Holmes Group Magazine Issue 23 by The Holmes Group

ISSUE 23

fall HAPPY

Economics of 2023

Featured Home

Current Listings

Page 6

Page 8

Page 18

LETTER FROM THE EDITOR

Family, Friends, Clients & All 2023…. What a crazy year it’s been! With the holidays around the corner and colder weather upon us, it’s a great time to reflect on the year and say thanks to all of you! Thank you for your continued support as your go-to team for real estate needs and enjoy the upcoming holiday season!

Joe Holmes Missed our last issue? Scan the QR code to take a look!

Meet Team the

BOB ADAMSON

HEATHER PEDERSON

REALTOR

JOE HOLMES REALTOR

Buyer/ New Construction Specialist

Team | Marketing Manager Buyer Specialist

Team Lead | Listing Specialist

651-387-6262

612-964-2524

joeholmes@kw.com

btadamsonwbl@aol.com

hlpederson@kw.com

holmesgroup

heatherpedersonrealtor

holmesgroupmn

651-491-2151

heatherpederson

Visit us online or scan the QR code to get to know us! holmesgroupmn.com • holmesgroupmn.com/mnoffers

ho came Thanks to everyone w ul Saints out to enjoy the St. Pa ok forward with us this year. We lo aybe even to next season and m next year!! joining you at a game fun times Here are some of the . from this past summer

IN THIS

ISSUE 02 Editor’s Note 04 St. Paul Saints in review 06 Holmes on Homes 08 Featured Home 10

Featured Home

Crumbl Cookie review

Continuation of Holmes on Homes

Guest Article

Current Listings

20 Q&A 22 Crossword & Sudoku

08 5

HOLMES ON HOMES

Year-end 2023 in review The gobble gobble wibble wobble do a turkey dance edition

ell, this has certainly been an interesting year in real estate. We’re officially out of the covid-era boom and back to normal sales numbers. HA! “normal”…. I’m not sure there is normal anymore, but we’ll explore that later. Along the way we’ve seen consistent interest rate hikes, inventory count that’s still very low, buyer demand that’s been all over the place and we’re staring down the barrel of good ‘ol MN seasonality with snow around the corner. I’m sure by the time you get this magazine, snow will be on the ground! Let’s start with a year in review and break down some other goodies too. YEAR IN REVIEW We started the year a bit hesitant with what to expect. Coming off a covid-era boom and home sales slowing down, the big questions were where interest rates were going for the year and how much inventory we’d see along the way. We’ll get to those a bit later and wanted to focus on the total sales in the 7-county metro and how it compares to years past. 6

Here are the total sold properties AND listings in the 7-county metro through September of each year. This is ALL properties & ALL price points by the way… ok, take a look: LISTINGS

SOLDS

2019

53,118

38,400

2021

52,581

41,906

2022

47,570

36,234

2023

39,940

28,855

For those that noticed, we skip 2020 as it was way too weird to count on for statistical data and I may have erased the year as a whole from my memory. What do we see in that info? Simply put.. less buyers. The drop in sold homes from ’21 to ’22 was 14% and from ’22 to ’23 is 21%. So the slowdown is heating up. Not to add to the concerns here but keep in mind this is data through September of each year. Everybody knows what happened just a few weeks ago, right?!? Interest rates got bumped again and we’re now hovering at

7.5%, the highest I’ve seen rates since getting into this industry in ’02. More on rates in a moment and for now, let’s just say that the sales count (or in other words, BUYER DEMAND) is slowing down. INTEREST RATES Does anybody know where I can find Barry Habib? Barry, if you’re reading this let’s just say that I’m honored you found our mag but I really do have a bone to pick with you! Barry Habib is a long-time mortgage & real estate forecaster and somebody I’ve watched for the last 20 years. If you’re going to get into the game of forecasting your market, pretty sure this guy is on your radar. Wikipedia notes he’s the recipient of “three Crystal Ball Awards”… blah blah. Well I can tell you it wasn’t for his forecast of 2023! He was off. Way off. You may remember our mag earlier this year predicting rates under 6% by the end of the year with inflation in the rear view and cheap

