Robert Guthridge's Blog

The Twin Cities’ Most Valuable Free (Public) Real Estate When Minnesotans think of portaging, they usually have in mind carrying a canoe between two lakes somewhere in the Boundary Waters Canoe Area in northern Minnesota. So, what’s bike portaging? When the quickest way to get from one paved road to another is to carry your bike down a stairway — in this case, in the middle of St. Anthony Main just across the Mississippi River from Downtown Minneapolis. Perfect Biking Weather  The bike rider pictured above is my (almost) 21 year-old son; we took advantage of yesterday’s glorious weather to explore the bike trails along the River, on Nicollet Island, and thru Loring Park. The highlight: Water Power Park, jutting out into the Mississippi between the 3rd Ave. Bridge (behind us in photo #2) and the Stone Arch Bridge. Directly across the River: the Whitney Landmark Residence. Formerly the Whitney Hotel, its multi-million dollar condo’s have some of the Twin Cities’ most impres...

“The Overpriced Factor,” “The Hassle Factor,” Etc. Non-Realtors may be inclined to believe it’s some kind of conspiracy. But, in reality, there are multiple, rational reasons that experienced Buyers’ agents seldom show For Sale By Owner homes (“FSBO’s”). Here are just a couple: –FSBO’s are invariably mispriced (want to guess which direction??). –They’re poorly staged and marketed. –They’re more difficult to arrange showings for (the owners are harder to reach, aren’t familiar with lockboxes, etc.). –FSBO’s have no clue how to navigate the sales process — let alone deal with such things as required Seller disclosures, inspection issues, appraisal issues, standard Minnesota real estate contracts and addenda, closing and title work, and the like. Adding insult to the above injury? FSBO’s usually offer a sub-par commission — called the “Pay-out” — to the Buyer’s agent and their broker. Thanks, but no thanks . . . Proof of Realtor Value-Added Want proof that Realt...

Home prices remain stable in the face of a global pandemic, record high unemployment, and millions of Americans actively not paying on their mortgages through forbearance. Not exactly a rosy picture. On the surface, the stable prices would seem to indicate all is well. But the reality is more problematic in that millions of homes […] from RSSMix.com Mix ID 8230700 https://ift.tt/31GX7vi via IFTTT

“That’s Rich” may not have the protean meanings of some other phrases, like “Shut Up!!” or “Hot Dog!” See , “Shut Up!” Has 9 Different Meanings? Shut Up!! (No, YOU Shut Up!)” ; and  “The Many Guises of ‘Hot Dog .’” But, it has more definitions than you might initially guess: One . Caloric. “That chocolate mousse is rich.” Two . Hypocritical or ironic — usually qualified with “a bit.”  “Trump crucifying Biden on ethical lapses is a bit rich.” Three . Loaded. “Sue’s family has money, but nothing like Mary’s. Now, THAT’S rich.” Four . Plentiful; abundant: “The nation’s rich and diverse wildlife.” Five . Fertile or productive: “rich soil”; “rich mineral deposits.” Six . A person named “Rich”: “Hey! That’s Rich sitting near the 30-yard line!” See also , “ Why is Calling Someone a ‘Piece of Work’ an Insult?” ;  “You’re  . . . You’re . . .  Such an Almond  (Huh??) “; “ What’s the Past Tense of Sight See ?”;  “Landmark — or Watermark ?”; “ Dried vs....

“Super-Duper High Gloss” (Or, Maybe They’re Just Wet??) When it comes to hardwood floor finishes, there’s “matte,” “semi-gloss,” and “gloss.” * And then there’s VERY high gloss — in the case of the floors shown above. Rule of thumb:  you’re supposed to see your reflection looking in the mirror. But, when you can see your reflection looking at the floors , the refinishing contractor dialed up the gloss too high (more likely scenario:  the owner did it themselves). * Sound familiar?  Those are the same finishes for paint, except that “flat” substitutes for “matte.” See also , “ The Too-Shiny(?) Kitchen “; and “I Wonder What’s Underneath the Hardwood Floors??”   from RSSMix.com Mix ID 8230700 https://ift.tt/3b7tN40 via IFTTT

