Robert Guthridge's Blog

Date of Party, Per Invite: “December 5th-6th” You know someone’s planning a BIG party when the invite actually straddles two calendar dates. Fortunately (unfortunately?), Edina Realty – City Lakes’ 2018 Holiday Party is “only” on December 5. The explanation? The invite gives the time and date as “December 5th-6 TO 9 p.m.,” and I misread the first part as “December 5th to 6th” instead of as intended, “December 5th . . . 6 TO 9 p.m.”   from RSSMix.com Mix ID 8230700 https://ift.tt/2Sm9GnX via IFTTT

Surprisingly Spacious 6 Bedroom(!) Home with > 4,000 Square Feet Where :  4709 40th Lane, St. Louis Park. What :  Modified two-story with 6 Bedrooms and 4 Full Baths; total finished square feet = 4,068. When : scheduled to close next Tuesday, December 4. How much :  listed for $689,900. Who : listed by Ross Kaplan, Edina Realty – City Lakes; Buyer by Edina Realty – Wayzata’s Spencer White. You’ll love this beautifully updated and expanded home on an oversized, .23 acre lot in the heart of high-demand Minikahda Vista. Highlights included the newer eat-in Kitchen with granite countertops; a deluxe upper level Owner’s Suite including steam bath and walk-in closet; and the huge, finished lower level perfect for teens, guests, or exercise/work. Other nice features you’ll appreciate: 4(!) full Baths, a Mud Room with tons of storage, and the convenient attached Garage. This home is extra-spacious outside, too:  the lot is 168′ deep, including a...

Where : 3515 Cedar Lake Ave. in Southwest Minneapolis, overlooking Cedar Lake and the downtown skyline. What : 5 Bedroom, 4 Bath Italianate Style, 3-story home with 4,200 finished square feet on a gorgeous double lot. When :  closed November 19. How much : listed for $900k. Who : Seller represented by Ross Kaplan of Edina Realty – City Lakes; Buyer represented by Ian Peterson, Coldwell Banker Burnet. You’ll be wowed(!) by this stately , 3-story Italianate-style home with stunning skyline views on a gorgeous double lot overlooking Cedar Lake. Highlights include the bright & cheerful, updated L-shaped Kitchen with Canadian granite and stainless appliances; gracious Living and Dining Rooms made for entertaining; the barrel-vaulted Mezzanine-level Family Room; and a versatile 3rd level perfect for teenage kids, guests, or Studio/Office space.   Architecture buffs will appreciate this home’s fine details both inside and out, including acanthus l...

When Appraisals Don’t Matter (and When They Do) [ Editor’s Note :  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] “Federal regulators have proposed loosening real-estate appraisal rules so a majority of homes can be bought and sold without being evaluated by a licensed human appraiser.  The proposal . . . potentially opens the door for cheaper, faster, but largely untested property valuations that are based on computer algorithms.” –“ Home Appraisals Go High-Tech “; The Wall Street Journal (11/30/2018). Take human beings completely out of the appraisal equation, and what would it look like? We already know: Zillow. At least in my experience, Zillow’s erratic, dartboard-like appraisals (known as “Zestimates”) occasionally get it right, (very) often get it wrong . . . and sometimes aren’t even remotely in the bal...

“An Ounce of Ice Dam Prevention =  . . . . “ To an untrained eye, there are simply two spots on the roof that are snow-free. To someone who knows about ice dams, though, there are two “hot spots” on the roof (missing insulation?  directly above a Bathroom or shower?) where heat is escaping, causing snow to melt and (possibly) accumulate and re-freeze above the gutter. When THAT happens, it’s called an “ice dam,” and the fix is much more expensive than simply adding insulation. P.S.: a nice, even blanket of snow on a home’s roof acts as an insulating blanket, and (usually) indicates that the home’s attic is properly vented and insulated. See also , “ Ice Dams: Who’s Responsible? .” from RSSMix.com Mix ID 8230700 https://ift.tt/2SjvC3b via IFTTT