money back in action. Um.. sorry but that clearly didn’t happen. In fact, as I type this article (October 25th.. hopefully you get this before Turkey Day) rates are roughly 7.5% and you have to pay 1% of your mortgage amount to have the privilege! That 1% is called “points” by the way. That 7.5% interest rate is the best available. That means you’re going to live in the home, have 10% or more down, 760+ credit scores and can bake a mean apple pie. Sorry.. had to check and see who’s reading this. Rates vary based on your scenario and they go up from there. Lower credit scores, less money down, condo purchase, etc.. those all trigger higher rates. Get this, I just recently had the guys at Three Bays Lending price out a duplex purchase with 25% down – the rate is a staggering 8.875%! I almost fell over. Seriously! And the crew at Three Bays has the most aggressive rates in town! This does a few things.. namely makes real estate less appealing as an investment AND harder to afford for the general consumer. But how much? Well, let’s take a look at payments on a 30-year fixed at certain

rates. The following are payments for a loan of $100,000:

tent with the last few years and we seem to have found the bottom. Here’s a snapshot of inventory this exact same time (again, Oct. 25th) in the last few years:

$421

$477

$536

$599

$665

2023

6,735

7.5%

$699

2022

6,868

2021

6,041

2019

9,358

2018

9,665

Keep in mind that those numbers are for $100,000. So if you’re borrowing $400,000 and looking at the difference between 5% and 7.5%.. that loan will cost $652/month more. Ouch! Clearly the affordability of a home will impact its price and other things too like inventory, days it takes to sell and so on. Let’s get into inventory next! INVENTORY For those of you who check out our somewhat-weekly market update videos, you know that inventory is a key stat we follow. It’s half the equation on price. Price = supply vs. demand. So inventory is one of my soapbox issues to watch and be aware of. As of today (October 25th) we currently have 6,735 listings in the 7-county metro. This is very consis-

YEAR

LISTING COUNT (Week of Oct. 25th)

What’s the takeaway from looking at that? Inventory is ever so slightly on the rise. This is going to take time to get back to pre-covid numbers. You’ll see that we had a bottom for inventory and then 2020 happened, adjust for a new normal and boom, here we are! The bottom, however, seems to be in and on the rise for listings from here albeit very slowly. How quickly that recovers is still unknown and if you want to hear my two cents on how this plays out for next year – take a peek at pages 14 & 15.

For more information on your home, neighborhood or city email us at JoeHolmes@kw.com 7

FEATURED HOME

10815 Lehigh Road

For sale

$755,000

Hastings, MN 55033

1994

4,250

Bedrooms

Baths Total

Year Built

Total Finished Square feet

Garage Stalls

Amazing one-story home with over 4 acres and tons of amenities inside and out. Enjoy the open concept on the main floor with vaulted ceilings, lots of natural light and a thoughtful & convenient floorplan. The gourmet kitchen features a center island, granite tops, stainless appliances, custom fixtures, double oven and more. The primary bedroom features a private bath, walk-in closet & walks out to your private deck and rear views. Other main floor highlights include a four-season porch with knotty pine, fireplace with floor-to-ceiling stone surround, office, mudroom, laundry and more. The lower level features a wet bar and rec room, two bedrooms, family room and walks out to your side patio. The detached 2nd garage is 36x24, heated and has water. The attached garage is also heated, has water and multiple 220 outlets. Don’t miss the generous landscaping, ponds, fountains and tranquil setting. This home is a must see and easy to appreciate!

Interested in a virtual tour?

Scan the QR code for a virtual tour of 10815 Lehigh Road!

FEATURED HOME

8620 Crismon Way

Inver Grove Heights, MN 55076

$629,000 Amazing two-story home with a private setting and amenities inside and out. Enjoy the open floor plan drenched with sunlight and convenience. The main floor layout is designed for today’s needs with a large mudroom entry from the garage, both formal & informal office spaces perfect for working at home & schoolwork. The gourmet kitchen features a large center island, granite tops, pantry, stainless appliances, double ovens, pendant lighting and has amazing views of your private backyard and pond. Entertaining is a breeze with both formal and informal dining options 10

and a walkout to your oversized deck and patio space. The upper-level features four bedrooms with a loft and the convenience of laundry. The primary bedroom has amazing nature views & features a private bath, walkin closet and tons of space. Extras include an oversized three-car garage, irrigation system, knockdown ceilings and more. With an unfinished basement ready for your touches, this home is a must see!