He Who Adjusts Least Adjusts Best” When it comes to pricing a home off of Comp’s (“Comparable Sold Properties”), the trick is to minimize both the number and absolute magnitude of the adjustments. The ideal would be a condo identical to its peers in every respect — floor plan, size, condition, location, market conditions, etc. — with the exception of floor number. Assuming no “view-break” is involved, the listing agent — or Buyer’s agent, or the Appraiser — then merely adjusts up or down $10k or 1% or some such per floor.  See , “ (Manhattan) Real Estate Term of the Day:  ‘View-Break .” Minimizing Discretion By contrast, adjustments like swimming pools (at least in the chilly Twin Cities); major additions; and even bomb shelters(!) and bowling alleys are more problematic because:  a) they’re more unusual; and b) Buyers’ preferences and/or aversions are so case-specific ( read , “subjective”). See , “What’s it Worth? Or, Accounting for a Basement...

Price Range: $650k to $1.3 Million [ 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.] Realtors quickly learn that valuing homes by the square foot doesn’t work. That’s because the range can be so big. Exhibit A: two-story homes with about 3,500 finished square feet in Edina, which vary in asking price from $650k to almost $1.3 million. That translates to $191 per square foot, to more than double(!) at $390 per square foot. What accounts for that spread? A mix of these four factors: One.  Location. While Edina may seem homogeneous, it actually has 45(!) different neighborhoods. In general, the areas east of Highway 100 fetch more than the homes west of 100, and the homes north of Highway 62 cost more than south of 62. But there are exceptions: some of the Twin Cities’ nicest (and most expensive) homes ...

In a supposedly paperless world, why does anyone still need something to correct paper mistakes? I know at least one, non-standard application: touch-up paint for Realtor sign riders. It’s not as good as white nail polish, and not as water-repellent (or long-lived) as oil-based paint, but in a pinch . . . it’ll do! from RSSMix.com Mix ID 8230700 https://ift.tt/2Ep1qlw via IFTTT

“In Buyer’s Sole Discretion” Seller has agreed to sell the Property to Buyer for the sum of ($____________ ), which Buyer agrees to pay in the following manner:  1)  _____ percent (%) of the sale price in CASH , or more in Buyer’s sole discretion, including earnest money  . . . “ –Lines 38. – 41., standard Minnesota Purchase Agreement. [ 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.] When the Buyer and Seller strike a deal contingent on the Buyer’s financing, and the home subsequently doesn’t appraise, what happens next? It depends. The Seller may agree to reduce the sales price to the appraised value (or closer). The Buyer may agree to overshoot the appraised price, and put in more cash. Or both (the usual resolution). But, the Buyer doesn’t have to put in more cash,...

Pro’s & (Mostly) Con’s Don’t be a secret agent.” –Advice to new real estate agents just starting out. Why would the owner of a “For Sale” home skip putting up a “For Sale” sign in front? Search me. While I’m not aware of any statistics, my educated guess is that, at any given time, about 6% – 8% of single-family homes listed as “Active” on MLS don’t have a “For Sale” sign on the property (note: I’m excluding gated communities, which typically forbade them). Of the homes with no sign, I’d further guess that the majority are upper bracket homes. The owner’s rationale? They know that expected market time varies directly with price — and don’t want to foster the impression that their home is sitting on the market, unsold, month after month. Self-Fulfilling Prophecy While I’m sympathetic to that concern, I’d argue that it can be self-fulfilling: by skipping a sign — and often, other prep and marketing steps as well ( see , Reason #4 below) — the Seller  makes it mo...

“Who Ya Gonna Call?” (When an Offer Comes In) As a Buyer’s agent, how can you tell if the listing agent (representing the Seller) is taking your client’s offer seriously? They call the Buyer’s lender — specifically, the lender on the Buyer’s Pre-Approval letter — and verify key information. Like, whether they’ve previously worked with the Buyer; the type of loan being applied for (conventional, FHA, etc.); and any other circumstances likely to affect that Buyer’s creditworthiness — and therefore their odds of getting a mortgage. Qualifying the Buyer — and the Buyer’s Lender When I’m the listing agent, I also like to vet the lender , their institution (if it’s not a “name brand” like Wells Fargo or U.S. Bank), and generally get a feel for whether they know what they’re doing. As I tell my selling clients, when I receive an offer, before I call them, my first call is to the Buyer’s lender. P.S.: A good omen is when you reach the lender on their cell, first time. A bad omen ...

