St. Cloud, MN - Real Estate Blog

With the first snow storm of the year coming soon, it's fairly safe to say that the real estate market should start a little break as it gears up for the spring rush.

 Things to know:

1)  The best deals on homes generally happen during this time of year.  There are many sellers in the area who have to sell their homes no matter what.  Take a good look at the homes available to purchase and see if there aren't one or two that might strike your fancy - the sellers may be willing to make a deal.

2)  Rates under 6.00%.  That's right, even though the money is a little harder to come by, for those of you who can get loans the rates are phenomenal once again.

 3)  According to the St Cloud MLS, there are more than 200 foreclosed properties just waiting to be plucked off the market.  I've heard rumor that Freddie Mac wants to try and unload as many of their foreclosures as possible in December.  I know for a fact that no bank wants to hold a foreclosure through the winter months in Minnesota.

What's your thoughts on the real estate market?

Jason Tangen, GRI - Broker Associate with Edina Realty St Cloud

www.jasontangen.edinarealty.com - Search the St Cloud MLS

www.StCloudEdina.com - Home of the e-MARKET ANALYSIS (Free Home value Estimator)

Posted by Jason Tangen at 08:28 AM | Permalink | Comments (0)

options

I recently had a person ask to see a home that had sold almost two years ago!  Where did they find this property?  On the St Cloud Times' Home Times website.  I've done a little research and found some glaring problems with the St Cloud Times' search results of homes for sale.  Below are the statistics I found with a brief search of homes for sale in Sartell MN with a price range of $175,000-200,000*:

1)  The St Cloud Times website has 13 properties available in Sartell MN between $175,000 and $200,000 - There are currently 37 listed on the St Cloud MLS

2)  Of the 13 homes, 12 are listed by real estate professionals in the St Cloud area - One FSBO.

3)  Of those 12 homes the St Cloud Times website offered by real estate professionals, over 41% had inaccurate prices, addresses, or were no longer available to purchase.

4)  One of the homes was a property that hasn't been listed for sale by that real estate agent in almost a full year.

Until the St Cloud Times changes the way they provide homes for sale to potential home buyers on their website, I highly recommend going to any of the personal or company websites in the St Cloud area that is equipped with some sort of Broker Reciprocity home search.  For the FSBO properties, I recommend one of the national sites like FSBO.com.  With the potential to search homes for sale on a multitude of websites, why settle for inaccurate and untimely information?

*Data obtained by comparing listings on the St Cloud Times' Home Times website and the information provided on the St Cloud MLS.

Jason Tangen, GRI - Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Search The St Cloud MLS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 05:29 PM | Permalink | Comments (0)

options

This post is for everyone who has their home listed for sale or is thinking about listing their home for sale:

If your home is currently listed for sale (whether it be on the St Cloud MLS or anywhere in the US), I would like you to perform a little test on the Internet marketing your real estate agent is providing.  Go to Craigslist, find the area where you live and see if you can find your home advertised for sale.  Craigslist is an outstanding service that real estate professionals can use for addition advertising of homes on-line.  If you cannot find your home, ask your real estate agent to please add it immediately.  If they give you grief about adding this to their services, simply inform them that it's quick, easy, and FREE!

If you are thinking about listing your home for sale, have the real estate professional you choose place an ad for your home on Craigslist for extra Internet advertising.  Some real estate agents might be reluctant to add your home at first, but once you explain to them that this is a free way to enhance the way they advertise your home for sale, they will see the benefits.  A recent statistic showed that over 80% of the people who have recently purchased homes started their search on the Internet.  As a home seller, you need to make sure that your real estate agent is getting you the most exposure to these potential home buyers as possible.

Do you have any questions or concerns about marketing of homes for sale on the Internet?  Post your thoughts and ideas here for the benefit of everyone in the future.

