Holmes Group Magazine - Feb 2018 Edition

HOLMES GROUP M A G A Z I N E ISSUE 6 - February 2018

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

Holmes on Homes - Joe’s State of Real Estate Address Our Featured Home - Beautiful home in Mahtomedi Home & Style - Ranch/Rambler Style Homes Showcasing your home’s features Listings Q&A Crossword & Sudoku

HOLMES

onHOMES Homes for sale

Twin Cities Region

Closed Sales

Median Sales Price

Twin Cities Region

Twin Cities Region

STATE OF REAL ESTATE ADDRESS 6,754 – sounds like a big number but when it notes the actual number of listings for sale in the Twin Cities Region from two weeks ago, something is off. In our fall edition we talked about how 2017 ended up, and predictions for 2018. It seems like 2018 is saying to us “hold my beer, you haven’t seen anything yet!”

I’ve just pressed my best suit, put on my extra-long red tie, and combed what hair I have left in some strange mess to resemble… well-you get the joke.

Welcome to our State of Real Estate address: 6,754 homes for sale is a significant number, and to put it in perspective – this is a 27% decrease in inventory from January 2017, and a 41% drop in available homes from January 2016. If spring volume trends continue their 4 year average – this would suggest we’ll only have 9,788 homes available in our peak market of June. This is crazy!

To put that in perspective; that’s as many available listings as available in February 2018.

Were you a home buyer in January or February 2018, and are thinking to yourself – “Wow... not much out there right now, we should wait for the spring market.” Well I hope you found a home last year because our peak inventory months aren’t looking so bright right now, and may not even match those months.

I know what you are thinking; This is a great time to list as we’ll be able to take advantage of that and get what we want. I’ve got food for thought on that too; interest rates have jumped significantly in the last 6 months, and we don’t see that trend reversing by any means. Conventional loans from 6 months ago were priced around 3.625% and today 4.375%. FHA loans went from 3.5% to 4.5% in that same 6 month period. Simply put: that’s less buying power!

So how does that affect real world buying power?

A difference in 1% of a rate means that somebody shopping at $300,000 6 months ago, now has to shop at $265,000 to make sure their payment is the same. With prices increasing due to lack

of inventory, we’re simply going to see buyers on the shelf waiting for better opportunity, and better days ahead. Or we simply won’t see prices increasing at all, and may even start to go flat or even lower. Mid and upper bracket pricing had a boost 12 months ago, and that’s cooled down. We may see the same in the lower priced markets as well.

So will we see better days ahead? I’ve been talking about a market shift for about a year now, and this may be a tipping point. With a steady rise in interest rates and low inventory: there’s really only one suggestion that I can see; if you’re planning on buying this year, get out and start shopping! Rates aren’t getting any better, and you may be waiting for inventory far longer than you think! If you’re planning on selling anytime soon then get on it! Less buying power, and less buyers are not indicators of an appreciating market.

The prediction isn’t doom and gloom or a bubble bursting by any means. It’s simply watching the natural ebbs and flows of the market. Right now the shift to a weaker market seems like it’s right around the corner.

Refer to graphs on previous page for data

OLMES ROUP

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our

FEATURED HOME

Wonderfully updated 2 story home in Mahtomedi. Enjoy the quiet cul-de-sac location & top rated schools. This home has been well maintained & wonderfully updated. Enjoy the granite tops, high-end stainless appliances, custom lighting and butler pantry in the kitchen. Amenities include multi-tiered deck, extensive landscaping, irrigation system, lower-level wet bar, paver driveway, two-zone heat & more.

1357 Prestwick Place Mahtomedi, MN 55115

$524,000

Spend your summers enjoying the weather on this 550 Sq Ft deck, overlooking beautiful landscaping.

This amazing deck has multiple levels for various forms of outdoor entertainment. From cooking, to simply relaxing and enjoying the view.

Multiple dining spaces from the comfortable dining area within the kitchen, to the separate dining room with large 2-panel window view for a more formal dining experience

This home boasts a 27’ X 13’ family room, for a quiet evening at home with a loved on, or a place to have fun with the whole family.

With multiple Living-Room/Family-Rooms, there is plenty of space to utilize for everyone in the family.

Be greeted by a beautiful entryway, with a breathtaking view of the foyer whenever entering this gorgeous home.

