Robert Guthridge's Blog

Crying Twice For whatever reason, I’m working with a disproportionately large number of clients this Spring either moving to the Twin Cities — or relocating elsewhere — for new jobs. Which has given me an opportunity to relate an observation I heard while moving furniture in college a long time ago:  “Minneapolis is the kind of place that makes you cry twice: once, when you move here, and a second time, when you leave.” Having witnessed that firsthand many times — and having experienced it myself — I know that both of those sentiments are still true (though I think the crying may be a little more intense for those arriving in the throes of winter, and less for those leaving then . . . ). from RSSMix.com Mix ID 8230700 https://ift.tt/2uBdg3V via IFTTT

U.S. Bank Stadium Hosts NCAA “Final Four” Tournament April 6-8 It’s not very often that 150 year-old cities sprout entire new neighborhoods. Yet, that’s the idea behind “Downtown East” in Minneapolis. Actually located southeast of Downtown — the area’s boundaries are 35W (east), the Mississippi River (north), Portland Ave. (west), and 5th Street (south) — the newly-invigorated area plays host to the NCAA “Final Four” basketball tournament April 5 – 8. “A River Light Rail Line Runs Through it” The fledgling neighborhood has long been anchored by a sports stadium: first, the Metrodome, and since 2016, by its successor (and Final Four venue), U.S. Bank Stadium. Yet, the surrounding area was always a mishmash (wasteland?) of parking lots, warehouses, and other industrial buildings. Today? The neighborhood is bustling with new construction. Recent additions include a 4-acre green space west of the stadium (“Downtown East Commons”); a cluster of new office buildings; and several s...

Avoiding the “Contingency Premium” “We may be small, but we’re slow.” –Cal Tech football team slogan. If you were a home seller, how much extra would you want in order to assume the risk that the Buyer of your home could successfully sell their current home in order to be able to buy yours ? An extra 5%? Maybe 10%? Seller Motivation, Flexibility The premium certainly varies by Seller and their circumstances:  “How long has the home been on the market?” “What kind of condition is it in?” “How much Buyer interest is there at the current price?” “Do they have a firm timetable for selling, or can they be flexible?” The premium also varies on the contingent Buyer — most significantly, on the market-readiness and saleability of what Realtors call “the backup house.” At one extreme is the backup house that’s:  a) well-prepped and well-priced; and b) imminently about to go on the market — or already is. At the other extreme is a backup house that’s . . . neither. Of course...

The Gold Standard for Staging Advice “Nice listing . . . congrats .” –Uttered by exiting Buyers’ agents at a broker open; when the listing agent knows the price is right and the home is likely to sell quickly.   See , “ Realtor Compliments. “ The equivalent for a staging job well done is when the client appreciatively remarks at the end, “My house looks so good, now I don’t want to move!” When the listing agent hears that, they know two things:  1) the stager did a (very) nice job; and 2) the client “gets” it. Emotional Tug Especially for older, long-in-place Sellers, it can be emotional to allow a stranger to come into their home and rearrange things — sometimes, dramatically. So, it’s always a relief to hear, after the fact, that they’re receptive and appreciative of the stager’s efforts — which in turn indicates that the owner is actually ready to sell . . . P.S.: Thanks to ace stager Mary Amlaw, who consistently elicits such comments from my selling clients. ...

Flipping houses is a lot of fun and can be a great source of income. House flipping is my primary business although I am also a real estate broker, blogger, and landlord. I flip from 20 to 30 houses a year and there is no way I could do that without great financing. Many people ... Read more The post Fix and Flip Loans: How to Get a Loan to Finance a House Flip appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2YouoaA via IFTTT

The First Second to Know Want to know who just got a plum, new job out-of-town? Is about to lose their current one? Getting divorced? Just had a financial windfall? Or, for that matter, any number of other highly personal news? Ask their Realtor . Loose Lips Sink  . . . Realtors Except, of course, that a good Realtor will never tell you. In addition to knowing how to price, stage, market, negotiate, draft contracts, and — at least occasionally — handhold , there’s one other quality that’s indispensable to being a good Realtor: Knowing how to keep a secret . P.S.:  And no, there’s nothing analogous in real estate to “attorney-client privilege” — that is, a court-recognized proscription against revealing information that a client shares with their agent. But a Realtor with any common sense who wants a thriving practice, hardly needs to be told to keep any sensitive client information confidential — not just the st...

