Brainerd Lakes Real Estate News

The Greater Lakes Market Update for February

Wed, 10 Mar 2010 21:18:36 -0600

Are you wondering how things are going in the real estate market in Central Minnesota? Things are moving and buyers are coming out of hibernation.

     Despite the cold weather and heavy snow in February, buyers in the Greater Lakes region were very active during the month of February. There were 99 closed sales during the month, an increase of 23.8 percent from a year ago.
     Home prices have shown early signs of stabilizing, but remain relatively soft. The February median sales price of $115,000 was a decrease from a year ago of 1.7 percent.
     Soft prices have combined with extremely low mortgage rates to create an attractive environment for buyers. The Housing Affordability Index in February of 172 is an improvement of 4.7 percent from a year ago, and is up dramatically from the low point seen a few years back. This indicates favorable conditions for home buying.

Buying or selling in the Brainerd Lakes area - give me a call. You will be glad you did - I love my work and it shows.

Welcome from the Brainerd Lakes - where outdoor and indoor recreational opportunites abound. Looking to buy on one of our many lakes? Ready to move up or down? Having trouble selling your home? Falling behind on payments or already in the foreclosure process? I am a Certified Short Sale Specialist as well as a Home Staging Expert.

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Real Estate Practice : Lesson 535

Sun, 21 Feb 2010 19:22:20 -0600

Remember to help your clients figure in insurances , utilities, possible repairs /replacements etc. I just had some renters contact me who figured they coud make monthly house payments with what they paid out in rent. If only it was that easy!

Via David Saks - Broker (The Real Estate Mart of Tennessee, Inc.):

#535

A man is applying for aconventional loan with an LTV of 90%.

He has a monthly income of 3000 dollars a month.

His total monthly recurring debt obligations equal 500 dollars.

What is the maximum monthly mortgage payment that this buyer will qualify for ?

A. $580

Here's how it works.

3000 total monthly income
*
0.36 or 36% of monthly income for mortgage
=
1080 total for mortgage
-
500 in additional recurring debt subtracted from the maximum allowable for the mortgage
=
580 dollars total available for mortgage payment

36% is the standard for lending if there are other monthly debt obligations

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Greater Lakes MN home sale report

Fri, 19 Feb 2010 18:50:16 -0600

Home sales in the Greater Lakes region in January were once again up compared to a year ago at 93 closed sales, an increase of 34.8 percent from a year ago. That's the fifth consecutive month where the change compared to a year ago has been positive.

The increase in sales has led to stabilizing home prices. January's median sales price of $124,405 was 1.4 percent higher than a year ago. Yes, rising prices are ordinarily a pretty ho-hum and normal thing, but in light of the drop in prices that most parts of the country have seen over the last several years, "ho-hum" is a welcome phrase these days.

The Months Supply of Inventory in the region has decreased in the last year to 17.3, down 7.8 percent from the mark of 18.7 seen a year ago. That's still a very high mark, which means sellers still face challenging conditions that require smart pricing, home staging and intensive marketing.

Home not selling -ready to try something different?

Kathleen Lordbock -The Staging & Selling Team

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Kathleen Lordbock Completes Prestigious LDPD Designation

Wed, 17 Feb 2010 20:09:54 -0600

-- Kathleen Lordbock Completes Prestigious LDPD Designation to Specialize in Luxury Home Sales

Kathleen Lordbock a Realtor with Keller Williams Brainerd Lakes has earned the prestigious Harris Real Estate University Certified Luxury Distressed Property Designation (LDPD), having completed extensive training in negotiating and closing short sales for the higher end market. This expertise is invaluable as the current housing recession forces more luxury homes into foreclosure.

Short Sale real estate agents need to understand the intricacies of representing clients in the sale of their luxury homes and demonstrate expertise in facilitating confidential transactions. As a representative of the home seller, the agent must understand how to negotiate with first mortgage lenders, second mortgage lenders and Home Equity lines of credit in a Short Sale transaction.

“The Harris Real Estate University LDPD designation has been invaluable in work with sellers and lenders on complicated luxury Short Sales. In this economy, luxury homes are more susceptible to lender foreclosure. My brokerage must be able to professionally and ethically advise clients on the differences between a Short Sale, deed-in-lieu, foreclosure and loan modification,” said Lordbock, “so we can assist them in planning the most beneficial foreclosure alternative.”

