Real Estate Resource Podcast

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This podcast is providing the latest information on the real estate market condition in the Twin Cities. Visit http://www.realestateresource.org for more information.

#RealEstateResource #TwinCitiesRealEstate

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This podcast is providing the latest information on the real estate market condition in the Twin Cities. Visit http://www.realestateresource.org for more information.

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This podcast is providing the latest information on the real estate market condition in the Twin Cities. Visit http://www.realestateresource.org for more information.

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Visit http://www.realestateresource.org for more tips and information that can save you money.

Summary of a hot market

Data shows 45 days - what that really means

Low inventory

Days on Market

Houses get listed on a Wednesday or Thursday - Why

Showings

Overlapping

Pool of buyers

Business cards

What you need to have ready before you go to your showing

Approval letter

Earnest Money check

Personal letter to the Seller

Short story

Honest

Pros about the neighborhood

Pros about the house

How to structure the offer -

Full Price Offer?

Over asking?

Closing Costs paid by seller?

Contingencies?

Moving the closing date?

Rent back?

Timing

Let the listing agent know right away?

Send the offer right away?

Watch for the email blast to all participants

Shopping the deal - time restrictions

Why we list on Wednesdays and Thursdays

Don't be discouraged if you lose out. In hot markets, you are likely to lose out 2-3 times before you win.

Why? Urgency - Understanding the market - Offering at the top of your approval limit.

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Renter's Podcast Episode

Searching for Apartments
1. Online
2. 1. Apartments .com
  2. ForRent
  3. Hotpads
  4. Craigslist
  5. Why use them
  6. MLS
3. Using a Broker/Agent
  1. Amenities
  2. Location
  3. Rules -BBQs, guests, etc.
    1. Hardwood floors vs carpets
  4. Dogs/cats - limitations on weight and number
4. Things to consider
  1. Who is going to be on the lease?
  2. Security deposit
    1. Painting
    2. Guests
    3. Parking
    4. When and who can enter your apartment
    5. Changing the locks
  3. Terms and conditions to watch for
  4. What is included?
5. Signing the lease
  1. Contact the Utility Company
  2. Set up cable - see if they allow the dish prior to calling or you will pay!
    1. Walls
    2. Condition of carpet - stains
    3. Interior of Stove/Fridge
    4. Doors for damage
  3. Take video and pictures - most important part.
  4. Use the provided checklist and make notes
    1. What it covers - to the walls and personal possession
  5. Getting renters insurance - cheap - a must
6. Prior to moving in
  1. Know your rights on entry
  2. Get proper notice - quiet enjoyment
  3. Have a contact in your phone in case of an emergency
  4. Know your rights on pay to stay laws. If your landlord is accepting partial payments, then your entitled to staying under the terms of the lease.
  5. Neighbors - Minor disputes - be friendly, try to resolve, get management involved, break the lease.
    1. If they don't then it's time to issue formal notices and withhold rent.
  6. Repair Request - If its safety then make sure you document the issues.
7. While living at the premises
8. Document everything - Keep a journal Document all interactions with your landlord — both good and bad. Note phone calls and conversations, save emails and text messages, and document late rent payments, notices served, warnings issued, complaints, maintenance requests, requests to enter the unit, and what happens inside once you do.
  1. Certified mail is a must
  2. Remember in most states it is calendar to calendar. 30 days. Give notice On June 1st you may have to pay July's full rent as the calendar overlaps.
  3. Review Pictures for items to fix
  4. Remember it will cost you 1.5 times or more to have it fixed by the landlord.
  5. Have the discussion with your roommates early on about the security deposit refund as it will likely be refunded via one check.
  6. In most states the Security Deposit can't be used as form of payment.
  7. Be proactive on reaching out. Security deposits must be returned in a timely fashion or there are steep penalties.
  8. Get a testimonial if it was a great relationship - You'll need it on the next screening or loan application.
9. Moving out - Make sure you give proper notice

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Expired Listing Podcast

Visit http://www.realestateresource.org

Three main reasons why your house expired

Price
Home Condition
Marketing

Today’s expectations

Move in Ready
Improvements
Location

Analyze Your Feedback

Search results
Showings
Online Presence

Tour other Homes on the market in your area

How to avoid overpricing – 3 common pitfalls

Agent

Come down

Bounce house

Expired – Be ready for calls from agents

Shop your next agent

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Everything you need to know about Radon

In this episode I answer the most common questions regarding Radon in Real Estate.

