Changes to the Real Estate Industry in August 2024: NAR Settlement Terms Explained

If you are in the market to buy or sell and have not yet heard about changes coming to the real estate industry later this summer, you will. Hopefully this post will get you started. 

Background

In March 2024, the National Association of Realtors (NAR) agreed to settlement terms• which will modify home buying and selling practices for many consumers across the county, including in Minnesota. This post summarizes two key terms from the settlement that will go into effect starting August 15th in the Twin Cities MLS region (no later than August 17th nationwide).

How have real estate agents typically gotten paid for their services?

sellers

Most sellers’ agents do commission-based work with the commission being a percentage of the final sale price. (Other models such as flat-rate exist but for the purpose of this post I’ll use the commission model.) The final payment for services happens at closing. Then, if sellers have agreed, their agent pays a portion of that commission to their buyer’s agent.

buyers

In Minnesota, buyers wishing to be represented sign a Buyer Representation Agreement with an agent detailing services and associated fees (we’ve been using buyer agreements since 1993.) Through the traditional model, most buyer’s agents receive payment for their services via the commission split described above, if the seller agrees. If a seller does not agree to pay the buyer’s agent fees, the buyer would pay the amount they negotiated with their agent in the Buyer Rep. Agreement.

The commission and offers of compensation to buyers’ agents have always been negotiable terms in Minnesota’s representation contracts, and still will be.

The amount a seller agrees to offer a buyer’s agent has historically been visible to other agents in our Multiple Listing Service (MLS). Starting August 15, 2024 it will no longer be.

Two Big Changes Affecting Buyers and Sellers

First Change: Offers of Compensation

“Compensation offers moved off MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation on an MLS. Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS (for example—concessions for buyer closing costs). This change will go into effect August 17, 2024.” -NAR website

What does this mean?

Offers of compensation to buyers’ agents will still be allowed in Minnesota but they may no longer be advertised on the MLS or any MLS-related aggregator. Listing agents can, however, advertise them off-MLS via individual marketing materials — signs, flyers, individual websites, etc.

Concessions

Buyers have always been able to ask sellers for various types of concessions when making an offer. For example, a buyer might ask a seller for an allowance to buy new carpeting, pay part of their closing costs, or give credit for a new roof. Compensation to pay the buyer’s broker for real estate services may be presented as another type of concession in the offer.

Sellers have always been allowed to offer concessions as incentives to buyers, and still will be able to. The new rule specifically regulates visibility of any offer of compensation to a buyer’s agent for real estate services — it will be prohibited on the MLS. Concessions, such as those listed above, will still be allowed on the MLS.

This change will likely add an extra layer of negotiation, particularly around how agent compensation is handled. There may be bumps in the road but with clear communication and transparency, the process should smooth out to benefit both buyers and sellers.

Second Change: Buyer Representation Agreements

“Written agreements for MLS Participants acting for buyers: While NAR has been advocating for the use of written agreements for years, in this settlement we have agreed to require MLS Participants working with buyers to enter into written agreements with their buyers before touring a home. This change will go into effect August 17, 2024.” -NAR website

What does this mean?

If buyers wish to tour a home with an agent they must first enter into some type of written agreement. In Minnesota we’ve had Buyer Representation Agreements in use for decades. Requiring a signed agreement prior to touring a home, however, will be a new practice starting August 15. New types of touring agreements may come into play which could include various tour fees for buyers.

The new regulation applies to both in-person and virtual visits, but not to open houses. Home shoppers will not need a signed written agreement when visiting open houses or asking host agents about their services.

Differences Among States

NAR as a national trade group includes members from every state. Each state has varying practices and/or legislation that determine how its industry functions; some states may be more affected by the settlement changes, some less. 

Learn More

Real estate professionals in Minnesota have been busy working out a new normal and preparing for August 15th. Both the state and national associations of REALTORS® have published helpful resources for consumers wanting to understand more about the settlement and how changes may affect them. Click here to learn more from our state association or check out NAR’s resources for both buyers and sellers. As the changes get underway don’t hesitate to reach out. I’ll gladly talk through “what if” questions and clarify any new information as it becomes available.

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*The settlement is still subject to final court approval. A hearing on final approval of the settlement to be held in November 2024. 

