The Minneapolis Real Estate Blog

Fall Colors in Minnesota

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sun, 20 Sep 2009 10:14:45 -0500

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.

Downtown Minneapolis on a Calm Summer Evening

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Fri, 21 Aug 2009 22:22:02 -0500

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

One of my favorite places in Minneapolis.

Million Dollar Homes should have Million Dollar Photos

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Wed, 12 Aug 2009 18:03:06 -0500

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.

Shooting Fireworks in Minneapolis

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sun, 26 Jul 2009 23:01:19 -0500

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.

Yes Virginia, There Really are Multiple Offers Out There

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Tue, 14 Jul 2009 05:07:16 -0500

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.

Minnehaha Falls in Minneapolis

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Tue, 16 Jun 2009 13:41:32 -0500

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.

Minnesota House of Representatives aims a Deadly Blow to Minnesota Homeowners

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Tue, 21 Apr 2009 10:19:07 -0500

Recently the Minnesota Association of Realtors has made its members aware of current legislation being proposed by the Minnesota House of Representatives that will greatly affect Minnesota homeowners in a negative way. On Monday, the Tax Committee "released a "delete all amendment" to HF2323 and added provisions that are negative for real estate in the Omnibus Tax Bill. Authored by DFL Representative Ann Lenczewski, it contains a number of tax law modifications that hurt all Minnesota home owners."

We all know that the state of Minnesota, as well as numerous states across the country, are hurting financially. They find themselves with a growing budget, but no way to fund the increased expenses. Instead of finding ways to cut within the government, many politicians choose to look to the tax payer for "relief". The only solution in their eyes is raise taxes or take away tax incentives. Minnesota State spending, for the record, has gone from $14.5 billion in 1992/93 to $34.6 billion in 2008/09 - a 138% increase.

(As an FYI: Governor Pawlenty has proposed a plan focused on reducing spending and raising revenue without raising taxes.)

No big surprise to those of us in real estate, but the house tax bill hurts real estatein the state of Minnesota. The DFL (Democrat) House Tax Plan raises revenue by cutting a number of income tax deductions. Of significant concern to Minnesota REALTORS® and homeowners, the DFL House plan eliminates two major real estate tax deductions: the Mortgage Interest Deduction and Real Estate Property Taxes. The bill also eliminates provisions of the Relative Homestead Tax.

Elimination of Mortgage Interest Deduction (MID)- a feature of the tax code since 1933, the MID has helped numerous generations achieve the American Dream of owning a home. A significant public policy objective for decades, homeownership stabilizes families, neighborhoods and communities. The House DFL Tax Bill eliminates the MID for homeowners and replaces it with a "housing credit" for qualified homeowners. The maximum credit is $420, which is equal to 7 percent (7%) of up to $6,000 of mortgage interest paid during the taxable year. However, no credit is applied to the first $4,000 of interest paid. Therefore, a homeowner must pay at least $10,000 in MID in order to receive the full $420 credit. As an example, if a homeowner has mortgage interest of $8,000 in the tax year, the credit equals $280. ($8,000 - $4,000 = $4,000 x 7% = $280).

This provision hurts young families disproportionately because mortgage debt loads are highest when people are establishing their households. This provision changes the financial plans numerous families have made when purchasing a home and increases the financial difficulties many are facing during this economic downturn. At a time when housing is finally getting a financial foothold why eliminate a tax provision that has helped millions of families achieve the "American Dream?"

Real Estate Property Tax Deductibility -This public policy provision has been included in the tax code since 1933 and allows taxpayers to deduct property taxes paid from their income. The House DFL Tax Bill eliminates the deductibility of real estate property taxes at a time when local property taxes continue to increase faster than Minnesotan's income.
Relative Homestead- If you own identical houses, with identical values, with identical tax rates you would assume you would pay identical taxes - Right? Not if the House DFL Tax Bill becomes law. In a provision of the bill, authored by a DFL legislator, families that provide housing to other family members will pay more taxes on the second home. The goal of the provision, as stated by the legislator, is to stop parents from buying homes for their college students. MNAR pointed out that this is a small piece of the overall program and instead the proposal will be hurting families trying to assist other family members who may have gone through job loss, divorce or other financial difficulties. Isn't it better to have families provide for families instead of government?

