Mankato Real Estate

Why not?  

This is very much what we Realtors call a buyer’s market.  There are more homes on the market for buyers to consider, and many buyers are expecting sellers to accept reduced prices…in fact, I have had buyers who say they are expecting sellers to take less for their property not because of deficiencies but “just because the market is down”.

What does that mean a seller should do?  Sellers have to realize that they cannot expect to not have their property in excellent condition but still get top price.   Assessed value by taxing authorities is based mostly on finished square footage of homes, and many Realtors still try to use that value as a basis for helping sellers determine a realistic market value. 

This is a mistake.  Buyers today are not prepared to pay a price based on square footage unless the property is really in move in condition.  Most buyers do not have the time or patience to purchase a property that needs immediate upgrades and decorating…couples are usually both working every day, sometime with a couple of jobs each.  They also don’t have the cash to make needed repairs…they are usually right at the top of their purchasing limit with nothing to spare.  In many cases they are financing 100% of their purchase.

Sellers…listen to and act upon your Realtor’s suggestions.  Do the fresh paint, clean windows, freshly caulked bathtub surround, clean and/or replaced worn carpeting, painted exterior trim, upgraded appliances, roof, etc.   The buyer will undoubtedly have their own private home inspection done, and deficiencies will result in the buyer requesting substantial repairs and/or price reductions.  Beat them to the punch!   Ask your Realtor to arrange a pre-listing home inspection.  It will cost you about $300 or so, but that inspection will alert you to needed repairs that you can usually get done for a fraction of what a buyer would request…it will also make your house stand out prominently ahead of similarly priced properties that need unexpected repairs.

In this market your home not only has to be priced at the low end of similar homes, it has to shine.  When buyers have the pick of the crop anything less than the best will remain on the shelf a long time.

Walt Anderson, (507) 625-2240, walt@waltanderson.com
 ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate

Here is a timely paper just published by Minnesota’s Attorney General Lori Swanson, offering some very good advice on what you should do if you are having difficulty making your mortgage payments.

Facing Mortgage Foreclosure by Attorney General Lori Swanson

Walt Anderson, (507) 625-2240, walt@waltanderson.com
 ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate

Here is a recent article published in Time magazine that does a good job of presenting the case for purchasing a home now.

Ignore the Headlines by Dan Kadlec, February 2008 TIME Magazine article

What do YOU think?  Does Kadlec make a convincing case?

Walt Anderson, (507) 625-2240, walt@waltanderson.com
 ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate

Following is text of an email recently received from City of Mankato regarding first time home buyer funds.   If you are a first timer, check it out! 

Are you a first-time homebuyer?  The City of

Graduates of the program are eligible for down payment assistance and below market interest rate mortgage products.  Classes are held over a period of five weeks, totaling 15 hours.

To apply for the First Home program call

-END-

Sarah Esch
Public Information Assistant
City of Mankato and Mankato Area Public Schools

Intergovernmental Center
10 Civic Center Plaza
Mankato, MN 56001
(507) 387-8692
(507) 387-8642 (fax)
www.ci.mankato.mn.us
www.isd77.org

There is growing concern about radon across the nation, and the Mankato area is no exception.  The presence of radon gas in our homes puts lie to the old phrase that what you don’t know doesn’t hurt you.  Radon gas causes lung cancer.  Radon gas is colorless and odorless, and the only way to detect its presence is by special testing.  Simple test kits are available in most building centers and online.  However, testing with these inexpensive kits does require a substantial commitment of time and effort to obtain accurate data.  More expensive but considerably more accurate and timely is testing by trained specialists with equipment that will give an accurate analysis of the presence of radon within just 48 hours.

What if radon is present in your home?  Trained specialists in radon mitigation can install permanent equipment in your home that will allow the radon gas to vent safely into the atmosphere without contaminating your living areas.  These specialists also recheck for the presence of excessive radon after installing the mitigation equipment to make sure it is working properly.

Is radon a problem in the Mankato area?  The Minnesota State University Mankato has something called the Radon Project.  They have been conducting tests on homes in the area, and their test results are alarming.  As of January, 2008, their test results show that of 422 tests in Mankato, 281 showed results above the acceptable level…that’s 66 percent!

I advise all my real estate clients, whether they are buying or selling property, to have a professional test done on their home…the odds of their home having elevated radon levels are just too high to ignore.  I feel so strongly about this that my advice is that if you encounter a real estate agent who tells you as a buyer to not worry about it or as a seller to wait and see if the buyer asks for it, find another agent!