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes to inform buyers and sellers on variety of topics including market conditions, tips for selling and buying, homeownership trends, and more. Reach her at heidi@lyndenrealty.com or 651-503-1540. 

Thriving in a Seller's Market: Tactical Tips for Homebuyers

The Twin Cities’ spring market is now tipped in favor of sellers. Appropriately priced, tuned-up properties in popular locations are moving quickly with buyers lining up to compete in multiples. If you are a home buyer navigating this fast-paced seller's market, you might feel overwhelmed. With limited inventory and fierce competition, it’s easy to find yourself engaged in bidding wars ending in heartbreak. This post is for you dear buyers — with strategies, flexibility, and professional guidance you can turn the odds in your favor and secure your just-right home. 

Tip #1: Get Your Finances in Order

Before you even start your home search, it's crucial to get pre-approved for a mortgage. This not only signals to sellers that you're a serious buyer but also gives you a clear understanding of your budget and what you can afford. It also strengthens your negotiating position and also allows you to act quickly when the perfect property comes along. Keep in mind, most sellers won’t even look at offers without a lender’s pre-approval.

If you are paying in all cash, be prepared to provide proof of funds in lieu of a pre-approval. A bank statement or letter from your banker showing the full amount should suffice. If not cleared state, I always check with the seller’s agent to confirm the preferred documentation.

Do know the seller’s agent may call your lender to verify your relationship and financial position. When representing sellers, I typically reach out to lenders for this confirmation before my clients sign anything. Assume the seller’s agent will do the same.

Tip #2: Work with an Experienced Real Estate Agent

Partnering with a seasoned real estate agent is crucial in the current seller’s market. Your agent should have insider knowledge of the local market, understanding of current trends for successful offers, and negotiation skills to help you secure the best deal. Lean on their expertise to navigate the competitive landscape and present an offer with winning price and terms. 

A knowledgeable agent will also have an in-depth knowledge of contracts to help you understand the plethora of paperwork needed for a successful transaction. I always recommend reading forms before signing anything, and ask your agent when in doubt. All questions are good ones! 

Tip #3: Be Prepared to Act Fast

In a competitive market, time is of the essence. Hesitation could cost you your dream home. When you find a property that checks all the boxes, don't wait – act swiftly and decisively. Schedule a showing as soon as possible (day one on market), and if you're truly interested, submit an offer soon after, if need be. When you’re ready to act, your agent should be connecting with that seller’s agent immediately to establish a relationship, learn seller preferences and gauge any competition. In a multiple offer situation, there will typically be an offer date/time deadline of which you'll need to be aware. Communication among agents is often the only way to learn how a seller plans to proceed. But be aware, ultimately it’s the sellers’ decision and they may be pleased enough with the first offer to just sign it and move on, forgoing the opportunity to generate multiples. Either way, be ready to act when you find “the one”. 

Tip #4: Make a Strong and Compelling Offer

When competing in a seller’s market, it's essential to come in strong. Work with your agent to establish a strong offer price using comparable homes and buyer trends. Then check in with your lender to stay within your budget and confirm what they can accomplish within the offer timeline. I typically loop in my clients’ lenders early on in the process to ensure clear and quick communication in the event we need to pivot or act quickly. Also consider including terms that are favorable to the seller, such as a quick close, appraisal gap coverage or inspection contingency waiver (if you're comfortable doing so). 

A Word on Love Letters to the Seller

Buyers often ask if they should write a letter to the seller when submitting an offer. Depending on the letter content, doing so could set the seller up for a potential fair housing violation. For example, sellers could unconsciously (or consciously) choose a buyer based on race, religion, familial status, etc. So, I recommend either avoiding the letter altogether, or including only what you love about the home — no personal information or photos. Occasionally when asked, or when stated in the agent’s notes, a seller may request that buyers omit love letters. Consult with your agent before spending time composing. 

Tip #5: Stay Flexible and Keep an Open Mind

Flexibility is key in a competitive market. Be prepared to compromise on certain preferences, such as style or amenities, in order to secure a home in your desired area, for example. Also, keep an open mind during your search – you may be surprised by properties that initially fall outside your criteria but end up being the perfect fit. Finally, be realistic about price. If you continue to lose out to offers well over list price and cannot afford to compete, consider searching for less expensive homes. Give yourself some wiggle room to offer more by bidding on homes that cost less. 

