Robert Guthridge's Blog

Learning to Love (OK, Like) Split-Level’s What’s so great about opening the front door of a home and finding yourself standing in the middle of the Living Room? Or maybe the Kitchen? That’s been my experience in any number of newer, upper bracket homes — homes that supposedly boast the latest and greatest of everything, and reflect the hottest trends. By contrast, no one seems to want a Split-Level. The floor plan strikes some as awkward. The curb appeal can be underwhelming. Plus, there’s no grand entry. On the contrary, if the Split-Level is also a Split-Entry . . . . you have to decide whether to go up . . . or down! Advice to Home Buyers So what? What Split-Level’s lack in sex appeal, they often make up in functionality. And price (as in value). And construction quality: the majority of the Split-Levels in the Twin Cities were built in the 50’s and ’60’s — a golden era for home construction quality if there ever was one. Which is another reason to love ( OK , like) t...

Back to the Future You’d think, in an age of online everything, that it would be easier, not harder, to do due diligence on new home builders now. Especially small home builders, who may only build a handful of homes a year. Unh-unh. As recently as five years ago, it was possible to go to the web sites of the Minnesota Department of Commerce, Attorney General’s office, etc. and find out if a contractor had left a trail of complaints, fines, and the like. Now? Even builders I know who have been sued multiple times are invisible online, because: 1) any settlement(s) with previous clients include non-disclosure clauses; and/or 2) they’re doing business under a new name. Meanwhile, online review services like Yelp may be great for picking a pizza parlor or local bakery, but I certainly wouldn’t choose a contractor to build a $500k (or more) new home that way. Even so-called curated services, such as Angie’s List, have spotty data on new home builders: locally, there are reviews fo...

Ground-scraping interest rates turn savers into speculators and quarantined millennials into day traders. They facilitate overborrowing, suppress market signals, misdirect investment dollars, and promote the dubious business of turning well-financed public companies into heavily indebted private ones.” –James Grant, “Powell Has Become the Fed’s Dr. Feelgood”; The Wall Street Journal 6/28/2020 Except for Jim Grant’s concerns (above), I’m all for the Federal Reserve’s unprecedented role supporting the stock market and broader economy ( no , those aren’t the same things), as they contend with the fallout from the Coronavirus pandemic. How long can the Fed keep it up? As Richard Nixon’s chief economist, Herbert Stein, once opined, “whatever can’t continue forever . . . won’t.” from RSSMix.com Mix ID 8230700 https://ift.tt/388SgEB via IFTTT

Interior Decorating Tip #34 If you want to give a Living Room or Family Room a luxurious feel, you could pop for an Oriental rug costing $2,000, $5,000 — or more. Or . . . you could spend $100 or so to get an especially thick carpet pad to put under a more modest rug — and achieve something very similar. P.S.: the reverse is also true, i.e., a cheap carpet pad (or none, like I’ve seen in several finished basements lately) makes an expensive rug or carpet seem cheap. from RSSMix.com Mix ID 8230700 https://ift.tt/3ibDUYz via IFTTT

Homing Instinct Sellers frown on Buyers moving in before closing, for about 27 (valid) reasons. But, the Momma raccoon that set up housekeeping in my client’s window well hardly asked anyone’s permission. And since my clients moved out-of-town well before closing, it fell to the Buyer — and specifically, their pre-closing walk-thru inspection — to discover them. Instead of insisting that the Seller call animal control (or an exterminator!), however, the Buyer graciously decided to leave the Momma and baby raccoons alone, and let time — and a helpful 2 x 4 they put in the window well — take its course. from RSSMix.com Mix ID 8230700 https://ift.tt/31aL6y0 via IFTTT

Robert Kiyosaki’s book Rich Dad Poor Dad was a huge motivator for me to invest in real estate. However, it did not teach me how to actually invest: just that I needed to. I hear all the time how great the book is, and I agree that it was a great book, but I don’t ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/317yxDE via IFTTT

Things are so good in the housing market, that the data from May for SoCal home sales hit an all-time record low. That is right, this was the worst performing May in recent memory in terms of sales volume. This is a critical point because sales volume was already very thin even before the pandemic […] from RSSMix.com Mix ID 8230700 https://ift.tt/2zRqjVb via IFTTT

“Substantially the Same Condition” & The Golden Rule “I know it when I see it.” –Supreme Court Justice Potter Stewart, on the legal definition of what constitutes pornography. “Buyer has the right to a walk-through review of the property prior to closing to establish that the property is in substantially the same condition as of the date of this Purchase Agreement.” –Minnesota Purchase Agreement, lines 357. – 359. [ Note to Readers : 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.] Unfortunately, not everything in real estate — or life! — lends itself to a bright line test, or clearly articulated legal standards. Like , “substantially the same condition.” Case in point:  how clean is clean when it comes to Sellers handing their now-empty home over to Buyers? After 18+ years in real estate and hundreds of clo...

