Robert Guthridge's Blog

Why Edina is So Much in Demand It shouldn’t come as surprise that, in a city where the average asking price for a single-family home is now $1.185 million, and the most expensive is $5.7 million , entry-level home prices will be dear, too. In fact, starting home prices in consistently high-demand Edina start around $400k. Single family homes much below that price point typically have one (or more) of the following attributes: 1) they’re small (under 1,500 finished square feet or so); 2) they’re dated; 3) they only have a one-car garage (or none); 4) they’re located on a busy street (like Xerxes, France, or Blake); and/or 5) they’re zoned for Hopkins, not Edina schools. So, what’s the case for paying $400k (or much more) for an Edina starter home? –It’s Edina (come on ). –Edina’s award-winning public schools (subject to #5. above). –Edina’s overall terrific housing stock, including some of the most beautiful homes (and neighborhoods) in the Twin Cities. –Edina property taxes: ...

Handwritten “Home Highlights” Nobody uses Post-it notes more than me. They’re on my desk, near my phone, in my wallet, and on my family’s fridge. I’d probably put them on my wrist if they stuck there. So, where don’t hand-written Post-it’s belong? Near a hand-carved fireplace mantel, custom moldings, or other high-end features in a $600k “For Sale” home. Like the one I just showed. Tacky. Very tacky. P.S.: The professional way to call attention to the above-mentioned features is a printed “Home Highlights” card. Even then, the right number is usually 4-5, max, depending on the size of the home (more feels cluttery). from RSSMix.com Mix ID 8230700 https://ift.tt/2VkAjeA via IFTTT

Warren Buffett Goes Green (Metaphorically) in 2018 Annual Berkshire Hathaway Shareholder Letter [ 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.] What stood out (at least to me) in this year’s letter to shareholders was the lexicon Mr. Buffett used to describe Berkshire Hathaway’s vast corporate holdings: “Investors who evaluate Berkshire sometimes obsess on the details of our many and diverse businesses – our economic “trees,” so to speak. Analysis of that type can be mind-numbing, given that we own a vast array of specimens, ranging from twigs to redwoods. A few of our trees are diseased and unlikely to be around a decade from now. Many others, though, are destined to grow in size and beauty. Fortunately, it’s not necessary to evaluate each tree individually to make a rough estimate of Berkshire’s intrinsi...

Establishing — and Testing — Boundaries If you go to the Business section of any bookstore, you’ll see any number of books on negotiation titled, “Getting to Yes!,” “Win-Win Negotiation,” etc. In my experience, however, the key to effective negotiation lies not in getting to “yes,” but getting to ‘no.” steelOr perhaps more accurately: before you get to “yes,” you must first get to “no.” Tempered Steel (and Deals) By that, I mean that each deal’s boundaries need to be established and tested by the other side. Buyers and Sellers do that through a process of probing, offering, and counter-offering — and by ultimately rejecting what is above their ceiling (Buyers), or below their floor (Sellers). Like steel before it’s tempered, until each side’s ultimate boundaries are established and successfully (unsuccessfully?) tested by the other side . . . the deal isn’t very strong. P.S.: No less than Abraham Lincoln, as a trial lawyer arguing cases in front of juries (one of the purest fo...

What’s a “1.5 showing?” When one partner in a couple has seen the house and likes it, and gives their partner a green light to take a look. Rules & Exceptions As a general rule, Realtors acting as a Buyer’s agent prefer that both (all**) decision-makers be present at all showings. That’s not only more efficient, time wise, but it gives everyone a chance to consult and compare notes in the house in real-time — rather than from memory the next day (or week). However, I can think of three exceptions to that rule. One .  Scheduling conflicts. When both partners work long hours — especially when one happens to be, say , a surgeon — getting both in the same house, at the same time, often just isn’t feasible. So, you take what you can get. Two .  One partner has significantly more specific or narrower criteria than the other. That can be location, style, condition, floor plan, size — you name it. However, when that’s the case, it’s often best ...