Thriving in a seller's market requires a combination of preparation, strategy, and flexibility. By getting your finances in order, working with a seasoned agent, acting swiftly, making strong offers, and staying flexible, you can increase your chances of securing the perfect property despite the competition.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes to inform buyers and sellers on variety of topics including market conditions, tips for selling and buying, homeownership trends, and more. Reach her at heidi@lyndenrealty.com or 651-503-1540. 

Should You Move Out Before Listing?

Is it best to move out before listing a home for sale?

Good question! I get asked this frequently and my answer depends on my client’s individual situation. The process of preparing a home for sale can feel overwhelming at first, especially if you have years or decades of accumulated stuff to sort, pack and move. If this is the case, I always suggest planning far in advance — several months or even a year or more depending on the size of your move and work/life obligations. Once you begin planning, you may start to wonder how far you should go in paring down. Is it better to move out all the way before listing? It depends. Moving out prior to listing may not be realistic for many homesellers. Below are common considerations and potential scenarios for helping you decide what’s best for you.

Stay Put

When deciding on what to purge and pack, consider who will be walking through your home, and when. Once your property is listed for sale, buyers and their agents will begin touring it, typically through private showings. Buyers’ agents will request showings and you as the seller may approve or deny their requests. Of course you will want as many potential buyers as possible to visit so being flexible and accommodating is ideal. Buyers and their agents expect to tour homes without sellers present. Doing so gives them privacy and space to talk freely among themselves and to imagine possibilities for making space their own. So if you plan to live in your home while it’s listed for sale, plan to vacate during showing times which typically last 30-60 minutes. 

Before each showing, I recommend cleaning and straightening as much as possible. Aim for matching the condition depicted in the listing photos — no dirty dishes, wet towels on bathroom floors, unmade beds, etc. Since most people don’t live in picture perfect spaces this can sometimes be a challenge, especially if kids and/or pets are involved. If you choose to stay put, setting household expectations and staying organized will help. 

Vacation or Staycation

The flurry of buyer activity usually happens right out of the gate. The first several days on the market often generate the most traffic, especially in an active market (think spring in Minnesota!) If you plan to stay in your home but want to avoid the new listing buzz, consider a vacation or staycation. I often see sellers plan weekend trips around the list date to avoid the initial deluge of showing requests. 

Partial Move

Moving out, or mostly out, ahead of time can help alleviate the disruption and displacement during showing hours. If you plan to move out but have flexibility with furnishings, consider a partial move, leaving key pieces and moving the rest. Ideally, a marketed property should feel like a home, with at least some furnishings. Vacant rooms just aren’t cozy. They also leave little for a photographer to shoot. Furniture creates focal points which in turn produce more captivating images. And with 100% of buyers beginning their search online, attention-grabbing images are a must.

Partial Stage

If a partial move-out is possible, consider hiring a professional stager to fill in the rest. Depending on the condition and style of your furniture, you may want to hold off on moving larger items. Anchor pieces like beds, couches and dining sets help buyers envision scale and how a space may be used. These larger pieces are part of the equation; pillows, throws, plants, art, etc. make up the rest. Many stagers offer some type of hybrid service to fill in the gaps using their own inventory while working with a seller’s existing furniture. When doing so, they can help you decide which pieces to keep and incorporate as they work to target your likely buyers. Keep in mind, staging is strategic marketing, not just decorating. A good stager will understand the market and work to attract a specific pool of buyers based on your price point, location and home style.

Partially Staged: Seller’s dining room set combined with stager’s art, plants, etc.

Full Move

If your timeline necessitates a full move-out you could either photograph your home as a vacant property or consider full staging. Vacant room photos are not as eye-catching of course but sometimes this is the only viable option. 

Stage

If you opt for staging a vacant home, you have choices. Vacant home staging most often includes furnishing just the main living area, primary bedroom, kitchen and bathrooms, but covering the whole-house is always an option for an additional cost. Staging services typically include a set-up fee and a couple of months rental. Fee structures vary, as do style and quality of furniture, so it’s worth shopping around for the right fit.

A less common practice is virtually staging. It can be a more cost-effective way to create compelling photos but doesn’t necessarily enhance the buyers’ walkthrough experience. 

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Vacant home BEFORE staging

Vacant home AFTER staging

Clear Clutter

When planning your move, consider the end goal — closing day, or date of possession. You will need to be completely out of your home by then. Unless otherwise negotiated with the buyers, this means removal of all personal belongings and all debris. 