What is Radon?
How Dangerous is it?
Why should I test for it?
Where can I get a radon test?
Types of tests.
Levels of radon that are acceptable.
How does radon enter your home?
Selling your home? A tip that will save you and the buyer money.
I have an offer in and the radon is high. Now what?
My home has tested high, now what do I do?
How much does a mitigation system cost?
If I seal the cracks will it reduce radon?
How long does it take to install a mitigation system?
How long do they last?

Here is a great resource for radon:

https://www.epa.gov/radon

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What are the differences between Townhouses, Condos, and Houses?

Think Form of Ownership -

Condos – The only thing you own is airspace! Well, you own a little more than that (such as the interior finishes and wall space). Everything else is owned by the association. The association owns the elevators, and common areas.

Things to consider when buying:

Association dues

Amenities

Reserves

Pending projects

Insurance

Fun fact: On the east coast no one refers to them as condos. They are called apartments. Why? Well you own an apartment rather than rent.

Townhomes – You own land! In respect to townhomes you actually own land. Townhomes are usually a series of connected homes that share walls with your neighbors. You still are likely have an association and this varies from project to project. Some townhomes have event centers and pools. The association is responsible for lawn care, snow removal, exterior maintenance such as driveways, trash removal, and landscaping. You pay property taxes on land.

Fun fact: Townhome associations have strict rules on what you can and can’t have in the yard, driveway, and even where you put your trash can.

Houses- The ultimate form of homeownership. You own the land, the structure, and the airspace. No restrictions unless it is a city or county ordinance. Property taxes, insurance, and the weekend trips to Home Depot are all on you for repairs and maintenance.

Fun fact: You actually own the airspace all the way up to the stars however the FAA has a say. Think you can tear down your house and build a 150 story building? Not if it’s close to an airport. FAA has its say in the United States.

Valuation in declining markets vs hot markets. There are differences in value appreciation and deprecation.

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Whether your search for senior housing is prompted by a family member’s serious medical condition or the desire for a lifestyle change, finding the right place to live can be challenging and stressful for both you and your family. However, the earlier you assess your current needs and how those needs may evolve over time, the more choices and control you’ll have.

Today we discuss briefly the different types of senior housing available, you can make the choice that’s right for you and ensure you enjoy a happy, healthy, and fulfilling home environment as you age.

This is always a sensitive subject and for many families a taboo. It doesn’t have to be and they will be thankful if you sit down and talk about their plans early.

As a SRES many of my calls are about counselling and very few lead to listings or contracts.

Making the decision to age in place or move.

How many family members are there? Who is the decision maker?

Transition can be up to three times once one can become a Senior.

Items to consider when aging in place.

Stairs Accessibility

Current condition of the home

Modifications planned.

Hardest thing is Change – Losing your Independence

Discussing with a Elder Law Attorney and setting up Trusts vs just a Will

Medicaid’s Asset Transfer Rules – Look into it early as it will cost you down the road.

Types of Housing

Aging in place

The Village Concept

Assisted Living

Nursing Homes

| Comparison of Senior Housing Options in the U.S. | | Feature or Service | Independent Living | Assisted Living | Nursing Home | | Approx. Cost per Month | $1,500 – 3,500 | $2,500 – 4,000 | $4,000 – 8,000 | | Meals per Day | Meal Plan Options | 3+ | 3+ | | Medication Management | No | Yes | Yes | | Personal Care | No | Yes | Yes | | Mobility Assistance | No | Yes | Yes | | Accepts Wheelchairs | Yes | Varies | Yes | | Alzheimer's/Dementia Care | No | Varies | Varies | | On-Site Nurses | No | Varies | Yes | | Transportation | Most Yes | Most Yes | Yes | | Incontinence Care | No | Yes | Yes | | Housekeeping | Varies | Yes | Yes |

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So you have 3 showings the day it is listed and now it’s back to the work week. The first 3 weeks of a listing is the busiest and you must be prepared for every showing like it was the only one you are ever going to get. Make it count. I discuss tips and musts you need to take in your busy schedule to hit that showing out of the park. Topics include:

Pick up every room

Work backward from the entry point of the home to the furthest bedroom picking up everything up off the floors and counter surfaces.