In-Bounds or Out-of-Bounds? The Buyer finished their professional home inspection, and just delivered a long list of issues to resolve with the Seller including this one: “New future back and side doors: (large amount).” Such a demand is clearly outside the scope of the inspection, and not properly raised with the Seller. Why? A. The item is prospective, not a here-and-now home defect; B. The side and back doors (and their condition) were plainly visible prior to the Buyer’s inspection; C. The Buyer hasn’t converted the problem to a dollar amount, supported by a third-party quote or estimate; D. All of the above. Correct answer : “D.” “No Harm in Asking, Right? ( Right?? )” Post-inspection, Buyers can certainly ask for whatever they want — though truly egregious requests risk poisoning the deal, and jeopardize resolving even legitimate items with the Seller. However, in general, the ground rules for Buyers raising items, post inspection, are: a) they’re material in amount (...

Two Kinds, “Mild” and “Spicy” “Meat cone” sounds like something you might overhear in a high school hallway or boys’ locker room — and it wouldn’t be a compliment. So, I’m not sure I love that as a snack name — in this case, at K’nack’s food stall, located inside the Keg and Case Food Court in St. Paul. But, it does have the virtue of being descriptive. Ultimately what dissuaded me wasn’t the name, but my appetite: I got a $1.50 beef stick instead (very good!) earlier today instead of the $6 meat cone (two choices, per photo above). P.S.: At least a couple decades ago, the preferred insult was “meat head ” — what Archie Bunker called his son-in-law, once upon a time . . . from RSSMix.com Mix ID 8230700 https://ift.tt/2Tg4O87 via IFTTT

Who’ll Play the Lead in the Movie? The most memorable excerpt from Tara Westover’s harrowing memoir of growing up, off-the-grid, in rural Idaho isn’t from the book. It appears in  The New York Times’ book review: “Educated” is, among other things, a catalog of job-site horrors: fingers lost, legs gashed, bodies horribly burned. No pointy-headed bureaucrat could make a stronger case for the Occupational Safety and Health Administration than do the unregulated Westover’s with their many calamities. Making matters worse is [the father’s] refusal to allow any of the injured and wounded (himself included) to seek medical attention beyond his wife’s tinctures — “God’s pharmacy” — a refusal that also greatly exacerbates the effects of two terrible car accidents. “God and his angels are here, working right alongside us,” he tells his daughter. “They won’t let you get hurt.” –Alec MacGillis, “ Review: ‘Educated,’ by Tara Westover “; The New York Times (3/1/2018). As Ma...

I believe that real estate is one of the best investments to gain wealth and security. However, many people feel it is risky and does not produce great returns. I think many of those risks are overstated and many of the advantages of real estate are glossed over when people downplay real estate as an ... Read more The post Is Real Estate a Good Investment? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2SRQD9N via IFTTT

Blame it on Dyslexia Sorry , I’ve got another name for a half-gallon of flavored water that retails for $6 at Target (it actually comes in an 8-pack). How about, “Spendthrift?” I’m gonna guess that the marketing folks who came up with “spindrift” are all under 30 years old and/or don’t have kids. Then again, that’s probably their target market . . . P.S.: Maybe they were trying to evoke “Driftless,” an area in southeastern Minnesota and southwestern Wisconsin that was skipped by the glaciers. See also , “Hanukkah Honey?” What’s Hanukkah Honey?!? ; “ Two Below Honey” ; “Cry Me a (River)?” No, “Cri-me-a . . . River” “; “ Finding Peace in the Middle Seat” ; “The Libyan Vacuum” ; and “Treason Toys .” from RSSMix.com Mix ID 8230700 https://ift.tt/2XevwgE via IFTTT

Five-Step Checklist One of the last steps before closing — in fact, sometimes done on the way to closing* — is the Buyer’s walk-thru. To my mind, at least, the Buyer’s walk-thru has these five goals: One . Determine that there’s been no change in the home’s condition since the Inspection Contingency was removed. What can happen to a house in 4-6 weeks (the usual interval between the Buyer’s Inspection and Closing)? Unfortunately, in severe climates like the Upper Midwest, A LOT; things such as ice dams, hail damage, and flooded basements all come to mind. Assuming that the home isn’t being sold “As Is,” “no change in condition” also means that the home’s HVAC and appliances are also still in working order. Two . Make sure that there is no damage that may have been concealed by the owner’s furniture, floor coverings, etc. If the hardwood floors under the Oriental rug in the Living Room have typical wear-and-tear, no problem. See , “ How to Blow a Seller’s Goodwill — and a $150 ...