A closing period is typically 30-45 days from the date the offer is signed and accepted and cash offers can close even sooner, within a week or two. So once your home hits the market, time could potentially fly. I recommend doing as much purging and moving as possible before listing — you’ll have to clean out your closets eventually, might as well do it before! Less is always more for buyers who will peek in every nook and cranny.

Sometimes a second set of eyes is helpful for seeing what needs clearing or keeping. I often do room-by-room walkthroughs with clients at the beginning stages to help determine which items to eliminate, especially larger pieces that may need to be donated or sold. In many cases, sellers were planning to get rid of stuff anyway and appreciate a green light to begin purging. Professional stagers work in a similar way. They create punch lists for sellers that include suggestions for specific paint colors, light fixture updates, and more.

Scenarios for selling are as varied as the homes and lives of the people living in them. Once you’ve made the decision to move, don’t be afraid to ask for assistance — family, friends and professionals can be invaluable for smoothing out the process. We are here to help. Mobilizing to sell and move may seem daunting but it is certainly doable. I continue to be amazed by the effort, energy and perseverance of my clients who have made it happen.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes to inform buyers and sellers on variety of topics including market conditions, tips for selling and buying, homeownership trends, and more. Reach her at heidi@lyndenrealty.com or 651-503-1540. 

Open Houses 101 for Homebuyers

If you’re searching for a home, you’ve most likely checked out an open house or two. Along with private showings, open houses are a common way to get inside and can be an insightful next step after searching online. Here’s some food for thought for buyers venturing out on the weekends (or sometimes week nights), from an agent’s perspective. 

Why go?

I hold open houses often so I get to meet a variety of people. Though I sometimes meet passersby, most often I meet visitors who have already scoped out the property, poured over details and studied the photos. Though online pictures and virtual tours are helpful, there’s nothing like stepping into a home to test out other senses – How does it feel? Or smell?? Getting inside answers questions about space, scale and other unknowns like flow, basement storage, closet configuration, ceiling height, and more.

If you as a buyer are already working with a real estate agent, your agent may send you to an open house ahead of a private showing. If they’re out of town or tied up with other clients during your free time, why not stop in for a preliminary peek? In a seller’s market, waiting too long to see a property may cost you, so better to tour sooner than later.

If you’ve already had a first showing with your agent, sometimes an open house is a good opportunity for a second glance, or a chance to bring through family members, contractors, or even inspectors.

Getting a Feel for the Market

Going to open houses can also be a good opportunity to get a jump on the spring market. Start doing your research and taking notes to get ahead of the game. I often meet prospective homebuyers who are planning to buy in the spring but are getting a feel for the market starting late fall.

Condo or Single-family?

If you are not sure what type of property you want to buy, open houses create an opportunity for checking out a variety of home types and/or developments. For example, you may be debating condo life but have never actually been in one. Or you may want to compare amenities in a small association versus a larger high rise. Or you might visit and compare different townhouse developments. Talking to a variety of agents about these Common Interest Communities (CICs) can be insightful — How are they managed? What’s included in the monthly HOA fee? (More questions to ask when buying a condo or townhouse here.)

Finding a Realtor

If you aren’t currently under contract with a buyer’s agent, open houses can be one way to meet your future agent. Chatting with agents at open houses gives you a good sense of their market knowledge, years of experience, personality, and compatibility in general. Reading online reviews, websites and blog posts are some ways to research, but there’s nothing like meeting face-to-face to get a vibe. Don’t be afraid to chat and ask questions! 

The Seller’s Agent

Keep in mind that the agent hosting the open house will be representing the seller, not you, and will have the seller’s best interest in mind. Sometimes the listing agent will host, other times another agent from their brokerage (or another brokerage) will. Either way, the seller will be represented. Be aware of agent/client relationships and what you reveal to the seller’s side about your price, terms and motivation. If you are also represented (under contract) I recommend letting the seller’s agent know right away. I often tell my buyer clients to share my name with any open house agent. 

Follow-up

If you have further interest after visiting a home follow up with your Realtor, if you have one. Schedule a private showing, obtain any disclosures or supplements, etc. If you are not working with someone and end up calling the listing agent for more information, do you know they will be representing the seller. If that agent ends up representing you it would be considered “dual agency”. To avoid dual agency, however, I recommend finding a buyer’s agent to help you. (More on Minnesota’s agency disclosure requirements here.)