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IT’S NOT ALL ABOUT

REAL ESTATE

Crumbl Cookie A review by Tanner & Parker

In this edition of the Holmes Group Magazine the guys do a taste-testing of the famous cookies from Crumbl. If you haven’t been to Crumbl, you better get yourself there! Tanner and Parker put the flavors of the week to the test and graded each on taste and presentation.They could award each cookie 1-10 points for each category. You’ll have to scan the QR code and watch the video to see which cookie won! Hope you enjoy it as much as they did!

Scan the QR code to watch the boys review Crumbl Cookies!

Chocolate Green Mint

Oatmeal Mallow Sandwich

A chocolate cookie packed with green min pieces and rolled in cookies & cream crumbs, then smothered in green mint buttercream frosting and sprinked with cookies & cream bits.

Two oatmeal cookies with molasses, vanilla, and cinnamon flavors, sandwiching a layer of marshmallow cream cheese frosting.

Taste

Presentation

8 7

9 6

Tanner Parker

Taste

Presentation

5 9

8 8

Comments

“Mmm.. pretty good” (with a smile) - Parker

“I didn’t expect that for the filling. I was thinking marshmallow but this was more like frosting” - Tanner

“Yeah.. chocolate and mint seem to go together” - Tanner

Total Points:

“Dad!! Dad!! Feel how heavy this cookie is!” (with eyes wide open) - Parker

Total Points:

Caramel Apple

Peanut Butter Munch

A warm cinnamon apple cookie toppped with caramel cream cheese frosting, chopped Granny Smith apples, a drizzle of caramel, and a house-made streusel.

A peanut butter cookie topped with a symphony of milk chocolate, a crunch of peanut butter coated cerealpieces, and a sprinkle of powdered sugar.

Tanner Parker

Taste

Presentation

10 10

9.5 10

Tanner Parker

Taste

Presentation

9 100

7.5 10

Comments

"Whoa.. this is like super good” - Parker

“This is good. I for sure need a glass of milk” - Tanner

“I like the way this one looks. You can tell they worked hard on it” - Tanner

“100 points” “But Parker.. It only goes up to 10” “I know Dad..this one is 100 points!” - Parker

Total Points:

39.5

Total Points:

126.5

And there you have it ladies and gentlemen. With the top score of 126.5 points out of a possible 40 points (you’ll have to ask Parker about the math); Peanut Butter Munch is your winner! 13

CONTINUATION OF

HOLMES ON HOMES

In our first segment of Holmes on Homes we talked about sales slowing down, interest rates rising and inventory in chill-mode. We also learned that you can’t put all your eggs in the Barry Habib basket and I’m still waiting for somebody to make a mean apple pie. If you know, you know. It’s not all doom and gloom in real estate. In fact, it’s actually pretty darn bright and sunny in this world depending on how you look at it. Let’s dive into some of the more common perspectives and break them down and see if we can turn lemons into lemonade.

PERSPECTIVE: Home ownership is far less affordable today Sure...but compared to when? This perspective takes into consideration 3% rates vs. 7% rates. So yes, of course it’s less affordable today to buy a home. We’re all going to have to get off the notion that rates are supposed to be that cheap. They’re not. Never were. Never will be again. At least let’s hope not. A 7% interest rate is still below a 50-year average by the way.

Mortgage Rates - Annual 16.63%

7.81

------------, 3.80 '72

'77

'82

Annual Mortgage Rate (%) The Numbers That Drive U.S. Real Estate I Vision 2023

'87

'92

'97

Historical Average from '72-'20

'02

'07

Historical Average from '90-'20

'12

Copvnght © ?0?3 Kol/or W1//1ams Roaltv. Inc

So how do we make lemonade out of this?

'17

'22

- - Historical Average from '12-'21 Source: Freddie Mac

There are a few ways to look at this. First and foremost is the ability to dump your rate if a better one is available. A refinance is a great tool to use in the future as you’re never stuck with the rate you have. It’s just temporary until something better comes along. Additionally, higher rates and lower buyer volume means there’s less competition! For everybody that’s waiting for rates to go back down to buy something, please know you’ll be back in multiple offers when that happens. Right now, homes are available and we’re going into winter. This screams OPPORTUNITY for the right situation.

