Robert Guthridge's Blog

“There Oughta Be a Word For That” Dept. What do you call all the things outside a home — like concrete steps, pavers, custom handrails, retaining walls, etc. — that don’t quite qualify as “landscaping?” Answer: “Flatwork.” “Flatware” — the word it’s frequently confused with — refers to eating utensils and plates. from RSSMix.com Mix ID 8230700 https://ift.tt/2XaW04f via IFTTT

Everything You Wanted to Know About Ceiling Finishes As best I can tell, the reason it’s called a “knockdown ceiling” is because calling it a “knock-off ceiling” would have been too confusing. What gets knocked off — er, knocked down — is the joint compound that’s first applied to the ceiling, and allowed to partially dry. According to Wikipedia, “the joint compound will begin to form stalactites as it dries. A trowel is then run over the surface of the drywall, knocking off the stalactites and leaving the mottled finish.” “It’s Not Popcorn . . . it’s Acoustical!” Knockdown ceilings are distinguished from “flat” and “popcorn” ceilings, the two other most popular ceiling finishes. At least in some circles, popcorn ceilings have a slight stigma, because they’re cheaper and easier to do than flat ceilings. Some people (the same ones??) also consider them less aesthetic. from RSSMix.com Mix ID 8230700 https://ift.tt/2CXYHzj via IFTTT

Pre-List Networking Trial Balloon I’ve been in real estate sales for 18 years, and I still have no idea what a “$500-ish” price is. $520k, perhaps? Maybe $485k? In truth, I can imagine a “$500-ish” price falling anywhere between $480k to $530k or even higher. Buyer Trap? Which is no doubt precisely the point, especially in an ongoing Seller’s market characterized by too little inventory, especially at lower price points. Namely, for the listing agent (representing the Seller) to flush out the most motivated, deep-pocketed Buyers before the home officially debuts on the market, during the so-called pre-list networking phase. The catch for would-be Buyers? A fuzzy asking price can easily devolve into Buyers negotiating against themselves. Which is why my standard counsel in such situations is to wait for the Seller to commit to a firm asking price before checking out the home. P.S.: So, what does a Buyer offer for a home asking “$500-ish?” My suggestion: “$400-ish.” See als...

It Depends on What the Definition of “It” Is (and also “Fix”) “Fix “: Pronunciation /fiks/ /fɪks/ (Informal): Influence the outcome of (something, especially a race, contest, or election) by illegal or underhanded means. –Oxford Dictionary. [ 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.] When Candidate Donald Trump famously claimed in 2016 that “I alone can fix it” . . . maybe he was actually telling the truth. That is, if by “fix,” he meant “rig,” and if by “it,” he meant that Fall’s Presidential election (and perhaps, this year’s**). Clearly, Mr. Trump didn’t mean the other kind of “fix” — like , what a competent leader does to control a pandemic ravaging the populace and cratering the economy. Or “fix” as in, “safeguard the nation’s democracy from foreign interference and domestic vote suppression.” “Russia, Russia, Russia” At the very least, it’s cle...

Minnesota Specifies (Kind of) Timing of “Related Party Disclosure” Requirement [ 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.] Minnesota real estate agents have always had a duty to disclose that they were representing a family member in a transaction. The logic? To keep sophisticated pros (sharks?) from preying on taking advantage of everyone else (at least, that’s what I’ve always thought). But, the timing of that disclosure was never stipulated. Timing: BEFORE Closing No more. Effective August 1 (this Saturday), the disclosure must be provided “before negotiating or consummating any transaction.” Here’s guessing that too many agents were waiting till the walk-thru inspection, closing, or even after to inform the other side . . . P.S.: the standard for when Minnesota Realtors must discuss the state’s re...

High Washout Rate [ 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.] 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) haven’t seen th...

Fussy, Fussy? Maybe Not Do Realtors who stay at an Airbnb have higher standards than the general public? I don’t know about other agents, but this one does — even if, as a (very) short-term renter vs. long-term Buyer, I usually keep the quibbles to myself. List of Shortcuts At a recent Airbnb in Wisconsin’s Door County — shared by my quarantining family and my sister’s — I immediately noticed the following: –Cheaper Pergo rather than hardwood flooring throughout the home. –No central A/C or heat. Rather, the home relied on what are called mini-ductless splits for A/C, and electric baseboards for heat. Needless to say, only the former was needed. No biggie, except that locating and then operating the remote control for each room’s mini-split involved a bit of a learning curve (a Nest thermostat controlled the heat). –Too-narrow stair risers. “Stair risers” are otherwise known as stair steps; when they’re too narrow (shallow), you feel like your foot is going to fall off the st...