It is possible to make one million dollars a year flipping houses, but it takes a lot of work and planning. Flipping houses is a great way to make money, but you can also lose money if you don’t do your homework. I have anywhere from 5 to 22 flips going at once and I ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/2EwwUpV via IFTTT

Universal Staging Principles How do you stage an outdoor, in-ground swimming pool in the backyard of a “For Sale” home? The same way you stage anything else: by adding accents, focal points, and color — and removing clutter. For an outdoor pool, that means opening up any poolside umbrellas, arranging nearby lawn chairs, and throwing a beach ball (or two) into the pool. P.S.: the seasons in Minnesota don’t necessarily cooperate, but the best pool staging advice is “open and in use” vs. “covered for the winter.” See also, “ Home Seller (and Staging Client):  ‘It Looks So Good, Now I Don’t Want to Move! “; “Savvy Staging Strategy #7” ; “ How Home Sellers Can Tell If They Need Staging Advice” ; and “ Staging Secret #18 .” from RSSMix.com Mix ID 8230700 https://ift.tt/2FMyRPB via IFTTT

On the 2 Yard Line vs. The End Zone [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.] Anxious Buyers competing for a home in multiple offers today understandably want to know, for sure, when the home is truly theirs. So, which of the following events officially signifies that the Seller has accepted their offer? A. The Listing agent calls the Buyer’s agent (or texts, or emails) to tell them that it’s a deal. B. The Listing agent changes the home’s status on MLS from “Active” to “TNAS.” C. The Buyer’s agent receives the executed Purchase Agreement and Addenda from the listing agent. D. All of the above. Correct answer : “C.” Here’s the explanation: A. Verbal agreements to buy/sell real estate — at least in Minnesota — are non-binding. To be an enforceable contract,** the agreement must be in writing and...

Seller Misconceptions “S unk Cost”:   a  retrospective  (past)  cost  that has already been incurred and cannot be recovered. –Wikipedia What Sellers paid for their home — and how much they subsequently put into it (for improvements, updates, etc.)  — are important psychologically.* And, depending on how much the would-be Seller currently owes on their home, the sum of their cost + improvements certainly matters financially (if the mortgage balance plus any home equity loan exceeds the current value, the owner is what’s called “underwater” — and may not be able to sell). However, it’s seldom the case that the owner’s cost + improvements = current fair market value. Historical Cost There’s a succinct, one-word explanation for why that’s so: “historical” (called “book value” in accounting-speak). While home valuations are hardly as perishable as a dozen eggs or a gallon of milk, prices are deemed obsolete within six months (if not sooner...

Too Much Information — Realtor Version Living Rm: 13.4′ x 26′ Dining Rm:  9.2′ x 13′ Family Room: 16.7′ x 29.8′ Kitchen: 9.5′ x 16′ Bedroom #1:  14′ x 19.1′ Bedroom #2:  22′ x 14.6′ Bedroom #3:  8.1′ x12′ Bedroom #4:  12′ x14.4′ –Excerpt, MLS Listing What’s the corollary to “The Too-Precise Price ?” The too-precise room measurement(s). In this case, I highly doubt that prospective Buyers really need to know room measurements to the inch. So, why is the listing agent providing it? Search me. Perhaps it’s because they think hyper-specificity connotes precision — or honesty. Or maybe it’s because they used to “take liberties,” got called on the carpet for it, and are now erring to the other extreme. To me — and I’m confident, most Buyers . . . it’s just cluttery and distracting. P.S.: So, is it 14′ x10′ or 10′ x 14′?  The convention, at least, is the former (“best foot forward,” as they say). See also , “ Measuring Irregular Roo...