PERSPECTIVE: I can’t cash flow on an investment property Yes...neither can I...and neither can he, or she, or anybody unless you’re buying in cash. Cash is king of course but dilutes the overall return when you look at your revenue streams. Let’s start there.. an investment property has (4) revenue streams – 1) cash flow 2) debt reduction 3) tax savings 4) appreciation. Your % of cash flow return is similar on a cash purchase vs. financed purchase. However, the rate of return when you calculate those 4 categories together is not very good on a cash purchase compared to getting financing. So besides paying in cash (which let’s face it, isn’t abundantly available for all investors) where’s the lemonade? Well, it’s coming. You need to be patient. If there’s a price correction happening in real estate, it’s with investment properties. Investment properties are pretty much black and white – are you making money or not? It’s not about liking the kitchen or appreciating the layout – it’s literally about making dollars. With investment property rates near 9% - the return isn’t there. Which means buyers aren’t interested. Which means

listings sit and price reductions happen. We’re seeing this across the twin cities with multi-family homes and other investment properties. Get ready.. these prices ARE dropping. There are other creative ways to finance a purchase. Depending on the seller’s needs and their loan structure, you may be able to assume their loan and that low interest rate. What does it mean to assume a loan? Literally, you’re taking over payments for the owner and paying directly to the bank. It doesn’t get the seller their cash proceeds immediately and there are a few other tweaks to it, but assuming a loan is a creative way around current rates. On that same tangent is a contract for deed. This is where we create a contract with the seller that allows for them to be the bank. Again, some tweaks to it and if the seller needs all proceeds up front, may not be applicable. Assuming a mortgage and a contract for deed both take an in-depth conversation. For a deeper dive on that, give us a call.

in the right direction. This perspective is typically a way of a buyer saying they simply don’t see homes that interest them. We’re currently hovering at just under 7,000 listings in the 7-county metro. Although that’s low for the 3.1M people that live here, this is the highest listing count we’ve had since 2019. Stop and chew on that for a second – highest listing count since 2019. Again, we’re trending in the right direction and we’ll continue to see this improve over the years to come. I feel this perspective is one that’s stuck in 2021 which was a really tough year for buyers. You just really need to be ready when the opportunity presents itself and therein lies the solution – be prepared. How can you better prepare? It just so happens we can provide those solutions. Need to find a lender and get qualified – we’ve got it! If you need to sell your home to qualify, we can sell your home to a cash buyer waiting to close at your convenience! Need to find the diamond in the rough for your next home, we’ve got you there too. It may take some patience but we’ve got you!

PERSPECTIVE: There’s no inventory to look at Yes, the amount of inventory is low but we’re trending

For more information on your home, neighborhood or city email us at JoeHolmes@kw.com 15

GUEST ARTICLE

Painted paneling on walls and ceilings throughout the house—all reclaimed Douglas fir from Manomin Resawn Timbers—conveys the illusion of an exposed structure. “An exposed structure in an old house was simply a matter of not insulating,” architect Jean Rehkamp Larson says. “This house is insulated, so the beams you see on the interior of this house are not the structure, but they have been laid out in a way that implies they could be.” Big double-hung windows and French doors open wide to the lake.

PAST PERFECT Simple gable forms, the look of an exposed interior structure, and a materials palette inspired by the practical charm of the past help a new lake cottage feel anything but new. BY SHAWN GILLIAM • PHOTOGRAPHS BY SCOTT AMUNDSON

ummertime cruises on Battle Lake represent some of architect Jean Rehkamp Larson’s most cherished childhood memories. Her mom and grandma would slowly steer the family’s pontoon along the shoreline, taking in the scenery, including the houses. “You always had to be careful, because your voice carried,” Rehkamp Larson laughs. “But we definitely found our favorites, and they were the historic cottages that had been around since the 1920s, ’30s, and ’40s.” So it was in the spirit of that era that Rehkamp Larson designed a new cottage for an empty nester couple on the Gull Lake Chain. The approach was similar to that for a traditional farmhouse, a topic of expertise for Rehkamp Larson, who wrote the book The Farmhouse: New Inspiration for the Classic American Home, which is considered an authoritative source for the architectural style. “In general, vernacular buildings, when they were built by local people, were logical and simple,” she says. “So a simple gable meets another simple gable in a logical way, then the spaces fit in after that. And that’s the case for a cottage on the lake just like it is for a farmhouse.” One of the challenges, Rehkamp Larson says, is that today, we expect more out of our rooms and how they relate to one another. “So translating those simple forms to a modern