I love real estate and becoming a real estate agent was one of the best decisions I ever made. However, when you become a real estate agent, you give up a steady paycheck and it takes a while to start making money. Unless you can start out as an assistant making an hourly wage, you ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/39yyfrV via IFTTT

Fake Housing News? More Like a Missing Decimal Point Nearly 15 million homes sold nationwide in April, May and June, according to new data released last week by the Commerce Department and National Association of Realtors.” –“2020 is the Summer of Booming Home Sales — and Evictions”; The Washington Post (7/27/2020). Maybe it was due to the ungodly hour the article was published: 5 a.m. this morning. Theory #2: the article’s author doesn’t regularly cover the housing market. Regardless, I’m pretty sure The Post meant to say that 1.5 million homes sold in the 2nd quarter of 2020, not 15 million. Peak Annual Sales: 7 Million in 2005 That’s based on the record annual total for existing home sales — 7.08 million units — set in 2005. Unfortunately, getting such a crucial statistic that wrong casts doubt on the accuracy of everything else in the article. Look for the correction later today . . . from RSSMix.com Mix ID 8230700 https://ift.tt/39v2tfl via IFTTT

Stealth Price Cut What does it mean when a listing agent puts out the word — on MLS or just verbally — that their Seller “will consider all offers?” (sometimes qualified with “all reasonable offers”). Here is a rough translation: 1) the Seller knows that the current asking price is high; 2) but for perceived negotiating leverage, they don’t want to reduce it; so . . . 3) please feel free to make an offer well under the asking price. Surprise, surprise . . . many prospective Buyers go ahead and do exactly that. Which is why I’m not such a big fan of the strategy. Rather than elicit offers as much as 25% below their current asking price, Sellers are usually better advised to do a smaller, incremental price cut; test that in the market for a period of time; then assess and repeat as necessary. See also , “ Real Estate Euphemisms – New & Improved .” from RSSMix.com Mix ID 8230700 https://ift.tt/2WSkJdz via IFTTT

Different Homes, Different Buyers It may seem counter-intuitive, but just because two “For Sale” homes share the same block, are listed for the same price, and are the same size (have the same finished square feet), doesn’t necessarily mean they’re direct competitors. In fact, I can think of two scenarios where there’s virtually no overlap in the pool of prospective Buyers considering both homes. One . Floor plan. A home with a deluxe, Upper Level Owner’s Suite (and only a small, second Bedroom) is going to appeal to a dramatically different kind of Buyer than a home with 4 Bedrooms up (and perhaps only a hall bath). The target audience for the former is a professional single or couple, or a household with one, young child; the latter, a family with several kids (who can all share a Bathroom — or contemplate adding one). Two . Condition. Homes that need major remodels (Kitchen and multiple Baths) can be discounted as much as $150k – $200k. Or if you prefer, homes in mint, move-...

Getting You More Money For Your Home & More Home For Your Money A great football coach can take his’n and beat your’n, and then he can turn around and take your’n and beat his’n.” –Long-time football coach Bum Phillips (my paraphrase). Entering my 19th(!) year selling homes, I think I finally have come up with a succinct definition of what a good Realtor does: they maximize what you get. The sales side of that equation is straightforward:  a good Realtor maximizes the money you get, net of commission, for your home. They do that by helping to get your home in optimal condition for sale; energetically marketing your home to prospective Buyers and their Realtors; and protecting your interests throughout the negotiation and legal stage of the deal. Representing Buyers So, what does a Buyer’s agent maximize? The home you get for your money. Of course, given that tastes are subjective, sometimes that means helping Buyers find a home in a particular locat...