Square Pegs into Round Irregular Holes Due to unique shapes of rooms — measurements may vary — please measure if buyer wants exact measurements of L-shaped rooms.” –Excerpt, MLS “Agent Remarks” field. 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 18+ years representing Sellers (Buyers, too). Plausibility Test In practice, my experience has...

City Lakes Real Estate Blog Tops the List (Google’s) So, how do you get to be the best Realtor blog in America? Start with a daily post featuring a topical bit of real estate-related news or analysis (usually). Then, write 6-8 more such pieces the same week. Finally — and here’s the hard part — repeat weekly . . . for 13 years(!). Really . . . Thanks for visiting! *According to Google, “City Lakes Real Estate Blog” is the highest-ranked individual Realtor blog (vs. list of blogs) in the U.S., searching under these terms: “best U.S. Realtor blog,” “best Realtor blog,” “top U.S. Realtor blog,” and “best U.S. real estate agent blog.” Trivia item #2: more unique “City Lakes” posts appear in Google searches daily — about 100 — than the vast majority of Realtor-bloggers have written. Ever. from RSSMix.com Mix ID 8230700 https://ift.tt/3d6kQHy via IFTTT

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, wa...

 . . . . Or One [ Note to Readers : 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.] Realtors representing Sellers (better known as “listing agents”) tend to be a lot more focused on Written Statements — and specifically, Written Statement deadlines — than their clients. There are two reasons for that: 1) it can be a technical subject (see below); and 2) most Buyers’ lenders meet the deadline, so there’s no problem — and no need to concern the Seller. However, that hardly means that the Written Statement deadline is trivial. On the contrary, I refer to it as “the second most important date in the Purchase Agreement” — at least in a financed (non-cash) deal. That’s because it signifies when the Buyer has received final underwriting approval from their lender. Not incidentally, it’s also the point in a deal when the Buyer’s ea...

Home Maintenance — Summer Edition Unlike an exceptionally dirty car, no one ever wrote “wash me” on a filthy central a/c unit. But, maybe they should. A clogged a/c grill decreases the unit’s air flow, which makes it run hotter . . . which decreases its life expectancy. Fortunately, the solution is cheap and simple: 1) turn off the unit (to avoid an electrical issue); then 2) aim a garden hose at the clogged grill to wash away the accumulated debris. P.S.: As a Buyer’s agent, whenever I see a neglected a/c unit, I wonder what else the Seller has neglected that I can’t see. See also , “ How Much of a Discount for No Central A/C? .” from RSSMix.com Mix ID 8230700 https://ift.tt/2zEhFJB via IFTTT

I have flipped almost 200 houses in my career and I will pass that 200 mark later this year. I have also bought close to 30 rental properties that have ranged from 800 to 68,000 square feet. Over the years, I have learned a lot about how to remodel homes. In fact, even as a ... Read more The post How to Remodel a House appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2Y8myUM via IFTTT

Prospective Home Sellers’ Four Big Sins: Music, Mirrors, and Masking Scents & Paint Like Richard Nixon and Watergate, in real estate, too, “the cover-up is worse than the crime.” In that vein, here are four things that home Sellers misguidedly do to throw Buyers (and their agents) off the, umm . . . scent. One . Too-loud Music. Tasteful, background music can set a nice mood — and show off the home’s built-in speaker system. However, too-loud music invariably arouses suspicion: what nearby nuisance is the Seller trying to divert your attention from? The most common culprit: (too) nearby road traffic. House of Mirrors Two . Mirrors (plural). One mirror — especially over a fireplace — is textbook staging. However, an overly large mirror — or too many of them — immediately suggests a Seller (or more likely, their stager) who’s trying to compensate for a too-small room. Three . Masking scents, i.e., air fresheners, etc. In my experience, Sellers are trying to cover one of...

