| My seller clients often ask me to recommend thing they can do to help make their property more attractive to buyers. Here is a selection of recommendations from some of my associates made way back in 2002…still timely and appropriate for today.
Walt Anderson, Broker Associate What Improvements Should Sellers Make? What do you tell your sellers about the odd, nasty odor coming from their cupboards? What about the weird green stain on the carpet, the broken door leading to the basement, or the overgrown, partially dead junipers blocking the sidewalk? It’s not always easy. Most people, after all, are reluctant to improve or clean a home they will soon be leaving. Adjust the price or bring in the professional cleaners and landscapers? Here’s what some of your RE/MAX colleagues tell their sellers about improvement and cleanliness. From Max Perryman (ABR, ABRM, CRB, CRS), of RE/MAX House of Brokers, Springfield, Mo.: From Tupper Briggs (CRB, CRS, SRES), of RE/MAX Alliance Evergreen in Evergreen, Colo.: From David Indermill, of RE/MAX Coastal Properties in San Diego, Calif.: From Barbara Hibnick, of RE/MAX Experts in Buffalo Grove, Ill.: From Wayne “Shorty” Short (ABR, CRP, CRS), of RE/MAX Realty Professionals in Wichita, Kan.: From Jeff Bowers (ABR, CRS), of RE/MAX Professional Realty in Charleston, S.C.: Copyright © 2002 RE/MAX International Inc. 3/13/02 |
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First Time Home Buyer? Here’s another Home Stretch course coming up in early June! Check it out!
Mankato- Thinking about buying a home? Would you like an opportunity to learn more about the purchasing process and financing options? For only $10, the Home Stretch course will cover that and much more. Classes will be held Thursdays, June 5 and 12 from 5:30 p.m.-9:30 p.m. at the Intergovernmental Center, 10 Civic Center Plaza, Mankato.
Advance registration is required due to limited seating. For more information or to register, call Mankato’s Housing Office at 387-8636.
Mold is everywhere. It aids the natural decay of plants and animals and releases carbon into the atmosphere, which is essential to human life. It is also found in medications like penicillin, in foods such as cheese and yeast, in beer and wine … and in most homes…(MORE)
Walt Anderson, (507) 625-2240 walt@waltanderson.com
ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate
Why not?
This is very much what we Realtors call a buyer’s market. There are more homes on the market for buyers to consider, and many buyers are expecting sellers to accept reduced prices…in fact, I have had buyers who say they are expecting sellers to take less for their property not because of deficiencies but “just because the market is down”.
What does that mean a seller should do? Sellers have to realize that they cannot expect to not have their property in excellent condition but still get top price. Assessed value by taxing authorities is based mostly on finished square footage of homes, and many Realtors still try to use that value as a basis for helping sellers determine a realistic market value.
This is a mistake. Buyers today are not prepared to pay a price based on square footage unless the property is really in move in condition. Most buyers do not have the time or patience to purchase a property that needs immediate upgrades and decorating…couples are usually both working every day, sometime with a couple of jobs each. They also don’t have the cash to make needed repairs…they are usually right at the top of their purchasing limit with nothing to spare. In many cases they are financing 100% of their purchase.
Sellers…listen to and act upon your Realtor’s suggestions. Do the fresh paint, clean windows, freshly caulked bathtub surround, clean and/or replaced worn carpeting, painted exterior trim, upgraded appliances, roof, etc. The buyer will undoubtedly have their own private home inspection done, and deficiencies will result in the buyer requesting substantial repairs and/or price reductions. Beat them to the punch! Ask your Realtor to arrange a pre-listing home inspection. It will cost you about $300 or so, but that inspection will alert you to needed repairs that you can usually get done for a fraction of what a buyer would request…it will also make your house stand out prominently ahead of similarly priced properties that need unexpected repairs.
In this market your home not only has to be priced at the low end of similar homes, it has to shine. When buyers have the pick of the crop anything less than the best will remain on the shelf a long time.
Walt Anderson, (507) 625-2240, walt@waltanderson.com
ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate
Here is a timely paper just published by Minnesota’s Attorney General Lori Swanson, offering some very good advice on what you should do if you are having difficulty making your mortgage payments.
Facing Mortgage Foreclosure by Attorney General Lori Swanson
Walt Anderson, (507) 625-2240, walt@waltanderson.com
ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate
Here is a recent article published in Time magazine that does a good job of presenting the case for purchasing a home now.
Ignore the Headlines by Dan Kadlec, February 2008 TIME Magazine article
What do YOU think? Does Kadlec make a convincing case?
Walt Anderson, (507) 625-2240, walt@waltanderson.com
ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate
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Here is a recent article by one of the Minnesota Association of Realtors advisors pertaining to compensation methods in real estate transactions. As Minnesota’s first Accredited Consultant in Real Estate® and a member of the state association Professional Standards Committee, I am very aware of these rules.
