Robert Guthridge's Blog

Why see a home that you likely can’t buy? In a nutshell, that explains why showings drop precipitously once a “For Sale” property is officially under contract. That’s because, in most cases, Buyers and Sellers successfully resolve any inspection issues, and the transaction ultimately progresses to a smooth closing 4-6 weeks later. Two Exceptions That said, I can think of two scenarios when it can be smart for Buyers to see a home that’s sold, subject to inspection (assuming the executed Purchase Agreement allows it): One . Multiple offer feeding frenzy. In a (too?) fast-moving market characterized a shortage of inventory, at least a few Buyers are forced into bidding on a home before they’re ready. Result? Once the dust settles and emotions cool, Buyer remorse kicks in, and the winning bidder decides to walk. Two . Older and/or bigger home. Which home do you suppose is more likely to have an inspection issue (or several of them)? a) the cute-as-a-button, move-in condition 3...

When Does a “For Sale” Home Stop Being the Seller’s? Especially for newer, less established agents, it’s common to represent friends and relatives in the sale of their home (over time, successful Realtors’ sphere grows beyond those groups). How do they (we) keep emotion out of the deal — especially when the agent may have their own connection to the home? Here’s my two-part answer: One . An agent who’s doing their job will often recommend — in fact, needs to recommend — numerous prep and staging steps that serve to “de-personalize” the home. That includes removing personal effects such as family photos; replacing old paint and carpeting with new and more neutral choices; and generally making the home more generic and even slightly empty-feeling (at least, to the long-time owner). Especially if it’s been years (decades?) since the home’s been on the market, the net effect can be to render the home very different from the one the owner — and their relative-cum-Realtor — remember...

Many people use Zillow to value a home, but how accurate is Zillow? Zillow uses what they call a Zestimate to give values on homes for almost every house in the United States. The problem with the Zestimate is it uses a computer algorithm to come up with a value. When valuing real estate you ... Read more The post How Accurate is Zillow’s Zestimate? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 http://bit.ly/2HKdLQy via IFTTT

Many people use Zillow to value a home, but how accurate is Zillow? Zillow uses what they call a Zestimate to give values on homes for almost every house in the United States. The problem with the Zestimate is it uses a computer algorithm to come up with a value. When valuing real estate you ... Read more The post How Accurate is Zillow’s Zestimate? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 http://bit.ly/2HKdLQy via IFTTT

Realtor vs. Non-Realtor Definitions To a non-Realtor, the idiom, “I’m not buying it” roughly translates to, “I don’t believe your [obviously bogus] explanation.” To Realtors, however, the phrase means something much more literal. Namely — at least when uttered by a Buyer’s agent — “I’m not buying it” translates as, “I’m not buying the home . . . my client is .” Showing Feedback The typical context:  post-showing feedback from the buyer’s agent to the listing agent (representing the Seller), which goes something like the following:  ‘the home showed great, had wonderful curb appeal, and is well-priced . . . but I’m not buying it , my client is (and they weren’t crazy about it).” If there’s a silver lining for Sellers, it’s that complimentary feedback from a showing agent — at least one with experience and a good eye — is a good omen. P.S.:  To avoid confusing what the Realtor  thought of the property vs. what their client thought, some feedback forms...

Not Mutually Exclusive At least at the moment, there’s no need to choose between “Lake Calhoun” and “Lake Bde Maka Ska.” That’s because — in the wake of unceasing local rain — the primary lake now has at least two satellite lakes. The larger body of water (top photo) is at the southwest corner of the lake; the more pond-like pool (above left) is off the northeast corner. All the rain (and cool temps) are certainly a drag, especially after an especially brutal winter. But, they beat tornadoes and epic flooding elsewhere in the Midwest . . . from RSSMix.com Mix ID 8230700 http://bit.ly/2VVEDRA via IFTTT

Big Change(s) in Store for Lake Bde Maka Ska (and it’s not the name) Yeah, Yeah , I know “Tin Fish” wasn’t the name of the restaurant on the northeast corner of Lake Calhoun that was destroyed by fire two weeks ago. After a 14-year run, it closed in 2017, and Lola’s on the Lake replaced it last year. But, at least to the locals (myself included), it never really stopped being the Tin Fish. Now, in then wake of a fire of dubious origins two weeks ago, the site is  . . .  nothing (officially, it’s an in-progress demolition surrounded by a yellow-taped no-man’s land). Nod to Higher Density What will replace it? I don’t think anyone knows at the moment. But, I have a suggestion: in the spirit of Minneapolis 2040 and higher urban density, why not construct a bigger, multi-story building — one that’s suitable for year-round use, not just the Summer? The location could very well be the best in Minneapolis, if not the Twin Cities. It’s not hard to conceive of a 2-story or ...

