August Edition

HOLMES MAGAZINE GROUP ISSUE 4 - August 2017

ONLINE

SCAMS ARE ON THE RISE

The importance of protecting your information

TH S SSUE 3-4 5-8 9-10 11-12 12-13 14-15 16

Holmes on Homes - Real Estate Seasonality Our Featured Home - Home on Bald Eagle Lake Home & Style - The Return of the Front Porch Online Scams on the Rise Listings Q&A Crossword & Sudoku

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REAL ESTATE SEASONALITY IN MINNESOTA: IS IT REAL? With the fall months right around the corner and a hot spring market behind us, I’ve been asked quite a bit lately about the seasonality of MN real estate and if it’s still a good time to list a home.

I’m sure you’d expect a realtor to suggest there’s never a bad time to list a home but that is indeed the case.

It’s not because selling real estate is what we do but simply because people will buy real estate 12 months of the year. Sure... you get less activity in the winter months but that activity is far more genuine than in the spring months.

what happens. Follow the guidance of your realtor and price your home to sell, not to test the market to ‘see what happens’. The best way to do this is take your CMA price range and then look at the economics of your area. What’s the supply & demand ratios... how many months’ supply for current listings (your competition) 30 & 60-day absorption rates and so on.

Simply put it’s not the time to get cute… list it to sell!

In the event that you are priced right and your home still doesn’t sell quickly there are things we can do to mitigate the dreaded buildup of days on market.

We can change the status to TNAS (temporarily not available for showing) during the holiday months.

Days on market do not accumulate during this status change. We could cancel the listing altogether during that time and re-list after the holidays for a ‘new’ listing. This will still show the cumulative days on market from your previous listing period and you can’t hide that. However, if you chose to cancel and re-list, refresh the interior pictures with new ones. It will have a much better chance of coming across as new and something a buyer may want to look at.

“IT’S NOT TIME TO GET CUTE...

LIST ITTO SELL!”

Take for example a traditional spring listing in March or April and the people that will come through to view your home. You can have 20 people view your home on any given week and to say that all of them are true & genuine home buyers may not be the case. Some are just getting started and out for the first time and not willing to make a commitment.

While others may be the cliché nosy neighbor that wants to simply take a look. How often do you think that happens the week after Thanksgiving? Exactly... not so much. The ‘off-season’ buyer isn’t out just kicking tires... they’re very serious about what they’re doing.

Additionally, there’s far less competition in the fall and winter months which is certainly helpful for any seller.

So, what happens if you list in mid to late fall and you don’t get the activity that creates an offer? Is that damaging to the sales process to carry that over into the spring market? That’s the big question and what you have to mitigate for a fall listing is that challenge.

First thing is first… if you’re going to list in the off-season it’s not the best strategy to push a price point to see

One thing I would highly recommend if you’re planning on listing anytime from November through April - get pictures, videos & virtual tours done now! The exterior views of your home are far more appealing now than in those months!

Simply put there is no bad time to list a home! Sure, there’s less activity around the corner but this is Minnesota – the land of snow and purple rain. Life goes on 12 months each year and so does the real estate market!

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FEATURED HOME Welcome to 5315 West Bald Eagle Blvd in gorgeous White Bear Lake! This home has it all: From serene lakeviews, to spacious entertainment rooms for the whole family to enjoy! This 4 bed/3 bath home is perfect for families large and small. With the massive 5 car garage, with space for a shop, it is perfect for any and all home projects! Don’t forget about the 600 square foot dock on beautiful Bald Eagle Lake. You simply must see this home.

This home has a 600 square foot deck, located on the gorgeous Bald Eagle Lake. Enjoy the panoramic lake views from your 90 feet of lakeshore!

The kitchen boasts gorgeous counter-tops, with a center range complete with exhaust fan. If you enjoy cooking at home, this kitchen is perfect with you, with easy access to the deck for those summer time lunches with the family

Large separate dining room (18’ X 15’) with large 4-panel window view.

Beautiful hardwood flooring, and open design.

Enjoy a massive 20’ X 15’ recreation room, for a quiet evening at home with your partnet, or a place tohave fun with your whole family. A beautiful wood burning fireplace complemetnts the room quite nicely.

The layout allows plenty of space to be utilized no matter what your needs are.