A property manager’s job is not incredibly difficult if they know what they are doing. They find good tenants, they get a lease signed, they collect rent, and they check on the properties once in a while. At least that is what a lot of landlords think when they consider using a property manager for ... Read more The post When Should a Landlord Hire a Property Management Company? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2OfI0jZ via IFTTT

Best Advice to Home Sellers:  “Tell What You Know” (Whatever That Is) Homeowners can be forgiven for not knowing the difference between a special assessment that’s “pending,” vs. one’s that “levied” — as opposed to one that is assessed and currently payable. Realtors have trouble keeping those terms straight as well. The best advice to give prospective home sellers regarding any pending special assessments — typically in connection with such things as new curbs, sidewalks, sewers, etc. — is simply to tell prospective Buyers what they know, as they know it. Then, all the parties and professionals involved in the deal — and especially the title folks, who are expert in such issues — can sort it out. Just as with the Seller’s Disclosure (concerning the home’s condition), no one ever got sued for over-disclosing. from RSSMix.com Mix ID 8230700 https://ift.tt/2TQoYqp via IFTTT

Avoiding a “Hillary Clinton Problem” For the second time in six months, I’m working with a client whose AOL email account is intercepting my Edina Realty emails as unwanted spam. Result: my client has to hunt down my emails in his “junk email” folder — once I tell him to look there! Like many Realtors, I use multiple email addresses, and could easily switch to a backup. However, for liability purposes, Edina Realty agents know to run all their professional correspondence thru Edina’s server, using their company email address (Hillary Clinton knows a little about this issue). When the problem occurred before, my client needed to hire someone to help her tweak her AOL email filter (as I recall, she switched to an entirely new email address on Google). Fortunately, this time around, there was an easier solution:  I dispatched my college freshman (and computer whiz) son — home on break this week — to my client’s house, who resolved the problem in about five minutes. Thanks , Jo...

“Summer & Winter Solstices?” Nope You might guess that the most brilliantly sunny time of year in Minnesota is the Summer solstice in late June, when the sun is at its highest and the days are longest (the sun actually sets at 9:03 p.m. on June 21, but dusk lingers till almost 10 p.m.). Similarly, it stands to reason that the darkest time of year is exactly six months later, December 21, when the sun and daylight hours are at their nadir. Wrong, on both counts. At least to this long-time Minnesotan (interrupted by stints in the Bay Area and Manhattan), the correct answers are: “November” and “March” — albeit with an asterisk. *Wild Card: Snow Cover So, the reason early November can feel gloomier than late December locally is because of (reflective) snow cover: brown terrain is darker than white (presumably snow-covered) ground. That is, assuming there’s snow in late December — true about +80% of the time in the Twin Cities. Now, fast forward four months or so, to mid-Marc...

H ome Measurements & Real Estate Conventions Real estate marketing is all about “putting your best foot forward”: accentuating (but not lying) about a home’s strengths, while defusing any negatives (one of the best ways: tackle them head on, to get them out of the way). That applies to a home’s measurements, too. So, Realtors will typically list a room as 15′ x 12′ — not 12′ x 15.’ It’s the same room, either way, but leading with the bigger number has a subtle, psychological effect. Measuring Lots What’s the exception to that? Lot sizes. Convention (or at least mine) is to list a lot’s width first — so it’s 40′ by 120′, not 120′ by 40′. That’s because you can see the width — but not the depth — from the street. If the lot’s especially deep, I emphasize that in the MLS “remarks” fields (“Agent” and “Public”), marketing supplement, etc. See also , “ “Double Lot,” Defined “; “ Measuring Irregular Rooms “; “ The House That Shrank “; “ Too Good to Be True “; “ Misstating a ...

How Many Real Estate Marketing Errors Can You Spot? To my eye, the listing agent marketing a certain Fern Hill Rambler now commits not one but two mistakes trying to push Buyers’ “Fear of Missing Out” button: One . In an ongoing Seller’s market with too little inventory, it’s certainly plausible that any new-to-market listing will sell fast. But, not because the listing agent (representing the Seller) says so. Rather, because the market says so. In turn, that depends wholly on the specific home’s list price, condition, staging and, yes , marketing (including Realtor-to-Realtor networking, social media exposure, flattering photos and verbiage, etc.). Marketing Misfire(s); “If You Say So” Dept. Two . When the agent’s FOMO (“Fear of Missing Out”) strategy didn’t work, they failed to update their marketing verbiage on MLS accordingly. So, the destined-to-sell-fast Fern Hill rambler originally debuted on the market . . . last September. Which means the listing’s CDOM (“Cumulativ...