Clean off counters

All counters should be clean and clear. Remove clutter as well - small appliances, knick knacks, and odds and ends should be stored.

Beds made

All the beds in the home should be made. If your bed spreads are old replace them!

Garbage cans empty

All garbage cans need to be empty. Also wash them out once a week and give them a quick spay of disinfectant to cut down odors. Odors are the number one killer of a great showing.

Carpets vacuumed

Vacuuming fluffs them up and makes them look new. Focus your efforts on the entry and living room.

Lights on

A dark home is gloomy. Turn on all the lights in the home, and open drapes and blinds to brighten the home. Also be sure your windows are clean.

Load the dishwasher

Clear the dishes off the counters by loading the dishwasher but don't start the cycle if it will be running during the showing.

Load the washer and dryer

Clothes should be picked up and either placed in a hamper or loaded into the washer or dryer. Again don't start the cycle if it will be running during the showing.

Put Valuables Away

Prescription medication and valuables should be locked up. We are all busy but it is a conversation best avoided if they are put away.

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The debate on whether open houses are effective or not seems to never end among real estate agents. Today we are going to discuss the argument for open houses and why.

Visit http://www.realestateresource.org

Discuss why many people think that open houses are for agents to pick up buyers that are not represented but are looking.

Many agents love the nosey neighbors and only to get their name out. If they are showcasing the property well and host a great event, then the word of mouth gets out about the agent.

But that leaves the seller saying what about selling my house? This is where I think the open house gets a bad rap.

This leads to the main question when hiring your realtor? Are they going to host an open house to promo your property or generate leads?

Open houses work, Broker previews work and why. It is a piece of the overall puzzle. All the pieces of marketing come together to complete the sale.

Things you need to know before you host your open house.

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4 Steps to sell your home faster and get you up to 15% more money on the sale of your home. Visit: http://www.realestateresource.org for more information.

Obtain an upgrade analysis
1. Go out prior to listing your home and see your competition.
  1. Look at 4 homes with the same sqft within the area.
  2. Look at what you can upgrade to make it stand out.
    1. Paint
    2. Carpet
    3. Appliances
    4. Countertops
    5. Bathrooms
    6. Flooring
Get an inspection prior to listing and get the items fixed
1. Sump pumps
2. What can be critical vs cosmetic
3. First time buyer’s expectations
Staged home 6-10% more money than a non-staged home.
Home warranty’s 11 days faster and on average for $2314.00 more money. This is 3x the actual investment. Just like a certified used car. This will give your buyers a worry free 12 month period.
Benefits to Home Buyers
1. Our real estate plans protect your house, so you can focus on making it your home.
2. Don’t stress about potential undetectable pre-existing conditions (like lack of maintenance and mismatched systems) — they’re covered!
3. Get reviews of home warranty companies and read the fine print.
Benefits to Home Sellers
Sell faster, for more money and with fewer worries.
Gain confidence and comfort knowing that your budget is protected while your home is on the market.
Mitigate unexpected issues from the home inspection to keep the sale of your home on track.
Perceived value must appear greater.
1. Other items can include curb appeal such as drive ways, landscaping, and sidewalks.
2. Curb Appeal

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They Have Accepted Your Offer! Now What?

Your offer on your new home has been accepted. These are the things you need to do between now and the closing date.