Standing Out in a Crowd Vacuum On an especially busy Tuesday in March or April, it’s not unusual for the Edina Realty – City Lakes office to have 11 homes on Broker Tour**  all by itself . So, you know it’s a slow week when that’s the TOTAL number of Twin Cities homes on tour, excluding St. Paul and a few other outlying areas (vs. easily 300+ homes on tour at the Spring peak). Something for Everyone The six most interesting homes (at least to me)? They’re featured on this blog’s home page. The common denominator: if a “For Sale” home is on tour in late November, post-Thanksgiving . . . you know the Seller is motivated (probably the listing agent, too ). See also , “ Christmas — and TNAS — Season  “; “ Realtor Compliments on Broker Tour “; “ 3 Reasons to Buy a House in Minnesota in December (and One Reason Not to) “; and “ New Year . . . New Realtor ?? .” **As opposed to Sunday open houses aimed at the public, Broker Tour is held for local Realtors (although if...

“I Know Who You Are and I Saw What You Did Bought” [ Editor’s Note :  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] One of the scariest horror movies of the ’60’s was about about two, bored teenage girls who pass a Saturday night making crank phone calls to amuse themselves. Their m.o.: when randomly selected strangers answer, the girls ominously intone, “I know who you are and saw what you did.” Unbeknownst to the girls, one of their targets is a man who just committed murder; he traces their phone call, and tracks them down. I still remember the movie’s climactic scene 50 years later. Cue 2018 Holiday Shopping Season What’s that got to do with phishing scams this holiday season? Scammers know that the average American now spends something like $1,500 a year online annually — a good chunk of it in the next week few w...

Chances of Selling: “Possibly” vs. “0%, 100% Guaranteed” “In the land of the blind, the one-eyed man is King.” –proverb The real estate corollary to the proverb above? “During a time of year when inventory of good homes is depleted, and lots of “For Sale” homes are temporarily off the market (“TNAS,” or Temporarily Not Available for Showing”), the remaining “For Sale” homes stand out. Seller Situations:  Two Extremes Whether to temporarily take one’s home off the market over the holidays is necessarily a case-by-case decision. At one extreme, someone leaving the area for a new job elsewhere is obviously going to keep their vacant (but hopefully well-staged) property on the market. At the other extreme, a large family with kids home over the holidays, or, a household that’s planning to do a lot holiday entertaining, is likely to take their home off the market. “Gimme a Break!”; Reduced Visibility Of course, there are Sellers — some who have been on the market since Summer...

The housing correction has arrived.  This should not come as a surprise given that the level of affordability is near historical lows.  The real estate cheerleaders continued to mention that money from China and other factors would keep prices moving up at an unsustainable pace.  However, you need more traditional factors to keep the housing […] from RSSMix.com Mix ID 8230700 https://ift.tt/2r5PQlu via IFTTT

Or Maybe They Should be Called “Dismaying Jeans” Yeah, yeah , I know what fancy-schmancy retailers mean when they refer to “distressed jeans”:  jeans whose various holes and patches somehow make them look chic — and worth a huge mark-up (also referred to as “vintage clothing” in some quarters). My definition of “distressed jeans” is a little different. Namely, it’s the all the jeans I could fit into before Thanksgiving . . . but now can’t. Oh , well. My loss, Salvation Army’s gain (and still in time for a 2018 tax deduction!). from RSSMix.com Mix ID 8230700 https://ift.tt/2P1gMw2 via IFTTT

Human and Other Types of Capital What makes America wealthy? Some would argue that America is rich — and it is the richest country in history, by far — because of its people. Specifically, their ingenuity, drive, skills, diversity, etc. Call that the nation’s “human capital.” Some would say America’s wealth lies in its bountiful natural gifts:  its harbors, topsoil, fresh water, and abundant energy reserves (coal, oil and natural gas) — not to mention aesthetic treasures like Yosemite and Yellowstone. Such blessings constitute the nation’s “natural capital.” Still others would point to America’s infrastructure — its grid of roads, tunnels, bridges, factories, and communication networks (frayed or aging as some of those things may now be). Economists refer to those things collectively as a nation’s physical plant or capital. America’s True Crown Jewel As prodigious as all those things are, though, even combined, I’d argue that they still pale in comparison to the Uni...