Home Sale “Bones of Contention” — and How to Avoid Them Sellers don’t want to pay special assessments that are payable after closing . . . because they’re not going to be the owner then. It makes sense for the Buyer to pay it, they reason, because it’s the Buyer who’s going to enjoy the future benefit of whatever the special assessment is paying for (examples: new water/sewer pipes, sidewalks, curbs, etc.). That’s especially true if the item is arguably an improvement (vs. a repair). Meanwhile, Buyers have equally compelling logic for why the Seller , not them, should be on the hook:  the special assessment may be due post-closing, but the problem it’s addressing occurred on the Seller’s watch. That stalemate can also trip up condo and townhome sales, with similar arguments applying. Think of it this way: in the sale of single-family home, if the Buyer’s inspector documents that the roof is failing, it’s the Seller, not the Buyer, who’s obliged to take the hit — either by pa...

Housing Market Misnomers One of the biggest misconceptions in residential real estate is that, to be a teardown, a home must first be falling down. Hardly. All “teardown” means is that the home is less valuable than the land underneath it. That can be the case for at least two reasons other than physical condition: One . The home is undersized relative to its lot size. Dozens (hundreds?) of perfectly habitable ’50’s ramblers in choice Edina neighborhoods have been torn down the last decade or so because they’re simply too small. When a 3 BR, 2 Bath rambler with 1,500 square feet sits on a .30 acre (or bigger) lot in an area of +4,000 square foot homes, it’s destined to be a teardown regardless of its condition, because the neighborhood supports new construction over $1.5 million (note:  if you live on the coasts, add a zero). Two . Functional obsolescence. Of course, it’s also the case that lots of those ramblers — while in perfectly good condition — also had small Bedr...

High Quality Problems to Have [ 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.] Which of the following roles pose a potential conflict of interest for a Realtor? (at least according to this one): A. Representing the same client as a Buyer in one deal, and as a Seller in another. B. Representing both the Buyer and Seller in the same deal. C. Representing potentially competing Buyers — that is, whose purchase criteria (price range, preferred neighborhood(s), etc.) overlap. D. Representing competing Sellers. Answer key: A. No, perfectly fine — in fact, it’s done all the time. Many agents (myself included) would argue that this is actually simpler and more convenient for the client, who doesn’t need to act as a liaison between two different agents, or otherwise coordinate their actions. B. Unh-unh. At least...

The King Staged Closet Has No Clothes Conventional staging wisdom when it comes to closets ( yes , there is such a thing, at least for a walk-in master closet in a more expensive home) is that two-thirds full is optimal. Less than that, and the closet looks too empty; more than that, and it looks too full. I mostly go along with that, with the caveat that leaving an (almost) closet-full of clothes can draw Buyers’ eyes away from the space and towards the owner’s wardrobe, and taste in same (similar to the staging knock on too many family photos adorning the walls). Of course, a closet mostly full of clothes can also look smaller. Spare > Cluttered Which is why I very much like the spare, clean look of the staged closet (above), which is empty save for a well-placed dress form (Note:  Sellers of occupied rather than vacant homes don’t usually have this option). P.S.:  The staged fridge?!?  I wouldn’t have believed it, but a Buyer clien...

The Case For — and Against In a microcosm, the considerations for doing an open house over Memorial Day weekend are the same as for deciding whether to list a home during a traditionally slow time of the year (like around the holidays). Here’s how the arguments shape up: Pros : –Not much competition from other open houses, so the ones that are open stand out more. –Quality over quantity:  fewer Buyers are out on a holiday weekend, but the ones who are, are disproportionately serious, motivated, etc. Cons: –Fewer open houses over Memorial Day weekend, which holds down traffic (like car dealerships that cluster in the same area, having lots of nearby open houses helps attract Buyers). –Intrusion on family time, privacy.  Opening one’s home to the public — and doing all the cleaning and prep necessary ahead of that — isn’t necessarily how people want to spend a long holiday weekend (on the plus side, it’s a lot easier to kill a few hours away from home now than...