Below are links to resources that will give you more information about radon detection and mitigation.

EPA Citizen’s Guide to Radon

EPA Home Buyer’s and Seller’s Guide to Radon

Recent Mankato Free Press Article about Radon

There are a number of radon testers and mitigation professionals in the area.  Because of the dramatically increased public concern over radon in homes, the Minnesota State University Radon Project is overwhelmed with requests from the public for radon testing.  The project is probably the least expensive of the testing options, asking just for a voluntary contribution to the program.  My experience, however, particularly when working with buyers who need to have a test completed in just 3-5 days during their contractual inspection period, is that the MSU Project has difficulty providing their test within such a constrained time period.  The commercial testers can usually do the testing faster (optimal is 48 hours) but will cost more…usually between $75 and $150 or so.  Be sure to ask your tester if they are certified by NEHA (National Environmental Health Association) and if they are experienced in installing radon mitigation systems.  Also ask them if they do find elevated radon needing mitigation, will they discount the cost of the test from their mitigation installation fee.

I have personally worked with the Minnesota State University Mankato Radon Project (507-389-1990), Andy Kelley of Radon Solutions (507-351-2413) and Greg High of Northern Comfort, Inc. (507-387-6621).  The Radon Project does only testing.  Radon Solutions and Northern Comfort are NEHA certified for both testing and mitigation installation.

Both of the above commercial firms as well as many others around the state are on the following list:

MN Department of Health list of statewide radon mitigation providers

Keep yourself and future owners of your home safe.  Have it tested.

Walt Anderson, (507) 625-2240, walt@waltanderson.com
 ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate

When my Mankato area clients ask me what they should do to make their home more “saleable”, I usually learn that they already have some project in mind and they just want to see what I think about it.  It often entails some kind of upgrade or remodeling that they have wanted to do for some time but never got around to…but now that they want to sell they think they should do it. 

Unfortunately this upgrade or remodeling project sometimes is really a bandage like attempt to correct a long time lack of maintenance and/or failure to renew needed decorating.  When a property is not properly maintained, just like an automobile, it begins running poorly…and often that neglect, again just like a neglected car, leads to a home that needs a major overhaul and not just that superficial bandage.

Home owners also tend to believe that their intended remodeling project will greatly enhance the value of their home so that when they sell they will realize a larger profit.  Unfortunately experience shows that this usually isn’t so.

Annual reports are made of the typical return of investment for various home remodeling projects.

Here is a link to one of the more informative resources:

Cost vs Value Information

I have more detailed information from the National Association of Realtors, including specific percentages of expected returns for our area of the upper midwest.  Please don’t hesitate to contact me for that detailed information.

Walt Anderson, (507) 625-2240, walt@waltanderson.com
 ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate

Why isn’t your house selling?  Or maybe you’re planning to sell next year and you want to know what updates are needed to encourage a quicker sale or a higher price?  It seems to me that the goal posts have moved a bit since the booming real estate market of just a couple years ago.

Although still important, the magic of LOCATION, LOCATION, LOCATION combined with SIZE (as in finished square footage) just isn’t enough for today’s buyers.  Real estate industry guru’s still advise that location and size of a home will comprise 85% of the market value.  I believe that this simply doesn’t apply in today’s market.  Because of the larger inventory on the market of resale (not brand new) homes, buyers are being very demanding about the condition and quality of finishing of any home they will purchase.  The value factor of both interior and exterior quality and finishing now plays a significantly higher role in desirability and selling price of properties.

Here is a timely article from RIS Media that addresses this market phenomenon.

What’s In, What’s Out with Home Buyers in 2008

Walt Anderson, (507) 625-2240, walt@waltanderson.com
 ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate

Here is a full list of newly enacted laws in Minnesota in 2007.  They don’t all pertain to real estate; however, I’m sure there will be something of interest to everyone!

NEW 2007 MINNESOTA LAWS

Walt Anderson, (507) 625-2240, walt@waltanderson.com
 ACRE™, CRS, ABR, GRI, SRES, ePRO, Broker Associate

Here is a website that was created by ALTA (American Land Title Association) to help educate consumers a bit more about the Home Buying and Title insurance process. 

HOMECLOSING 101

It gives a great overview of what Title Insurance is, what to expect during the closing process, questions to ask and explanations of terminology.  While this information is good for anyone preparing for a real estate transaction, it is particularly good for first time homebuyers.