are sometimes better told in pictures.

The media has been creating a lot of scared parents as of late with the various recalls on toys made in China. Seems the Q & A divisions of these companies in China have been dropping the ball and contaminating the toys with lead paint. But toys, in general, could be the least of parental concern when it comes to lead poisoning.

According to the Environmental Protection Agency (EPA), research suggests that the primary sources of lead exposure for most children are:

• deteriorating lead-based paint


• lead contaminated dust


• lead contaminated residential soil

• Windows and window sills


• Doors and door frames


• Stairs, railings, and banisters


• Porches and fences

It is also required that you sign a Lead Based Paint Disclosure when buying or selling a home built before 1978. A sample disclosure form is available on the EPA website. Being educated about the issue is very important and it just could save a small child's life. If you have any questions, speak with a Realtor about getting a paint test performed on your potential home. It is your right to do so before you buy!

This weeks showcase Historic Home of St Paul is 629 Summit Avenue.

I probably should have posted this during Halloween, but I forgot!

Built in 1896, this whimsical home was built for William Kirke and his wife by the famous Clarence Johnston. Johnston is known for having designed over 30 homes on Summit Avenue alone. Another home stood on this site from 1873-1893.

The doors are one of a kind and help give it my pet name for the home,"The Witch's House". There is just something mystical about the details in the home. For instance the tower roof looks like a witch's black hat, at least to me. As far as architectural design, the home is built in the Gothic Style and helps give it that witchy presence. The gingerbread trim and the high pitched front gable help distinguish the style from a Queen Anne home.

While it is hard to tell what exterior elements have changed over the years as I was not able to find any old photographs of the home, the shape of the home, the porch, the bracketed eves, and the tiny wood details, make me think that previous owners loved the home and kept it's historical significance intact.

This beautiful Summit Avenue home was recently sold for $1.09 Million. It has approximately 5700 square feet, 5 bedrooms, 4 bathrooms, and also a third story apartment. Wood carvings and stained glass windows add interest to the home, as do the large dining room and parlor rooms original to the home.

Staking the Lot

The time will eventually come when the builder will stake out the lot, letting you know exactly where the lot lines and set backs are, and where the home will sit in relation to the parcel. At this time, the field manager will meet with you at the site and walk the lot with you. The goal is not only to inform you, but to also make sure you are OK with the positioning of the home. Not that there is anything you can really do, but most builders want to make sure you are a satisfied customer. Some builders will also give you a survey of the lot to keep for your records.  

Don't be surprised if it is hard to visualize your home at this point. In most instances, you will feel that the home foundation size looks too small. Don't worry, it is an a illusion, and once the home is framed you will be able to get a better feel for the home.  

Another thing to remember is that weather does happen here in Minnesota. Once our meeting with the field manager was complete and the dig date was set, it rained for two weeks straight. Of course it only rains when you least need it to.  

To follow the previous posts of this series visit:  

Part 3, Shopping Day

Part 2, Picking the Lot,  and Part 2.1,

Part 1, Picking the Builder