Tim and Julie Harris, founders of the Harris Real Estate University in Las Vegas, NV, said “Realtors such as Kathleen Lordbock with the HREU LDPD designation have valuable training in listing, marketing and negotiating the short sale of luxury homes. Through our in-depth training and continuous education programs, these agents are trained to aggressively connect luxury home sellers and buyers using our extensive training.”

If you are in need of more information about foreclosure alternatives, or if you are under water on your mortgage payments, call Kathleen for more information at 218-831-8001.

Specializing in the sale of residential properties in the Brainerd Lakes area and listing homes for sale in Aitkin, Crow Wing and Cass Counties contact klordbock@kw.com for more information, or visit

Kathleen Lordbock

Keller Williams Realty Brainerd Lakes

1-218-831-8001

Website: http://www.topbrainerdagent.com

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The Skinny on Minnnesota Real Estate for January 2010

Mon, 15 Feb 2010 18:29:30 -0600

Wondering how things are going in the wonderful state of Minnesota as far as Real Estate is involved? Here is the skinny on what is up in our great state. If you want information on the state of Real Estate in the Brainerd Lakes area - just give me a call. I have many wonderful properties waiting for you to choose from.

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Serpent Lake Home (Minnesota's Brainerd Lakes Area)

Sun, 14 Feb 2010 20:27:28 -0600

Call 218-831-8001 if you want a tour of this home or any home in the Brainerd Lakes area.

Looking to sell? All my listings get a complimentary staging consultation to get them showing way above the competition.

Via Scott Pederson (Distinctive Properties MN):

Take a virtual tour of this Serpent Lake Home for sale

Distinctive 6br/4ba quality built executive showcase home; 150’ shoreline; 2.73 acres; fabulous lake views; beautiful hickory flooring; custom knotty alder columns & doors; huge living room w/ tray cove ceiling; “hearth room”/beamed ceiling/built-in bookcases/gas stone fireplace; gourmet kitchen/hickory cabinetry/granite c’tops/top-line appliances/breakfast bar/wet bar/walk-in pantry; elegant formal dining room/built-in china cabinets; vaulted knotty pine sun porch; main floor office; huge lakeside mbr suite/private deck/cathedral ceiling/gas fireplace/built-in book shelves & audio system/sitting area/walk-in closet/luxurious cathedral bath; large laundry room w/ office area; theatre room; exercise room; several walk-in storage closets; 2nd laundry room; “systems room”; mudroom; triple attached heated garage; professionally landscaped; paved circular drive; insulated/heated detached triple garage; 14x16 barn; huge pole building; lakeside aggregate patios; fire pit; rainbow play system!

Contact Jim Christensen

Serpent Lake Home for sale

Minnesota Lake Homes for sale

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The Ethical Dilemma of Strategic Walk-Aways

Thu, 04 Feb 2010 11:01:47 -0600

I know everyone wants to blame the bank monsters but there are good points I want you to consider in this blog I am sharing.

Via Mike Bell, Broker - Realty World MBA:

Owners that can actually make their loan payments, but choose to walk away, accounted for 1 in 4, or 25% of all foreclosures as of June 2009.   That was over six months ago, and the numbers have probably gone up since the initial studies (these data can be easily verified via a quick Google search). Strategic default is an ethical dilemma, and the discussion is burning up cyberspace.

On one hand, there is a moral obligation to honor your contract. If you owe more than your house is worth, one way or other you gambled on your equity and came up short. Maybe you bought at the top of the market, or took out an equity line of credit and bought some stuff; a car or TV, or maybe even another house. Regardless, it’s not your lender’s fault that your property value went down. After all, if your property went up in value you wouldn’t turn around and give the bank extra, right? If you buy gold, and it loses value, you don’t get your money back, you wait it out. If you loan money to a friend, and he loses it all, you would still expect him to pay you back, especially if he can afford it. The value of a promise doesn’t flex due to circumstances, or whether you are the giver or the receiver. If you can make your house payments, it’s the right thing to do.