WE NEED YOUR HELP

ACTION REQUEST: To fight this unbelievable proposal we are asking that you take three steps:

Please contact your legislator and let them know how you feel about this proposal. Please find attached a list with legislator contact information or use this link: http://www.leg.state.mn.us/leg/Districtfinder.asp
Forward this email to your clients, customers and friends. Let them know what is being proposed and give them the web address above to review the bill.
Go the extra mile and CALL your legislator about this tax bill. Let him/her know your concerns and how it will impact your clients, your family and your business. Let your Representative know that it is time for our elected officials to "LIVE WITHIN YOUR MEANS" by prioritizing spending and not raising taxes.
You can access the bill summary (48 pages) at: http://www.house.leg.state.mn.us/hrd/bs/86/HF2323.html

Luxury Home Marketing takes Extra Effort

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Thu, 14 Feb 2008 20:18:15 -0600

I recently sat down with a Twin Cities luxury home owner and discussed listing their property in the next few weeks. When it comes to selling a luxury home, I usually do what is called a "two-step" presentation. The first meeting is a chance to tour the home, listen to the homeowner's wants and needs, and get an overall idea on the scope of the property and its relationship to the market. Either the next day, or a few days later, I meet with the owners again, and give my presentation on the state of the market, my recommended listing price range, and the marketing plan I have developed specific to their home.

After I list the home, I come back into the home, without the owner present, and go over every detail, like a home inspector would, and find any flaws that a buyer might object to. I have found things like worn carpet, dirty walls, missing caulk, nail pops, broken drywall seams, etc. With an expensive home, these things really need to be repaired. If they aren't, a buyer could get so fixed on these small flaws, that they forget to see the bigger picture...the home.

Listing a high-end home takes time and is not something that happens over night. Here are a few things that take more than a day to process, and sometimes a few weeks to deliver:

For one, I use a professional photographer and it could take, at a minimum, of five days from photo shoot to processing to get the finished product.
It also takes time to write good ad copy. A successful luxury home ad will invite the reader in and turn a description of the home into an emotional experience which will make them WANT to see the property right away. Sadly, I cannot write these overnight, but need a few days of brainstorming to come up with something I deem worthy. It also helps to have the photos so I can get a good visual of what prospective buyers will see.
Gathering information on the home takes time as well - Taking measurements, building a floor plan, getting various documents etc.
Once everything is available, I then sit down and create a luxury website for the home. Pointing buyers to the website is a great way to cross market and give them all the information they need to make a decision. Affluent buyers can be quite picky, so putting everything in one place creates one less hassle during their home search. It also sets a seller's home apart from all the other high-end listings and shows how this home is special.

There are of course other details that go into marketing a luxury home, but I won't go into those here. The biggest thing to understand is that marketing a home in this category takes money. And that money comes out of the agent's pocket, upfront. So it is important to realize how much of a commitment a luxury home agent is making to you, their client. If they don't sell your home, they could be out thousands of dollars.

*Helpful Hint: if you interview an agent and through their marketing plan find a lack of high-end exposure, then you might want to rethink hiring that agent. Too often I find expensive homes for sale that have a lack-luster agent. One big clue is the agent taking the photos themselves. Luxury homes need luxury photography, not second rate shots. Many times I find that the photos themselves are the reason for no showings.

It definitely take time, energy, and money to work in the luxury market.

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To learn more about the Luxury Home Market in the Twin Cities, visit my outside blog.

Jen's Number One Pet Peeve When it Comes to Marketing a Home for Sale

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sat, 05 Apr 2008 00:39:28 -0500

For those of you that read my blog, you know that I am a big advocate of good photography. Now, I am no professional, but I have trained myself to realize and see the benefit photography can make when selling a home.

So when I was had some extra time on my hands two weeks ago, I shot this video. Unfortunately, it is not finished, at least from what I had planned. A few days after filming, we took our kids to Chuck E Cheese when the grandparents were in town. Little did we realize it was spring break, so every kid in Minnesota was there for some fun...and so was every germ known to exist under the sun. For over a week I have been battling not only my own bronchitis, but taking care a family that won't get well.

Here is my entry for the Active Rain Video contest 2008. While I hate to post it unfinished, it would be just as worse to let all my effort go to waste. Enjoy!

Taking the Easy Way Out of Personal Responsibility

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Wed, 04 Mar 2009 16:35:57 -0600

Every now and then I answer questions submitted by buyers and sellers on Trulia, an online real estate search site, which allows people to connect with knowledgeable local real estate agents. Lately I have seen an alarming trend with a few sellers out there who think they can take advantage of the current mortgage and economic mess. That trend is called bailing on your mortgage when you can readily pay.

