Mankato Real Estate

Walt Anderson’s Real Estate News, Views and Tools

Aug
23

Decorating 101

Posted by Walt Anderson

Do your decorating projects tend to become major undertakings?  Read on…

Home Design: Managing the Snowball Effect
By Marni Jameson

When my kids were little, we used to read a book called “If You Give a Mouse a Cookie” by Laura Joffe Numeroff. In it, a demanding rodent wants a cookie, then a glass of milk to go with it, then he wants a straw for the milk, and a mirror to see if he has a milk mustache, and so it goes, until this two-ounce dictator has driven one indulgent boy to exhaustion.

This is exactly like decorating. One decision detonates another until you unravel like a cheap throw rug.

Until recently, I confronted my own mouse-and-cookie problem every day while facing the bathroom mirror. No, I wasn’t fretting about body image or Botox. I wasn’t even peering into my soul to reflect upon guilt or failure, though I could have gone any one of those places. This reflection was more superficial, and literally about the mirror. It was the wrong shape, had the wrong frame, and was just as wrong as O.J. Simpson. I needed a new one.

But like the mouse getting his cookie, if I got a new mirror, I’d need something else. I’d need to buy two, one for over my husband’s sink. But before I hung them, I’d want to paint the wall, or maybe wallpaper. But that would mean picking a wall color, which would mean choosing drape fabric. The drape fabric would need to work in the adjoining master bedroom, because master suites must share unifying window treatments it says on page three of the U.S. Constitution.

The drape fabric would also need to coordinate with the bedspread, which I plan to change to I’m not sure what. And, back to the bathroom, I’d really like to install a great ceiling light fixture, but then I’d have to choose the metal finish, which should go with the mirror frame, which must go with the cabinet hardware. And if I changed the knobs would I also need new faucets?

This is why so many rooms never change.

Decorating decisions can spiral. So often when I consider redecorating a space, I soon feel like an umbrella in a Tsunami - under equipped and overwhelmed. Or like the mouse’s friend - wiped out.

When I finally grew sick of facing the mirror and reflecting on my cowardice, I bit the cookie and hired a tile guy to use the same tumbled marble I’d used on the bathroom floor and counters to craft frames for new mirrors over each sink. A glass company custom cut mirrors to mount inside the marble-tiled frames. Whew! Next I found some antique copper colored wallpaper that looked like faux finish on plaster. It will warm up the room, add character, and is neutral enough that it won’t limit my fabric options.

Drapes are next on my list, along with new bedding, just as soon as I gather more courage.

Next time your decorating decisions start to snowball, here’s how to get control:

  • Divide and conquer. True, to achieve great design, everything needs to work together. But don’t let that overwhelm you. Break the process down into all the steps you’ll need to make. Write a list, then tackle one task at a time, keeping in mind the big picture as you go.
  • Think layers. Start from the walls and floors, and move in. First, choose flooring, wall color and tiles in colors you can build on. Next layer in window treatments, furniture, and accessories. I got stuck by starting with accessories, hanging framed mirrors. Like artwork, these should come last, unless you build them in as part of the background, as I did once I installed tiled mirror frames on the wall.
  • Watch that first step. The first decorating decision you make in a room is often the hardest because it sets the tone, and has a ripple effect on every subsequent design decision. In home design, fools often rush in. Take your time, think of the future impact and choose well. Choosing should get easier as you go — unless you do something impulsive, like buy a red leopard-print carpet then get stuck.
  • Spend wisely. The more expensive something is and the longer you plan to keep it, the more neutral and timeless it should be. Be more trendy and personal with less expensive touches that are easy to change. In a bathroom, for instance, pick tile and cabinets you (or the next homeowner) won’t tire of. Add pizzazz with towels and floral arrangements.
  • Think of it as an outfit. Dressing a room is like dressing yourself. Start with good basics. Be sure the wardrobe staples are well constructed, classic and tailored. Then accessorize with the scarf, the shoes, the jewelry. Or the vase, the drape, and the perfect mirror.

Marni Jameson is a nationally syndicated columnist and author of “The House Always Wins” (Da Capo). You can learn more about her and her book - which can be a nice housewarming gift or a tool to show buyers some great ideas on turning a house that isn’t quite right into perfect, at www.marnijameson.com.