Whitewash One of the best ways I know to render a scary basement . . . less so , is to paint it (white, obviously). The floors, the ceiling, the posts and beams — everything. Not only is the space more appealing, it invariably feels bigger and lighter, too! P.S.: Tip #2 — adding a couple “halo” fluorescent lights. from RSSMix.com Mix ID 8230700 https://ift.tt/30MSzSp via IFTTT

Built for Baby Boomers — By Their Parents! Like narrow ties and bell bottoms, wait long enough and the most dated fashions come back in style. The same is true in real estate. As Baby Boomers age, the unheralded, ’50’s-era rambler is making a comeback. I can think of (at least) four reasons why. One . One-level living. Once you hit 50, stairs suddenly matter. Depending on their health, baby boomers in two story houses need to start thinking about downsizing well before retirement. By contrast, people in ramblers . . . can stay put . In fact, spend $10k or so to move the laundry room to the first floor, and — Voila! — everything’s on one level. The basement then becomes the province of the grandkids (or guests). Two . Construction quality. Realtors aren’t supposed to play favorites, but I (kind of) do: I’ll take a well-built, ’50’s rambler over virtually anything other era or architectural style. I’ve sold any number of these, and while some were dated or even suffered from ...

Tackling the Big Stuff — or Just Cosmetics? Occasionally, I see a listing agent who takes pains to assure Buyers’ agents in the “Agent Remarks” field on MLS (seen only by Realtors) that the home “is not a flip.” What’s going on? The listing agent (representing the Seller) wants Buyers to know that the home hasn’t just been cosmetically improved for sale — with a hefty mark-up attached. Flippers’ Usual M.O. Unfortunately, that’s precisely what lots of “flippers” do. Specifically, they take dirty, tired homes; clean them up; throw in some new (cheap) fixtures and maybe an appliance or two; add new paint and carpet (also cheap); stage to the nines; and then try to make a quick profit. Guilt by Association Which all begs the question: if the listing agent feels the need to distinguish the (non)flip home from a flipped one . . . what corners have they cut getting the home ready for market? The usual answer to that (non)rhetorical question: new windows, a new furnace, a new Kitchen...

Home Buyer Dis: “Looks Like Too Many Trips to Home Depot” What makes a home “stuck in Pergatory?” Too much Pergo, for one thing ( sorry , bad pun). For those who don’t know, Pergo is a laminate made to look like hardwood floors, and is about half the price per square foot as the real thing. Those savings are less than meets the eye, however, because the majority of the costs associated with installing hardwood floors are for labor, not materials. Penny Wise, Pound Foolish The other problem is that Pergo doesn’t really fool anyone; on the contrary, the minute I see an ocean of Pergo, I immediately look for other shortcuts. Like . . . –Cheap replacement windows (usually vinyl). –Off-brand appliances and plumbing fixtures. –Bargain Kitchen cabinets and counters. –Cheap mill work and doors (millwork is all the wood and wood trim in a home, including doors, mouldings, baseboards, arches, etc.). “Never Just One Cockroach” That last one in particular always strikes me as penny w...

It is not a coincidence that some of the world’s richest people are also avid readers. They read books, reports, newspapers, and anything else they can get their hands on. There a couple of common phrases you may hear: “Readers are Leaders” or “Readers are Earners.” I am a big believer in reading as well ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/3fNOdRf via IFTTT

Negotiating One Deal — or Two?? [ 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.] Good agents instinctively know that “he who negotiates least, negotiates best.” Which is why they avoid drafting early move-in and holdover agreements — and discourage their clients from entering into them. Side Deals The vast majority of the time, the issue never arises because the Buyer takes possession from the Seller immediately after closing. However, occasionally a Seller can’t be out by closing, or, a Buyer wants to move in early. No problem, right? The catch is, at least to play it safe, it’s important for the parties — now landlord and tenant — to address a host of significant issues. Such as: –How much rent; –How much security deposit (and terms for getting it back); –Liability and damage risk as well as insura...

When “Sold” Doesn’t Mean “Sold” At least in Minnesota, when you see a “Sold” rider above a “For Sale” sign in front of a house, it doesn’t mean “Sold” — it means “Pending.” Huh?? The (admittedly confusing) convention is to pronounce a home that’s under contract and past Inspection — but not yet closed — as “Sold,” even though it’s technically still “Pending” on MLS. So, why not just put up a sign that says “Pending?” That would be my suggestion. However, I suppose then people would just be confused about what “Pending” means. Whichever term is used, the goal is to let prospective Buyers know that the home in question is spoken for (and maybe, just a little, cement the Buyer’s sense of ownership). When the home is really sold, you’ll know . . . because the “For Sale” sign will be gone. P.S.: “Confusing Real Estate Terms — Advanced Beginner”: so, who are Realtors referring to when they say the “selling agent?” The agent representing the Buyer (the listing agent represents the S...