Comparing Honey Crisps to Braeburns One of the more quizzical looks Realtors get is when they (try to) explain to a prospective home Seller that their neighbor’s house isn’t a “Comp” (Comparable Sold Property). In plain English:  it isn’t relevant — at least directly — for pricing their home. For the uninitiated, a Comp is one of the three homes Realtors and appraisers use to determine fair market value; once the relevant Comp’s are identified, step #2  is to go through a formal “compare-and-contrast” process between the subject home and each of the Comp’s called  a “CMA” (Comparative Market Analysis). So, why doesn’t the neighbor’s house make the cut? Because one (or more) of the following usually apply: One . Timing. Specifically, it sold too far back. To be a Comp, the sale must be within the last six months. Two . The neighbor’s house has yet to sell — that is, it’s “Active” or “Pending.” While a neighboring home that is currently f...

Financial, Psychological Toll OK, so there’s no actual weight or carrying involved (unlike furniture moving, which I once did). But, veteran Realtors know — and newbie’s will find out — that it’s burdensome to represent homes that linger on the market. While median-priced Twin Cities homes (now around $265k) are still selling (too?) quickly, the expected market time for more expensive homes can still be several months. Of course, if the “For Sale” home isn’t well-priced, prepped, and marketed, the expected market time could be very well be . . . infinite. Languishing Listings To be sure, an unsold home is most burdensome for the frustrated would-be Seller. After all, they’re the ones who must pay the mortgage, maintain the property, prep for showings, etc. However, conscientious Realtors — i.e., those who are serious about selling the home, vs. simply using it to attract Buyers who can be sold another home — experience the burden of a languishing “For Sale” home two ways:...

A River Runs Through It (Diagonally) Quick! Test your knowledge of Minneapolis’ quirky geography (or at least, quirky neighborhood names), and see if you know which of the following are real names, used by the locals: A. North Minneapolis B. South Minneapolis C. West Minneapolis D. East Minneapolis E. Northeast Minneapolis F. Northwest Minneapolis G. Southeast Minneapolis H. Southwest Minneapolis Answer key : A. North Minneapolis. Yup , there is such an area: it’s the collection of 13 city neighborhoods that lie (mostly) north of downtown (“Harrison” is almost directly west). Complicating things just a tad: “North Minneapolis” splits into what I’ll call two neighborhood “groupings”: “Camden” is north of Lowry Ave, while “Near North” is south of Lowry. B. South Minneapolis. Also a real area. In fact, given Minneapolis’ strongly vertical layout, “South Minneapolis” arguably constitutes two-thirds of the city. Roughly speaking, it’s all the area that’s south of Downtown. ...

Twin Cities Goes From Bare Ground to +6′ Snow Banks in a Few Weeks [ Editor’s Note :  Seller liability for ice dams and other home issues is case-specific, and affected by local and state law. For legal advice, please contact an attorney.] At least until a few weeks ago, it looked like the Twin Cities wasn’t going to have snow this Winter. No snow, no melting-and-refreezing ice; no ice, no ice dams. Several major storms later, it’s clear that that won’t be the case. Which means that by Spring, at least some local homeowners will be contending with ice dams, and at least a some of those houses will have changed owners recently. Who’s responsible for repairing the damage? Two-Part Test At least in Minnesota, there is a two-pronged legal standard for Buyers to recover from Sellers for damage caused by an ice dam (or any post-closing issue, for that matter): 1) the problem had to exist before the Buyer purchased the home; and 2) the Seller had to know — or should h...