Within the First Several Days of Acceptance

Contact your mortgage person to let them know your offer has been accepted. The mortgage person will begin the financial process and order an appraisal for your new home
Order your home inspection. As we discussed in the previous episode, This will no doubt be the largest purchase you make. Spending a couple of hundred dollars to have a qualified person thoroughly inspect your future home may prevent thousands of dollars of unexpected repairs later on. Contact a licensed home inspector of your choice (if you are working with a "buyers agent", then he/she may recommended one). The home inspector will set an appointment that is convenient for you. The inspection must take place during your inspection period, usually 10 days from acceptance of your offer
Confirm the earnest money deposit. The earnest money deposit on your new home should be deposited within 3 days of final acceptance. With the inspection process it can be 10 days from the date of your offer. This is normally 5% of the purchase price, but could be significantly less depending on your financing and your available funds. This must be made by bank check, certified check or money order. If you need to transfer funds from a retirement or money market account, or borrowing money from a relative, do it as soon as possible to allow time for the check to clear.
Have the purchase and sale agreement reviewed by your attorney. Although not required, having an attorney familiar with real estate law will save you peace of mind and possibly money should any legal issues come up. An attorney will help to make sure you are financially protected should anything go wrong during the home buying process.
Sign the Purchase and Sale Agreement. The is the contract that contains all the details of the real estate purchase. Occasionally, this may take place beyond the 10 day period if there are any concerns that are being negotiated between the buyer and seller. Get copies!
Emotions and Buyer’s Remorse. It’s natural and how you can cope.
Inform your landlord you are purchasing a home if you are renting. Most landlords require at least 30 days notice that you are moving or you may forfeit any deposits you have on your apartment. My recommendation is that you do it in writing and you send it certified. Minnesota laws require 30 day notices. Which goes from calendar to calendar.
Do not make large purchases or acquire consumer debt. Most people jeopardize their closing because they buy furniture, cars, or appliances prior to close. Many times they do this using credit cards or applying for a loan. This may change your credit rating and debt to income ratio. You don’t want to have to come up with money at closing when you can just wait till after. Hold off on those purchases. Within 3 Weeks of Close Date
Contact your insurance person to arrange for coverage for your new home. Most lenders require you to pay one year's insurance premium up front. Your insurance broker can let you know how much this will be, and will provide a binder for you to bring to the closing.
Stay in contact with your mortgage person. You must obtain a mortgage commitment letter before your financing period ends (usually about 30 days after your offer is accepted). New software/email systems keep you in the loop. Ask for it.
Arrange for a mover. This should be done 21 to 30 days ahead of the closing date. Care should be given not to make firm arrangements until you have a confirmed closing date and you have received your financial commitment letter from your mortgage person.
1 to 2 Weeks Before Closing
Arrange to have the utilities for your new home transferred to your name. And don't forget to have your current utility services disconnected. This includes (if applicable) gas, electric, telephone, cable television, and internet service. If your new home has city or town provided water, this will be handled by the seller's agent. If the home you are purchasing is heated by oil, you will have to pay for any oil that is left in the tank at the closing.
Make sure you have the funds available for closing. Your mortgage person should have given you a good faith estimate of the amount that you will need. If not, contact him/her as soon as possible.
Make final arrangements with your movers.
1 to 2 Days Before Closing
Arrange for a final walk through of your new home. Your agent will arrange a final inspection of the home you are about to purchase. Most likely everything will be fine, but check to make sure everything is in the same condition as when you first put your offer in.
Verify the time and place of closing. Call the closing attorney for the time and place that the closing will occur. Your agent may do this for you.
Get the final amount you need to bring to the closing. Call your mortgage person for the amount of the certified or cashier's check you need to bring to the closing. Bring the following items to the closing:
For the Closing
Picture I.D. (drivers license, passport, etc.) The closing attorney will need to make a copy of it for the registry of deeds.
Personal checkbook. In case you have to pay for any incidental charges such as heating oil, bottled gas, taxes, etc. that have already been paid by the seller.
Certified Check in the amount given to you by your lender.
Insurance Policy or binder.
*Your personal attorney, if any. Make sure your agent attends as well.*

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Home Inspections – Not just for Buyers

In this week’s episode, I talk about home inspections and what you need to know about them. The are not just for buyers and what additional inspections can you get. For more information, checkout Real Estate Resource at http://www.realestateresource.org