Beauty in the Eye of the Beholder Buyer When should a listing agent (representing the Seller) explicitly acknowledge in their marketing that a home “needs cosmetic updates” (or the equivalent)? Less often than you might guess. Here are my three reasons why: One . The pictures tell the story. For years, websites like EdinaRealty.com have allowed an unlimited number of home photos; since June 2018, so does MLS.  See , “ Max Number of Photos on MLS Now? “The Sky’s the Limit” .” Given all that exposure, the listing agent hardly needs to tell prospective Buyers that the home “just needs your decorating touches” — they can see for themselves (note: the asking price often suggests that as well). Two . “Beauty is in the eye of the beholder.” Yes , many (if not most) Buyers might agree that a given house is dated. However, it’s always possible that the Buyer loves the home just the way it is. In that case, conceding that the home is dated is essentially an unforced error that h...

In a supposedly paperless world, why does anyone still need something to correct paper mistakes? I know at least one, non-standard application: touch-up paint for Realtor sign riders. It’s not as good as white nail polish, and not as water-repellent (or long-lived) as oil-based paint, but in a pinch . . . it’ll do! from RSSMix.com Mix ID 8230700 https://ift.tt/2Ep1qlw via IFTTT

“In Buyer’s Sole Discretion” Seller has agreed to sell the Property to Buyer for the sum of ($____________ ), which Buyer agrees to pay in the following manner:  1)  _____ percent (%) of the sale price in CASH , or more in Buyer’s sole discretion, including earnest money  . . . “ –Lines 38. – 41., standard Minnesota Purchase Agreement. [ 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.] When the Buyer and Seller strike a deal contingent on the Buyer’s financing, and the home subsequently doesn’t appraise, what happens next? It depends. The Seller may agree to reduce the sales price to the appraised value (or closer). The Buyer may agree to overshoot the appraised price, and put in more cash. Or both (the usual resolution). But, the Buyer doesn’t have to put in more cash,...

Pro’s & (Mostly) Con’s Don’t be a secret agent.” –Advice to new real estate agents just starting out. Why would the owner of a “For Sale” home skip putting up a “For Sale” sign in front? Search me. While I’m not aware of any statistics tracking the practice, my educated guess is that, at any given time, about 6% – 8% of single-family homes listed as “Active” on MLS don’t have a “For Sale” sign in front (note: I’m excluding gated communities, which typically forbade the practice). Of the homes with no sign, I’d further guess that the majority are upper bracket homes. The owner’s rationale? They know that expected market time varies directly with price — and don’t want to create the perception that their home is sitting on the market, unsold, month after month. Self-Fulfilling Prophecy While I’m sympathetic to that concern, I’d argue that it can be self-fulfilling: by skipping a sign — and often, other prep and marketing steps as well ( see , Reason #4 below) — the S...

Realtors can’t go ever go wrong buying champagne as a closing gift, right? Wrong. That’s the case if, unbeknownst to the agent, their client just finished a 12-step program (now presumably on Zoom, thanks to the Pandemic). Or hates the restaurant you bought them a gift certificate to. Or already has four kitchen knife sets in deep storage (albeit, none with your name prominently engraved on them ). Which underscores the one, cardinal rule governing closing gifts: it’s anything the client really wants (within limits). Raising the Bar In that vein . . . it’s hard to top the Buyer’s agent who popped for a new dryer (or so I heard). Apparently, the agent found out that the Buyer’s dad was buying a washing machine for the newly purchased home, and the agent arranged to buy a matching dryer. P.S.: Before any clients send me an indignant email asking me where their new dryer is . . . the home in question was $1.5M. See also , “ I Guess That Would Literally Be a Housewarming Gift “...

(Un)Reality TV Aw’ right. Find people who are worth at least $250 million, even if they’re not looking for a house. This house will sell itself — just get ’em up here.” –Selling Sunset, “If Looks Could Sell.” [ 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.] Just to be clear: the titular “Sunset Boulevard,” Netflix’s reality TV show about the glitzy world of luxury real estate, is located in Los Angeles, not Minneapolis (I happen to live on Minneapolis’ Sunset Boulevard, just southwest of Cedar Lake). But, I don’t think there’s much risk of confusing the two housing markets, for three reasons. Lost in Translation One . Typical home prices — and agents. Unlike Manhattan or Los Angeles, there aren’t a lot of soap opera actors or former Playboy models selling eight figure properties ( as in , more than $10 m...

