Twin Cities Real Estate

Rain in February in Minnesota, Help

Rain in Minnesota in February is Mother Nature's way of playing a joke on us.  The ground is frozen and the water has no place to go but in basements of houses.

The phone calls started coming this morning as sellers and new home owners called to complain about water in their basements.  This is called an "act of God" and no one is to blame for this.  The foundations of our houses are warm and melt the snow closest to our houses.  This starts the pathway for water to enter the basement.  If your gutters are full that will further aggravate the problem. To resolve this problem, start bailing!  Create more paths for the water to take and truly sandbag so the water does not get to the foundation.

The important thing when drying the wet area in the house, is to make sure it is really dry.  After dry vacing, put a fan on the area for many days.  Mold grows on the last 5% of moisture.  If there is dry wall, you might need to cut out the damaged dry wall, remove damaged insulation, and patch. It is okay to swear under your breath as this is not fun.

Note this on the seller's disclosure statement when you are selling as it is one of the times water has gotten into the basement.  Note the weather conditions.  Take articles from the newspaper or online to verify it was not your fault for the water to enter.

More about the Tax Rebate for Housing

I wrote last week about the proposed stimulus package for housing.  That $15,000 tax rebate sounds tempting.  After holding an open house this afternoon, I can tell you that rebate has gotten the attention of buyers.  I had numerous buyers come through and said the interest rates are low and now the rebate has them wanting to buy. They said it was all too good to pass up.

I encourage everyone to contact their Senators to pass this legislation.  It is very real for our economy and my business.  I don't know about the sod for the mall and some of the other issues, but this rebate will change the housing market.  Rest assure our mortgage guidelines will stay strict, so we won’t go back to lose lending.

Tax Credit can Help The Housing Industry

Yesterday the buzz was about the stimulus package giving a boost to save housing.  Sen. Johnny Jackson from Georgia introduced a tax credit for $15,000 that would be applied over two years.  It is different from the $7500 credit from last summer.  That was a tax credit but it had to be paid back.  This would be a "gift" to get people to buy.  If someone did not have enough for a down payment and they were buying FHA, they could borrow the money from their parents and pay the parents back when they receive their refund.

Sheila Crowley, president of the National Low Income Housing Coalition weighed in on this legislation and said it was unfair to the poor and rewarded the rich.  She missed the point of this refund.  If people buy houses, they stimulate the economy.  Renters do not put money into the system. Here is s list a people who benefit when the housing industry is healthy.

Brokers

Realtors

Mortgage companies

Loan Officers

Loan Processors

Underwriters

Buyer inspectors

Radon companies

Plumbers

Electricians

Carpenters

Appliances companies, installers, and manufacturers

Carpet and flooring people

Window manufacturers, sellers, and installers

Title companies

Closers

Closing processors

Insurance companies

Locksmiths

Landscapers

Furniture stores and sales people and manufacturers

Painting contractors

Interior decorators

Lighting companies

Hardware stores and employees

The list goes on……………………………….

A stimulus should not benefit just one person but many.  This plan would financially benefit so many.

Coffe Makes Houses Smell Good

It might surprise you, but coffee absorbs odors and makes a great tool to make houses smell better.  I will list a property and it might have pet, cooking, or smoking smells.  The plug ins or other cover-ups are not easy for buyers to handle and they feel they are hiding something.  Coffee is a comforting smell and is often found in houses.  The buyer is not alarmed by the smell.

Coffee not only smells good but it does absorb the negative odor and makes the air in the room return to a more natural state.  I take ground coffee that has never been used and pour the coffee into small dishes and place the dishes around the house.  It does wonders down in the laundry room. 

Two weeks ago I listed a house where the seller has been smoking in it for the last 10 years.  That smell gets into everything. I had the seller remove as much as possible from the house.  I then had a professional cleaning company come in and wash everything down with vinegar and water.  The seller promised not to smoke in the house and smoke only wearing a certain coat and that coat would be left in the garage.  I then did my thing with the coffee.  Gone are the complaints about smoking odors. 

I have some small vases in my house with coffee in them.  I like the smell and it makes me feel energized.  I don't drink coffee, but I smell it.

Timing Means So Much When Writing an Offer

Timing is so important in writing an offer on a piece of real estate.  I see it as a listing agent and also as a Realtor representing a buyer.

As a listing agent I am encouraged when a buyer sees a property in the morning and then writes an offer that afternoon.  It is giving the signal  that they like the house and are motivated to buy it.  Most likely they will offer close to list price and be fairly tolerant of the buyer inspection.  The buyer who sees the house on Sat. and then comes back Mon. then has a list of 15 questions and sees it again on Weds. and writes on offer on Fri. usually writes a weak offer.  It is almost like they hope the seller won't really let them buy the house.  They are giving every signal that they will not be easy to negotiate with. 

I showed a house on Sunday and as we left the house my buyer gave me hints that they really liked the house.  Monday we went emails back and forth.  Today I told him we needed to meet this evening and put an offer together.  That seller is in the mood to talk with us now as they are excited that we saw their house.  If we wait much longer to give them an offer, they will be bored with us and not so easy to work with. 

Agents many times do not realize the message they are sending when they write quickly or if they wait too long to introduce an offer. 

Ground Hog Day and Me

Exactly what is Ground Hog Day?  My sense is that it is a day established to give hope to those of us who live in a winter climate.  We know that it does not matter if it is a cloudy or sunny day.  We will have six more weeks of winter because it is only February 2nd.  This past weekend we had fantastic weather.  The snow sculptures in St. Paul that were carved in freezing temperatures melted as the sun and warm temps. surrounded the blocks of ice.  People were out jogging in shorts, we had our hands free of gloves, and people were actually smiling.  A January thaw means more to us who live in Minnesota than any ground hog. 

This is the best place to live.  Here is how we greet people.  "Hey there, how are you doing?  What do you think of this weather we are having?"  People who live in Palm Springs can't say that.  Oh yes, in the summer they can complain about triple digit temps, but that is so lame.  They should go through what we have for 12 months.  You never know what to expect.  Here we treat our meteorologists like celebrities.  We know them personally as they help us prepare for the days to come.  We all know that by Thursday we will be back in the 20's.  Like I said, "Life is good here."  Better button up today as the wind chill is minus 16.