Listing Agent Hubris(?): Pre-Announcing Multiple Offers “Seller allowing showings to start on Friday. All offers to be reviewed on Monday noon. Price to sell to best offer on Monday.” –Excerpt, recent MLS listing. Call me old school, but the sequence for multiple offers that I’m familiar with is: Step #1: List home on the market. Step #2: Buyer showings commence. Step #3: Offer #1 received. Step #4: Offer #2 received. At that point — and only at that point — the listing agent (representing the Seller) typically contacts all interested parties (including the two Buyers who’ve submitted offers) to inform them that the home is in multiple offers. Part 2: announce the deadline for Buyers to submit their “highest and best” offers — usually, within 48 hours. “Ready, Fire, Aim” — Multiple Offer Version Now contrast that with the new protocol for handling multiples — as practiced by at least some agents — in today’s super-tight, inventory starved housing market: Step #1: Annou...

Negotiating is a crucial part of any deal, and lays the foundation for a clear, enforceable contract. Haggling is . . . an annoying waste of time. What’s the difference? Exactly two decimals. $10,000 vs. $100 So, a $10,000 item on a $250,000 house is the stuff of negotiation. A $100 item (or less) is haggling. (Note: accountants’ term for the difference is “materiality.”) P.S.:  It takes two to haggle. One side can put a stop to it by making clear that their final terms — whatever they are — are indeed final. Then the other side gets to decide if they want the deal or not. See also , “Splitting the Difference & Other Negotiating Tactics “; “ The Difference Between a Home Inspection Addendum and a Repair List” ; and “ The Key to Successful Negotiating:  Getting to Yes?  Or, Getting to No? “ from RSSMix.com Mix ID 8230700 http://bit.ly/2Jo2gjU via IFTTT

Look closely and you’ll see not one but two trunks at the base of this tree, about 1/2 mile west of Minneapolis’ Cedar Lake in St. Louis Park’s Fern Hill neighborhood. The tree — make that tree(s) — command a key intersection, which give passing motorists (and pedestrians) a treat this time of year. P.S.: a (slim) silver lining to this year’s stubbornly coolish, delayed Spring:  the prolonged blooming period — I’d guess 5-7 days instead of the usual 3-4. from RSSMix.com Mix ID 8230700 http://bit.ly/2Q4XckH via IFTTT

As stressful as selling a home and moving to another is for people . . . it can be even more so for family pets. The obvious reason: there’s no way to explain to them what’s happening (at least that I know). The cure? Extra attention, exercise, and TLC — and if that doesn’t work, a (temporary) course of canine Valium (a real thing — and a life saver for at least one dog-owning client of mine). from RSSMix.com Mix ID 8230700 http://bit.ly/2LJesxG 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 ...

When the Neighbors are the Dealbreaker Prospective Buyer :  “We love the house.  But we could never live across the street from that pornographic statue.” Phil Dunphy :  “Oh . . . huh . . . I never noticed it.” Prospective Buyer :  “ Yeah . . . you can see it from inside when you look out the window.” Phil Dunphy :  “ Oh . . . ahh . . umm . . are you talking about that one?” (points). Prospective Buyer :  “It’s quite large.” Phil Dunphy :  “I’ll take your word for it.” –Modern Family; “Marble With Wood” episode. Unlike TV Realtor Phil Dunphy, I’ve never had a listing torpedoed by an obscene statue on the neighbor’s front lawn (this is Minnesota, after all). But, I’ve had sales where the neighbor’s snowmobile(s)/kayak/under-repair-motorcycle was an issue. Sugar vs. Vinegar Step #1 is always a friendly, “We’d really appreciate it if you could relocate your [ _____ ] while our house is on the market.” If the “For Sale” homeowner doe...