(Un)Reality TV Aw’ right. Find people who are worth at least $250 million, even if they’re not looking for a house. This house will sell itself — just get ’em up here.” –Selling Sunset, “If Looks Could Sell.” Just to be clear: the titular “Sunset Boulevard,” Netflix’s reality TV show about the glitzy world of luxury real estate, is located in Los Angeles, not Minneapolis (I happen to live in on Minneapolis’ Sunset Boulevard, just southwest of Cedar Lake). But, I don’t think there’s much risk of confusing the two markets, for three reasons. Lost in Translation One . Typical Home Prices — and Agents. Unlike Manhattan or Los Angeles, there aren’t a lot of soap opera actors selling eight figure properties ( as in , more than $10 million) in the Twin Cities in their spare time. At least, not that I’m aware of. Nationally, the average home sells for about $300k. Meanwhile, the average age of the Realtor selling it is  . . .  in their mid-50’s  (not a typo). ...

Market Appreciation vs. Home Depreciation “In all cases in which work is produced by the agency of heat, a quantity of heat is consumed which is proportional to the work done.” –Rudolf Clausius, first law of thermodynamics. “An overpriced, “For Sale” home depreciates in value faster than an appreciating housing market rises.” –Ross Kaplan, first law of real estate. It’s strictly anecdotal, but I’d guess that there’s more — not less — overpricing in a rising housing market than in a falling market. My theory? Sellers hear that home prices are rising . . . and overdo it. Result: their home sits, accumulating damaging market time, and not infrequently sells for less than what they would have gotten if they’d set a more realistic, initial asking price. Of course, such Sellers also have to endure more showings, inconvenience, etc. in the interim. Effect of Rising Market That’s true even in a rising market. The explanation is that an overpriced home sitting on the market depre...

Definition, Please Realtors use the term “Chef Kitchen” all the time (sometimes further embellished with the adjective, “Gourmet” — as in , “Gourmet Chef Kitchen”). But, after more than 17 years selling homes, I’m still not sure that I have a good definition, except that: a) it’s big; and b) it’s full of high-end features and appliances. Design + Function That said, here a (partial) list of features and attributes common to many so-called “Chef’s Kitchens”: –Design/layout: Big! Large enough to accommodate multiple workers, simultaneous meal prep. Facilitates flow of people, food . . and activity! Room size can vary, but ideally > 250 square feet (approx. 18′ x 14′). –Countertops: granite, quartz, stainless steel or similarly high-end. –Appliances: Subzero or Wolf — often doubled up (e.g., two fridges, two dishwashers, etc.); double sinks. –Ventilation: Commercial-quality exhaust hood and fan (or several of them). –Lots of cooking surfaces — ideally, a separate stove ...

Many people feel they need a mentor to succeed as a real estate investor. The truth is a mentor can be a massive help, but I don't think it is absolutely necessary to be successful. Many people have become successful real estate investors without a direct mentor. Finding a great mentor can be time-consuming and ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/33YIK78 via IFTTT

1st Woman of Color on Major Party Ticket [ 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 you get a chance to make history . . . take it! So I applaud Joe Biden for choosing California Senator Kamala Harris as his Democratic running mate. No matter your ideology, it should make you proud to see the daughter of Jamaican and Indian immigrants rise to the pinnacle of American politics. That “warm-hearted” feeling is especially welcome in a season of such loss and general tumult. “Charisma,” Defined At least to me, the surprise wasn’t Harris’ selection. Rather, it’s her height: only 5′ 2!” Now, THAT’S charisma** . . . P.S.: It speaks (very) well of Biden that he saw fit to choose Harris in spite of her attacks on him during the debates. Can you imagine Donald Trump appointing a woman who dared to do t...

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). Even veteran agents occasionally represent friends and family members. How do they (we) keep emotion out of the deal — especially when the listing agent may have their own connection to the client and their 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 ...

Home Sale “Bones of Contention”** — and How to Avoid Them [ 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.] 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). Buyer’s Case 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 work was done  on the Seller’s watch. That stalemate can also trip up condo and townhome sales, when...