If you are working from home, work care-free in your large home office, complete with a perfect window view

Room Level Dimen Living Rm Main 30x15 Dining Rm Main 18x15 Family Rm Main 20x15 Kitchen Main 15x12 Bedroom 1 Main 14x12 Bedroom 2 Upper 17x12 Bedroom 3 Upper 15x12 Bedroom 4 Upper 14x12

Bath Description: Main Floor 3/4 bath, Upper Level Bath, Private Master/Full Dining Room Description: Separate/Formal, Hardwood flooring, large window view Recreation/Family Room Description: Main level, large open space, wood burning fireplace Basement Description: Crawl space Exterior: Stucco, Brick/Stone Roof: Asphalt Shingles Amenities: Deck, Porch, Natural Woodwork, Kitchen Window, Ceiling Fans, Hardwood Floors, Tiled Floors, Walk-in Closet Garage Description: Detached, Insulated, Heated, Carport, Driveway, Remote Opener (50’ X 34’)

Breathtaking 90’ of lakeshore

Call us at 651-379-1581

Other Rooms Sun Room Deck Recreation Room Laundry

Level Main Main Main Main

Dimen 18x12 30x20 20x15 10x10

HOME & STYLE Return of the front porch

The front porch used to be a

The rebirth of the front porch in the

the early 1900s, according to a

past decade may be in partial nod to

historical paper on “The Rise and

younger generations who have shown

Decline of the American Front

recent preferences toward smaller

Porch� published by the Montana

homes in more dense neighborhoods

Heritage Project. But soon, the

that boast greater social interaction.

mainstay in home designs in

front porch became replaced by a garage

the backyard in privacy.

facing the street. The front porch was moved to backyards as a deck that offered home owners greater privacy.

Some home owners are welcoming back the front porch as a way to add more character to your home’s curb appeal. Even

The popularity of the front porch once was as

if your listing doesn’t have a big front porch,

a gathering place, allowing children to play

adding some seating may help give buyers

in the front yard and offering families a cozy

that image of this iconic symbol to American

place to sit outside, relax, and socialize with

homes. Stage it with rocking chairs, a porch

their neighbors. But after World War II, front

swing, or outdoor furniture to show it as an

porches began disappearing from newer

extension of the home, and a place to sit back

houses, according to the Montana Heritage

and connect with your neighbors.

Project. The article speculates it was partially due to people becoming “more individualistic and less communal-minded,” and home owners preferring to take their barbecues to

Check out some of these examples:

ONLINE

SCAMS ARE ON THE RISE

to wire money via email.

There are few things more stressful than buying, or selling a home. It is usually the largest personal financial decision one will make in their lifetime.

The lingo, red tape, bureaucracy, legalese, and generally confusing nature of the process, only make the situation more intimidating.

Scams have always been around on the internet, but when it comes to industries like real estate, banking, and others that consist of larger financial transactions, they are growing.

Here’s how it works. A scammer sends an email to a consumer or a Realtor with a fraudulent link attached to it. Once they click on the link, the crook has access to personal information. With that info they send a real-looking email to the buyer asking them to wire their down payment.

Often the email comes days before the closing of the sale, real estate officials say.

This is why it is important to not just check an email signature, but the actual email address the message came from. If you don’t recognize it, call your Realtor immediately. If you do recognize it, but the email still seems suspicious, call your Realtor. Remember: an agent will never ask you

According to Chris Galler, CEO of the MN Realtor’s Association, this is a national issue. The East and West coasts suffer from the majority of the scams, yet the growth of internet scams is significantly higher in the Midwest.

One important safeguard against online scams is to only deal with those you know personally when it comes to financial transactions. When real estate agents work on a team, it is important to be introduced to everyone on that team. This will ensure an expectation of who you will hear from.

It is extremely rare for real estate agents, or title agencies to request funds by wire transfer. Especially when the question is asked via email.

If this happens, it would be wise to call the title company or agent that sent the email at a number listed on their official website, and not one provided in the email (or from any link on the email).

MN Realtor’s Association also advises if a buyer is giving financial information on the web, look at the URL and make sure it reads https (the “s” stands for secure). Instead of clicking on the link via an email look up the URL and type in the web address yourself, the association also recommends.