Jason Tangen, GRI - Broker Associate with Edina Realty

jasontangen.edinarealty.com - Search Homes for Sale in St Cloud MN

www.StCloudEdina.com - The e-Market Analysis (Free Home Value Estimator)

Posted by Jason Tangen at 09:55 PM | Permalink | Comments (0)

options

I had this request from a person in the local community regarding what the average difference was between the assessed value for tax purposes and the average market value (sold price) for homes.  I've asked if I could include it here for everyone to everyone to review.  The following is a copied version of our e-mail communications.  If you would like similar information about a different area surrounding St Cloud MN, post your requests here or e-mail me at jason@stcloudedina.com. :

Inquiry Message: Jason, I was wondering if you could tell me approximately which percentage a home's market value is over the tax value in Waite Park . Ie: Your tax value is at $112,000. What percentage over that would you estimate a homes true value to be? 10-15% or something? I would appreciate any info you could give. Thank you, S.T.

Response: S.T,

Posted by Jason Tangen at 05:28 PM | Permalink | Comments (0)

options

I had an acquaintance of mine approach me the other day in regards to the current state of the real estate market.  I told her what I tell everyone; I am having a much better year than I did in 2006 and I am personally expecting an even better 2008.

Is that a great spin on the market?  Yes.

It is a true statement in regards to my personal business as I am doing just fine and foresee great things next year. 

Is it a true statement about the market in general?  Not really.

Homes are selling - that much is true, but sellers have to be prepared for what is coming at them.

If you know someone who is planning on selling a home in the near future, please give them this little piece of advice.  Have your friend or family member ask their potential real estate agent for an honest evaluation of the real estate market.  If they give you a rosy picture of how easy it will be to sell your home, ask them the question again.  If they are start to get negative about the current state of the real estate market, I don't recommend using them to sell your house.  What your friend needs is an honest opinion about the current real estate market in which they live.  Think of it as your real estate professional's truth in real estate market disclosure.

If you want my honest opinion of the real estate market in St Cloud MN, or any of the surrounding Central Minnesota areas (Sartell, Sauk Rapids, Waite Park, St Joseph, etc.) you can ask for it here or e-mail me at jason@stcloudedina.com.

I'd love to hear your comments about this topic.  Please post any questions, comments or concerns about the real estate community in St Cloud MN or national real estate issues for answers and review.

Jason Tangen, GRI - Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Home of the e-MARKET ANALYSIS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 09:40 PM | Permalink | Comments (0)

options

I was a little surprised when someone requested the foreclosed properties on the St Cloud MLS today.  Not surprised because they wanted to see the foreclosed properties, surprised because I was sending them 213 homes that are some sort of bank foreclosure or short sale.  If you want more information about foreclosed listings in the immediate St Cloud or Minnesota area, view some of my other posts pertaining to this subject.  If you would personally like to see a list of the foreclosed properties on the St Cloud MLS, visit http://www.StCloudEdina.com/Foreclosures.html.  For foreclosures listed on the Minneapolis MLS or other Minnesota MLS systems, please e-mail me at jason@stcloudedina.com.

Jason Tangen, GRI

www.StCloudEdina.com - Search Homes for Sale on the St Cloud MLS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 05:28 PM | Permalink | Comments (0)

options

Attached below is a copy of the form laying out the specifics of agency relationships in real estate transactions in the State of Minnesota.

Download file

For more information regarding this disclosure form, visit my prior post at http://stcloudedina.com/blog/2007/11/minnesota_agency_relationships.html

Jason Tangen, GRI - Broker Associate

Edina Realty

http://jasontangen.edinarealty.com

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 10:04 PM | Permalink | Comments (0)

options

Early in any sort of real estate relationship between a potential home buyer or seller and a real estate professional, the state law is that the agent must disclose where their loyalties lie and who they represent.  By default, any agent working with a home buyer or seller without a signed contract is a facilitator of that potential client.  They are facilitating the potential client by showing them properties, preparing a CMA, or giving them advice.  Please note that while working in this role the only duty a real estate professional is mandated to give the potential client is confidentiality.  Other fiduciary duties may be laid out by state law or specific terminology in a Facilitator Services Agreement.  The other mandated fiduciary duties of loyalty, obedience, disclosure, reasonable care, and accounting are only obtained through hiring a real estate professional with a specific contract.

The other four forms of real estate relationships break down as follows:

Seller's Broker - The real estate professional AND EVERYONE LICENSED AGENT WITH SAME COMPANY that has a home listed for sale.  For example:  Jim Schaaf is the managing broker for Edina Realty in St Cloud MN.  If he has a home listed for sale, I am by default a Seller's Broker mandated to look out for that seller's best interests.  This is regardless to whether or not I know the seller's intimately or what their situation entails.

Sub-Agent - A person who is working with the buyer, but represents the seller.  This is not very widely used in Minnesota because who would want to have someone help them purchase a home knowing full well that they are representing the other party?

Buyer's Broker - This role is when a potential home buyer signs into contract with a real estate professional to represent their best interests in the purchase of a home.  This is generally a free service provided to home buyers, but there are scenarios when a potential home buyer may have to provide payment for the real estate professionals services.  Definitely ask your potential real estate professional what these circumstances may be before you sign into contract with them.

Dual Agency - When a real estate professional represents both the buyer and the seller in a given real estate transaction.  When you are filing out a contract with a real estate professional to represent you, make sure they go into detail how they approach this situation if it presents itself.  It can be very difficult to represent both involved parties to a given real estate transaction without a specific set of guidelines that the real estate agent plans to follow.  To view the entire Minnesota form regarding real estate relationships, click on the following link:  http://stcloudedina.com/blog/2007/11/minnesota_disclosure_form_for.html

Feel free to post your questions, comments or concerns here for answers and review.

Jason Tangen, GRI - Broker Associate

Edina Realty St Cloud

www.StCloudEdina.com

www.StCloudEdina.com - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 09:40 PM | Permalink | Comments (0)

options

I've been on several listing appointments in the past few weeks that have turned into financial advising sessions.  The home owners in one place had great ideas about what they were going to do with the home they had just bought.  What they weren't expecting was the first $400 bill for heat last winter.  Unfortunately, these homeowners were not able to get to any of their home projects due to their finances.  Another potential seller is expecting to finalize the divorce proceedings soon and neither of them can afford the property on their own.  Both of these couples have not accrued enough equity to sell their home and break even at this point.  They also have noticed that the agents who sold them their homes are no longer in the market.  What should they do?

Too many real estate professionals are just hand holders through a transaction.  I believe that a real estate professional should be able to give you good advice on many different home owning issues.  If they don't know something, they should at least be able to get you in contact with the right people to get your queries solved.  This is to include the little quips of wisdom revolving around how to budget yourself once you are in your new home.  New home buyers are not always aware of the full expenses that are going to come about with home ownership.  Wouldn't it be nice if their real estate professional reminded them of the heating costs, property tax hikes, and other issues?

Sometimes you need to say things that people do not want to hear.  Both of these potential sellers had TVs that would be perfect in a million dollar homes, cell phones, home phones, newer cars, and quite a few other monthly commitments for various non-necessities.  A budget was what was direly needed to help them get back on track.  They had to spend some time figuring out what was a necessity and what wasn't.  One couple is able to keep their home and start making progress for the future.  The other set of home owners (divorcing) is going to start to rent out their home until they are in a better situation to sell.

If you are in need of some financial help and budgeting, visit the link below to start some basic and more complex personal budgets.  The simple act of accurately tracking a full months worth of expenses will help you further understand where your money is really going.  It takes some discipline to live within your means, but the stress that it removes from your daily life is well worth the work.  If you need more help, contact me or a local financial planner to get you going in the right direction.

Create a Personal Budget: http://www.free-financial-advice.net/create-budget.html

Jason Tangen, GRI

www.StCloudEdina.Com

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 09:48 AM | Permalink | Comments (0)

options

In honor of Veterans Day, I thought it only appropriate to give a very big "Thank You" to everyone who has served in the armed forces.  It is sometimes a thankless job protecting our freedoms because of the politics that are always associated with any military action.  I encourage everyone to call the Veterans they know and thank them personally for the time they served our country.

I also would like to propose that the following four movies are the greatest war/military movies of all time.  I might be slightly biased in my choices due to my age and prior military service.  What do you think?

1.  "Saving Private Ryan" - Tom Hanks' line to Matt Damon and following scene with the elder Private Ryan emotionally hit me every time.

2.  "Platoon" - I love the distinct differences in the leadership styles of Tom Berenger's and Willem Dafoe's characters.

3.  "Full Metal Jacket" - R. Lee Ermey in one of the finest military roles of all time.  The closest depiction of Marine Corps boot camp available.

4.  "Glory" - A powerful Civil War masterpiece that captivates and motivates anyone who watches it.

Others needing serious consideration:  Gone with the Wind, Schindler's List, Letter's from Iwo Jima, Flags of our Fathers, The Bridge Over the River Kwai, M*A*S*H, Apocalypse Now, Patton, Heartbreak Ridge, Pork Chop Hill, The Deer Hunter, The Patriot, Good Morning Vietnam, Black Hawk Down, and We Were Soldiers.

Jason Tangen, Veteran of USMC

www.StCloudEdina.com

Posted by Jason Tangen at 10:27 PM | Permalink | Comments (1)

options

What is the toughest age of home to sell in the St Cloud vicinity?  Of homes that were listed on the St Cloud MLS since January 1st of 2007, there are currently 435 listings of properties that have expired without selling.  These 435 homes comprise only the St Cloud, Sartell, Sauk Rapids, Waite Park, and St Joseph areas.  I was a little surprised to discover that homes ranging from 0-10 years old made up 46.9% of all expired listings in my research.  Below is a breakdown of the number of expired listings per age range:

144 Expired Listings from 0-4 Years Old

50 Expired Listings from 5-9 Years Old

49 Expired Listings from 10-19 Years Old

35 Expired Listings from 20-29 Years Old

26 Expired Listings from 30-39 Years Old

15 Expired Listings from 40-49 Years Old

27 Expired Listings from 50-59 Years Old

11 Expired Listings from 60-69 Years Old

9 Expired Listings from 70-79 Years Old

20 Expired Listings from 80-89 Years Old

11 Expired Listings from 90-99 Years Old

20 Expired Listings from 100+ Years Old

If you are thinking about selling your home in the St Cloud area, know that the law of supply and demand is in full effect.  With the amount of homes that are available to purchase under 10 years of age, the competition for potential buyers is even more fierce than usual. 

The other statistic that stood out during my research was that the expired homes were listed an average of 5 months with only a 2.32% average reduction in price.   Compare that to the 735 homes that sold during the same time frame.  The homes that sold were listed for approximately 2 months before getting an offer and had an average 3.89% reduction in price from their original list prices (all sellers concessions not accounted for in price reduction statistics).  Oh yeah, there is also the little fact that the sold properties were listed nearly 18% less than their expired property counterparts.

 Questions, comments or concerns?  Post them here for answers and review.

 Jason Tangen

www.StCloudEdina.com

Posted by Jason Tangen at 10:59 PM | Permalink | Comments (0)

options

I was listening to the local nightly news the other night and they said something that I thought was quite alarming and somewhat careless.  They were reporting on the credit crunch and the plans for Countrywide Home Loans to modify some of their existing customers mortgage terms.  This is all true, but the method they were giving for Countrywide Home Loans to contact people who are potentially able to receive these modifications was a little bit scary.  The news report stated that Countrywide Home Loans would be contacting people via the phone to inform them of potential changes that could be made in their mortgage terms.  If this is true, please do not give your personal information over the phone to anyone calling you directly.  If a representative from Countrywide Home Loans contacts you, personally call their office back and reach them with a phone number that you can verify in the phone book before giving them any personal information (i.e. social security number).  I would hate for anyone to get scammed by someone claiming to be from Countrywide Home Loans trying to modify your home mortgage terms for a fee.  Countrywide Home Loans is a very reputable lending institution that will be more than understanding if you have to call them back on a phone number that you can verify before giving them any of your personal information.  It is very easy for someone to look up which lender is servicing a loan and only call people who have a mortgage with Countrywide Home Loans.  Protect yourself and your identity.

If you haven't done so, take the time to pull your credit report and make sure that nobody has already taken your identity.  You are allowed to pull your own credit reports once a year to make sure that nothing is out of the ordinary.  There are several great websites available that can give you a free look at your credit report once per year.  I have used http://www.annualcreditreport.com/ to check my Equifax, Experian, and TransUnion credit file disclosures (credit reports) once every year since 2004.  It's a great way to double check that no one is using your name and good credit without your knowledge.

If you have any questions, comments, or concerns about any of the issues I have raised in this post, feel free to add them below for answers or review.

Jason Tangen, GRI

www.jasontangen.edinarealty.com

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud, MN

Posted by Jason Tangen at 10:02 PM | Permalink | Comments (0)

options

For those of you who do not know the "Egg-Man" (aka Chad Groetsch), you may want to check out his website and find out what he can do for you.  Chad Groetsch is not only the best "Computer Doctor" in Central MN, he also is extremely active in civic organizations like the Jaycees and the St Cloud Area Chamber of Commerce.  I am personally thanking Chad in this post for the educational class he provided to myself and several other local REALTORS earlier today.  Wells Fargo Home Mortgage sponsored the event that revolved around the use of technology in real estate sales and services.  Unfortunately for potential buyers and sellers of homes in Central Minnesota, too many real estate professionals are behind the power curve when it comes to the new real estate technology.  Chad was kind enough to break down how to build a blog to approximately 20 of the most influential real estate agents in the St Cloud area.  Hopefully, this course will start to get more agents up to speed with what the general public is demanding of real estate salespeople.  He also touched base on webinars, virtual photography, and many other technology tools that are available to most real estate professionals at very little out of pocket expense.  If you would like more information about Chad Groetsch and the Groetsch Technology Group, please visit his website or blog located in the links below:

 http://www.GroetschTech.com/ - "Bigger, Stronger, Faster... We have the Technology"

 http://chadgroetsch.com/ - Sherburne County Backroads - Chad's Personal Blog

Jason Tangen - Broker Associate with Edina Realty St Cloud MN

www.StCloudEdina.com

Posted by Jason Tangen at 02:59 PM | Permalink | Comments (0)

options

Minnesota ended up ranking 30th in the nation pertaining to the change in the number of foreclosed properties on the market in the 3rd quarter '07 vs. 3rd quarter '06.  This is definitely a statistic where it is better to be on the lower side of the averages.  Topping the list was Nevada (1 foreclosure filing for every 61 households), California (1 filing per 88 households), and Florida (1 filing per 95 households)*.

In Minnesota, we saw a 19.8% increase in the number properties that have filed for foreclosure in the 3rd quarter 2007 as compared 2nd quarter 2007.  That breaks down to 1 foreclosure filing for every 562 households.  These aren't great numbers, but they are definitely much better than some of the other areas where we have consistently been hearing about their horrid real estate markets.  Throughout the industry, we expect some foreclosures to happen for various reasons`1.  Bad things can happen to just about anyone putting them into foreclosure.  For the industry as a whole, we would like to see these numbers closer to 1 foreclosed filing for every 1500-2000 households.  Having these figures would mean that the banks are willing to take some risks in their lending practices, but not too much where it raises concern.

Thanks to some changes in the St Cloud MLS, I will soon be able to track these numbers locally to see how they compare to the national averages.  Currently there are 42 foreclosed properties in the St Cloud, Sartell, Sauk Rapids, and Waite Park area listed on the St Cloud MLS.  That accounts for just over 28% of the total number of foreclosed properties listed for sale on the St Cloud MLS.

If you'd like to get a FREE list of the more than 140 foreclosed properties listed on the St Cloud MLS, visit www.StCloudEdina.com/Foreclosures.html.

Jason Tangen, GRI - Real Estate Broker Associate

Edina Realty St Cloud

www.StCloudEdina.com

*Data obtained from RealtyTrac online

Posted by Jason Tangen at 09:40 AM | Permalink | Comments (0)

options