Realtor Bragging Rights Professionals who are coached from Day #1 in the business never to be “secret agents” can hardly be expected to be shy when they receive a sales honor. Especially one as meaningful and hard-earned as an Edina Realty “Circle” award, handed out annually to the company’s top agents (mine is pictured above). “Birds of a Feather” (Flock Together) Why should clients care? Two reasons: One . Expertise. The best way to become a top agent is to  . . . work with other top agents . Edina Realty – City Lakes has some of the very best in the Twin Cities.  And that extends to City Lakes’ excellent Manager, Molly Goenner, who delivered over two dozen awards this morning with personalized “thank you’s,” along with a couple heartfelt anecdotes. Two . Networking. Guess what all those top agents are tapped into? Listings! And, perhaps more importantly in today’s inventory-starved market, upcoming listings. Networking² Assuming a ty...

Adolescent Bravery, Then & Now Contrary to popular legend, an adolescent George Washington never confessed to cutting down his father’s cherry tree (it’s a famous myth, posthumously fabricated by one of Washington’s biographers). But, a certain Kaplan offspring did confess to something roughly equivalent this morning: the reason our extra car (and his ride to/from school) was dead is because he left the headlights on overnight. I was skeptical that the battery was low, given that it just started less than 10 days ago when local temps were literally 50 degrees(!) colder (more than 70° degrees, factoring in wind chill). from RSSMix.com Mix ID 8230700 http://bit.ly/2SvrPnV via IFTTT

Proven Vote-Getter From a Midwestern State [ 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.] I’m not endorsing anyone — at least not yet — for President in 2020. But, here’s a little unsolicited advice to national Democrats from at least one independent voter (this one): before choosing your nominee, think long and hard about the ideal candidate’s profile . My suggestion, if you want to win in November:  pick a centrist woman from the Midwest, who is a proven vote-getter in a purple state, who can actually get legislation passed in today’s environment of highly partisan politics. Hmmm . . . I wonder who ticks all those boxes?? from RSSMix.com Mix ID 8230700 http://bit.ly/2SHHDDf via IFTTT

Real estate investing has changed my life. It has given me the money and freedom that I never thought I would have when I was younger. My rentals provide a steady income whether I work or not, and my flips provide large chunks of cash I can invest in more rentals. There are many ways ... Read more The post How to Become a Real Estate Investor appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 http://bit.ly/2RV2LSm via IFTTT

I’ve got a hunch how — at least in some people’s minds — “tray” ceiling became “trey”: “très” is French for “very” (as in “very beautiful”). From there, it’s just a small step (and single letter) to “trey.” Of course, that’s also how the word sounds phonetically. However, the correct adjective for a recessed ceiling — often directly over a bed or Dining Room table, and marked with dramatic, custom moldings — is “tray.” As in, it resembles an inverted tray. from RSSMix.com Mix ID 8230700 http://bit.ly/2RSKy7F via IFTTT

Retail vs. Wholesale Open Houses One of the best, early omens for a new listing is when agents leaving the Broker Open casually toss off compliments like “nice listing,” “good job!,” or simply “congratulations.” What’s another? When several newer, less experienced agents contact you, asking if they can hold a weekend open house at your listing. Sunday Open vs. Broker Tour As opposed to a “wholesale” open house — held for fellow Realtors each Tuesday, at least in the Twin Cities — weekend open houses are intended for a retail crowd. While many listing agents (myself included) like to do their own open’s, especially the first one or two, many experienced agents are happy to delegate weekend open’s. Hosting such open houses is a time-tested way for newer, less experienced agents to find unrepresented Buyers. Meanwhile, that frees up the (veteran) listing agent to work with their Buyer clients — or cover an open house at another listing — while still making sure that their cli...