SCENE SETTER: Kitchen cabinetry with inset doors and drawers (where they’re flush with the frame) and exposed hinges hearkens to the past. “That’s the classic way to do cabinetry, and it doesn’t often happen, because it takes more craft to make it this way,” Rehkamp Larson says.

program, or space plan, is where the magic happens,” she says. For this cottage, Rehkamp Larson divided 2,100 square feet of space between a pair of gables to better relate to a smaller lake home scale. The larger of the two gables places the living and dining spaces and kitchen on the lake side and guest bedrooms and baths on the street side. In the second, smaller gable, the owner’s suite gets the lake view, and the garage and workshop face the street. A symmetrical composition of windows on all sides conveys a bygone look—and on the lake side, they’re banks of big double-hungs. “The double-hung was easier to build before we had more modern hardware,” Rehkamp Larson says. But mixing in smaller windows would have been typical, too, so she added awning and casement windows, including the classic

in-swing casement. “Again, it had simple hardware—a latch and hinges—so you could just open the window into the space.” Other architectural elements carrying the cottage theme through include reclaimed Douglas fir paneling and flooring. “Because the flooring is nailed in place and not tongue and groove, it’s going to expand and contract a little bit and just look more homemade, which the homeowners liked the idea of,” Rehkamp Larson says. “And then you’re going to see the surface nails, as well. It’s expressing the way things are put together.” That kind of character keeps impressing you the more you get to understand it, Rehkamp Larson says. “It’s not about the first impression. It’s about how the house settles in over time—and how you feel it and appreciate it as you experience it.”

"Every remodeling project we get to do on an old house teaches us about proportions and how things were put together. That is the best education.” –Jean Rehkamp LarsonArchitect 17

CURRENT LISTINGS 4 Fenlea Circle Dellwood, MN 55110 $895,999

Dwight Zaudtke Keller Williams Premier Realty

Enjoy your best life! Sitting on 3.5 + acres w/a pond & views of Pine Tree Lake. Welcoming 2- story Foyer. Newly remodeled kitchen w/ quartz countertops, center island, upscale appliances, granite composite sink, & nature views. The sunroom walks out to a maint-free deck. The owner bathroom has also been recently remodeled w/heated floors, skylight, & walk-in shower. A beautifully appointed spa-like bathroom. Work from home? This house has 2 libraries w/built-in desks and bookshelves. The upper level bedrooms have built-in dressers & desks. The Perennial gardens, a patio, deck & mature trees invite you to enjoy the outdoors. Nearby attractions include golfing, a winery, lakes, historic Stillwater, the quaint White Bear Lake downtown area & the highlyrated Mahtomedi School District. The lower level offers a Mother-in-law apartment (w/BR, BA, kitchen, living room) & a billiard room. This property delivers!

142 Wedgewood Drive Mahtomedi, MN 55115 $489,000

Holmes Group Keller Williams Premier Realty

Enjoy this bright, spacious, quiet, and park-like setting twin home with an abundance of wildlife and access to walking trails. All the conveniences of one-level living while also offering a lowerlevel primary suite and second kitchen. Oversized corner lot, 3-car garage, 3-sided gas fireplace, deluxe maple kitchen, expansive storage/utility room, and covered outdoor patio just to name a few of the great amenities this home offers! You want to see this one!