Earlier this week, the C.I.A. concluded that Saudi journalist Jamal Khashoggi was killed in the Saudi Consulate in Istanbul on the direct orders of the Saudi crown prince, Mohammed bin Salman. In response, President Trump issued this ultimatum to the Kingdom: “We know this came from you. And so you’re not getting a free pass. For starters, you’re going to let every one of the women driving activists that you’ve arrested out of jail; you’re going to announce an immediate, unilateral cease-fire in Yemen — let the Iranians and Houthis have it and we’ll side with you if they attack from there. You’re going to end this stupid blockade of Qatar, and I expect you to keep taking steps to moderate Saudi Islam and ensure that Salafi-jihadist ideas are not exported to any mosque or madrasa from your country ever again.” Finally! (and what a relief). The President at long last gets it — and is responding with an appropriate, even statesman-like list of demands Saudi Arabia must accept to ...

Is That “For Sale” Home Days Away From Market? Or Decades?? [ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] Perishable food must display an expiration date. Similarly, to take advantage of MLS’s brand new listing status, “Coming Soon,” homes must have an “Availability Date.” Other key features of the new MLS status (abbreviation: “CSN”), which officially launched November 14: –“Coming Soon” properties can’t be shown — doing so is a $1,000 fine. –The Availability Date must be within 3 weeks. –At least one photo must accompany the Coming Soon listing within 2 business days. –All other MLS fields must be completed. That includes price, house spec’s (finished square feet, foundation size, etc.), and the payout commission being offered to the Buyer’s agent. –Listing agents only get “one bite at th...

“We Can Always Drop the Price, Right?” Yes, But . . .  Wait a second! Don’t leftovers come after Thanksgiving? Not when it comes to the housing market. In my own neighborhood close to Minneapolis’ Cedar Lake, I’m aware of at least half a dozen  very nice homes which came on the market as far back as last Spring, but are still for sale now. Metro-wide, you’d extrapolate that such homes number (at least) in the hundreds. The homes’ biggest (if not singular) flaw? A too-high initial asking price, now exacerbated by LOTS of market time. Thanksgiving Bargains As veteran agents like myself routinely advise clients, a too-aggressive starting list price is apt to ultimately net Sellers less — not more — than a more realistic one, with an attendant increase in market time (not to mention inconvenience and hassle). That’s assuming the home sells at all:  something like one-third of all MLS listings expire or cancel. See also: “ Perils of Overpricing Even (Especially) in...

Recognize This House? Me, Neither Scarcely six months after I sold 2521 Kipling in St. Louis Park’s Fern Hill neighborhood last Spring . . . the home is a veritable construction site . Which explains why the Buyer’s inspection went so smoothly: my recollection is that the Buyer raised few (if any) issues, and quickly removed their Inspection Contingency on the 1950 house. The takeaway? When, post-closing, the Buyer is gutting the home to the studs and doing a MAJOR remodel . . . they’re not sticklers on the home’s current condition (which was actually very good). P.S.: Recollection #2:  after more than one year on the market — the majority of it with a previous Realtor — my client got more than $30k(!) over the asking price in multiple offers. See also , “ Would-Be Home Seller to Realtor: “It’s NOT a Teardown?!?” “#%@&!!” from RSSMix.com Mix ID 8230700 https://ift.tt/2PE5RxF via IFTTT

Saving Banks, Punishing Rewarding Bankers “In Sweden, if you ask a union leader, ‘Are you afraid of new technology?’ they will answer, ‘No, I’m afraid of old technology.“ The jobs disappear, and then we train people for new jobs. We won’t protect jobs. But we will protect workers.” –Swedish minister for employment and integration, Ylva Johansson, quoted in,  “The Robots are Coming, and Sweden is Fine” ; The NYT (12/27/2017). “President Obama had campaigned as a visionary, but he governed as a technocrat . . . He made too many compromises in the hope of appealing to a bipartisanship that was already dead. But his biggest mistake was to save the bankers along with the banks. After a financial crisis caused in part by fraud, not a single top Wall Street executive was brought to trial. The public wanted to punish the malefactors, but justice was never done.” –“ Ten Years After the Crash “; George Packer, The New Yorker (10/27/2018). Leave it to Sweden to lead the way on forgin...