  My gut tells me that Realtor sales incentives don’t work, based on the following, three-step logic: 1) Anything effective tends to be copied in the marketplace; 2) Empirically, home sellers (and their agents) seldom offer sales incentives; 3) Ergo , the industry consensus, at least, is that they’re ineffective. My more considered (cynical), veteran Realtor take? It’s hard to tell if sales incentives work, because they’re invariably offered on overpriced listings. Call it , “sales incentive guilt by association.” Cheaper Than Price Reduction I certainly understand the financial logic of homeowners offering the Buyer’s agent an extra $5,000 or $10,000, in lieu of reducing their asking price $25,000 (or more). Unfortunately, all the sales incentives in the world are unlikely to get Buyers excited about a conspicuously overpriced home. Especially when Buyers know** that the Seller is dangling a fat selling bonus to help move the home, I’d argue that the negative associat...

English, Please! To be fair to the listing agent (representing the Seller), the sentence above was in the “Agent Remarks” field on MLS, not the “Public Remarks” section. But, for the benefit of Buyers whose agents print out the unabridged, “Agent Full” report (I do for my clients), here’s the translation: “This 1925 Linden Hills home has hot water heat (boiler). Therefore, there are no ducts, and no ducts = no central air conditioning. To (at least partially) address this, the Seller is going to install a ductless air conditioner that is mounted on the side of the home and blows cold air directly through the wall.” For a 1 1/2 story home like this, I’d actually want to see at least two ductless a/c units — one for each floor. P.S.: Ductless air conditioning is a common feature of homes near the Minneapolis – St. Paul airport that have been “Mac’d” (sound-proofed courtesy of the Metropolitan Airport Commission). See also , “ How Much of a Discount for No Central A/C? “; and “ T...

P.S.: “What’s a ‘Weekend’??” Starting Friday morning or even Thursday afternoon, I am used to seeing “Have a Nice Weekend!” appended to my incoming emails (I usually respond in kind). However, not THIS weekend, at least when I’m corresponding with the CPA who does my taxes. That’s because this weekend is “crunch time” ahead of next week’s July 15 filing deadline — delayed this year from the usual April 15. Hmmm , I wonder why . . . from RSSMix.com Mix ID 8230700 https://ift.tt/38KaWdZ via IFTTT

Answer: It Depends on the Buyer — and the House* It may be a surprise to people who associate Minnesota with year-round Arctic cold, but summers here — while admittedly not long — can be hot and VERY sticky. Hence the locals’ preference for central air conditioning. Which raises the question: if a home lacks central a/c, how much do you discount for that? “It All Depends” Unfortunately, it’s hard to come up with an exact number; amongst other reasons, it’s often the case that homes that lack central a/c may also have other dated features (such as old windows, mechanicals, etc.), making it hard to isolate — and price — just that one variable. The most I can confidently say is that the discount is necessarily within a range, and it mostly depends on two things. One . The Buyer. For some Buyers, no central a/c is a deal breaker — no “if’s, and’s, or but’s.” When that’s the case, in theory the discount is infinite (or at least, the cost and hassle for the Buyer to install it, pos...

A startling number of American households are currently not paying their mortgages. This number is at 4.1 million and this data was before we entered what now appears to be a second shutdown as cases of the Coronavirus spread across the country. Yet somehow, people think the housing market is going to be perfectly fine. […] from RSSMix.com Mix ID 8230700 https://ift.tt/2WthdWF via IFTTT

The REAL Purpose of Appraisals What is the purpose of an appraisal, in the context of a residential real estate sale? To make sure that, if the Buyer defaults on their loan and the lender ultimately forecloses, the value of the collateral is sufficient to make the lender whole. Or, in plain English: if the lender gets stuck with the home, it can sell it for at least as much as the mortgage. “Multiple Offers,” Defined Now, consider what happens in multiple offers. The owner lists their home, and not one but several would-be Buyers submit offers.** After sifting through each offer’s strengths and weaknesses, the owner chooses one Buyer to work with, and — after tweaking a few terms (closing date, earnest money, etc.) — ultimately enters into a Purchase Agreement with them. Enter the Appraiser A few weeks later, when the lender’s appraiser shows up, the question they should be asking isn’t, “what is this home’s value, based on the three most recent, similar sales (i.e., the Comp...