Home Inspections

What Buyers and Sellers should know - Liability

Buyer Inspections
- How long do they take
- Why you should attend
- What to look for
  - Roof Issues
    - Shingles that look like they leak
  - Big electrical items
    - Overloaded electrical panels
    - Exposed wiring with tape.
    - Electrical cords everywhere
  - Plumbing Issues
    - Not enough water flow
    - Leaks
    - Clogged drains
    - Steel drains that need replacement
  - HVAC or Heating and Cooling Issues
    - Cracked heat exchanger is a red flag
    - Boiler that leaks gas
    - Backdrafting water heater
  - Other things
    - Foundations
    - Wet basements
    - Moisture / Mildew smell
    - Buried oil tanks
    - High radon
    - Asbestos
- All Reasonable to bring up. Things you will likely not be able to arm wrestle with the seller are:
  - Code changes such as GFI, stairway safety, and backflow.
  - Appliances
  - Garage door opener
  - Windows
  - Peeling paint
Seller Inspections
- Why would I get one
  - Avoid landmines that will cost you more later.
  - Adds value and creates transparency trust
  - Many cities are now requiring such as Minneapolis and Saint Paul.
  - What to look for.
Radon Testing
- Minnesota Radon Awareness Act
  - New section in the disclosure which will increase testing in transactions.
- $10 for water and gas test kits
Moisture and Mold tests
- Mold tests – Home kits
- Intrusive testing
- Siding – stucco
Thermal Testing
- Leaks in the ceiling
- Insulation problems
- Shower leaks
- Even if the carpet guys covered vents
- Electrical scan for overheated conductors
- Radiators in old homes if they are heating properly.
Follow up with the importance of inspections
- Get one whether you are the seller or buyer.
Always remember there are 4 options after a inspection
- They are:
  - Cancel the PA
  - Negotiate on the Price
  - Ask for repairs
  - Or just do nothing

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Well hello everyone and welcome back to another episode of the Real Estate Resource podcast my name is Jim Sipprell and this is the podcast is devoted to helping you in the buying or selling your next home. So today we are going to talk about staging your home. Everything about the process including saving money and selling your home faster.

Home Staging what is it and why you need to understand.
- The difference between staging and decorating
- Types of Staging.
- Costs and Returns
- Does staging really work
The difference between staging and decorating
- Decorating. You spend years collecting things and filling your rooms with things that describe you. Your travels, your personality, you. Everything about decorating is bringing your likes into your home.
- Staging is the opposite which is taking everything out and creating a spacious neutral look. Open things up and create a look that fits the mass appeal. A hotel type look. A livable space that showcases the room intended as what is was. DEPERSONALIZE
Types of Staging.
- First thing is cost right. The full stage as I call it. Thousands of dollars to bring in furniture and remove all the belongings to put in storage. Moving twice? Well this staging is generally used for homes that are dated or vacant. Bought a house relocated have already moved.
- People have a hard time visualizing a vacant home. You would think that it opens possibility but since 09 the perception is that the house is distressed. Foreclosed, needs to go fast, and in the end goes for less money as it attracts low ball offers
Partial Staging
- Pulling out items and using what you have.
- Utilizing minimal items like glass tables that give the appearance of openness.
- Bringing in neutral artwork to fill in where photos are.
- Flowers
- Candles
- Ambiance
Costs and Returns
- Staging can cost from several hundred to upwards of 10k depending on the size and value of the home.
- Average cost of a full stage run around 3-5k for a 3 month contract.
- Lot of money right. Well you will get it back.
- House will sell 79% faster than homes that are not staged.
- 73% less time on the market.
- Today’s Market your looking at 11 days or less vs 90 days.
- That’s three mortgage payments right there.
Does Staging really work?
- Yes, the stats are out there just google it.
- In the end it will sell faster for more money.
- If you are not in a position to spend the money. Use your own items but follow the principle of de cluttering.
- Your Photos will look better and we all know that most searches start online. Your first impression should be the best.

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In this episode we expand on last week’s episode and talk about open houses and if your agent is branding themselves or your property. Topics include:

Open Houses
- Purpose
- Broker Lunches
- Gimmicks to Bring People In – Word of Mouth
- Visibility
Syndicate Sites
- What are they?
- Do they help or hurt?
Signage
- QR codes
- Texting
- Custom web addresses
Branding the Agent or the House

Finally we discuss upcoming episodes that can help you in your journey in becoming more educated in the buying and selling process. As we all know this is the single largest purchase of your life. This podcast is devoted to helping you along the way.

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In this episode I talk about what you need to know before hiring a real estate agent. Topics include:

Experience – Background - Designations
Do they work with buyers or mostly sellers?
Are they just looking to Grab your Listing?
Marketing Plan
- Will they use video?
- Will they use a property website?
- Photography – Professional or not.
Feedback from your agent.
Tope Questions to ask your agent and why.

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In the very first episode I talk about how you can stop wasting time in the search process. Topics include:

The search process and how people waste time in this area.
How you can have a real estate agent provide you information for free.
What are pocket listings?
Building a relationship early on with your agent.

Real Estate Resource Podcast: Recent Episodes

James Sipprell