The “You Know it When You See it” Test While it’s true that every Mid-Century Modern home was built in the 1950’s (or thereabouts), it’s decidedly NOT the case that every home built in the 1950’s is a “Mid-Century Modern.” In fact, in real life, very few are. On MLS, for every home that I see billed as being a “Mid-Century Modern,” perhaps only one in four (25%) really qualify. The rest are more properly described as “ inspired by Mid-Century Modern design,” “Mid-Century Modern style ,” and other adulterated adjectives. Not-So-Telltale Sign: Name Brand Architect So, what qualifies as the real thing? (apologies to Coke). If the home was designed by an architect famous for their Mid-Century Moderns, their firms, or by one of their disciples . . . it probably is. That list includes Joseph Eichler, the Keck brothers (George Fred and William), Henry P. Glass, Ludwig Mies van der Rohe, and Frank Lloyd Wright. Of course, if any of those architects designed the home, the listing age...

Realtor Freudian Slips? I found a Post-it note on the ground in the Edina Realty-City Lakes parking lot the other day that read: “Seller checking on Pending Assess.” I’m pretty sure they meant “Assessment” — just not 100% sure . . . P.S.: Theory #2 — somebody (the listing agent and/or Seller) didn’t like the Buyer. Se e also, “ Realtor Gaffes — Listing Presentation Edition “; “ Realtor Gaffes & Bloopers “; “ Buyer Freudian Slips “; “ Realtor Freudian Slips “; and “How’s THAT For Seller Candor. ” from RSSMix.com Mix ID 8230700 https://ift.tt/3hytYID via IFTTT

Fast Friends at Lake Bde Maka Ska (Lake Calhoun) About a zillion years ago at The Punchline nightclub in San Francisco, I heard a hilarious bit by (a then unknown) Rob Schneider recounting the various usages of the word “Dude.” As in . . . #1. Greeting (“Dude!”); #2. Approval (“Du-u-u-de!”, upbeat); #3. Disapproval (“d-u-d-e,” in a low tone); #4. Warily, as in “Is that a stranger in my bedroom closet?” (‘d-u-u-u-de??’). And so on (I think Schneider topped out at 12 meanings). Canine vs. Homo Sapiens   In the same vein (sort of), I count at least seven definitions of “hot dog” (the first two feature pictures of my own Golden Retriever, above and below): One . An overheated, panting canine — like mine at the end of a walk around Lake Calhoun on a particularly humid day. Two . Popular dog. The same canine, refreshed and revived barely five minutes later, surrounded by his new best friends (strangers who asked if they could pet him). T...

Flushing Out the Seller’s Bottom Line (or trying to) Listing agents (representing the Seller) know that there are three cards you never show the other side: 1) the client’s bottom-line price; 2) their preferred purchase agreement terms (closing date, down payment, earnest money, etc.); and 3) their motivation. Which doesn’t mean that Buyers don’t try to find out. One of the most common ploys, in the early, informal stages of negotiating, is for a would-be Buyer to verbally ask (through their agent), “would the Seller take $___ for their home?” Verbal Probe The problem with such a hypothetical question is that it flushes out the Seller’s price, but doesn’t obligate the Buyer to buy. If the Seller answers “Yes,” the chances are good that any resulting offer — assuming there is one — will come in below the just-tested price. Negotiating 101 All of which is why an experienced agent will parry the question by asking the Buyer, “are you offering $___?” If they answer affirmativel...

Hiding Highlighting Potential Dealbreakers OK , so the listing agent (representing the Seller) didn’t tell prospective Buyers that they may want to skip her client’s “For Sale” Edina home. She told Buyers’ agents. Specifically, the listing agent used an MLS section only visible to Realtors, “Agent Remarks,” to highlight a potential deal breaker: If your clients are looking for a home with an open floor plan or the possibility of opening upwalls to create an open floor plan, then this home probably will not work for them. The main level is not conducive to being opened up due to the location of the stairs to both the basement and the second floor. With the Covid-19 health concerns they are trying to eliminate showings to potential buyers that the home will not work for.” –Excerpt, MLS “Agent Remarks” Quality > Quantity Won’t such a marketing strategy cost the Seller showings? Undoubtedly. But, I’d argue: so what? Far better to have fewer but higher quality showings,...