Question #2: Is That Different Than “Large?” Original hardwood floors have just been re-done, four oversize bedrooms, tremendous woodwork & period fixtures.” –-“Public Remarks,” MLS. “Oversized” is one of those imprecise adjectives that you occasionally run into in real estate:  its certainly sounds good, but, on closer inspection, doesn’t convey much if any information. Sort of like “premium,” “deluxe,” and that ever-popular real estate staple, “wonderful.” Call it the marketing equivalent of potato chips or pretzels, which taste good but (only) pack empty calories. “THIS Big!” So, exactly how big is an “oversized” bedroom? Search me. But if pressed, I’d start by noting that an average-sized Bedroom is usually around 150 square feet (12′ x 12′, 15′ x 10′, 14′ x 11′ are all in that vicinity). To qualify as “oversized,” I’d say that a Bedroom would have to be at least one-third bigger than that (the Bedrooms in the listing above most certainly weren’t). But see , ...

Minimizing the Risk of Going Back to Square One (or Worse) [ 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.] Any Realtor who’s represented a Seller in multiple offers knows the risk: 7-10 days after the initial feeding frenzy subsides, the winning Buyer’s inspection turns up a major issue — or several — and the deal is suddenly off. Unfortunately, at that point, the runner-up Buyers have often moved on, or, at the very least, are suddenly (justifiably) dubious about the home’s condition. How do Sellers avoid having their shiny, multiple offer “coach” suddenly turn into a pumpkin? Proactive Sellers Savvy listing agents (and their clients) know that, once a deal has been consummated, there are two main risks** prior to closing: 1) the Buyer’s inspection; and 2) the Buyer’s financing. How to minimize/eliminate tho...

“The Answer to the Seller’s Question, “Do You Think I Should [ _____ ] . . . ?” is Always “Yes”** Consider the rather provocative question — from a homeowner contemplating selling their home in a few years — posed to The Ethicist, an advice column in The New York Times: We live in a large house on a one-acre plot, and one-quarter of that is a wooded ravine, full of wildlife like deer, raccoons, the occasional woodchuck, possum or even fox — and quite a few copperhead snakes. We have lived here for 45 years. I see one to three snakes a year. They are not aggressive, and you learn to take precautions. Nevertheless, I have been bitten, as have several neighbors. We will have to sell in a few years. I am very worried about the snake problem.” –-The Ethicist; The New York Times. I don’t think there’s a Realtor alive, reading the above, who would say, “ Nah , you don’t have to disclose anything about poisonous(!) snakes.” However, there are better and worse ways to make pro...

“Highest & Best,” Defined [ 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.] With scarce inventory and low rates once again spurring multiples offers in the Twin Cities now, at least one thing is guaranteed: at least a few home Buyers and Sellers (and their agents!) will misunderstand the rules. The unfortunate result? For Buyers, it could mean missing out on their dream house. For Sellers, it could potentially jeopardize an offer from a dream Buyer. In both cases, the parties’ strategic mistake is not understanding how area Realtors — observing local customs — conduct multiple offers. Background So, unlike other housing markets, where the listing agent (representing the Seller) presides over an “auction-style,” multiple round sale, in the Twin Cities, multiple offers purposefully go just one round. Ca...

Written vs. Verbal Counter-Offers [ 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.] OK, so “Written vs. Verbal Counter-Offers” isn’t a very sexy title. But it’s a fascinating subject. While everyone knows (or should) that there’s no such thing as a verbal contract to sell real estate, negotiations often are conducted verbally, then committed to writing only if/when the terms solidify. There are certainly situations where that’s appropriate, but in general I prefer a written trail for two reasons: 1) tactical; and  2) technical/legal.** Live Ammunition vs. Firing Blanks First , the tactical reason. A verbally accepted (counter)offer, technically, is meaningless; until it’s agreed to in writing, it’s unenforceable. A good negotiation is an efficient one, that’s binding on all parties. Ergo , don’t in...