Here are a couple of examples of real estate scams, and how to avoid them:

Transferring money via wire You searched, and searched for a home, your offer was approved; now you are ready to make a down payment. Then you receive an email requesting funds, you comply sending money to someone, somewhere, but it turns out to be to someone else, in another country.

Cybercrime effects many industries, especially real estate. This scenario is all too familiar among many people in business and out.

If you are going to wire transfer money, it should always follow a verbal phone call, and better yet, a face-to-face request. If it is an unfamiliar person, or someone you just haven’t dealt with before or often, always call your Realtor first before even speaking with the person.

Foreclosure services High foreclosure rates since the market collapse gave scammers a lot of potential victims. This includes: phony foreclosure assistance, fake loan adjustments, fabricated class action lawsuits, sell and lease back programs, and more.

You may receive a cold call from someone offering one or all of these services. If it is a “class action suit” the caller will suggest joining a group of other victims of the lender, claiming it will lower payments, or avoid foreclosure completely. In exchange for a fee of course.

These types of court cases occur, however attorneys almost always take their fee from the winnings, and never upfront.

When it comes to foreclosures, and loan reviews, the caller will review your paperwork in return for a fee.

Worst case scenarios often involve a promise to “lease back” the property after signing it over to the foreclosure counselor, leaving you under the impression you will be able to rent it out, and buy it back when you are back on your feet.

Imaginary rental

This is a common tactic among fraudsters. They post a beautiful looking condo or house on Craigslist, you go see it and fall in love, and give them the first and last month’s rent. Then it turns out it is not their home!

The way it works is quite simple: someone purchases ad space online, which is very easy and comes off as professional looking, then grab an address from a nice location that may or may not be vacant.

A huge red flag is when the contact person claims to not be the landlord, and the landlord is “out of town” and may only be contacted by email; the con artist may even use a throw-away phone number to reel you in. Often times the payment is requested through some online means, and to an account overseas. This is usually untraceable, or at the very least unredeemable.

Always research a property before diving into an agreement. Often times a quick Google search can straighten out any doubts or confusion. Contact the county for any information they may be able to provide by informing them of the rental situation you are interested in. There is a great service at Courthousedirect.com you can utilize as well.

In many cases, a house in foreclosure is the culprit. In this scenario a search will show you who the owner is, but their game may be to rent a home to you until you are evicted during the foreclosure process. This is a scenario where contacting the county clerk is quite valuable. All foreclosures are filed in their offices, and are open to the public.

It doesn’t hurt to knock on the door of the home you are interested in renting, or a nearby neighbor. Any information is helpful in these conspicuous situations.

There are many scams that usually begin online.

Always exercise caution, and contact your Realtor directly if something seems too good to be true. Even if you are not in the process of selling or buying a

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GListings

We have many listings at The Holmes Group!

Please visit our website at: www.HolmesGroupMN.com to learn more, and contact us!

11 N Mallard Road, North Oaks, MN $1,595,000

Exquisite home on pristine lot in North Oaks. There are too many amenities and highlights to list. Please see supplements for more info & property tours. This home is one of a kind and built with extensive detail and quality throughout. The open floor plan is timeless, the views are breathtaking & details are endless. The 3,185 sq ft garage is perfect for a car collector or enthusiast and is complete with a lower level shop & showroom. This home is a must see!

6125 Apple Road, Shorewood, MN $1,395,000

Gorgeous home, with enormous deck suitable for large parties, or just a nice relaxing weekend with the family. This home is situated on over 2 acres. Very private property with gated driveway. Beautiful views of 4 acres of wetland. Don’t let this property pass you by!

7601 Bush Lake Road, Burnsville, MN $650,000

Stunning two-story home in Bloomington’s prestigious South Bay. Enjoy the breathtaking private rear views & extensive landscaping.

Enjoy the gourmet kitchen with breakfast bar, bay window, granite tops, new appliances & walkout to 3-season porch. Main floor office, library, mudroom & laundry and so much more. Paver driveway, security system, irrigation system, this home is a must see!

Reminder: that goes a round a pr ivate pond Back! in the I also notic ed the gorg eous

15722 Lac Lavon Drive, Burnsville, MN $865,000

Enjoy 78 feet of lakeshore in this gorgeous custom home on Crystal Lake. Private lot with remote gate access; open concept with vaulted ceilings; tons of natural light with amazing lake view; gourmet kitchen; 5-car garage; 5 bedrooms which include a large owners suite w/balcony. Lakeville schools. Enjoy gorgeous sunsets, entertaining, and all types of seasonal activities!