1796 Annika Avenue N Lake Elmo, MN 55042 $849,000

Hames-McDonough Real Estate Keller Williams Premier Realty

Welcome to this stunning Villa located in the prestigious Royal Golf Club neighborhood. This beautiful space is designed to provide the perfect blend of comfort, luxury and style. As you enter you'll be greeted with an abundance of natural light that floods through the large windows, illuminating the open concept living area with vaulted ceilings, beautiful wooden beams and a gas fireplace. The living area flows into the kitchen, dining & screen porch areas creating the perfect place to entertain guests or relax and enjoy the serene views. The beautiful ensuite is a true oasis with a large bathroom, walk-in tiled shower and huge closet. The finished lower level is a versatile space, offering two additional bedrooms, full bath and large living area with gas fireplace, wet bar and ample storage. This is the one to call HOME!!

CURRENT LISTINGS 4477 158th Street N Hugo, MN 55038 $574,900

Cathy Trast Keller Williams Premier Realty

Need more space? Look no further! Great floorplan for multi-generational living. Pride in ownership shines in every area of this beautiful home! Many recent quality updates include: light fixtures, countertops, neutral paint, carpet, fresh driveway seal-coating, and landscaping. Main floor features a well-appointed kitchen w/new granite & quartz countertops, and highend appliances. Upper-level includes a roomy primary ensuite, plus 3 bedrooms & large Bonus Room - could be a 6th Bedroom or a media/ theater room. You'll enjoy this sunny South & West facing enclosed 3-season porch & adjoining deck w/hot tub, partially fenced back yard overlooking natural habitat-gorgeous year-round views! Jam-packed w/storage galore, great spaces for guests & entertaining! Welcome home to betterthan-new construction! Proximity to parks, lakes, miles of sidewalks, walking distance to Oneka Elementary, shopping, restaurants & convenient access to everything.

8050 Golden Valley Road Golden Valley, MN 55427 $355,000 Holmes Group Keller Williams Premier Realty

Fantastic townhome in the heart of Golden Valley. Enjoy amenities and updates inside and out. The inviting entry opens to your main floor living space with 9' ceilings, luxury vinyl floors, gourmet kitchen and more. Main floor highlights include tile surround gas fireplace with mantel, courtyard views, informal dining and breakfast bar perfect for entertaining, smart thermostat and freshly painted. Your gourmet kitchen features stainless appliances, under-mount sink, breakfast bar, quartz tops and new addition of back bar with wine storage. The upper level features a remodeled bathroom, loft, and an over-sized primary suite with courtyard views. The exterior is inviting with walkways and paths, generous landscaping and private patio. With heated underground parking and walking distances to bars, restaurants and shops, this home has it all. Don't miss this one!

8620 Crismon Way

Inver Grove Heights, MN 55076

$629,000

Holmes Group Keller Williams Premier Realty

Amazing two-story home with a private setting and amenities inside and out. Enjoy the open floor plan drenched with sunlight and convenience. The main floor layout is designed for today’s needs with a large mudroom entry from the garage, both formal & informal office spaces perfect for working at home & schoolwork. The gourmet kitchen features a large center island, granite tops, pantry, stainless appliances, double ovens, pendant lighting and has amazing views of your private backyard and pond. Entertaining is a breeze with both formal and informal dining options and a walkout to your oversized deck and patio space. The upperlevel features four bedrooms with a loft and the convenience of laundry. The primary bedroom has amazing nature views & features a private bath, walk-in closet and tons of space. Extras include an oversized three-car garage, irrigation system, knockdown ceilings and more. With an unfinished basement ready for your touches, this home is a must see!

Q A

“We hear more and more of a housing market crash and fear we could end up underwater with our next purchase. What are your thoughts?” - Kate S.

Joe answers questions he received from clients. Feel free to submit your own question.

Email us: joeholmes@kw.com

Great question and lots of ways to unpack this one. Will we see a housing market crash? I feel the odds are pretty low. In order for home prices to start moving significantly backwards we need two things to happen.. Low Demand AND High Inventory. Right now demand is slipping a bit with high interest rates and running into MN seasonality. We’re seeing the same # of sales we did in 2019. It doesn’t feel like it’s “slipping a bit” with the backdrop of the covid-boom right behind us but demand is ok. Inventory, however, is still pretty low. As I type this, we currently have about 6,700 or so listings in the 7-county metro. That’s for 3.1M people… noodle on that one for a minute. So if half the equation of a market crash is inventory; then no.. I don’t feel we’ll have a major correction coming any time soon.