On the other hand, are the banks responsible for some of this mess? Should they share the burden? Didn’t they sort of tease us into all these high-risk loans and credit cards? In the first few years of the Y2K decade, the FED, major lenders, and real estate professionals convinced us that everybody in America could buy a home. They made you feel foolish if you didn’t. It was like manifest destiny, your birthright, your duty. You could get a home loan if you had a pulse. You could qualify just because you said so, no matter if you could actually afford one. Lenders didn’t seem to care if you were truthful in your loan application. Certainly they knew they were making questionable loans, gambling on equity just like us. Aren’t the financial institutions culpable, too? Didn’t they practically beg us into this?

The survival of our economy depends on everybody doing the right thing. Imagine the consequences if all borrowers that owe more than their house is worth but can afford the payments choose to walk away, or if all the lenders call in all the notes on properties that won’t appraise for the full amount.

Image via Wikipedia

So, who gets the free morality pass? Who gets to choose what’s fair? Is personal credibility negotiable?   Is the golden rule irrelevant? Do we just step off when times get tough? Is this the new American paradigm?

Not surprisingly, real estate professionals are leading the charge in advising people to walk away.   Not ironically, real estate professionals were leading the charge 4-6 years ago advising people take on these same loans. Whatever it takes to earn a fee. Maybe it’s time for an industry gut check.

Related articles by Zemanta

NYT: No help in sight, more homeowners walk away msnbc.msn.com)

The Way We Live Now: Walk Away From Your Mortgage! nytimes.com)

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The January 2010 Monthly MN Real Estate Skinny

Fri, 29 Jan 2010 15:40:51 -0600

The January 2010 Monthly MN Real Estate Skinny

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Let the 2010 real estate games begin!

Thu, 28 Jan 2010 12:51:44 -0600

There seems to be some confusion on housing market statistics and as usual , it all depends on who is paying for the report. In my area of the Brainerd Lakes in Minnesota, the sales of homes under $150,000 is picking up. The median priced range homes have slowed and we are seeing a dip in the luxury home market. With that said - buyers are still buying lake homes on desirable lots, tearing them down and building even bigger and "better". Homes are still selling and people are still buying. It seems that more people are putting their homes on the market to test the waters and then pulling them off or not renewing their listing contracts.

For this reason, I am only interested in motivated sellers - need to sell or really are determined to make that move. I have now received certification through two programs on Short Sales and REOs as that seems to be what we will be dealing with more and more. To not be educated on these and to work them is a big No No in my mind. However, after the studying you do need to go for it. I see others comment that only agents experienced in Short Sales/REO should do them. They were not always experienced, but that is a good way to cut out any competition.

I am enrolled in the Harris Real Estate University Coaching program and have found that they do keep me up to date on any changes and hints of changes, along with the ins and outs of the processes. Let the 2010 games begin !

video

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Considering a Move to China?

Sat, 02 Jan 2010 11:21:58 -0600

When I was young my friends and I were always "digging holes to China". We did not know how far away China was and we didn't care. We just liked digging.

China is digging herself a hole now and firmly planting her feet in the sand. Even in a visit and speech from President Obama concerning Internet censorship, free speech was blocked online.

China has more than 250 Million Internet users and has some of the world's toughest content on what traffic is entering or leaving their network. There are some smart and rebellious Inernet savvy bloggers in China using proxy servers to get around the controls and to speak freely - like we do here in the United States of America every day. I love the USA- may the name of God continue to stand.

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If you stick with it longer than anyone else....

Fri, 01 Jan 2010 14:01:55 -0600

Remember those New Year's Resolution s? How About Being The Best - That You Can Be?

Via Russel Ray, San Diego Marketing & Business Consultant (Russel Ray):

We're using the word GOALS to help us set our goals and stay on track.

G — Get Started!

O — Opportunity

A — Ability

L — Leadership

S - Stick with it!

Between you and every goal that you want to reach, there are obstacles. The bigger the goal, the bigger the obstacles.

If you decide to be, have, or do something out of the ordinary, you'll find difficulties and challenges that are out of the ordinary as well. In many cases, your greatest asset will simply be your ability to stick with it longer than anyone else.