In the housing market, home sales are a leading indicator as to where prices will head.  The priciest county in Southern California is Orange County and it has now faced the worst start of a year since the Great Recession ended.  Sales are low.  Extremely low.  We have more people in the county since that […] from RSSMix.com Mix ID 8230700 http://bit.ly/2WEkCA6 via IFTTT

Flipping houses can be a very lucrative business, but it is not easy to get started. House flipping is often glamorized by television and companies trying to sell house flipping training programs. The television and real estate investing gurus make flipping houses look easy when there is so much more involved than what they show you. ... Read more The post The Top 10 Mistakes New House Flippers Make appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 http://bit.ly/2rRqo3k via IFTTT

If you’re a prospective home buyer and are stumped by the acronym “EIK” — don’t worry, it’s not you (it’s them). While there are plenty of recognized acronyms and abbreviations in real estate . . . EIK isn’t one of them (at least not so far). For the record, it’s short for “eat-in kitchen” (I just came across a new listing that used it, along with way too many other acronyms). See also , “ Real Estate Abbreviations (or not): “FSF,” “FSZ,” “FP,” “FR,” & “FD” (“FD”?!?) .” from RSSMix.com Mix ID 8230700 http://bit.ly/2HgwOjM via IFTTT

Which “Hat” is the Other Agent Wearing? Well before a home comes on the market these days, good listing agents (representing the Seller) “prime the pump” with an aggressive, pre-list marketing campaign. That includes using the new “Coming Soon” status on MLS; exposing the home to Edina Realty’s agents-only “Network One” (note: be sure to hire an Edina Realty agent!); engaging in various Realtor-to-Realtor networking at weekly meetings; and using targeted blast (email) and “snail mail” marketing pieces. Plus, for a certain Realtor-blogger, showcasing the new listing on their blog post and with a Facebook boost. Nibbles from Buyers — and Sellers (Huh?!?) What happens next? What I’ll call “nibbles.” The vast majority of the time, they’re from Buyers’ agents scouring the market for anything new that might be a fit for their clients. Which leaves the other motivation: listing agents of similar, nearby properties, who want to know how soon they’re going to have (more) competition. ...

So, Where Are All the Garages?? Guess which of the following statements about the Country Club district in Edina are true: A. Fruit trees may not be planted on the boulevards. B. Country Club is known for relatively small lots. C. Front-loading garages were originally prohibited (and are still rare). D. Homes in Country Club cost (well) more than $1 million. Answers : all true except D. While the majority of Country Club homes do sell for more than $1 million, there are now two (out of 13) on the market for less than that. Bonus question: What was the putative reason for the relatively small lots? (Developers always have an economic incentive to build more house on less land.) Answer: so that residents would congregate at the country club to socialize, not in their backyards. Thanks to Edina Realty’s Andrew Olive for the above. P.S.: if you are a non-Minnesotan reading this blog, Country Club is one of the Twin Cities’ toniest neighborhoods, known for its gorgeous, immacu...

There are many definitions for being rich and being wealthy. To me, being rich is about how much money you make or appear to make, while being wealthy is about how much money you have. I know people who make $500,000 per year but have little to show for it because they spend it all. ... Read more The post What is Difference Between Being Wealthy and Rich? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 http://bit.ly/2LpsNz1 via IFTTT

There are many definitions for being rich and being wealthy. To me, being rich is about how much money you make or appear to make, while being wealthy is about how much money you have. I know people who make $500,000 per year but have little to show for it because they spend it all. ... Read more The post What is Difference Between Being Wealthy and Rich? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 http://bit.ly/2LpsNz1 via IFTTT

Health Care Winners and Losers [ 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.] No doubt Las Vegas bookies are already handicapping the 2020 Presidential election. Not to mention plenty of informal office pools around the country — at least, in offices that aren’t so polarized by today’s politics that the subject isn’t taboo. But, I’d submit, there’s an even better and arguably more sophisticated proxy for handicapping a certain President’s reelection chances: the stock price of Twin Cities-based health care behemoth UnitedHealth Group. Stock Price as Political Proxy Here’s my reasoning: Health care arguably is one of the Democrats’ two signature issues this election cycle (environmental protection is the other). If President Bernie Sanders (or Elizabeth Warren, or even Minnesota native daughter Amy Klob...

Square Pegs into Round Irregular Holes The input field on MLS for room sizes asks for two numbers: the room’s width and its length. Which works great if a room is rectangular. But what if it’s not? If the room has a dormer, is L-shaped, curved, or otherwise defies a standard “width x length” measurement, it’s a bit more challenging. Squaring the Circle I don’t know about other Realtors, but my usual way of dealing with such a room consists of three steps: 1) break the room up into “constituent” rectangles that capture its dimensions; 2) total up the square footage of said rectangles; and 3) convert that into a width and length that equal the same square feet. Is that kosher? Put it this way: I’ve never had an issue in 17+ years representing Sellers (Buyers, too). Plausibility Test In practice, my experience has been that if a home’s square feet and room dimensions seem plausible (if not conservative), Buyers are fine with it. And if the stats do not seem plausible . . . th...