1004 Chasworth Place, Shoreview, MN $520,000

Fantastic 2 story with an open floor plan & endless amenities.

Enjoy the main floor master suite w/ private deck, brick-surround fireplace & master bath. The open layout is perfect for entertaining or family time & boasts vaulted ceilings, sunken living room, wet bar, informal dining & 3-season porch. Upper level loft, private wooded rear views, generous landscaping & waterfall, mudroom, main floor laundry.

4365 Lexington Ave N Arden Hills, MN $695,000

Amazing home, Complete restoration, Lake front, 1 acre in the City.

Gorgeous setting. Fantastic Kitchen, Beds and Baths! Too many Amenities to mention! Great shopping, restaurants and freeway access close by. Easy to show. Quick closing possible.

11170 142nd Street N, Stillwater, MN $674,000

This home has too many details to list and is a must see! Enjoy nearly 9 acres of pristine land and 600’ of lake shore. The exterior features a 40X20 pole building, wood burning supplemental heat, 800 sq ft of storage above the garage, dock, massive garden, extensive landscaping and more.

Lexington Ave home is in a great spot ... it also has a lakeview...

651-379-1581 email: joeholmes@kw.com

Q&

Joe answers questions

he received from clients. Feel free to submit your own questions. Tweet us @HolmesGroupMN

Follow us on Twitter! https://twitter.com/HolmesGroupMN

What kind of contingencies are built in when I offer on a home?

Great question… There are several standard contingencies that are often used and in general, you can add in anything you like. Standard contingencies are: inspections, financing, review of association documents, well & septic testing or for the sale of the buyers home.

There are other obscure contingencies depending on the type of sale like soil & percolation tests. You can also add your

A own verbiage and contingencies in situations where something standard doesn’t’ apply.

What can I inspect through a standard inspection contingency?

Simply put: anything, everything or nothing at all. You can inspect a home, it’s condition, the mechanical and all other systems within the home. You can inspect the neighborhood, the schools, the yard, the lake and anything under the sun. A few years ago a friend bought a lake home and told me how he got into his

wet suit and swam around the shoreline to make sure it was what they were looking for. Yep.. that happens!

What is the difference between a broker and a realtor?

For every individual real estate office, there is only 1 acting broker. It’s a separate, more detailed licensing process and different license than a realtor’s license.

The broker acts as a guide for the realtor and helps train & mentor new agents as well has handle larger more complicated challenges with experienced agent files. There can be many realtors in an office that also hold a brokers’ license in which case they can be referred to as an associate broker but only 1 can act as the official broker.

for the purchase at the time of the offer. There are a few main concepts for the contract and that’s a term or length of time until the buyer does execute financing – usually 1,2 or 3 years. A final or end sales price should be determined or method to determine that in the future (get an appraisal or 2 and average the values). A down payment should be established which you see generally at 10-20% at a minimum and finally a monthly payment. The upside for the seller is that the home is technically sold while the downside is that they don’t get their proceeds quite yet!

Remember we are always here to help in any way we can!

Joe Holmes 651-379-1581 joeholmes@kw.com

Is there ever too much or too little to offer on a home?

The best guidance we can give our buyers is this: know what a home is worth to you but more importantly know what it’s not worth to you. In the event of multiple offers and having to fight for a home, putting your best foot forward is all you can do. That process is actually safe-guarded by an appraisal as a financed offer also has to have a bank agree with the price a buyer & seller set. As far as “too low”.. if a home just came on the market, a seller will most likely not look at offers more than 5% under list price. However if a home has been on the market for a while, then a seller may be open to it!

What is a contract for deed?

This is used for a buyer that can’t obtain financing

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3555 Willow Lake Blvd. Ste. 100 Vadnais Heights, MN 55110

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1. Knights-in-training

42. ‘’. . . ___ a lender be’’

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49. Journey by sloop

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50. Ambitionless one

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3555 Willow Lake Blvd Ste. 100 Vadnais Heights, MN 55110 651-379-1581 joeholmes@kw.com