Aug
12

Carbon Monoxide Alarms Mandatory

Posted by Walt Anderson

As of August 1, 2008, Carbon Monoxide Alarms are required in all Minnesota residential properties.  Here’s the statute:

2007 Minnesota Statutes

299F.51 REQUIREMENTS FOR CARBON MONOXIDE ALARMS.
    Subdivision 1. Generally. Every single family dwelling and every dwelling unit in a
multifamily dwelling must have an approved and operational carbon monoxide alarm installed
within ten feet of each room lawfully used for sleeping purposes.
    Subd. 2. Owner’s duties. The owner of a multifamily dwelling unit which is required to be
equipped with one or more approved carbon monoxide alarms must:
(1) provide and install one approved and operational carbon monoxide alarm within ten feet
of each room lawfully used for sleeping; and
(2) replace any required carbon monoxide alarm that has been stolen, removed, found
missing, or rendered inoperable during a prior occupancy of the dwelling unit and which has
not been replaced by the prior occupant prior to the commencement of a new occupancy of
a dwelling unit.
    Subd. 3. Occupant’s duties. The occupant of each dwelling unit in a multifamily dwelling
in which an approved and operational carbon monoxide alarm has been provided and installed
by the owner must:
(1) keep and maintain the device in good repair; and
(2) replace any device that is stolen, removed, missing, or rendered inoperable during the
occupancy of the dwelling unit.
    Subd. 4. Battery removal prohibited. No person shall remove batteries from, or in any way
render inoperable, a required carbon monoxide alarm.
    Subd. 5. Exceptions; certain multifamily dwellings and state-operated facilities. (a) In
lieu of requirements of subdivision 1, multifamily dwellings may have approved and operational
carbon monoxide alarms installed between 15 and 25 feet of carbon monoxide-producing central
fixtures and equipment, provided there is a centralized alarm system or other mechanism for
responsible parties to hear the alarm at all times.
(b) An owner of a multifamily dwelling that contains minimal or no sources of carbon
monoxide may be exempted from the requirements of subdivision 1, provided that such owner
certifies to the commissioner of public safety that such multifamily dwelling poses no foreseeable
carbon monoxide risk to the health and safety of the dwelling units.
(c) The requirements of this section do not apply to facilities owned or operated by the
state of Minnesota.
History: 2006 c 260 art 3 s 21
NOTE: This section, as added by Laws 2006, chapter 260, article 3, section 21, is effective
January 1, 2007, for all newly constructed single family and multifamily dwelling units for which
building permits were issued on or after January 1, 2007; August 1, 2008, for all existing single
family dwelling units; and August 1, 2009, for all multifamily dwelling units. Laws 2006, chapter
260, article 3, section 21, the effective date.

Aug
10

6 signs of a crummy real-estate agent…

Posted by Walt Anderson

Does your agent never get in touch, fail to offer advice, or work only part time? These are some of the red flags that tell you to ditch this agent and run to find a new one.  By Luke Mullins, U.S. News & World Report

While a savvy real-estate agent can certainly help you sell your home more efficiently, not all brokers are created equal. And in today’s feeble real-estate market, it’s all the more important that an agent go the extra mile on behalf of home sellers. But how can a homeowner tell if an agent is doing everything he or she can to get the property sold or is simply going through the motions? To answer that question, U.S. News recently spoke with a handful of industry professionals and compiled a list of six distinct signs that may indicate that an agent is not 100% committed to the effort.

1. Out of  touch. Just as in a marriage, communication is a key component of the relationship between a homeowner and an agent. If the communication isn’t there, the relationship won’t work. So if your agent doesn’t return your phone calls in a timely fashion or disappears without warning for weeks at a time, you should probably find someone else. Some real-estate agents will block out a single window of time — say, between 4 and 5 p.m. — in which to return all of their phone calls for that day, says Jay Thompson of Thompson’s Realty in Arizona. “I’ve never really understood that,” he says. “That’s not necessarily good if your seller or buyer wants to talk to you at 8 o’clock in the morning — they end up waiting a whole day.”