Realtor-Client Double Standard There are really only two rules when it comes to proper attire for a home closing: 1) the Realtors and other professionals (closers and lender) should wear formal business attire (sorry, no “business casual”); 2) clients can wear whatever they want. Which I guess means there’s only one rule. For men, at least, “business attire” translates into business slacks and shirt (my usual uniform), if not a sport coat and tie, or even suit(!). P.S.: In fact, there seems to be a trend back to more formal Realtor attire generally.  See , “ Back in (Realtor) Fashion:  Ties, Sport Coats, and Scarves. ” See also , “ Will You Be at Closing?” (and Other Silly Questions)” ; “Cleared for . . . Closing “ ; “ The Most Important Closing Detail of All “; and “Passed Across the Closing Table:  Keys, Garage Door Openers, Bike Chains ( Bike Chains?? ) .” **When the Seller receives the money and the Buyer receives the title to the home (at least in Minnesota and...

Conspicuously Missing:  The “I-Want-To-Meet-My-Interior Decorator” Showing Once upon a time, Buyers’ agents who wanted to get their clients into a “For Sale” home simply logged onto MLS; selected the home they wanted to show and the requested time and date; and clicked “submit.” No more. Now, MLS has a pull-down menu (above) listing no fewer than nine types of showings, including “(first) Showing,” “2nd Showing,” and “Walk-Through Inspection.” New & Improved What’s the point of all that detail? It lets the Seller (and their agent) know whether the owner can stay put (permissible for Agent Previews), as well as whether the Seller should go to the trouble of getting all the lights on beforehand (strongly recommended for a 2nd showing, not so much for a 1st). When listing agents see “Appraisal” — typically with next to no notice — they know to hustle over to the house to walk the Appraiser through the Comp’s, and any other relevant activity. And, when...

Stock Analysts, Exterminators, and Realtors To stock market neophytes, it always seems like a massive overreaction when Company ABC or XYZ announces that it’s going to miss its next quarterly estimate by 1¢, and its stock price immediately craters by 10% (or 40%!). Ahh . . . but market veterans know what’s really happening. Namely, in today’s real-time, social media-saturated environment, companies know exactly what analysts are projecting for quarterly net income — and that any disappointment or shortfall will be met with harshly. Meanwhile, thanks to what’ll call the “accounting wiggle room” afforded by GAAP (at least as I recall as a CPA, once upon a time), companies have quite a bit of discretion accelerating revenues and/or deferring expenses, adjusting various reserves up or down, etc. If, with all those options — plus Wall Street’s unforgiving expectations — senior management can’t find a stray 1¢ or 2¢ of income “underneath the couch cushions” to avoid a certain stock p...

But First . . . a Brief History Lesson I don’t know about other states — I’m only licensed to sell real estate in Minnesota — but here, residential property taxes are due twice a year: May 15 and October 15. Those non-randomly chosen dates stretch back to when Minnesota’s economy — like practically every other state’s — was agrarian-based. The two times a year farmers predictably had money were in the Spring, before they’d planted; and in the Fall, after they’d harvested. Tax collectors — no dummies about such things — realized that those were the best times to dun its citizens for property taxes (note:  the May 15 payment covers the first half of the year; the October 15 payment the second half*). Debits and Credits Which leaves the more contemporary question, “if you’re selling your house in early (or late) May, do you pay the first half property taxes?” The short answer (or at least mine) is, it depends on whether the Buyer’s lender is escrowing (collecting in advan...

Trying to Keep the Playing Field Level “As you are no doubt aware, allowing a showing on your listing while it is in TNAS (Temporarily Not Available for Showing) status is a NorthstarMLS rule violation. We have changed the fine for this violation to the List Agent from $100 to $1,000. This reflects its more serious nature and brings it in line with the $1,000 fine amount that is already in place for showing a listing while it is in Coming Soon status .” –Northstar MLS (May 3, 2019). [ 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.] While I applaud the MLS’ decision to increase the fine for showing TNAS listings, I doubt that — even at $1,000 — the fine is a sufficient deterrent. That’s because the payout commission (offered to the Buyer’s agent) on even an average-priced Twin Cities home is significantly more. ...