The housing market is in a state of adjustment.  Inventory is up dramatically in many places.  In the last housing correction, Las Vegas was a leading indicator for California and we are now seeing some dramatic increases in inventory in the area.  Las Vegas inventory is now up 106 percent year-over-year.  In Seattle, inventory is […] from RSSMix.com Mix ID 8230700 http://bit.ly/2TGEVLA via IFTTT

Facebook Gets Serious About Users’ Privacy. Not. I’m gonna guess that I’m not the first one to receive the Facebook notification, “you have a new friend suggestion,” and think it came from the  prospective new friend. And because I’m a nice guy, and didn’t want to offend a genuine, real-life acquaintance, clicked on the button to become Facebook friends. “Gotcha!” Only after hitting “Send” did I belatedly realize it was Facebook mining my data, then “helpfully” making suggestions based on the number of overlapping friends I already share with other Facebook users. Somehow, I’m dubious that Facebook has gotten religion about policing users’ privacy, and is now going to clean up its act . . . from RSSMix.com Mix ID 8230700 http://bit.ly/2Sns1FJ via IFTTT

“Retail Winter” vs. “Meteorological Winter” Scarcely one week after local wind chills of minus 50°(!) below — and with overnight temps of minus 17° below forecast this Friday night — you might think it a tad, umm . . . premature to herald the end of Winter in the Twin Cities. But, it’s most certainly the end of Retail Winter. Don’t believe me? Just try to find a pair of winter gloves (extra-large), a flannel shirt, or turtleneck at a Twin Cities area Target (I just did — no luck). What’s on the shelves instead (or about to be)? Swimsuits, suntan lotion, and flip-flops. Really. Which segues into my long-time definition of when the Spring housing market officially debuts in the Twin Cities:  “the first stretch of warm weather, after the Super Bowl . . . or when Target starts selling swimsuits.” P.S.: For non-Minnesotans, “warm” is defined as above 20° degrees. See also, “ When Does the Twin Cities Spring Market Officially Debut? “; “ Approaching the Half-Way Point of the ...

Technology Roadkill: Stock Brokers, Travel Agents, & Realtors FSBO’s “God is dead.” –Nietzsche. “Nietzsche is dead.” –God. Experts have been predicting the demise of Realtors longer than I can remember. Like stock brokers and travel agents a generation ago, advancing technology — and the democratization of information — were supposed to render Realtors obsolete. Instead, it’s For Sale by Owners (“FSBO’s”) that appear to be endangered. According to Harris Insights & Analytics, the percentage of home buyers and sellers who used a Realtor in 2018 rose to an all-time high, 90%. That’s up 5% from 2014, and 9% from 2001. Three Theories What accounts for the decline of FSBO’s? Here are my three theories: One . Greater transaction complexity. Twenty-five years ago, the standard Minnesota Purchase Agreement, including all Addenda (Financing, Inspection, etc.) and the Seller’s Disclosure, was less than 10 pages long. Today? Try , 30-35 pages. While y...

Level vs. Pitched Parking Ramp Floors [ 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.] I knew that rental apartments could be converted into condos. But, I didn’t know that parking ramps could be converted into commercial or residential buildings. Apparently, they can — but only if they have level, not angled floors. That’s according to Minneapolis Mayor Jacob Frey, who spoke at a breakfast this morning to about 100 Edina Realty agents, who live and/or work in the city (I do both). “Breakfast With (Edina Realty) Realtors” Parking lot design came up in the context of “Minneapolis 2040,” a long-term planning blueprint — in its final approval stages now — calling for three things in the coming decades: 1) increased city density; 2) more diverse housing; and 3) more affordable housing. Practically, that means s...

Double-Edged Sword I’m not sure I can define the difference between “good” edgy and “bad” edgy . . . but I know it when I see it. The term’s, um . . . double-edged quality is evident in the “cutting edge/bleeding edge” dichotomy. So, there are “edgy neighborhoods,” “edgy art,” “edgy TV,” “edgy food,” “edgy fashion,” “edgy literature,” “edgy comedy,” “edgy technology” — you name it. Of course, there are also people who exhibit that quality, albeit some more genuinely than others. And there are a couple of edgy blogs (“edgy journalism?”) out there, or so I hear . . . .  See also , “ Stomping Grounds” vs. “Stamping Grounds .” from RSSMix.com Mix ID 8230700 http://bit.ly/2RB6zYH via IFTTT