Human and Other Types of Capital What makes America wealthy? Some would argue that America is rich — and it is the richest country in history, by far — because of its people. Specifically, their ingenuity, drive, skills, diversity, etc. Call that the nation’s “human capital.” Some would say America’s wealth lies in its bountiful natural gifts:  its harbors, topsoil, fresh water, and abundant energy reserves (coal, oil and natural gas) — not to mention aesthetic treasures like Yosemite and Yellowstone. Such blessings constitute the nation’s “natural capital.” Still others would point to America’s infrastructure — its grid of roads, tunnels, bridges, factories, and communication networks (frayed or aging as some of those things may now be). Economists refer to those things collectively as a nation’s physical plant or capital. America’s True Crown Jewel As prodigious as all those things are, though, even combined, I’d argue that they still pale in comparison to the Uni...

Earlier this week, the C.I.A. concluded that Saudi journalist Jamal Khashoggi was killed in the Saudi Consulate in Istanbul on the direct orders of the Saudi crown prince, Mohammed bin Salman. In response, President Trump issued this ultimatum to the Kingdom: “We know this came from you. And so you’re not getting a free pass. For starters, you’re going to let every one of the women driving activists that you’ve arrested out of jail; you’re going to announce an immediate, unilateral cease-fire in Yemen — let the Iranians and Houthis have it and we’ll side with you if they attack from there. You’re going to end this stupid blockade of Qatar, and I expect you to keep taking steps to moderate Saudi Islam and ensure that Salafi-jihadist ideas are not exported to any mosque or madrasa from your country ever again.” Finally! (and what a relief). The President at long last gets it — and is responding with an appropriate, even statesman-like list of demands Saudi Arabia must accept to ...

Is That “For Sale” Home Days Away From Market? Or Decades?? [ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] Perishable food must display an expiration date. To take advantage of MLS brand new listing status, “Coming Soon,” “For Sale” homes must have an “Availability Date” — and that date must be within 3 weeks. Other key features of the new MLS status (abbreviation: “CSN”), which officially launched November 14: –Coming Soon” properties can’t be shown — doing so is a $1,000 fine. –At least one photo must accompany the Coming Soon listing within 2 business days. –All other MLS fields — including the payout commission being offered to the Buyer’s agent — must be completed. –Only “one bite at the apple”: listing agents can remove a property from “CSN” status, but can’t subsequently re-list it tha...

“We Can Always Drop the Price, Right?” Yes, But . . .  Wait a second! Don’t leftovers come after Thanksgiving? Not when it comes to the housing market. In my own neighborhood close to Minneapolis’ Cedar Lake, I’m aware of at least half a dozen  very nice homes which came on the market as far back as last Spring, but are still for sale now. Metro-wide, you’d extrapolate that such homes number (at least) in the hundreds. The homes’ biggest (if not singular) flaw? A too-high initial asking price, now exacerbated by LOTS of market time. Thanksgiving Bargains As veteran agents like myself routinely advise clients, a too-aggressive starting list price is apt to ultimately net Sellers less — not more — than a more realistic one, with an attendant increase in market time (not to mention inconvenience and hassle). That’s assuming the home sells at all:  something like one-third of all MLS listings expire or cancel. See also: “ Perils of Overpricing Even (Especially) in...