Winter 2019 One-Two Punch: Record Snow Followed by Thaw, Heavy Rains [ Editor’s Note :  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.  If you need legal advice, please consult an attorney.] In the wake of this week’s soaking rain and relatively mild temps — on the heels of record February snow —  it’s a good bet that thousands of formerly dry Twin Cities basements and previously well-functioning roofs have sprung a leak (or two) this week. Statistically, it’s further likely that at least a couple dozen of those homes are currently under contract (“Pending” on MLS), but haven’t closed yet. How are Sellers supposed to handle their not-so-timely moisture problem(s)? The quick answer: it depends on how big it is. It’s also the case that the Seller’s duty to disclose is ongoing; that is, if there’s a change in their home’s condition prior to closing, they’re obliged to let...

High Washout Rate [ Editor’s Note :  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.] One of the last things that can come up before would-be home sellers officially hire an agent is what Realtors call an exclusion (or sometimes protected) list. In plain English, it’s an agreed-upon list of prospects whom the Owner can sell to, without being obliged to pay a commission. As one might imagine, agents frown upon that practice — and are careful not to invest their time or marketing $$$ until the Seller fully commits (which is only fair). However, as long as the time period is limited and the list kept short, exclusions are usually not a problem for most Realtors. That’s because agents know that the vast majority of Seller leads don’t pan out, for one (or more) of these four reasons: Four Reasons One . Far and away the most common reason is that the prospective Buyer(s)...

“Can I Please Speak to Myra Mains?” [ Editor’s Note:   if you’re a regular reader, you may recall this post from previous years.  Normally, I re-run it April 1.  However, given that Google and other search engines already seem to be finding it early, I’m moving up the timing this year.] Courtesy of  now-retired  Edina Realty office manager Josh Kaplan, here is a classic April Fool’s joke for — make that  on  — Realtors, especially “newbie” Realtors. The front desk leaves a voicemail for the intended Realtor-victim (plural, ideally), telling them that they have a lead for them. The prospect’s name is “Myra Mains”; her number is 612-927-****. Here’s what happens next: Realtor : ‘This is Jane Doe at Edina Realty. Can I please speak to Myra Mains?” Other line : . . . . ‘click’  (sometimes preceded by a “Ha! Ha! Very funny!”). It’s funniest when the Realtor persists and re-dials a couple of times before catching on. The phone number, of c...

Good Luck Finding a Comp (“Comparable Sold Property”) Full disclosure: I haven’t shown the unit, have no firsthand knowledge of its features, and don’t know the Seller or their listing agent or broker. But, based solely on MLS photos and stats, I’m hard-pressed to think of another condo in Minneapolis — or anywhere in Minnesota — as unique as #701 at 601 Marquette Avenue in Downtown Minneapolis. Equal parts Manhattan penthouse and James Bond (“Fast & Furious?”) villain lair, the unit sits atop a downtown building, with the rooftop doubling as its own private balcony. The listing agent extolls: “You will own the top 3 floors of the entire building with sweeping downtown views, and your own private entrance all while being connected to the skyway! 3 fireplaces, a chef’s gas range, 2 washers/dryers, 2 dishwashers, 3 ovens and Italian marble throughout! There is a private elevator that opens directly into the condo and then there is also an elevator within the condo to get fr...

Almost 1,000(!) Twin Cities Lakes OK, so a home on Minneapolis’ tony Lake of the Isles is going to cost a teensy bit more than one on say , Grass Lake (never mind the property taxes). But, with 13 lakes within its borders, Minneapolis offers a range of lakefront homes, both style-wise and by price point. In fact, with almost 1,000(!) lakes in the Twin Cities metropolitan area , there’s really no reason to drive an hour (or three) — often on congested roads — to a lakeside cabin. Unless you want to . . . See also , “ Cabin Conspiracy: “Getting Away to the Lake for the Weekend “; and “ True Minnesotan,” Defined. from RSSMix.com Mix ID 8230700 https://ift.tt/2JqDPDi via IFTTT

Actions > Words, Real Estate Edition So, how do you tell if a home Seller is motivated? Test your knowledge of today’s housing market, and identify the correct answer(s) below: A. The home is realistically priced; B. If the home hasn’t sold after a reasonable amount of market time (depends on price point, home attributes), the Seller reduces the price; C. The home shows well, and is aggressively marketed by a good Realtor; D. On MLS, the listing is peppered with verbiage like “Motivated Seller!,” “All serious offers considered!,” etc. Answer :  all correct except “D.” My favorite example of faux Seller motivation is a New Yorker cartoon that shows a father and son in front of a store front window plastered with signs blaring, ”Must Liquidate!,” “90% Off!,” “Going Out of Business!, ” etc., etc. The caption? “Some day, son, this will all be yours.” P.S.:  Which comments do you take at face value in the real estate biz? When a prospective client, short...