2. No advice. Let’s face it; even homeowners who have been through several real-estate transactions can benefit from a little advice from their agent. But if an agent doesn’t offer any advice, it could be an indication that he or she is not fully engaged in the process. “We’re not shy people,” says Elizabeth Blakeslee of Coldwell Banker Residential Brokerage in Washington, D.C. “If an agent doesn’t suggest fixing drippy faucets or reducing clutter — that sort of thing — then they are just going to put [the property] in the Multiple Listing [Service] and throw up a sign and hope.” Not exactly the pathway to value in today’s sluggish market.

3. Insists on affiliates. Real-estate agents who insist on clients using a particular lender or affiliated company for the transaction should also trigger alarm bells. “That’s a huge red flag because odds are they are probably getting a cut on a referral fee,” says Joshua Dorkin, the founder and chief executive officer of BiggerPockets.com, a Web site that specializes in real-estate information and networking. “Frankly, you should be able to use whoever you want to use.”

4. Part-time gig. Just because a real-estate agent has a license doesn’t mean it’s his or her full-time job. And while some part-time agents are certainly capable, “when you put food on the table for your family selling real estate, you approach things differently,” says Mike Sannes of Keller Williams-Big Bear Real Estate in Big Bear Lake, Calif. “If your real-estate agent is actually a waiter, waitress or [another profession], then you are probably not going to be happy with where their priorities are.”

5. Keeps it in the family. A real-estate agent who shows buyers only properties that are listed with his or her brokerage could be subordinating the client’s best interests. Since selling agents earn a separate commission off a real-estate transaction, agents who make listings just from their company available may be trying to steer that commission to the brokerage as well. “[If] I only showed you my listings or [the company’s] listings, that’s a huge red flag because there is a lot of the inventory that you are not considering,” Sannes says. “By limiting [the inventory], you are not doing your job representing a buyer.”  

6. Behavior problems. Every real-estate agent is licensed by the state in which he or she practices. State agencies, meanwhile, keep the records of all disciplinary actions taken against their agents. By getting in touch with the agency that oversees the real-estate industry in your state, you can find out if there is a disciplinary action on your agent’s record. (Contact information for state agencies is available through the Association of Real Estate License Law Officials.) “It’s like when you hire a contractor, you go to the state contractor board,” says Barbara Cook of Keller Williams Realty in San Diego County, Calif. It’s also a good idea to check with the state agency simply to ensure that your agent is in fact licensed — as scam artists have been known to pose as real-estate agents to perpetrate fraud.

 

Aug
05

HR3221 Impact!

Posted by Walt Anderson
If you are planning on buying and will close on your purchase after September 30, 2008, you should talk to your mortgage officer as soon as possible.  The 2008 Housing and Economic Recovery Act of 2008 may affect the parameters of your loan!

HR3221, the Housing and Economic Recovery Act of 2008

National Association of REALTORS® Summary (as of 7/24/08)

H.R. 3221, the “Housing and Economic Recovery Act of 2008″, passed the House on July 23rd by a vote of 272-152. The Senate must now approve the language adopted by the House. The Senate is expected to approve the bill on Friday, July 25th or Saturday, July 26th. The President has said he will sign the bill. It includes:

  • GSE Reform - including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  • FHA Reform - including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  • Homebuyer Tax Credit - a $7,500 tax credit that would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
  • FHA Foreclosure Rescue - development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
  • Seller-Funded Down Payment Assistance Programs - codifies existing FHA proposal to prohibit the use of down payment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by non profits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
  • VA Loan Limits - temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
  • Risk-Based Pricing - puts a moratorium on FHA using risk-based pricing for one year. This provision will be effective from October 1, 2008 through September 30, 2009.
  • GSE Stabilization - includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
  • Mortgage Revenue Bond Authority - authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
  • National Affordable Housing Trust Fund - Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
  • CDBG Funding - Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
  • LIHTC - Modernizes the Low Income Housing Tax Credit program to make it more efficient.
  • Loan Originator Requirements - Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker or other loan originator.
Aug
05

Thinking about getting a rental license?