Walt Anderson, (507) 625-2240, walt@waltanderson.com
Fees, Commissions and More“A commission by any other name…” |
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On occasion, a transaction or scenario will arise where a real estate agent, licensed to a real estate broker, is attempting to collect a “consulting fee” from that agent’s client or customer. In some instances, this fee was structured as a “consulting fee” payable to the agent directly, bypassing the broker who holds that agent’s license. This may occur in a variety of circumstances, such as the following:
In any of the above examples, the real estate agent who is playing the role of “consultant” may sincerely believe the “consulting fee” is the best way to charge for serving his or her client or customer in a limited capacity, or in a role where the agent is not entering into a traditional agency relationship. Since the role may be different or more limited than that of an agent, sometimes a unique fee structure is arranged, and the agent may call such fee a “consulting fee”.This in itself is not illegal and it is not inappropriate, so long as the agent and customer have a written agreement regarding what services the agent may be performing, at what cost, for what time period, etc. For agents licensed in What can create problems is how the agent treats this “consulting activity” as it pertains to the broker with whom the agent is licensed. In How does all this create a problem? Where this can create pitfalls is when an agent charges a real estate commission, “consulting fee”, or any other compensation to a client or customer, and bypasses the real estate broker. Occasionally an agent has the mistaken belief that if he or she is collecting a consulting fee, or if the fee earned is not conditioned on the sale of a home, a closing or some other traditional benchmark, the fee is not a commission that has to go through the brokerage, and they are entitled to keep the fee. This is not accurate, as the only person/entity that has authority to collect a fee under Chapter 82 is the broker.Another important precaution is to be aware that just because you are acting in a consulting role or charging a consulting fee does not mean an agency relationship has not been created. Implied agency relationships can be formed by the words or actions of the agent, even if the agent did not intend to be a “fiduciary” for that client. It is important, then, to be sure that your duties are clearly defined, and that you keep in mind how your actions may determine whether an agency representation has been created or not. If you do not intend to represent a client in an agency role, having clearly defined responsibilities as part of a facilitator services agreement may prove helpful. |
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Following is text of an email recently received from City of Mankato regarding first time home buyer funds. If you are a first timer, check it out!
Are you a first-time homebuyer? The City of
Graduates of the program are eligible for down payment assistance and below market interest rate mortgage products. Classes are held over a period of five weeks, totaling 15 hours.
To apply for the First Home program call
-END-
Sarah Esch
Public Information Assistant
City of Mankato and Mankato Area Public Schools
Intergovernmental Center
10 Civic Center Plaza
Mankato, MN 56001
(507) 387-8692
(507) 387-8642 (fax)
www.ci.mankato.mn.us
www.isd77.org
There is growing concern about radon across the nation, and the Mankato area is no exception. The presence of radon gas in our homes puts lie to the old phrase that what you don’t know doesn’t hurt you. Radon gas causes lung cancer. Radon gas is colorless and odorless, and the only way to detect its presence is by special testing. Simple test kits are available in most building centers and online. However, testing with these inexpensive kits does require a substantial commitment of time and effort to obtain accurate data. More expensive but considerably more accurate and timely is testing by trained specialists with equipment that will give an accurate analysis of the presence of radon within just 48 hours.
What if radon is present in your home? Trained specialists in radon mitigation can install permanent equipment in your home that will allow the radon gas to vent safely into the atmosphere without contaminating your living areas. These specialists also recheck for the presence of excessive radon after installing the mitigation equipment to make sure it is working properly.
Is radon a problem in the Mankato area? The Minnesota State University Mankato has something called the Radon Project. They have been conducting tests on homes in the area, and their test results are alarming. As of January, 2008, their test results show that of 422 tests in Mankato, 281 showed results above the acceptable level…that’s 66 percent!
I advise all my real estate clients, whether they are buying or selling property, to have a professional test done on their home…the odds of their home having elevated radon levels are just too high to ignore. I feel so strongly about this that my advice is that if you encounter a real estate agent who tells you as a buyer to not worry about it or as a seller to wait and see if the buyer asks for it, find another agent!
Below are links to resources that will give you more information about radon detection and mitigation.
EPA Home Buyer’s and Seller’s Guide to Radon
Recent Mankato Free Press Article about Radon
There are a number of radon testers and mitigation professionals in the area. Because of the dramatically increased public concern over radon in homes, the Minnesota State University Radon Project is overwhelmed with requests from the public for radon testing. The project is probably the least expensive of the testing options, asking just for a voluntary contribution to the program. My experience, however, particularly when working with buyers who need to have a test completed in just 3-5 days during their contractual inspection period, is that the MSU Project has difficulty providing their test within such a constrained time period. The commercial testers can usually do the testing faster (optimal is 48 hours) but will cost more…usually between $75 and $150 or so. Be sure to ask your tester if they are certified by NEHA (National Environmental Health Association) and if they are experienced in installing radon mitigation systems. Also ask them if they do find elevated radon needing mitigation, will they discount the cost of the test from their mitigation installation fee.
I have personally worked with the Minnesota State University Mankato Radon Project (507-389-1990), Andy Kelley of Radon Solutions (507-351-2413) and Greg High of Northern Comfort, Inc. (507-387-6621). The Radon Project does only testing. Radon Solutions and Northern Comfort are NEHA certified for both testing and mitigation installation.
Both of the above commercial firms as well as many others around the state are on the following list:
MN Department of Health list of statewide radon mitigation providers
Keep yourself and future owners of your home safe. Have it tested.
Walt Anderson, (507) 625-2240, walt@waltanderson.com
ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate
When my Mankato area clients ask me what they should do to make their home more “saleable”, I usually learn that they already have some project in mind and they just want to see what I think about it. It often entails some kind of upgrade or remodeling that they have wanted to do for some time but never got around to…but now that they want to sell they think they should do it.
Unfortunately this upgrade or remodeling project sometimes is really a bandage like attempt to correct a long time lack of maintenance and/or failure to renew needed decorating. When a property is not properly maintained, just like an automobile, it begins running poorly…and often that neglect, again just like a neglected car, leads to a home that needs a major overhaul and not just that superficial bandage.
Home owners also tend to believe that their intended remodeling project will greatly enhance the value of their home so that when they sell they will realize a larger profit. Unfortunately experience shows that this usually isn’t so.
Annual reports are made of the typical return of investment for various home remodeling projects.
Here is a link to one of the more informative resources:
I have more detailed information from the National Association of Realtors, including specific percentages of expected returns for our area of the upper midwest. Please don’t hesitate to contact me for that detailed information.
Walt Anderson, (507) 625-2240, walt@waltanderson.com
ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate