Dude, seriously!
Last year one of my clients worked for HDTV. They are now casting a new season of "Sleep On It" -- concept is homebuyers sleep overnight in the home they are thinking of purchasing as a kind of test drive.
I got an email from the producer, and she was wondering if I have any buyers or sellers that would be interested in participating. They want "high-energy" people (no duds, please).
I'm not very sure how this is going to work out, but it does sound fun, and why the heck not???
Anyhow, let your friends know I have the HGTV hookup and drop me a line asap if you are interested.
amycaron@edinarealty.com
Wednesday, March 5, 2008
Vacation Realty
So I was in Montana over the weekend. Not a vacation, but a grandma's funeral.
On our non-funeral day, we went to Red Lodge, a cutesy ski town not far from Yellowstone. There were 4 or 5 brokerages in the little downtown, all featuring the listed properties on color copies in the front windows.
It's funny -- vacation property always seems so much like home, and so much not like home.
Cute 1 bedroom bungalow in a good location? $179,900! Just like the swanky neighborhoods here!
Overdone, new construction, too many finished square feet for anyone other than a family of ten -- $799,900! Just like here!
616 acres of open land -- $189,900!
Hold the freaking phone! Over 600 acres??? Here, good open land goes for much, much, much more. A quick search of the MLS for parcels in excess of 600 acres brings me listings well above a million dollars. The climate in Montana is very arid, and I would imagine the 616 acres is only good for grazing land.
But I do have this fantasy of buying up a lot of vacant land. They aren't making any more of it, you know.
On our non-funeral day, we went to Red Lodge, a cutesy ski town not far from Yellowstone. There were 4 or 5 brokerages in the little downtown, all featuring the listed properties on color copies in the front windows.
It's funny -- vacation property always seems so much like home, and so much not like home.
Cute 1 bedroom bungalow in a good location? $179,900! Just like the swanky neighborhoods here!
Overdone, new construction, too many finished square feet for anyone other than a family of ten -- $799,900! Just like here!
616 acres of open land -- $189,900!
Hold the freaking phone! Over 600 acres??? Here, good open land goes for much, much, much more. A quick search of the MLS for parcels in excess of 600 acres brings me listings well above a million dollars. The climate in Montana is very arid, and I would imagine the 616 acres is only good for grazing land.
But I do have this fantasy of buying up a lot of vacant land. They aren't making any more of it, you know.
Get While the Gettin' is Good
I've had some conversations with some mortgage guys lately (yeah, somehow they are all guys) and lending rules are tightening up.
For the most part, it is making it much more difficult for first time homebuyers to make deals without a big downpayment. The zero down programs are drying up, and the entire Twin Cities area has been tagged a "decling market." (At least the declining market tag no longer just applies to my own ghetto address). The declining market designation means, to the buyer, that they will automatically need to put 5% down to get a conventional loan. (5% of $200k=$10,000!!)
There are still first time homebuyer programs that allow zero down, but they do have income restrictions. The limits are pretty high, but many of my first time homebuyer clients last year did not qualify.
I spoke to Todd Ingebretsen on the phone today. He works for Advisors Mortgage and is definitely very dedicated to knowing all of the little details of as many mortgage programs as possible. Since he is so dedicated to knowing the little details, the poor guy is on overload. Every day he gets piles of emails from the lenders outlining the changes in the mortgage programs.
All I can tell you all is that if you don't have a house now, and want one in the next couple years, do it now.
For the most part, it is making it much more difficult for first time homebuyers to make deals without a big downpayment. The zero down programs are drying up, and the entire Twin Cities area has been tagged a "decling market." (At least the declining market tag no longer just applies to my own ghetto address). The declining market designation means, to the buyer, that they will automatically need to put 5% down to get a conventional loan. (5% of $200k=$10,000!!)
There are still first time homebuyer programs that allow zero down, but they do have income restrictions. The limits are pretty high, but many of my first time homebuyer clients last year did not qualify.
I spoke to Todd Ingebretsen on the phone today. He works for Advisors Mortgage and is definitely very dedicated to knowing all of the little details of as many mortgage programs as possible. Since he is so dedicated to knowing the little details, the poor guy is on overload. Every day he gets piles of emails from the lenders outlining the changes in the mortgage programs.
All I can tell you all is that if you don't have a house now, and want one in the next couple years, do it now.
Wednesday, February 13, 2008
Blinkers
You know how they put blinkers on horses so they aren't distracted by the carnage going on around them?
I think that's how lots of realtors are feeling, like we wish we had blinkers on.
I need a little attitude adjustment. Need to light the real estate candle, tidy up my desk, and focus on the good stuff that's going on. And, there is a lot of good stuff. Maybe it's just January that's getting to me.
I think that's how lots of realtors are feeling, like we wish we had blinkers on.
I need a little attitude adjustment. Need to light the real estate candle, tidy up my desk, and focus on the good stuff that's going on. And, there is a lot of good stuff. Maybe it's just January that's getting to me.
Monday, February 4, 2008
So I'm hoping to make $169,000 this year
I was talking to my mom on the phone and she was talking about how they paid off the mortgage a while ago. She told me that when they had us 3 kids, my dad had one week where they had only $6 left, because they paid the mortgage that week.
I was like -- WHAT??? --- YOU COULD PAY THE MORTGAGE ON ONE PERSON'S SALARY???
And what's more, my dad was paid weekly so it was just ONE WEEK'S SALARY.
God in heaven! My attorney husband's salary takes two weeks of work to pay one week of mortgage -- and we have a cheap house.
So I pulled together some stats:
Current Nerstrand Stats
(Where my parents live)
A house down the street for them sold for $120,000 recently. Some sold for more, some less, we'll use $120 as our average.
Mortgage on $120,000, with 5% down, FHA 5.5% interest:
$642 each month
$78 taxes
$720 total
To pull in a salary to pay that mortgage payment in one week's salary, you would need to make $57,200 per year.
The factory my dad was working in when they bought the house is still around. My sister works there now too, and she is not making ANYWHERE near $57,200. I think salaries there are in the high $20k-$30s for the average workers.
So now let's do St. Paul.
I pulled the average house price for my area, Merriam Park. Average house price is $329,530.
Mortgage on $329,530, 5% down, FHA 5.5%
$1777 payment
$338 tax
$2115 total
To make $2115 after-tax each week, you would need to make $3250 pre-tax, for a pre-tax income of, yes, $169,000.
I don't know anyone that makes $169,000 in a factory when they are 28.
I was like -- WHAT??? --- YOU COULD PAY THE MORTGAGE ON ONE PERSON'S SALARY???
And what's more, my dad was paid weekly so it was just ONE WEEK'S SALARY.
God in heaven! My attorney husband's salary takes two weeks of work to pay one week of mortgage -- and we have a cheap house.
So I pulled together some stats:
Current Nerstrand Stats
(Where my parents live)
A house down the street for them sold for $120,000 recently. Some sold for more, some less, we'll use $120 as our average.
Mortgage on $120,000, with 5% down, FHA 5.5% interest:
$642 each month
$78 taxes
$720 total
To pull in a salary to pay that mortgage payment in one week's salary, you would need to make $57,200 per year.
The factory my dad was working in when they bought the house is still around. My sister works there now too, and she is not making ANYWHERE near $57,200. I think salaries there are in the high $20k-$30s for the average workers.
So now let's do St. Paul.
I pulled the average house price for my area, Merriam Park. Average house price is $329,530.
Mortgage on $329,530, 5% down, FHA 5.5%
$1777 payment
$338 tax
$2115 total
To make $2115 after-tax each week, you would need to make $3250 pre-tax, for a pre-tax income of, yes, $169,000.
I don't know anyone that makes $169,000 in a factory when they are 28.
Signs of recovery
Last week we had the big Edina Expo -- a big conference at the Xcel Center for all of the Edina agents.
We had an economist there talk about the state of the market and the possibility for recovery. He believes we will see better conditions for home sellers and stabilizing prices near to the end of this year.
He also shared the elements that he says will tell us that the market is turning and the bottom is past:
1. The number of new listings is less than previous months and less than the same month last year. This will signal two things: Sellers have realized now is NOT a good time and the foreclosure new listings are decreasing.
2. Days on market is decreasing. This means houses are selling more quickly and there is more demand.
3. The listing price and the sold price are closer to each other. This will signal that buyer have less bargaining power.
We have seen none of these things yet. I am thinking of running these stats in just my neighborhood. I do know we had fewer listings in my neighborhood in 2007 than 2006. I'll keep you updated as to the results.
We had an economist there talk about the state of the market and the possibility for recovery. He believes we will see better conditions for home sellers and stabilizing prices near to the end of this year.
He also shared the elements that he says will tell us that the market is turning and the bottom is past:
1. The number of new listings is less than previous months and less than the same month last year. This will signal two things: Sellers have realized now is NOT a good time and the foreclosure new listings are decreasing.
2. Days on market is decreasing. This means houses are selling more quickly and there is more demand.
3. The listing price and the sold price are closer to each other. This will signal that buyer have less bargaining power.
We have seen none of these things yet. I am thinking of running these stats in just my neighborhood. I do know we had fewer listings in my neighborhood in 2007 than 2006. I'll keep you updated as to the results.
What is "subprime" anyway?
The news media sure does love talking about the "subprime mortgage mess."
But it seems some of the talking heads don't really know what they are talking about.
There are a few things going on in the mortgage mess. Here's part of the story:
1. Subprime. Subprime borrowers are people that had credit scores and/or debt to income ratios that were less than would qualify them for mortgage programs and rates that people with average to good credit would get. Most of the subprime borrowers got into morgages with tough terms, some had adjustable rates, and some of the borrowers were given more mortgage than they could actually afford. Some of these borrowers did not have enough money to pay the first payment.
2. Adjustable rates. Many homeowners, some of them subprime and some of them good credit borrowers, took advantage of the very low teaser rates that the Adjustable Rate Mortgages offered. These mortgages all have different rules on how and when the rates adjust up, but the monthly payment difference from the first cheap payment to the subsequent adjusted payments are usually pretty steep. Lots of borrowers assumed that property values would continue to increase, and they would be able to refinance out of the now-adjusted loan. However, some ARM borrowers bought at the height of the market, and the house is not worth what they paid for it, making it impossible to refinance.
Both of these scenarios have lead to the foreclosure mess. It is not just subprime borrowers getting foreclosed, but lots of people. Of course, those people that are most economically vunerable are the most affected. I am seeing foreclosures in virtually every neighborhood, in the city, in the suburbs, in the gated communities.
But it seems some of the talking heads don't really know what they are talking about.
There are a few things going on in the mortgage mess. Here's part of the story:
1. Subprime. Subprime borrowers are people that had credit scores and/or debt to income ratios that were less than would qualify them for mortgage programs and rates that people with average to good credit would get. Most of the subprime borrowers got into morgages with tough terms, some had adjustable rates, and some of the borrowers were given more mortgage than they could actually afford. Some of these borrowers did not have enough money to pay the first payment.
2. Adjustable rates. Many homeowners, some of them subprime and some of them good credit borrowers, took advantage of the very low teaser rates that the Adjustable Rate Mortgages offered. These mortgages all have different rules on how and when the rates adjust up, but the monthly payment difference from the first cheap payment to the subsequent adjusted payments are usually pretty steep. Lots of borrowers assumed that property values would continue to increase, and they would be able to refinance out of the now-adjusted loan. However, some ARM borrowers bought at the height of the market, and the house is not worth what they paid for it, making it impossible to refinance.
Both of these scenarios have lead to the foreclosure mess. It is not just subprime borrowers getting foreclosed, but lots of people. Of course, those people that are most economically vunerable are the most affected. I am seeing foreclosures in virtually every neighborhood, in the city, in the suburbs, in the gated communities.
Thursday, January 24, 2008
Waiting for the Bank
The thing about the current market is there are a lot of short sales (homeowners trying to save themselves from foreclosure by selling the house) and bank-owned properties.
Dealing with the banks can be a time-consuming process. Banks are only open business hours and don't keep Realtor hours. The short sale responses can take a month or more, and the bank-owned properties can be really quick or really slow. And all of the bank departments are really really busy now, and I think some of them are even hiring temps to deal with all of the foreclosure work.
Right now I have a handful of purchase agreements from buyers out there that all need signatures from the bank. I'm just waiting! I am not good at waiting, but there is NOTHING I can do.
It's tough for buyers to purchase this property. They usually have some kind of condition problem (somewhere between needs new carpet to needs new everything) and they are usually sold as-is. And then to have to wait for answers to the offers is excruciating.
Keep your fingers crossed that these offers come through for me, will ya?
Dealing with the banks can be a time-consuming process. Banks are only open business hours and don't keep Realtor hours. The short sale responses can take a month or more, and the bank-owned properties can be really quick or really slow. And all of the bank departments are really really busy now, and I think some of them are even hiring temps to deal with all of the foreclosure work.
Right now I have a handful of purchase agreements from buyers out there that all need signatures from the bank. I'm just waiting! I am not good at waiting, but there is NOTHING I can do.
It's tough for buyers to purchase this property. They usually have some kind of condition problem (somewhere between needs new carpet to needs new everything) and they are usually sold as-is. And then to have to wait for answers to the offers is excruciating.
Keep your fingers crossed that these offers come through for me, will ya?
The Road to Hell: A New Kitchen
Long story short I bought some display model cabinets.
They fit my kitchen perfectly, and the style is so perfect for my house.
I'm going to have a new kitchen sometime this summer.
But, at my house, the motto has always been Champagne Living on a Beer Budget.
We're going to be doing the kitchen in phases. Not terribly long drawn out phases, but there might be a point when the current stove we have is in it's current place and there is an open spot for the new stove that is not yet installed.
And I think there might be some plumbing and wiring sticking out of the walls for a while.
It's all great news but I know it's going to be some trouble.
I guess the good news is the first of the contractors came by today. I wanted to find out if I needed to sister in some of the notched joists (don't ask if you don't know), or at worst, needed to replace some of the original 1900's supports. The answer is that my supports all look good! I think he was staring at my bra when he said that, though.
Anyhow, I'm getting a little kooky running through color scenarios in my head. For a while I could not get past dark khaki/forest green but now I am on to french gold to match the toile in the dining room.
They fit my kitchen perfectly, and the style is so perfect for my house.
I'm going to have a new kitchen sometime this summer.
But, at my house, the motto has always been Champagne Living on a Beer Budget.
We're going to be doing the kitchen in phases. Not terribly long drawn out phases, but there might be a point when the current stove we have is in it's current place and there is an open spot for the new stove that is not yet installed.
And I think there might be some plumbing and wiring sticking out of the walls for a while.
It's all great news but I know it's going to be some trouble.
I guess the good news is the first of the contractors came by today. I wanted to find out if I needed to sister in some of the notched joists (don't ask if you don't know), or at worst, needed to replace some of the original 1900's supports. The answer is that my supports all look good! I think he was staring at my bra when he said that, though.
Anyhow, I'm getting a little kooky running through color scenarios in my head. For a while I could not get past dark khaki/forest green but now I am on to french gold to match the toile in the dining room.
Why Doesn't Someone Just Buy Up All of the $50,000 Houses on the East Side?
One of my colleagues asked me this earlier this week.
I told him it's because there are $50,000 houses on the West Side, and in Midway, and all over town.
I've just seen so many bottom-dollar houses lately. Good stuff, even, good condition. Just foreclosed, and needs to get sold. For me to see a house that is shockingly cheap I think it has to be under $50,000.
I told him it's because there are $50,000 houses on the West Side, and in Midway, and all over town.
I've just seen so many bottom-dollar houses lately. Good stuff, even, good condition. Just foreclosed, and needs to get sold. For me to see a house that is shockingly cheap I think it has to be under $50,000.
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