Real Estate Marketing and the Art of Self-Selection Realtor conventional wisdom is that some Buyers prefer homes on corner lots, because of the extra light (and one less neighbor). Meanwhile, others avoid corner lots, because of the additional street exposure, potential loss of privacy, and — at least in Minnesota — 4-5 months of extra sidewalk to shovel. Net it all out, and what’s the takeaway? Corner lots are a wash — that is, they fetch neither a discount nor premium. from RSSMix.com Mix ID 8230700 https://ift.tt/3iwMxfB via IFTTT

High Winds, +3″ Rain in Twin Cities Last Night [ 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.] A LOT of recent Twin Cities home buyers will be asking whether their Seller is liable for their suddenly wet basement in the wake of last night’s deluge (as much as 6″ of water in some the west and south ‘burbs). Many basements that never had water, now do; others that previously had water . . . now have a lot more. So, who’s responsible? Legal Analysis If you substitute “Summer” for “Winter” and “wet basement” for “ice dam,” the analysis is exactly the same as laid out in my earlier post, “Seller Liability for Ice Dams .” A quick recap: To recover from their Seller, the Buyer must satisfy a two-part test: One . Establish that the problem existed before the Buyer purchased the home; and Two . Show that the Se...

“Rule or Die” Mentality Comes to U.S. Politics [ 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.] Minnesota Native Son (and fellow St. Louis Park High School grad) Thomas Friedman has one of the best columns of his illustrious career in today’s New York Times. If you didn’t know, Friedman is a long-time, Pulitzer-winner author and Times columnist. His unmatched knowledge of the Middle East (see, “From Beirut to Jerusalem”) makes him uniquely qualified to diagnose America’s current ills. In a word, Friedman says we suffer from rapidly accelerating politicization — “tribalization,” really. As in , everything becomes viewed through the prism of partisan politics. In the U.S., that’s known as, “Democratic politics” and “Republican politics.” Which inexorably leads to our current, polarized state of affairs:...

“ Starter home “: a relatively small, economical house or condominium that meets the requirements of young people buying their first home. While there’s no precise definition, I have two associations with “starter home”: One. Price Point. Starter homes are (well) below the average price for homes in the local market — whatever that may be. So, a starter home in San Francisco may be $800k, while one in Omaha might be $150k (note: “entry-level” and “affordable” are NOT necessarily the same thing). Two. Attributes. I think of starter homes either having two Bedrooms or three small ones, that may (or may not) be in rough condition. That translates into something like 1,200 – 1,500 finished square feet. Due to their relatively small size, starter homes are frequently marketed as “cute,” “cozy,” and “adorable.” Traditionally, they appealed to first-time Buyers, who stayed there just long enough to build some equity and score a job raise (or two), then moved up to a large...

How to Suddenly Go From Two (or More) Buyers to None [ 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.] Thanks to practically zero inventory — and almost zero percent interest rates — multiple offers are a fixture of the Twin Cities housing market right now, at least at home prices up to $500k or so. Which means that Buyers’ agents need to be on their “on their game” (and then some) if their clients are to have a shot of prevailing. Meanwhile, listing agents (representing Sellers) are almost certain to encounter what is known as an “asterisk clause” — and must be adept at fielding same (note: in other parts of the country, the preferred term is “escalation clause”). “Match and Raise” So . . . exactly what is it?? Instead of filling in a purchase price on their offer, the Buyer employing an asterisk clause insert...

Putting a (Too) Good Face on Things?  It’s a fact of (real estate) life: sales fall through. Buyers change their minds. Inspection issues come up. Buyers can’t get financing** (the honest explanation at least 80% of the time). When any of those (or other) unhappy events occur, listing agents have the demoralizing task of switching the home’s MLS status from “TNAS” or “A, i” back to simply “Active” — no suffixes. Best Defense = Good Offense To deflect the usual Buyer (and Buyer’s agent) questions, many listing agents will seek to proactively address the issue by offering an explanation in the MLS “Agent Remarks” field. Most common: “Back on Market. Buyer’s financing fell through.” Occasionally, you’ll even see a more candid “Buyer Walked” admission. Somehow, however, the explanations are always benign ( surprise, surprise ). Put it this way: I’ve yet to see the listing agent proclaim, “Back on Market! Wet Basement!,” or “Back on Market: Leaky Roof!” (Note...