13th(!) Straight Year on the List Mpls. St. Paul Magazine and Twin Cities Business typically notifies local Realtors via letter in early May that they’ve been nominated as a “Super Real Estate Agent.” When I saw this year’s letters in colleagues’ in-boxes a month ago — but not mine — I dejectedly reconciled myself to the notion that my 12-year streak had come to an end. That is, until yesterday. That’s when I received a voicemail reminder from Five Star Professional informing me that I’d yet to complete my 2020 Super Real Estate Agent application (“Five Star” conducts the market research for Super Real Estate Agents). It turns out that I AM on this year’s list, which means somehow my announcement letter was misdirected. Phew!! See also , “ 2018 “Super Real Estate Agent” Nominees Announced “; “ Mpls. St. Paul Magazine Announces 2016 ‘Super Real Estate Age nts’”; “ 2015 Mpls. St. Paul Magazine ‘Super Real Estate Agents “; and “ 2015 Mpls. St. Paul Magazine ‘Super Real Estate A...

“Just Sign Here” [ Note to Readers : 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 sounds less intimidating (at least if you’re not a lawyer): “let’s meet at my office at 6:30 p.m. to go over the paperwork.” Or, “let’ s meet at 6:30 p.m tonight to review and sign the contracts.” At least to my ear, Option #1 — which is what I tell prospective Buyers. First Things First When I first meet with new clients, I usually open with the standard Minnesota “Agency Relationships” form, for two reasons: One . State law. Minnesota stipulates that state Realtors are to review “Agency Relationships” with prospective clients at the “first substantive contact.” Rather than parse exactly what constitutes “first substantive contact”, it’s smartest and simplest to get it out of the way first. Two . Buyer psychology (also known as “easing...

New & Improved Housing Stock — and a Price to Go With! [ Note to Readers : 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.] Once upon a time — OK , until around a decade ago — the Linden Hills neighborhood in southwest Minneapolis was known for its eclectic blend of housing stock. So, mixed in with the upper bracket homes overlooking Lake Harriet and Lake Calhoun always seemed to be an equal number of “cottage-y,” older homes further away from the lakes that were relatively affordable. Today? Not so much. Average(!) List Price: $975k According to the Multiple Listing Service (“MLS”), the average list price for the 32 Linden Hills single-family homes currently on the market is $975k, including several newly built or extensively remodeled ones in the last few years. That’s more than triple the median Twin Cities s...

I have flipped more than 190 houses in my career, remodeled rental properties, and even fixed up properties for banks when I was an REO broker. Over the years, I have learned a lot about what repairs or remodel projects add the most value to a home. It can be easy to miss simple things ... Read more The post What Remodel Projects Add the Most Value to a House? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2Un5Ezj via IFTTT

I have flipped more than 190 houses in my career, remodeled rental properties, and even fixed up properties for banks when I was an REO broker. Over the years, I have learned a lot about what repairs or remodel projects add the most value to a home. It can be easy to miss simple things ... Read more The post What Remodel Projects Add the Most Value to a House? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2Un5Ezj via IFTTT

Rallying Cry: Defund the Police [ Note to Readers : 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.] When one police officer commits an act of brutality, you fire the officer, then hold them legally accountable in a court of law. When there are dozens of documented instances of police brutality, you fire the police chief, and give their replacement a mandate to reform the department. When there are literally hundreds of complaints regarding excessive police force spanning decades . . . you start over. Local — and National — Turning Point Minneapolis — and the country — are clearly now at stage #3. THAT’S what explains the collective, national (and worldwide) outpouring of grief and rage in response to George Floyd’s murder while in police custody in Minneapolis scarcely two weeks ago. If it’s true that “a crisis is a terrib...

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 ...

It seemed that 2020 was already turning out to be a relatively challenging year with a massive global pandemic ravaging the world. Now we have nationwide unrest with protests and rioting. Yet somehow with all of this disturbing news, housing values remain strong. Now is this simply a lag factor? Is it because people are […] from RSSMix.com Mix ID 8230700 https://ift.tt/2XSXbVz via IFTTT

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Third time’s a charm! RPR’s May episode of “The Wow Factor” is all about how REALTORS® can leverage RPR and social media to ramp up and get back to business. We chat with Broker/Owner Neal Oates Jr. about one-on-one video messaging, sending market value reports to spark conversations,, and so much more. There’s also a how-to on using RPR with Canva to create market value charts and graphics that will get you noticed. from RSSMix.com Mix ID 8230700 https://ift.tt/3dponli via IFTTT

Many people dream of quitting their jobs and running their own business. Becoming a full-time real estate investor may be one of the easiest ways to achieve this dream. However, making enough money or feeling comfortable enough with real estate takes a lot of work and time. While it might be one of the easiest ... Read more The post How to Become a Full-Time Real Estate Investor appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/3dnb58J via IFTTT