I have completed a lot of house flips and bought many rental properties. Over the years, I have established many private-money relationships. Some of the people who work with me are amazed at how much money people are willing to lend me! I was able to attract private-money lenders by being trustworthy, being transparent, and ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/3gNdiMa via IFTTT

P.S.: “What’s a ‘Weekend’??” Starting Friday morning or even Thursday afternoon, I am used to seeing “Have a Nice Weekend!” appended to my incoming emails (I usually respond in kind). However, not THIS weekend, at least when I’m corresponding with the CPA who does my taxes. That’s because this weekend is “crunch time” ahead of next week’s July 15 filing deadline — delayed this year from the usual April 15. Hmmm , I wonder why . . . from RSSMix.com Mix ID 8230700 https://ift.tt/38KaWdZ via IFTTT

Answer: It Depends on the Buyer — and the House* It may be a surprise to people who associate Minnesota with year-round Arctic cold, but summers here — while admittedly not long — can be hot and VERY sticky. Hence the locals’ preference for central air conditioning. Which raises the question: if a home lacks central a/c, how much do you discount for that? “It All Depends” Unfortunately, it’s hard to come up with an exact number; amongst other reasons, it’s often the case that homes that lack central a/c may also have other dated features (such as old windows, mechanicals, etc.), making it hard to isolate — and price — just that one variable. The most I can confidently say is that the discount is necessarily within a range, and it depends on two things. One . The Buyer. For some Buyers, no central a/c is a deal breaker — no “if’s, and’s, or but’s.” When that’s the case, in theory the discount is infinite (or at least, the cost and hassle for the Buyer to install it, post-closi...

First Dentist Visit Since March How do you respond when your dental hygienist asks if “anything has changed” since your last visit? (in my case, that would be March 4, just over 4 months ago). You mean like . . .  –A global pandemic that’s already infected more than 3 million Americans, and killed almost 130,000. –Global civil unrest since George Floyd’s murder in South Minneapolis. –Schools closed, kids home, and all Summer activities cancelled. –Millions of newly unemployed and furloughed, thanks to all of the above. Of course, that’s in addition to the dentist’s office looking like something out of “Andromeda Strain,” with everyone wearing masks and protective goggles; patients waiting in their cars to be called in one by one; the empty waiting room, etc. Instead of getting into all of that, I simply answered, “ No , nothing new.” She knew what I meant . . .  from RSSMix.com Mix ID 8230700 https://ift.tt/31Z8f78 via IFTTT

“Highest & Best,” Defined One of the more anguished — and fruitless — laments uttered by Buyers who just heard they lost in multiple offers is:  “ But , I would’ve gone higher!” Then, they should have. The way “highest & best” works is . . . pretty much how you’d think. One round, highest and best vs., say , an auction, where the bidding keeps rising until only one Buyer is left standing (or solvent). Different Than an Auction While a Seller adhering to “highest & best” rules may ultimately negotiate improvements to the most attractive of the proffered offers, they’ll pick just one offer to work with — and reject the rest. No round #2, no chance to up your bid. Which means Buyers truly need to come in with their best number, first. Which in turn is why Sellers (at least in Minnesota) very much like this format. See also , “ Prospective Home Buyer:  ‘The House I Want is in Multiples; What Should I Offer ?’”; “ Once Bitten, Twice Shy? ...

True or false: what Realtors call “the selling agent” once a deal closes represents the Seller (no, this isn’t another “Grant’s Tomb” question). Answer:  false. The agent who represents the owner/seller is called “the listing agent”; post-closing, the Buyer’s agent is referred to as “the selling agent.” Nomenclature Once you work in real estate sales for a while, it all kind of makes sense (kind of). The selling agent really does sell the home — to their client. First, they flag it on MLS, as having many of the attributes their client is looking for. Then, they show it to their client once (or three times), sizing up its pluses and minuses; analyzing how well-priced and marketed the home is; comparing it to others the client is considering; noting the home’s location, condition and updates (or lack thereof); potential (or lack thereof); and ultimately preparing their client to write an offer. Finally, they sell the Seller on the Buyer’s offer ( got that ?), coach...

Profile in Courage Competence When the virus hit, neither Mr. Trump nor the federal government were technically in charge. Most of the decisive constitutional powers — closing schools or ordering people to stay home — lay with U.S. governors and mayors. But the President immediately assumed a leading role, coordinating regular exchanges between the governors, pushing for equal regulations across the country and convening top scientists. He grasped the severity of the situation very early. When his chief of staff learned in mid-January that the new virus could be transmitted by humans, Mr. Trump immediately understood the possible implications. That was about two weeks before the first case was detected in the U.S. When the number of infections rose in late February, the President knew what to do. He pushed for locking down parts of public life. Surprisingly, state governors fell into line. Partly, it was a matter of political and practical convenience. But it was also a sign of r...