“Are home prices dropping?” - Jim T. That’s a very loaded question as it lumps all homes into one category. Overall, the 7-County metro has gained value this year. Our median home price in the 7 County metro in August of ‘22 was $359,900 compared to $367,500 this year. So that would leave us all to believe home values are up. But what if you break that down into the luxury market, move up homes, first time homes. Then condos, townhomes, single family homes, lake front, acreage, etc. You can see that the question is pretty loaded and to get really detailed, need to be more specific. Some areas are pretty insulated. Take the Highland neighborhood of St. Paul for example. For the last month of sold homes, the average days on market was 17 days. This is far lower than the 7-County average of 25 days. So that is (and always seems to be) a sought-after area. You have to be careful with the concept of falling prices as it’s hard to put a blanket statement out on the market as a whole. Investment properties are certainly trending down due to the interest rates. For a more specific answer, give us an email or call directly so we can look at your city, neighborhood or home.

“What type of rate of return on an investment property should I be looking for?” - Chris M. Good question Chris! The answer is going to be all over the place and it depends on your investment strategy. In days past, I would look for a cash on cash return of 7%-8% and above to make a purchase. Cash on cash return defined as the annual cash flow divided by the down payment. Heck.. if you can get 7% or so.. AND have gains with debt reduction, appreciation and tax savings, your annual return is more like 25%-35% . Well.. those were the days of low interest rates as well. Now with non-owner occupant rates around 9%, it’s much different. You may have to adjust the expectations and be ok waiting for good cash flow on years 2 or 3. A great strategy in the investment property world today is to buy something that’s a bit rough. From there improve the building, increase rents and then do a cash-out refi to get your renovation dollars back. This is all based on the increased rents. Always start with the end money you’ll be getting in!

“Are there any creative ways to make our home more sellable?” - Amber T. Of course there are and I’m glad you asked. I’m going to skip over the basics of presentation, staging, vids, floorplans, etc.. and I’m going to hit a tangent that’s not always used. If you have the ability to sell on a Contract for Deed, this could be a HUGE advantage right now. A Contract for Deed (CD for short) is when the seller functions as the lender for the purchase. The seller would be paid monthly until the buyer pays the seller in full. Generally this is done in 1 to 5 years when the buyer obtains financing from the bank to pay in full. The seller could offer a rate better than the bank can today and with no costs to the buyer. This could be very attractive. There are some tweaks to this however and may not work for all sellers. If you need your proceeds immediately from the sale, this doesn’t work well. Typically a buyer would be putting down 10%-20% which certainly leaves a lot on the table to be paid in the future. If the seller has a mortgage balance, there are some twists and turns as well. In short - give us a call, there’s a lot to unpack with this one!

“What do you look for in a home inspection?” - Mike S. The inspection process and info that comes from it should be neutral and factual. What you do with it or what I do with that info is really up to the person perceiving it. What may be an issue to some is not an issue to others so it’s really up to your own interpretation. As a realtor, we want to take note of items that may cause problems in the future, or items that fall into health or safety issues. My own personal philosophy whether working with buyers or sellers - be prepared for homeownership. Don’t bug the seller with normal home ownership to-do’s. An example of that is cleaning a dryer vent. And by all means, don’t create objections that are batshit crazy. An example of this - “I’m concerned with the loss of heat from the chimney”. This wasn’t from the flue being open or using the fireplace. This was literally a concern that the brick would suck up heat from the house and transfer that heat out of the home through the chimney. When batshit crazy stares you in the face, try not to laugh. Instead, provide data. My response: Well.. if the concern is efficiently heating the home, it would be evident somewhere. Instead of hiring an engineer to determine the data, why don’t we simply look at the utility bills. BOOM.. crisis averted.