Never Mind That Late 2018 Stock Market Swoon “Making money in the stock market is easy: only buy stocks that go up. If they don’t go up, don’t buy ’em.” –-Mark Twain I finally figured out why investing — in the stock market or anywhere else — is so vexing. Because there are only two possible outcomes: One . Your chosen investment goes down — in which case, you naturally kick yourself for losing your hard-earned money; or Two . The investment goes up — in which case, you kick yourself for not having had more conviction (and buying more of whatever it was that appreciated). That mindset applies to stock market swoons as well, including the now mostly-erased, albeit especially violent drop late last year. In retrospect . . . it was a buying opportunity (at least as of now). Of course, if you had to pick, you’d rather be vexed by the 2nd type of shpilkes. P.S.: if being disgruntled is a (mildly) bad thing, is being “gruntled” a good thing?? **Yiddish for “a state of impatienc...

Is That Democrats’ Sense of Patriotism Talking? Or Their Self-Interest? [ 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.] Since Starbucks’ Howard Schultz announced on 60 Minutes last Sunday that he may run for President, there’s been a resounding chorus from Democratic quarters: a collective, VERY emphatic, “Don’t do it, Howard!!” Gleeful Republicans’ response to a potential Schultz candidacy ( surprise, surprise )? “Do it!”, or perhaps more accurately, “I DARE you to do it!,” issued by President Donald Trump (Trump taunted on Twitter that Schultz “didn’t have the guts to run”). The problem for the American electorate is that it’s hard to distinguish between Democrats’ sense of patriotism — specifically, their heartfelt concern that another Trump term would be disastrous for the country — and...

“Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.” –unofficial credo of United States Postal Service. There won’t be any mail carriers wearing shorts in the Twin Cities today. If fact, there won’t be any mail delivery at all. With local temps and wind chill plummeting to minus 29° below(!) and minus 60° below(!), respectively, all mail delivery has been cancelled. I can’t recall that ever happening before . . .  P.S.: Realtors — not nearly as hardy as mail carriers — closed their offices in the Twin Cities early yesterday afternoon. See also , “ Winter Humor: Minnesota vs. Miami (& Elsewhere) .” from RSSMix.com Mix ID 8230700 http://bit.ly/2G1LLbs via IFTTT

“The More Things Change” Department Once upon a time, when I started selling real estate in 2002, the worksheet that Buyers and Sellers signed at closing was simply known as . . .  the settlement statement  (or just the closing worksheet, to avoid any jargon). Then it became the “HUD-1” (HUD stands for “Housing and Urban Development,” the federal agency — soon to be led by Ben Carson — that oversees the form). Most recently, it morphed into the “ALTA” (short for “American Land Title Association”). All of which leaves veterans such as myself referring to the form, once again, as “the settlement statement.” Format Tweaks Does the name matter? Not really. While there have been modest changes in format along the way, the constants remain a summary first page, followed by a second page that breaks out expenses. For Sellers, the key items to track are the Sales price; any Seller-paid’s; commission; closing fees; transfer taxes; and pro rata adjustments ...

Spared a Blizzard (sorry) of Bad PR Just imagine: if the Twin Cities played host to the Super Bowl this year instead of last, thousands of out-of-town visitors would now be arriving to a  minus 35° wind chill — headed towards as low as minus 60°(!) the next two nights. That compares with an air temp expected to bottom at “only” minus 30° below zero. In truth, the Minneapolis-hosted Super Bowl would likely have proceeded smoothly regardless of the weather: downtown is connected by a miles-long grid of skyways, tunnels, and underground garages, obviating the need to actually experience the elements. And the venue, US Bank stadium, is equally climate-controlled (very much unlike old-time Metropolitan Stadium, site of what is now Mall of America). But, had this blast of Arctic cold arrived exactly one year earlier, it’s likely that the area would nevertheless have a reaped an, um . . . blizzard of negative publicity ( sorry ). See also , “ Winter Humor: Minnesota vs. Miam...