Room Level Dimensions Living Room Main 12x15 Dining Room Main 11x11 Family Room Main 18x14 Kitchen Main 21x11 Bedroom 1 Upper 17x14 Bedroom 2 Upper 12x12 Bedroom 3 Upper 12x10 Bedroom 4 Upper 12x10

Bath Description: Main Floor 1/2 Bath, Upper Level Full Bath , Private Master, Full Master, Walk-In Shower, 3/4 Basement, Separate Tub & Shower, Whirlpool Dining Room Description: Separate/Formal Dining Room, Eat In Kitchen, Breakfast Area Family Room: Main Level, Lower Level Appliances: Cooktop, Wall Oven, Microwave, Exhaust Fan/ Hood, Dishwasher, Refrigerator, Washer, Dryer, Water Softener - Owned, Disposal, Furnace Humidifier Basement: Walkout, Full, Finished (Livable), Drain Tiled, Drainage System, Sump Pump, Day/Lookout Windows, Egress Windows, Poured Concrete Exterior: Vinyl, Brick/Stone Fencing: Rail Roof: Asphalt Shingles, Pitched Amenities-Unit: Deck, Patio, Porch, Natural Woodwork, Kitchen Window, Vaulted Ceiling(s), Tiled Floors, Walk-In Closet, Washer/ Dryer Hookup, Security System, In-Ground Sprinkler Parking Char: Attached Garage, Driveway - Other Surface, Garage Door Opener

Call us at 651-379-1581

Other Rooms Fifth (5th) Bedroom Foyer Laundry Family Room Office

Level Dimensions Lower 13x10 Main 10x11 Main 6x11 Lower 27x13 Lower 11x7

HOME & STYLE

RANCH STYLE HOMES

Many ranch homes (also called ramblers or California ranches) are built on a concrete slab, though some have a basement or

Ranch style homes are one-story houses with an

crawl space. Ranch homes built in the 1950s

open and casual layout. The shape of the house is

and 1960s averaged 1,300 square feet, and

either rectangular or an “L” or “U” shape.

commonly had three bedrooms and one

The houses have low-pitched roofs and extended eaves. They also usually have an attached garage and a large picture window facing the street.

Other typical features include post and beam ceilings and sliding glass doors.

bathroom. Ranches built after the 1970s are typically larger.

You

can

find

ramblers

everywhere

throughout the U.S., although they are less prevalent on the East Coast.

Traditional ranch style homes grew in

popularity during the 1950s and 1960s.

and Mexican adobe haciendas.

Ranch style homes are one-story houses with an

Although ranch style design is now considered

open and casual layout. The shape of the house is

conservative, at the time of its development, it was

either rectangular or an “L” or “U” shape.

a radical change. The house exterior was plain,

The houses have low-pitched roofs and extended

with no steep roofs, porticoes, tall gables, dormer

eaves. They also usually have an attached garage

windows and porches common in other house

and a large picture window facing the street.

designs of the time.

Other typical features include post and beam

After World War II, the style began to spread

ceilings and sliding glass doors.

Many ranch homes (also called ramblers or California ranches) are built on a concrete slab, though some have a basement or crawl space. Ranch homes built in the 1950s and 1960s averaged 1,300 square feet, and commonly had three bedrooms and one bathroom. Ranches built after the 1970s are typically larger.

You can find ramblers everywhere throughout the U.S., although they are less prevalent on the East Coast.

From a classic Craftsman to a cool contemporary, the different styles of homes are as varied as the people who live in them.

History of the ranch house Architects on the West Coast, most notably Cliff May, designed the first ranch style houses in the 1930s, based on houses on southwestern ranches

across the U.S., often built in new subdivisions and suburbs. The houses’ relatively low cost and easy construction suited growing families wanting to get away from the cities.

Ranch homes were the stereotypical “boxy” tract housing built in the suburbs in the 1950s and 1960s.

The popularity of ranch style homes began to fade in the early 1970s when higher land costs made these one-story homes more expensive, and the energy crisis also increased the cost of heating the houses.

However, many people prefer renovating a ranch home to update it to modern tastes and lifestyles.

Typically ramblers are easy to remodel or expand, partly because most interior walls aren’t load bearing.

Features to showcase or add to your home to attract more buyers There are many ways to make your home stand out among the group.

Home buyers are so overwhelmed by the process of searching for a home, and buried beneath so many home options, that they may not even know what is important to them in a home. To get over this obstacle it is beneficial to show off the benefits of your home. This could be using a picture to show how beautiful the landscaping looks in the Spring, or perhaps specific upgrades in your home that buyers will not be able to resist. Let’s take a look at some features that make a buyer’s mouth water.