Recognize This House? Me, Neither Scarcely six months after I sold 2521 Kipling in St. Louis Park’s Fern Hill neighborhood last Spring . . . the home is a veritable construction site . Which explains why the Buyer’s inspection went so smoothly: my recollection is that the Buyer raised few (if any) issues, and quickly removed their Inspection Contingency on the 1950 house. The takeaway? When the Buyer’s gutting to the studs and doing a MAJOR remodel . . . they’re not sticklers on the home’s current condition (which was actually very good). P.S.: Memory #2:  after more than one year on the market — the majority of it with a previous Realtor — my client got more than $30k(!) over the asking price in multiple offers. See also , “ Would-Be Home Seller to Realtor: “It’s NOT a Teardown?!?” “#%@&!!” from RSSMix.com Mix ID 8230700 https://ift.tt/2PE5RxF via IFTTT

Saving Banks, Punishing Rewarding Bankers “In Sweden, if you ask a union leader, ‘Are you afraid of new technology?’ they will answer, ‘No, I’m afraid of old technology.“ The jobs disappear, and then we train people for new jobs. We won’t protect jobs. But we will protect workers.” –Swedish minister for employment and integration, Ylva Johansson quoted in,  “The Robots are Coming, and Sweden is Fine” ; The NYT (12/27/2017). “President Obama had campaigned as a visionary, but he governed as a technocrat . . . He made too many compromises in the hope of appealing to a bipartisanship that was already dead. But his biggest mistake was to save the bankers along with the banks. After a financial crisis caused in part by fraud, not a single top Wall Street executive was brought to trial. The public wanted to punish the malefactors, but justice was never done.” –“ Ten Years After the Crash “; George Packer, The New Yorker (10/27/2018). Leave it to Sweden to lead the way on forging...

Proof That High Pressure Sales Tactics Don’t Work At least in my experience, the odds of a first showing leading to a consummated transaction are perhaps 1 in 10. The exception to that? If the Buyer’s agent is headed to the airport, or otherwise under acute time pressure. When that’s the case, I’d estimate that the odds of the showing leading to a deal conservatively double (to a still-low 2-in-10). Reverse Psychology What might account for that? I can think of two reasons: One . Realtor on a time deadline = no sales pressure. In contrast to a “regular” showing, a Realtor who needs to be someplace else wants the showing to go badly — so they can lock up the house and get out of there! So, there’s no extolling the updated Kitchen, pointing out the beautiful backyard, or the lovely block. Instead, the subliminal message clients get is: ‘don’t buy this home.’ It’s amazing how, when that’s the agent’s mindset, clients suddenly want to make sure they’re not overlooking any ...

Give up? They’re all buildings. Or, in the case of Hennepin Country, more accurately, “structures.” Exhibit A: the ski jump at Hyland Hills, the tallest point in Hennepin County. Hat tip to Edina Realty – City Lakes’ Budd Batterson (agent) and Molly Goenner (broker) for that bit of trivia (I contributed FL and The Netherlands). Check out Budd & Molly’s  YouTube video for more info! See also , “What’s the Highest Point in Hennepin County?” ; and “Florida’s Tallest Point (and how to get there) .” from RSSMix.com Mix ID 8230700 https://ift.tt/2zeMZeu via IFTTT

When it comes to the best time of year to wash a home’s windows in the Upper Midwest, there seem to be (at least) two schools of thought. The case for Spring-Summer? (the most popular). That’s when there’s the most daylight — over 15 1/2 hours locally on June 21 — and you’ll appreciate sparkling clean windows the most. So, do it then. School #2 Which of course leads to the opposite argument:  do it during the time of year when light is scarcest . . . because that’s when you’ll most appreciate any extra natural light you can squeeze out of the short, November days. In other words . . . do it now. Which leaves alternative #3, also popular with ever-pragmatic Minnesotans:  clean your windows . . . when they’re dirty.   P.S.: the Kaplan household strategy? I pay a professional to do the upper level, outside windows. Then, I conscript able-bodied family members to do the rest. See also , “ The Easiest Way to Lighten a Home in Minnesota (at least 6 months...