A few weeks ago, one home seller admitted he was able to keep current with the mortgage he has on a rental property. The rent covers the mortgage, but the house is worth less that what he owes. So he wanted to know if it would be OK for him to stop paying on his rental and just let it slip into foreclosure....all because it is worth less. Now, his home is not even for sale, so there is no need to talk about a short sale. He just wants to jump into the "poor me" foreclosure pool and use the foreclosure mess as an excuse. Heaven forbid a home be worth less.

Just today, another gentleman wants to refinance his first mortgage so it is less, but bail on the second mortgage and stop paying, because he feels they won't try and foreclose on him. It seems he just wants to take advantage of the system and save a few bucks.

See, this is what is wrong in America today, lack of personal responsibility. People want to have it all, but when the time comes to pay the piper, they whine and cry and try to make everyone feel sorry for them. Look folks, if you take out a mortgage and you agree to pay it back, then do everything in your power to live up to that agreement. Not only did you sign the "promissory note" (meaning you promise to pay it back), but you have a moral obligation to live up to your word.

I recall a scene in "Jerry McGuire", when the football stars dad promises Jerry with a handshake, that they will sign with him for representation. He says something to the effect, "my word is stronger than oak". Not surprisingly, later we find his word is worthless, as he signs his son up with another agent.

It used to be that no one signed documents to make a deal...a handshake was all you needed and the word of honor. But today, we have pages and pages of legal papers that must be signed when any deal involves money.

It used to be, that ones signature, and the word of honor, was all one needed to rest assured he would be paid back. But today, a signature means nothing. Personal responsibility is a thought of the past. Society no longer applies moral code to itself. It is an "everyone for himself" world now.

When are we, as a society, going to say enough is enough? When are we going to stop this madness of looking to the government for bailouts? When are we, as Americans, going to bring back a moral code that stresses personal responsibility? Until we turn the tide and do this, expect more questions from home owners on Trulia, asking if it is all right to bail on a commitment they know they can fulfill.

We need to cut off the life line of taking the easy way out.

First Time Home Buyers Tax Credit Revisions Finally Revealed

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sun, 15 Feb 2009 13:40:52 -0600

I dove into the Stimulus Plan on the House Appropriations website to try and find out what kind of agreement the Senate and House of Representatives came to regarding the First Time Home Buyers Tax Credit. Not the most fun reading, but extremely important to know about for any serious real estate professional.

Currently, a taxpayer who is a first time home buyer (someone who has not owned a home within the previous three years) was allowed a refundable tax credit of the lessor values of $7500 or 10% of the purchase price of the home. The credit was allowed for homes purchased between April 9, 2008 to July 1, 2009. However it would have to be repaid, interest free, over a period of 15 years, or recaptured at the time of sale.

The stimulus package modifies the current rules, but also keeps the following in place:

the tax credit phases out for individual tax payers you have a modified gross income of $75,000 to $95,000 ($150,000-$170,000 for joint filers)

tax payers can claim the purchase of a home on their 2008 tax return (thus the reason for the credit beginning on December 31, 2008), even if they buy their home, for example in January of 2009

The new agreed to provisions that go into effect December 31, 2008 and are:

extends the current home buyer tax credit for qualifying home purchases to December 1, 2009

increases the maximum credit to $8000 ($4000 for a married person, filing separately)

waives the recapture of this tax credit for homes bought between December 31, 2008 to December 1, 2009

if the home is sold, or ceases to be the primary residence, within 36 months of the closed date, then the rules of recapturing the tax credit apply (currently over a time period of 15 years)

The part that really stinks about the revisions is for the first time home buyers who closed on their home between April 9, 2008 -December 30, 2008. It appears they will still need to repay the tax credit of $7500 over a period of 15 years, just as originally written, and none of the new revisions will apply to them.

Don't worry though, at least you get a tax credit. We closed on your new home in March 2008, and even though we are only 30 days out for qualifying, no soup for us!

Down the Wintery Lane in Minnesota

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Fri, 06 Feb 2009 18:26:19 -0600

The other day we got a misty snow early in the morning which coated the trees with glimmering snow. As the sun was rising, I decided to turn down a rural lane on the way from dropping my son off at pre-school and take some shots.