The Overzealous Agent: Asset or Liability? Don’t squeaky wheels get the grease? And in a hyper-competitive multiple offer situation, isn’t an aggressive agent an asset? (nice alliteration, huh?) Yes . . . to a point. Beyond that point, hyper-aggressive behavior on the part of a Buyer’s agent can become a negative to the Seller (and their agent). Cause for Pause Non-stop phone calls and emails asking for updates, making an offer with an asterisk clause instead of an actual price, maneuvering (if not badgering), etc. can make the Seller pause and ask — legitimately — “do I really want to do a deal with this party?” How will it be to work with them on the multiple steps that inevitably follow signatures on the Purchase Agreement? Do I really want to negotiate inspection issues, if there are any, with such a Buyer and their Realtor? Especially if the Seller has a choice — the definition of multiple offers — the answer may very well be “no” (if not, “ Hell, no!”). P.S.: Buyers, ...

Pre-Closing Checklist Test your mastery of real estate minutiae, and answer the following multiple choice question: What’s the last (if not most important) pre-closing detail to get right? A. The client’s net number on the ALTA (federal closing worksheet). B. Still-needed signature(s) on any last-minute Purchase Agreement Amendments. C. The listing agent’s sign riders from the “For Sale” sign (once the sign’s pulled, the agent’s riders are never to be seen again). D. The location of the title company hosting the closing. Answer :  “D.” Especially on more complex deals with lots of twists and turns, it’s easy to lose track of the formal closing notice. Make that, “the last closing notice”: it can change locations and dates (multiple times, in fact). It’s also the case that the address given in the ALTA and actual closing location may not be the same; often, the former address is a main office and the latter is a branch. All of which is why explicitly conf...

Real Estate Negotiating Principles “Whomever speak first [in a negotiation] . . . loses.” –Anonymous. “Whomever proposes “splitting the difference” in a negotiation stands to get the better bargain.” –Corollary, Ross Kaplan. Veteran negotiators will attest to the truth of the first statement:  if you speak first, you never find out if the other side would have offered/accepted (even) more advantageous terms. It’s also the case that the more (over)eager party can’t restrain themselves, and gives that away by — yup — talking too much and/or too soon. But I’ve also found the second principle to be (mostly) true. The following is an exaggerated, fictional exchange — but serves to illustrate the usual dynamic. Buyer :  Here’s my written offer of $250k for your $500k (listed) home. Seller :  Sorry, that won’t work. I’m countering $485k instead. Buyer :  That’s still too high.  How about we split the difference? To be sure, there are situations...

People didn’t want to believe it but we are now shifting to a rental nation.  California is now a renter’s paradise and the idea that baby boomers who purchased property “back in the day” were going to stay in inflated properties while Millennials run around voting to protect said inflated properties never made sense.  Interestingly […] from RSSMix.com Mix ID 8230700 http://bit.ly/2DMPtTu via IFTTT

Health Care Winners and Losers [ 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.] No doubt Las Vegas bookies are already handicapping the 2020 Presidential election. Not to mention plenty of informal office pools around the country — at least, in offices that aren’t so polarized by today’s politics that the subject isn’t taboo. But, I’d submit, there’s an even better and arguably more sophisticated proxy for handicapping a certain President’s reelection chances: the stock price of Twin Cities-based health care behemoth UnitedHealth Group. Stock Price as Political Proxy Here’s my reasoning: Health care arguably is one of the Democrats’ two signature issues this election cycle (environmental protection is the other). If President Bernie Sanders (or Elizabeth Warren, or even Minnesota native daughter Amy Klob...

Square Pegs into Round Irregular Holes The input field on MLS for room sizes asks for two numbers: the room’s width and its length. Which works great if a room is rectangular. But what if it’s not? If the room has a dormer, is L-shaped, curved, or otherwise defies a standard “width x length” measurement, it’s a bit more challenging. Squaring the Circle I don’t know about other Realtors, but my usual way of dealing with such a room consists of three steps: 1) break the room up into “constituent” rectangles that capture its dimensions; 2) total up the square footage of said rectangles; and 3) convert that into a width and length that equal the same square feet. Is that kosher? Put it this way: I’ve never had an issue in 17+ years representing Sellers (Buyers, too). Plausibility Test In practice, my experience has been that if a home’s square feet and room dimensions seem plausible (if not conservative), Buyers are fine with it. And if the stats do not seem plausible . . . th...