Winners Announced:  NYC, Northern Virginia “It’s possible that [Amazon’s] plan all along was not to open a second headquarters, but to open two, smaller satellites. What’s unlikely, however, is that the deals being offered to Amazon will change significantly, even though the company is effectively halving their investment.” –“ Amazon Scammed America’s Hurting Cities” ; The New Republic (Nov. 12, 2018). “The quickest way to double your money is to fold it in half.” –Mark Twain Did Amazon conduct its search for a 2nd headquarters (“HQ2”) in bad faith? Or, now that the company has announced the winners (plural), is it just a case of runner-up sour grapes? I have no idea. And unless someone is privy to Amazon’s C-suite — and the team that oversaw the company’s search — they don’t know, either. But, surprise, surprise , what seems obvious in retrospect is that the process — including the 11th hour swerve to two satellite offices — was designed to maximize the package of tax ...

There sure seems to be some confusion on that, umm . . . point. I’ve now encountered at least three different properties — none close to one another — that all claimed that status in just the last month. For the record, according to Hennepin County’s website, it’s on Williston Road near High Point Road in Minnetonka — 1,131 feet above sea level. See also , “ Florida’s Tallest Point (and how to get there) .” from RSSMix.com Mix ID 8230700 https://ift.tt/2Pq1ndL via IFTTT

Stoic Minnesotans, Mid-Fall 2018 Edition What do Minnesotans say when overnight low’s — in mid-November! — drop into the single digits? (never mind that the windchill Friday night was below zero). No, not “OMG, it’s #@%$# cold!!” Try,  “It’s getting kinda  . . . chilly out there ” ( yup , “chilly”). That’s it. If that seems crazy to you . . . you’re not from around here. P.S.: Sadly, I’m sure that that weather forecast sounds pretty good to lots of people in California right now. See also , “ Winter Humor: Minnesota vs. Miami (& Elsewhere) “; and “ Mind over Matter (and Weather) .” from RSSMix.com Mix ID 8230700 https://ift.tt/2z5gMGy via IFTTT

“The Innovators Issue” “No one reads Playboy for the articles,” as they used to say. Likewise, I’m pretty sure no one reads the very glossy Wall Street Journal Magazine (pictured above) for its celebrity profiles. Want proof? The Table of Contents of the current issue finally(!) appears on page 33, preceded by — yup! — 31 pages of Vogue-like ad spreads.** Pictured on the cover (above): “Innovator” — and philanthropist — Agnes Gund. ** “Not that there’s anything wrong with that,” I’d hasten to add ( ala Martha Stewart). from RSSMix.com Mix ID 8230700 https://ift.tt/2qGNJnP via IFTTT

Being There — Literally — For Clients I suppose there are Realtors who miss their clients’ closings. But, I’m not one of them. Would you miss a kid’s graduation? A family member’s birthday party? OK, so a real estate closing may not be quite so momentous. But, after working side by side with someone closely for months, riding the emotional highs & lows that can accompany the sales process (more like , trying to even out the highs & lows), etc., it only seems fitting to be there at the conclusion.* Riding Shotgun While the title company closers representing the Buyer and Seller are formally in charge, I’ve yet to be at a closing where my client didn’t have at least one question for me that no one else in the room was able to field. Sometimes, it’s explaining that there is a second Arbitration agreement specifically for closing (vs. the one that’s part of the Purchase Agreement). Other times, it’s reassuring the client that property taxes have been properly pro rated ...

Open This Sunday (Nov. 11): 4709 West 40th Lane in High-Demand St. Louis Park Neighborhood Where :  4709 40th Lane, St. Louis Park. What :  Modified two-story with 6 Bedrooms and 4 Full Baths; total finished square feet = 4,068. When : open house this Sunday (Nov. 11) from 1:30 p.m. to 3:30 p.m. How much :  $689,900. Who : listed by Ross Kaplan, Edina Realty – City Lakes. You’ll love this beautifully updated and expanded home on an oversized, .23 acre lot in the heart of high-demand Minikahda Vista. Highlights included the newer eat-in Kitchen with granite countertops; a deluxe upper level Owner’s Suite including steam bath and walk-in closet; and the huge, finished lower level perfect for teens, guests, or exercise/work. Other nice features you’ll appreciate: 4(!) full Baths, a Mud Room with tons of storage, and the convenient attached two-car Garage. This home is extra-spacious outside, too:  the lot is 168′ deep, including a huge, lev...