Some Legal Advice for Realtors when it comes to Short Sales

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Thu, 26 Feb 2009 15:56:42 -0600

The Minnesota Association of Realtors put out a couple of videos this week regarding some short sale practices and the legal implications that could go along with them. It is really informative on what to be careful of, should you decide to be the buyer of a clients home, and then assign the contract to a third party. The process is common in short sales, but the problem arises when the Realtor is also the listing agent, and could be putting his interests ahead of his clients. Like always, transparancy is the keyword in these types of transaction.

Wake Up America!

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Tue, 10 Feb 2009 09:13:45 -0600

Ok, I just cannot take it anymore.

I have sat on the sidelines, fuming, but keeping my mouth shut here on the web.But after last nights "show" from Mr. Obama, I have had enough. (by the way, I have given this guy two weeks to show me some true leadership, and since I lost all respect for him last night, I no longer will call him Mr. President...he doesn't deserve the title).

Wake up America!

Can you not see what is happening to our country?

When someone tells you that government is the only solution to your problems and when fear is invoked to get you to go along with policy, don't be surprised when you wake up in a few years and find yourself living in a socialist society.

Remember Stalin? He ruled by FEAR. Hitler ruled by FEAR. Mao ruled by FEAR. Now I am not saying that Obama is any of these guys, but you have to wonder what in the hell is going on, when in two weeks, we have seen more social policy crammed down our throats than I have seen in my lifetime. And every time I hear Obama speak, he tells us that all hope is lost if we don't follow him. If you hadn't noticed, he is ruling by fear, folks.

Are we so willing to roll over and bury our heads into the sand, let someone else deal with our problems? Have we become a nation of so much laziness that we won't take the time to voice our objection to bills that make no sense? Are we so willing to put this burden on our children and grandchildren...paying for the sins of the father? I look at my two toddlers and seriously want to cry at what they are going to have to face in 20 years.

Washington is committing the ultimate sin right now, going against everything this country was founded on. The founding fathers are probably rolling over in their graves.

Now I have to hear that the Dems are trying to sneak in a health care provision that will drastically change the way health care is treated in the United States! Talk about sneaky politics. Or how about moving the Census under the wing of the White House so that the Dems can redistrict states for more favorable outcomes in their elections. Does any of this scare you at all?

The fact is this, it is all happening before our very eyes, and if we allow our country to move to a more socialist state, the only person to blame is the one that looks you back in the mirror everyday.

Stop listening to the fear, and decide for YOURSELF what is the truth, not what someone tells you is the truth.

Maybe our Salvation was Already Written, but we Failed to See It?

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Mon, 09 Feb 2009 11:00:53 -0600

I just read an interesting article which predicts the next 15 companies that could likely fail in 2009. While some of them are no big surprise, like Chrysler, who should have failed decades ago, or Blockbuster, who has been struggling ever since online video rentals have taken off (I am an avid Netflix fan), some are rather surprising.

Well, OK. Krispy Kreme is really not that surprising. They over expanded in the United States and stretched themselves too thin. Sometimes, staying small is the best plan for long term survival. But one that I was surprised to see is Realogy, the largest real estate brokerage in the country:

"Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room."

It will be no surprise to me if some real estate brokerages go out of business in 2009 and 2010. Many just over expanded and overspent during the fat years, and left nothing for the lean years. I believe that the local Realtor association has said about 15% of the agents in town have left the business. While driving around town, I have seen many real estate offices up for sale, as they rush to downsize and save themselves.

The funny thing about this, to me at least, is it seems many people and businesses should have reread the Biblical story of Joseph. See Joseph could interpret dreams and when Pharaoh had one he couldn't decipher, Joseph came to the rescue and predicted that Egypt would see 7 years of famine after 7 years of feast. Their solution? Put some food aside during the seven years of plenty, so they would not suffer from hunger during the famine. Hmmm...there's a novel idea.

But so many businesses, including our local governments, saw the money flooding in and decided to build larger buildings, expand, grow, grow, grow, and were so blinded by the wealth they violated history, and are now paying for it. Cities in Minnesota are right now debating on whether to cut school funding and after school programs...because they are facing a budget deficit. You've got to be kidding me. I don't see them proposing to cut a few of those high paying government jobs instead.

Please, can someone answer how governments survived 5+ years ago, before the boom, on a budget, but cannot do it today?