An open floor plan, and combination island create lots of gathering space in your home. If you don’t show it, you’re not going to sell it.

That’s the attitude of Marc Thee, co-founder and design principal at Winter Park, Fla., interior design firm Marc-Michaels, who believes that home shoppers buy what they see.

Buyers in the market for a new house know they want icomfort, convenience, and an overall better quality of life for their family. But more often than not, these buyers don’t know which features, products, or design elements will give them the lifestyle they desire in a new home.

It’s the job of sellers to show buyers the myriad options available to them in the homes they are selling, many of these options have not been imagined by the buyers in the first place.

“Home design is really about discovering the needs of your buyer and then finding solutions that you can offer to those needs, and sometimes there are needs that your buyer isn’t even aware they have,” says Jane Meagher, president of Success Strategies, a New Jersey-based company that specializes in creating design studios for home builders across the country.

“Show them how a specific feature is a solution to a need that they have to live better, and they’ll invest in those features.”

From floor plans to lighting fixtures, here are nine design-oriented features that many buyers don’t realize they can’t live without.

Consumers are more likely to spring for upgrades in the kitchen than in any

secondary casual dining space,” says Thee. “With the combination island the space is very informal and open, and a wonderful way for families to still be gathered together even if everyone is doing something different, whether it be homework, cooking dinner, or eating.”

We spoke about the increase in smart home technology in our last magazine; it is worth mentioning again in this context. While they may not initially think they need smart home products—or in fact may be opposed to installing them altogether—buyers are interested in the benefits and conveniences that home automation can provide.

The trends with smart home technology are to save energy, feel safer, be entertained, and worry less about little everyday things like remembering to close the garage.

Home technology will be most attractive to buyers when it’s simple, and designers say it’s one of the features of the home where it’s most important for buyers to see in action to understand its value.

“This is an aspect of the home that really has to be demonstrated,” says Thee. “For every client I have that’s an audiophile, I have more clients that say, ‘Everything works perfectly when our teenager is here, but as soon as we use it ourselves it has to be reset.’ So it has to be easy for homeowners to use.”

There are some simple points of entry for builders to show buyers how smart home features will enhance their daily living experience.

Automated lighting controls that allow homeowners to turn lights on or off remotely to save energy, WiFi-connected appliances that can be preheated on the way home from work for a fast weeknight dinner, or smart door locks that can be controlled and monitored from a mobile phone are just a few examples that buyers may not know are simple systems to use.

Other simple additions can make a big difference as well. other space in the home. Builders say that buyers in their design centers are immediately interested in a few specific kitchen customization options, most importantly quartz countertops, painted cabinets, and backsplash designs with colorful tiles or glass mosaics that allow buyers to customize their space in ways they haven’t thought of themselves. The same goes for product options.

“This is where it’s important to demonstrate to buyers the investment they’ll be making in a feature, because when they interact with a product in a design studio and it’s demonstrated for them, they’re able to see its benefits,” says Meagher. “For example, think about a hands-free kitchen faucet. You might see it in action and say, ‘that would be great if I’m cooking and have raw meat on my hands or the kids are baking and things are messy.’ It’s the kind of thing that a buyer didn’t even think about the uses of, but now has a heightened desire for.”

Designers also recommend adding a special appliance feature to make a kitchen feel a little bit more luxurious, such as a wine fridge, built-in coffee machine, or specialty cooktop feature.

“There is something about featuring wine in every budget that just feels expensive, and feels like you’re treating yourself to something,” says Thee of including wine refrigerators.

A wine refrigerator and built-in coffee machine give kitchens a luxurious feel.

Big kitchen islands have always been popular, but one new trend that’s been catching on with buyers is what designers call a “combination island.” Instead of the typical breakfast bar, a table is attached to the island to give the family more gathering space.

“The most courageous decision for buyers is to realize that they don’t need separate breakfast rooms along with dining rooms, because the island is the

“One thing that’s becoming very affordable now are automated window treatments that can open and close with a button or remote from bed,” says Thee. “They used to be fairly expensive, but if you can add them in at least the master bedroom, it’s a simple technology feature that really makes homeowners feel like they’re living in luxury.”

After seeing strong interest from buyers for simple smart home features, Quadrant Homes decided to include a base smart home technology package as standard in all of the company’s new homes. The products touch on the few conveniences that buyers are most interested in, like the ability to double check that the garage door is closed or to remotely access thermostats that help save energy.