Posted by Walt Anderson

The City of Mankato has recently enacted a Rental Density Ordinance.  Here is a notice we recently received from the city.  Check it out if you are thinking about getting a new rental license on a property in Mankato!

Mankato Rental Density Ordinance

Jul
10

What improvements should sellers make?

Posted by Walt Anderson
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
walt@waltanderson.com
(507) 625-2240

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.:
Cleanliness is number one! Nothing is more important, even if the home is older, outdated and maintenance has been deferred - it must be clean! It must look clean and smell clean. (It’s often harder to get buyers interested in a home that smells bad - smoke, pets, and teenage boys - than one that looks bad.) Most sellers are reluctant to spend money on improvements to a home they are about to sell. If they lived with a badly worn carpet, they aren’t likely to replace it for someone else. However, they must fix those items that will be viewed as potentially bigger problems: for example, a stained ceiling may mean a major problem with the roof.

From Tupper Briggs (CRB, CRS, SRES), of RE/MAX Alliance Evergreen in Evergreen, Colo.:
Generally, we look at how the market is probably going to respond to the home and then ask ourselves which projects would yield at least $2 in a higher selling price for each $1 spent. This helps us to prioritize in our own minds, and it helps us justify the projects to our clients. Having a home clean and having everything working (doors opening smoothly, light switches actually turning lights on, stairway handrails secure, etc.) are the most important and least costly things our clients can do to enhance their homes’ presentation. After that, we may suggest more expensive projects - but don’t make these recommendations lightly.

From David Indermill, of RE/MAX Coastal Properties in San Diego, Calif.:
There are many factors to consider when advising sellers about improvements. The biggest concern is whether or not the sellers can recoup their expenses. If the seller decides to do improvements, I recommend only certain things. Most important are improvements that will enhance the curb appeal. Spend the extra money for a nice lawn and landscaping. Be sure to use neutral colors for carpets. Sellers should paint the interior and exterior if need be - also sticking to neutral colors. Make it look like a model home as much as possible and also very homey. The home should also be deep cleaned by a cleaning company.

From Barbara Hibnick, of RE/MAX Experts in Buffalo Grove, Ill.:
I always tell my sellers that the home should look as close to a model home as possible. I suggest they paint rooms that need it - usually a soft white shade. Clean all carpet and deodorize. Recaulking can improve the look of a bathroom enormously, and spending about $260 to have a bathtub repainted is important if it is a really distracting color. Look at the home from across the street and decide how it looks as a homebuyer looking at its curb appeal. Trimming bushes and shrubs is a good idea around any driveways, walkways, or decks. A professional cleaning crew is an incredible return on the dollars spent. And most importantly, declutter!

From Wayne “Shorty” Short (ABR, CRP, CRS), of RE/MAX Realty Professionals in Wichita, Kan.:
I tell sellers that in the first 18 seconds that a buyer drives up to, and walks into, the house, they have made up their mind whether or not the home is a “keeper” or not. They will either really look it over, or they will walk through hurriedly and move on to the next one. I explain to all my sellers how they live in the home and the condition in which they sell it are two different things. I will not list the home until it is in its best “SHOW” condition. You would be surprised how many of my homes get new carpet and paint.

From Jeff Bowers (ABR, CRS), of RE/MAX Professional Realty in Charleston, S.C.:
The kitchen is often the most important room in the house. A major overhaul usually won’t make sense, but sellers should do all they can to make the kitchen look its best. Painting is an easy, inexpensive way to revive any room - but be sure to stick to neutral colors. If your countertop tile is old, grungy or outdated, think about some new tile. Get rid of old stainless steel faucets and update with a stylish replacement. Suggest replacing old knobs and pulls with new hardware. Get rid of the clutter, make sure blinds are open and that the room is well-lit - and be sure the kitchen is odor-free (other than the smell of cookies, of course).

Copyright © 2002 RE/MAX International Inc. 3/13/02

 
May
30

First Time Home Buyer?

Posted by Walt Anderson

 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.

May
20

Don’t Ignore Indoor Mold

Posted by Walt Anderson

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

May
09

Why doesn’t my house sell?

Posted by Walt Anderson

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

Mar
01

Facing Mortgage Foreclosure…

Posted by Walt Anderson

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