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OnlineCrosswords.net This is the Daily Crossword Puzzle #4 for Oct 10, 2023

Find the solution at https://onlinecrosswords.net/49896

CROSSWORD SUDOKU

Across 1. Pharmacy measure 5. Boutique 9. Civic group (abbr.) 14. Scarce 15. Brave person 16. Diving gear 17. Bakery worker 18. Ages 19. Preceding 20. Commanding respect 22. Loathed 23. Obliterate 24. Baby's seat 25. Field covers 29. Gridiron number 33. Successful song 36. Unidealistic one 38. Keats' "before" 39. Compass direction (abbr.) 40. Property claims 41. River (Sp.) 42. Tyrannosaurus ____ 43. Erases 45. Mr. Franklin 46. Hold up 48. "M*A*S*H" locale 50. Explosive letters 51. Sound 55. ____ Fair 58. Opposing 62. Boundary 63. For all time 64. Foot part 65. Choose by vote 66. Look for 67. Mythical giant 68. Compact 69. Recipe units (abbr.) 70. Decays

Puzzle A - Easy

1 5

7 6 1 3 5 4 9 7

3 7

Puzzle B - Medium

5 7 3

4 1

1 4

7 1 4 3 6 2 6 4 5 7 8 1 4 3 7 2 3 7 6 5 2

5 8 1 2

4 Issue 22 Sudoku Solutions Puzzle A

2 4 6 7 3 1 8 9 5 22

9 1 7 2 5 8 4 3 6

5 3 8 9 4 6 1 7 2

Puzzle B

3 9 4 8 6 5 7 2 1

6 5 2 3 1 7 9 4 8

7 8 1 4 9 2 5 6 3

8 6 3 5 7 9 2 1 4

1 7 5 6 2 4 3 8 9

4 2 9 1 8 3 6 5 7

9 7 4 2 8 3 5 6 1

3 1 2 6 4 5 8 9 7

6 8 5 1 9 7 4 2 3

7 2 8 3 6 4 1 5 9

5 4 3 9 1 2 6 7 8

1 6 9 7 5 8 3 4 2

2 3 1 4 7 6 9 8 5

4 5 7 8 3 9 2 1 6

8 9 6 5 2 1 7 3 4

Across Down Down 1. Pharmacy measure 1. Golf stroke 1. Golf stroke 44. Oceans 21. Raise 5. Boutique 2. Professional speedster 2. Professional 47. Storage spots 24. Inferior 9. Civic group (abbr.) 3. Boxing locale speedster 49. Writer 26. Give in 4. Most insignificant 14. Scarce 3. locale 52. San ____ 27. Beach toy 15. Boxing Brave person 5. Citi Field predecessor 4. 16. Most Divinginsignificant gear 53. Not active 28. Glossy 6. Food seasoning 17. Citi Bakery worker Voiced 5. Field predecessor 30. Part of 7. 54. Eyes speech 18. Food Ages seasoning 8. Sit for a painting 6. 55. Winter vehicle 31. Great Lake 19. Voiced Preceding 9. Paving material 7. 56. Floor covering 32. Inert gas 20. Commanding respect 10. Skin abrasion 8. Sit for a painting 57. Church word 33. Cattle group 22. Loathed 11. Court proceeding 9. Paving material 58. Remainder 34. Enlightened one's 23. Obliterate 12. Woodwind 10. Skin abrasion words (2 wds.) 59. December 24 and 31 24. Baby's seat 13. Credit 11. Court proceeding 35. Printed21. words 60. Soak through 25. Field covers Raise 29. Gridiron number Inferior 37. Division24.word 12. Woodwind 61. Annoys 33. Successful song 26. Give in 43. Eating area 13. Credit ____ 36. Unidealistic one 27. Beach toy 38. Keats' "before" 28. Glossy 39. Compass direction (abbr.) 30. Part of speech 40. Property claims 31. Great Lake 41. River (Sp.) 32. Inert gas 42. Tyrannosaurus 33. Cattle group 43. Erases 34. Enlightened one's words (2 wds.) 45. Mr. Franklin 35. Printed words 46. Hold up 37. Division word 48. "M*A*S*H" locale 43. Eating area 50. Explosive letters 44. Oceans 51. Sound 47. Storage spots 55. Fair 49. Writer 58. Opposing 52. San 62. Boundary 53. Not active 63. For all time 54. Eyes 64. Foot part 55. Winter vehicle 65. Choose by vote 56. Floor covering 66. Look for 57. Church word 67. Mythical giant 58. Remainder 68. Compact 59. December 24 and 31 69. Recipe units (abbr.) 60. Soak through 70. Decays 61. Annoys

N UI

N E. C O M M IT TE

R E S .

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