If you look around at the most successful people in business, sports, music, movies, etc., you'll see that achievement is the triumph of being persistent and consistent. You will also see people who are struggling with and overcoming obstacles in order to accomplish something that is important to them, and so can you.

Goals enable you to do the work you want to do, to live where you want to live, to be with the people you enjoy, and to become the kind of person you want to become. If you set your goals and create a plan that will help you achieve those goals, and then work your plan persistently and consistently, nothing — NOTHING! — can stop you.

♪♫♫♪♪♫♪♪♪♫♫♫♪♫♪♫♫♪

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Allergies or the Flu - Christmas Misery

Wed, 30 Dec 2009 10:25:18 -0600

I am sneezing, coughing and congested. So are other members of my family including those who came home from Florida with me. I feel fine but am tired (probably a lack of sleep). They, however are just miserable and have additional symptoms that I thankfully am not sharing. Fever, chills, thick mucus, aches and a total lack of motivation (so they say). I think that my problems are due to allergies and they have a cold or the flu. If you are wondering about your symptoms here is a great link to About.com that will give you some help in sorting things out. Of course, a visit to the doctor may be in order for some and do not let the Internet be a substitute for good health care!

At my house, these young and healthy individuals should bounce back quickly but since Mom (that would be me) is taking care of them and they are on vacation this could take a while.

photo by Flickr

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The Law of Physics - What Planet is that from?

Sat, 12 Dec 2009 08:57:41 -0600

I am continually being amazed by the brilliance of the talking minds. Joe the Plumber and others have demonstrated a level of intelligence and common sense that is just somehow escaping others. I see those who are capable of great speeches, lying through their teeth and just plainly reiterating what they have been told with no understanding of what that means. We should expect that the so called experts sent out to help our ailing economy should have some comprehension of the subject that they are "helping" on. Is that really to much to expect? Where are these people coming from and what planet it that? Maybe there really has been an extra terrestrial invasion!

photo by Sarah G - Flickr

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Put a Lid on IT!

Mon, 07 Dec 2009 10:43:17 -0600

     When your home is for sale, things need to change in a big way. If you want to leave the lid/seat on your toilet seat up - that is for you and your wife to work out. However, when your home is listed and people are touring - the seat and lid need to be down. Seems like a small matter and it is. It is also only one of a list of things that need to be done to get your home the most showings, the most offers and sell in the shortest amount of time.
     All my signed listings receive a detailed staging consultation and great advice for getting your home prepared for the market. This is a market that is packed with competition. Unless your home is priced competitively and shows above the competition - it will linger on the market while the others sell.
     Do you want to sell or do you want to stay ? Decide now and then lets get going. This is a great time to get started. I will advise you every step of the way and offer low or no cost ways to make your home the shining star.
Buyers are looking for move in ready properties that they can quickly personalize in their own way.

Call 218-831-8001 if you are in the Brainerd Lakes area of Minnesota and desiring to sell your property!

photo by flickr

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Will Shame Work?

Sun, 29 Nov 2009 20:26:23 -0600

From the New York Times:

Michael S. Barr, Treasury’s assistant secretary for financial institutions, said in an interview Friday that the government would try to use shame as a corrective, publicly naming those institutions that move too slowly to permanently lower mortgage payments. The Treasury Department also will wait until reductions are permanent before paying cash incentives that it promised to mortgage companies that lower loan payments.

“They’re not getting a penny from the federal government until they move forward,” Mr. Barr said.

I am wondering if shame is the new step to take in getting the banking industry to do what the government wants them to do? It worked when I was young and my Mother used it, but I think there really may be a more adult way and I am wondering who the adult in this situation really is?

Last month it was reported that fewer than 2000 of the 500,000 loan modifications that were then in progress had become permanent. Has the Making Home Affordable program worked with any of your clients? We throw the term “loan modification” out there but who has seen real progress in this? I know of only a few and then not personally but “someone who heard of someone who”.

I am seeing progress in the time frames of processing Short Sales and the ease of doing so. By 2010, I do think that there will be a more standardized system and would welcome that. I certainly prefer a Short Sale over a foreclosure.

Until then “shame on you” – feel better now???

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