A property manager’s job is not incredibly difficult if they know what they are doing. They find good tenants, they get a lease signed, they collect rent, and they check on the properties once in a while. At least that is what a lot of landlords think when they consider using a property manager for ... Read more The post When Should a Landlord Hire a Property Management Company? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2OfI0jZ via IFTTT

“But, the Seller’s Disclosure Doesn’t SAY Anything About a Wet Basement!” (not yet, anyways) As Realtors if not the general public know, the MLS status “TNAS” — short for “Temporarily Not Available For Showing” — has a catch-all status. So, TNAS can cover everything from the Seller having out-of-town guests, to someone in the household being sick, to entertaining (more common over the holidays).   See , “Is That, “TNAS-There’s-a-Deal?” Or, “TNAS-the-Plumbing-Sprang-a-Leak? “; and “ TNAS” Scenarios .” However, in the wake of record area snowfall last month, and now rapidly rising local temps (plus last week’s drenching rain), it’s a good bet that the majority of “TNAS” homes on MLS today are dealing with exactly one thing: a wet basement. As of this morning, about 1,300(!) Twin Cities homes** were listed as “TNAS” . . . **Note: the Twin Cities’ MLS also includes properties in non-metro locations such as Aitkin, Hastings, Le Sueur, etc. P.S.: Once homeowners have addressed th...

Realtor Email Etiquette:  “Do’s” and “Don’t’s” How do you effectively double the already large number of emails between two Realtors working on a transaction together? Have one explicitly request that the other acknowledge receipt of each and every email they send. Yup , I’ve run into agents who subscribe to that annoying practice. Which is why I don’t do it, with two exceptions (applies to my communication with clients as well): One . There’s reason to believe someone’s emails aren’t getting through. The most likely explanation:  an email filter that mistakenly identifies the sender’s emails as spam (not that Realtors ever send spam ). Until the problem is fixed, confirming that something was actually received makes sense. Two . There’s an offer(!) attached to the email. Then, it’s smart to document receipt. Especially when the attached offer is my client’s, however, I never rely solely on a written record of receipt. Long before I send the offer — agents almos...

Metaphorical & Literal Definition #1 — at least at the end(?) of a long, snowy Minnesota winter — is easy: “Watch your back!” literally means, “Be careful you don’t strain your back [while shoveling].” Which leaves two, more metaphorical definitions. Definition #2: “Be on the alert (for an unseen or unsuspected betrayer)”; to a friend or intimate. Definition #3: Tactical (vs. solicitous): Sargeant : “My platoon is attacking the machine gun nest from the left flank. Commanding officer : “OK, but watch your back.” See also , “ Which ‘Done” Did They Mean? “; “The Many Guises of ‘Hot Dog’ “; “ The Multiple Meanings of “What Do You Know?!?” “; and “ “Shut Up!” Has 9 Different Meanings? Shut Up!! (No, YOU Shut Up!). ” Plus : “ “Take it Outside”: the ORIGINAL Meaning “; and “Small Word, LOTS of Meanings: “On .” from RSSMix.com Mix ID 8230700 https://ift.tt/2TQPLCg via IFTTT

Mistitled — & Misleading [ 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.] “Tell me where I’m going go die, so I won’t go there.” –Berkshire Hathaway’s Charlie Munger. Sorry , notwithstanding its alluring title (“How to Avoid the Next Real Estate Downturn “), you’ll find no such guidance in The New York Times’ “Your Money” article. In fact, unless you consider “Buy low, sell high” to be novel advice, a better title for the platitude-filled piece** would be “How to Weather the Next Real Estate Downturn.” And exactly how do you do that? According to the article, by having enough liquidity not to be forced to sell when prices are low. Whenever that may be . . . **Other examples: “Real estate has a good track record. But we know that downturns are going to come along from time to time”; and “The value...