“What has really changed the smart home market is app technology because there are so many different things that the lay person can do that aren’t complicated and can be easily checked from a mobile device,” says Fletcher. “If you can introduce your typical buyers to a program that they understand, then they’ll use it and it’ll seem like any other technology. Once they get a taste of it and see it demonstrated to them, they really have a voracious appetite for it.”

Single Family Homes 5315 W Bald Eagle Blvd White Bear Township, MN 55110 Enjoy the breathtaking views of Bald Eagle Lake. This home has it all - Panoramic lake views, 90 ft of lake shore, 5 car garage and additional shop, 600 sq ft deck and more. This home has history and character throughout. Enjoy the master suite with lake views & master bath, hardwood floors, fireplace, bay windows, sun room with views and more.

$699,000 15859 Dutton Lane Apple Valley, MN 55124

Fantastic 2-story in high demand Cobblestone Lake just steps to the lake and trails.

This home is turn-key and ready for any buyer. Enjoy the open floor plan, upper level loft, fully finished lower level, front porch, rear patio and more. Very well maintained and cared for - this home is in great condition. Convenient access to parks, schools, pools, shopping and more. This is a must see! Don’t miss this one!

$428,000 15722 Lac Lavon Drive Burnsville, MN 55306 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 with balcony. Lakeville schools.

Enjoy gorgeous sunsets, entertaining, and all types of seasonal activities!

$829,000 11 N Mallard Rd North Oaks, MN 55127 Exquisite home on pristine lot in North

Oaks. There are too many amenities and highlights to list. 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.

$1,295,000 Joe Holmes joeholmes@kw.com www.holmesgroupmn.com Office: 651.379.1581 | Cell: 651.491.2151

Bob Adamson radamson@kw.com www.holmesgroupmn.com Office: 651.209.9856 | Cell: 651.387.6262

11433 Kingsborough Trail Cottage Grove, MN 55016 Architecturally designed & exquisite detail in this one-story masterpiece. Enjoy the private golf course setting & river views from any room. All rooms are generously sized with attention to detail. Large master suite with private deck & hot tub off the master bath, home theater, cherry wet bar with full kitchen, cellar, 6+ car garage, private next-gen quarters in LL, executive office, smart home technology, 2400 sq ft garage, extensive landscaping & outdoor spaces.

$895,000 9620 Wyoming Terrace S Bloomington, MN 55438 Beautiful 2 story home in prestigious South Bay of Bloomington. There are too many amenities & features to list & must see to appreciate! Enjoy the vaulted entry, custom lighting, formal & informal dining spaces, 3-season porch, deck, 3-car heated garage, walk out lower-level with wet bar, brick surround fireplace, new roof/windows in 2015 & more. All bedrooms have generous sizes & master suite boasts a private balcony overlooking the backyard.

$549,000 11159 Anvil Curve Woodbury, MN 55129 This custom designed 2-story home blends luxurious detail & designed for wheelchair accessibility. Enjoy the main floor master suite & bath with roll in shower. HOA includes heated pool & splash pad, community center & theater room.

$415,000

LD

Fantastic end unit with lake front & lake views on a quiet street. One level living with master bedroom, walk-in closet, private master bath with separate tub & shower. This home has 2 beds / 2 baths, informal dining, over-sized 2 car garage, rear patio with lake views and more. Very well maintained and cared for.

SO

1991 Granite Ave N Oakdale, MN 55128

$199,000

LD

Stunning 2 story home with endless details. This is a true example of extraordinary craftsmanship & attention to detail. See supplements for a full list of details. This home boasts an open floor plan, gourmet kitchen, 3 fireplaces, in-floor heat, wet bar with custom finishes, exercise room, heated garage, custom tile & granite and much more.

Great home for family time and entertaining and must see to truly appreciate.

SO

14198 Mckenna Rd NW Prior Lake, MN 55372

$645,000 Heather Pederson hlpederson@kw.com www.heatherpederson.com Office: 651.379.6315 | Cell: 612.964.2524

Jay Mangine jaymangine@kw.com http://jaymangine.kw.com Office: 651.379.6362 | Cell: 612.865.0400

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

As a seller, what should I disclose to potential buyers or my realtor?

There’s a Seller Disclosure form that we have sellers fill out that goes over just about anything and everything under the sun.

The concept is that you should be disclosing anything that may affect the use and enjoyment of the property by the buyer.

Disclose updates, repairs, things that went wrong.. things you did to fix, update, etc..