When Older is Better Older may not be better when it comes to furnaces, roofs, and major appliances. However, if there’s any question about whether a home’s basement is wet, old is very good. Why’s that? Because carpeting that repeatedly gets wet and dries out becomes moldy, discolored, and generally starts to deteriorate. Ditto for any carpet pad underneath (those actually disintegrate when repeatedly soaked). Ergo , old carpeting that has none of those attributes likely means a dry basement — or at least basement room . . . P.S.: Similar logic applies to carpeting over hardwood floors. Namely, the older the carpeting, the better condition the underlying hardwood floors are in (usually). See also , “ What Condition Are the (Covered) Hardwood Floors In?” from RSSMix.com Mix ID 8230700 https://ift.tt/2ZLe4Cv via IFTTT

Family Savings: $5,000(?) Even if I had a $1,000 per ticket to take my family to see Hamilton on Broadway . . . I wouldn’t have spent it that way (I would’ve popped for a vacation, or a Bathroom remodel). So, watching the musical on Disney Plus last night was a terrific — and economical — alternative. Verdict? It was every bit as good as billed — not just the leads, but supporting roles like Jonathan Groff as King George III. To paraphrase a line from another famous Broadway musical, Oliver Twist: “More, please.” from RSSMix.com Mix ID 8230700 https://ift.tt/2DaL2Ve via IFTTT

[ 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.] According to Feedspot’s latest “Top 40” list, the best Twin Cites real estate blog is Nick Leyendecker’s “Twin Cities Real Estate Blog,” coming in at #24. Umm . . . Ok. So, how does Leyendecker’s blog compare to this one? Post Frequency : Twin Cities Real Estate: 2 posts/month. City Lakes: 30-40 posts/month. Annual Posts : Twin Cities Real Estate: 24. City Lakes: about 400 average. Posts – Subject Matter : Twin Cities Real Estate: mostly profiles of Leyendecker Realty listings, that appear to be “cut and paste” verbatim from MLS. City Lakes: original content ranging from Twin Cities housing trends to economics to insights about real estate marketing, negotiating, and Buyer/Seller psychology. Of course, I’d never ask readers to simply take my word fo...

Waiting for Other Shoes to Drop(?) As the nation prepares to celebrate its 244th(!) Independence Day this weekend, an unusual sense of uncertainty if not foreboding looms over the country. Depending on who you are (Black or White, rich or poor, employed or not) and where you live (New York City, Houston, or Spokane), the list of concerns includes: –Will the newly resurgent pandemic once again shut down the country (and economy)? If so, how will people pay their bills/rent/mortgage, and keep themselves and their families fed and healthy? –Will the civil unrest following the murder of George Floyd lead to real change(s) in policing? What happens if there isn’t real change? –Will the U.S. have an orderly Presidential election this Fall, that produces an outcome that the vast majority of Americans accept as legitimate? –After the last four, head-spinning months — on top of the  already vertiginous Trump years . . . who knows what might happen next ?!? While it’s easy to forg...

I love passive income because it is money that you make without working. Examples of passive income are cash flow from rental properties, stock dividends, interest from loans, royalties, money from businesses, or other investments that you are not spending time on. A lot of people will argue that there is no true passive income ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/3eXpbyo via IFTTT

“What You’re OK With If You Get It . . . . & What You’re OK With If You Don’t” Some of the most fraught questions veteran agents field have to do with multiple offers. Specifically, it’s stressed Buyers beseeching their Realtor, “What the $%#@! do I offer?” I don’t know about other agents, but after swearing that I don’t (and can’t) know exactly what price will win (at least assuming the Seller’s Realtor is any good), I walk Buyers through the following, two-part analysis. Step #1 :  Make sure we/they have done our homework (“Due Diligence”). That means:  a) knowing the market (having toured at least 8-10 reasonably similar “Active” homes); b) knowing the Comp’s (“Comparable Sold Properties”) for the home they’re bidding on (likely to be revisited a few weeks later by the appraiser representing the Buyer’s lender); and c) having a customized Pre-Approval Letter lined up from a reputable, local lender (emphasis on “local”). Done all that? If the answer’s “ No” ...