How Many Real Estate Marketing Errors Can You Spot? To my eye, the listing agent marketing a certain Fern Hill Rambler now commits not one but two mistakes trying to push Buyers’ “Fear of Missing Out” button: One . In an ongoing Seller’s market with too little inventory, it’s certainly plausible that any new-to-market listing will sell fast. But, not because the listing agent (representing the Seller) says so. Rather, because the market says so. In turn, that depends wholly on the specific home’s list price, condition, staging and, yes , marketing (including Realtor-to-Realtor networking, social media exposure, flattering photos and verbiage, etc.). Marketing Misfire(s); “If You Say So” Dept. Two . When the agent’s FOMO (“Fear of Missing Out”) strategy didn’t work, they failed to update their marketing verbiage on MLS accordingly. So, the destined-to-sell-fast Fern Hill rambler originally debuted on the market . . . last September. In fact, the listing’s CDOM (“Cumulative D...

Winter 2019 One-Two Punch: Record Snow Followed by Thaw, Heavy Rains [ Editor’s Note :  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.  If you need legal advice, please consult an attorney.] In the wake of this week’s soaking rain and relatively mild temps — on the heels of record February snow —  it’s a good bet that thousands of formerly dry Twin Cities basements and previously well-functioning roofs have sprung a leak (or two) this week. Statistically, it’s further likely that at least a couple hundred of those homes are under contract (“Pending” on MLS), but haven’t closed yet. How are Sellers supposed to handle their not-so-timely moisture problem(s)? The quick answer: it depends on how big it is. It’s also the case that the Seller’s duty to disclose is ongoing; that is, if there’s a change in their home’s condition prior to closing, they’re obliged to let the Buy...

High Washout Rate [ Editor’s Note :  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.] One of the last things that can come up before would-be home sellers officially hire an agent is what Realtors call an exclusion (or sometimes protected) list. In plain English, it’s an agreed-upon list of prospects whom the Owner can sell to, without being obliged to pay a commission. As one might imagine, agents frown upon that practice — and are careful not to invest their time or marketing $$$ until the Seller fully commits (which is only fair). However, as long as the time period is limited and the list kept short, exclusions are usually not a problem for most Realtors. That’s because agents know that the vast majority of Seller leads don’t pan out, for one (or more) of these four reasons: Four Reasons One . Far and away the most common reason is that the prospective Buyer(s)...

In the coming year, RPR will improve its commercial resources by expanded commercial data licensing, implementing commercial product integrations and strengthening strategic outreach programs with commercial brokers and franchisors. from RSSMix.com Mix ID 8230700 https://ift.tt/2T2M2Nq via IFTTT

“Can I Please Speak to Myra Mains?” [ Editor’s Note:   if you’re a regular reader, you may recall this post from previous years.  Normally, I re-run it April 1.  However, given that Google and other search engines already seem to be finding it early, I’m moving up the timing this year.] Courtesy of  now-retired  Edina Realty office manager Josh Kaplan, here is a classic April Fool’s joke for — make that  on  — Realtors, especially “newbie” Realtors. The front desk leaves a voicemail for the intended Realtor-victim (plural, ideally), telling them that they have a lead for them. The prospect’s name is “Myra Mains”; her number is 612-927-****. Here’s what happens next: Realtor : ‘This is Jane Doe at Edina Realty. Can I please speak to Myra Mains?” Other line : . . . . ‘click’  (sometimes preceded by a “Ha! Ha! Very funny!”). It’s funniest when the Realtor persists and re-dials a couple of times before catching on. The phone number, of c...

Good Luck Finding a Comp (“Comparable Sold Property”) Full disclosure: I haven’t shown the unit, have no firsthand knowledge of its features, and don’t know the Seller or their listing agent. But, based solely MLS photos and stats, I’m hard-pressed to think of another condo in Minneapolis — or anywhere in Minnesota — as unique as #701 at 601 Marquette Avenue in Downtown Minneapolis. Equal parts Manhattan penthouse and Bond villain lair, the unit sits atop a downtown building, with the rooftop doubling as a private balcony. The listing agent extolls: “You will own the top 3 floors of the entire building with sweeping downtown views, and your own private entrance all while being connected to the skyway! 3 fireplaces, a chef’s gas range, 2 washers/dryers, 2 dishwashers, 3 ovens and Italian marble throughout! There is a private elevator that opens directly into the condo and then there is also an elevator within the condo to get from level to level.” No doubt due to its size (3,...