When in doubt, disclose!

A Why is the Zestimate different than the market value you’ve indicated?

Ah, Zillow.. my least favorite real estate website.

Where do I start?! Zillow is not an accurate pricing tool. Their website even notes that information. Let me ask you... has Zillow toured your home? Have they seen the view from your deck? Do they know who your neighbors are?

Do they know the supply & demand ratios for your market? Do they really do anything at all?

The accuracy for Zestimates within 5% of actual sales ranges is only 63%. If you were a realtor

with that average, you’d be out of business.

How long does it take to close once a purchase agreement is in place?

For financed offers it can take 30-45 days to close if everything goes according to plan. For cash sales, they can close as quickly as 10-14 days. The key term there is “if everything goes according to plan” as there are a lot of moving parts to a sale. Inspections, appraisals, title commitments and all types of things need to be verified first and then you’re off to the races.

So were you rooting for the Patriots or the Eagles for the super bowl?

I was rooting for the Packers.. c’mon, everybody knows I’m a Packer fan. Given the fact our season was done in week 5, I was actually hoping the Vikings would get in. Could you imagine how much fun that would have been to see the Vikings play in our very own stadium!! The only thing better than that would be Vikings in the Super Bowl and Prince performing at half time. Hey.. a guy can reminisce. Actually I was glad to see the Eagles win. Share the love Tom Brady.. you had your turn.

What area does your team cover?

In general… the entire Twin Cities. We don’t just focus on a short radius around our office. I’ve found over the years that life circumstances for clients dictates the need to be up to speed on just about every corner of the Cities. Right now we’re working with a seller in Bloomington that wants to buy north of Maple Grove. Last year we had a seller go from Ham

Lake to Eden Prairie. So you have to be able to execute all areas of the Cities.

As a buyer, can I get my earnest money back if I don’t close?

Great question and the answer is maybe. It depends on the reason and if we’re already through all of the contingencies written to protect your earnest money.

Those contingencies can include an inspection process, financing contingency including an appraisal and loan approval or a review of the association if that applies. Other contingency examples are a compliant septic system or well if it’s applicable. If we get through all contingencies and a buyer simply changes their mind on the purchase, it’s still possible to get their earnest funds back. That’s a far more complicated process and best suited for a conversation at the time the offer is made.

OLMES ROUP

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

OLMES ROUP

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D

R R

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W S

S

U

D

O

K

U

Across

42. Clashers in Hollywood

1. Goblet feature

44. Blunted blade

5. Chums

45. Eta follower

9. Watch sounds

47. Closed up again

14. Typewriter type

49. Bucket-brigade member

15. Diabolical

50. Spill the beans

16. Layer with a ‘’hole’’

51. Touched down

17. ‘’This weighs __!’’

52. Title for Mick Jagger

18. Censor of ancient Rome

54. Discotheque employees

19. Scout’s job, for short

60. Chum

20. ‘’Tea for Two’’ musical

62. Limburger quality

23. Mel in Cooperstown

63. Flag down

24. Refuses to

64. Hopeless case

25. Rocker Clapton

65. Use a dishtowel

27. Damon of ‘’Mo’ Money’’

66. Art deco master

30. Rainy-day footwear

67. Hidden agenda

34. Be wild about

68. They hang from basketball hoops

35. Dosage unit

69. Floored it

36. Angelic topper 37. Wray of ‘’King Kong’’ 38. Group of guys, familiarly 41. French diarist Down

21. Trio times three

1. Reach across

22. Brit’s appliance

2. Onetime leader of Yugoslavia

26. It means ‘’kind of’’

3. Business-school subj.

27. Thin cookie

4. Legendary racehorse

28. Old saw

5. Praline nuts

29. Part of a ‘’sleeping’’ toy

6. __-garde

30. Mocked

7. Lo-cal

31. Natural emollient

8. Coin taker

32. A-list

9. Corrida celebrity

33. Sub detector

10. Suffix with lion

35. Toon Le Pew

11. French fashion designer

39. Nametag word

12. Board flaw

40. Wood finish

13. Shipped out

43. ‘’I told you so!’’

53. ‘’__ a roll!’’

46. Thumbs a ride

55. Formal dress

48. Dick Cheney’s predecessor

56. Garfield’s pal

49. Siren sounds

57. Wyatt of the West

51. Take as one’s own

58. Baptism, e.g.

52. Epic tale

59. Winter conveyance 61. Hair goo

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The Holmes Group

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