As we approach holiday seasons, the number of new homes entering the market drops considerably. Know that come “spring” market, usually early January, the number of listings will increase, but so will the competition. Late fall and early winter are great times to get ahead of the pack and visiting open houses can be a helpful first step.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes to inform buyers and sellers on variety of topics including market conditions, tips for selling and buying, homeownership trends, and more. Reach her at heidi@lyndenrealty.com or 651-503-1540. 

How to Prep Your Home to Sell: Top 10 Tasks

1. Deep Cleaning

Ensure your home is spotless. Clean carpets, wash windows, and scrub floors. Pay attention to often overlooked areas such as baseboards, light fixtures, and grout lines. A clean and fresh-smelling home makes a positive impression. Be sure to address odors as well. Eliminate any unpleasant smells by deep cleaning carpets and upholstery. Keep the home well-ventilated during showings. Avoid using air fresheners or scented candles.

3. Declutter and Depersonalize

Remove excess belongings to make your home appear more spacious and allow potential buyers to envision themselves in the space. Pack away personal items like family photos and keepsakes. Clear countertops, closets, and storage areas to showcase the available space.

4. Repairs and Maintenance

Fix any visible issues such as leaky faucets, broken tiles, cracked walls or stained ceilings. Ensure that all systems and appliances are in good working condition. Consider replacing appliances that are nearing end of life.

2. Enhance Curb Appeal

First impressions matter! Enhance your home's exterior by mowing the lawn, trimming hedges, planting flowers, and adding fresh mulch. In winter, be sure sidewalks and driveway are clear of snow. Consider repainting the front door, updating hardware and adding new house numbers.

5. Neutralize and Paint

Consider repainting rooms with neutral colors to create a blank canvas for potential buyers. Neutral tones appeal to a broader range of people and make it easier for them to imagine their furniture and belongings in the space. Though a pop of color on an accent wall works well in photos and for creating dimension!

6. Maximize Natural Light

Open curtains and blinds to allow natural light to fill the rooms. Clean windows inside and out to ensure they are spotless and let in as much light as possible.

7. Stage Your Home

Arrange furniture and decor to highlight the home's best features and create an inviting atmosphere. I strongly recommend hiring a professional stager to help you with this! Their approach is to market to specific buyers in your area at your price point. Stagers can also offer design recommendations for paint colors, refreshed lighting, bath fixtures, flooring, and much more!

8. Refresh Kitchen & Bathrooms

The kitchen is a crucial area for buyers. Update outdated fixtures, repair or replace damaged cabinets, and consider upgrading appliances if needed. Clean and repair any issues in the bathrooms. Replace outdated fixtures, re-caulk bathtubs and showers, and add fresh towels and accessories.

9. Update Lighting

Adequate, modern lighting enhances the appeal of a home. Replace outdated or broken light fixtures and ceiling fans, and consider using energy-efficient bulbs (warm white!) to save on energy costs.

10. Set an Appropriate Price

Work with a real estate agent to determine a competitive and realistic listing price based on market trends, location, and the condition of your home. Pricing your home accurately is crucial for attracting potential buyers. Savvy buyers will know if your home is overpriced and will most likely wait out a price drop. As with most “retail pricing”, shoppers wait for the sale. But once this happens buyers may start to wonder, “what’s wrong with it?”, especially in a hot seller’s market. Better to hit the pricing sweet spot when first entering the market than to lower it later on.

Remember, the specific requirements for preparing a home for sale may vary depending on its condition, location, and target market. It's always a good idea to consult with a local real estate professional for personalized advice tailored to your situation.

Home Buying 101: What are closing costs?

When buying a home, your closing costs will typically consist of a variety of fees and expenses to pay for services associated with the transaction. These fees must be paid in full at closing and cannot be rolled into your mortgage. While the specific costs can vary depending on factors such as the property value, location, and mortgage lender, here are some common components of a buyer’s closing costs in Minnesota:

Loan-related Fees

These fees are associated with the mortgage loan and can include:

a. Origination Fee/Admin fee/Processing Fee: This fee covers the lender's administrative costs for processing the loan.

b. Discount Points: Buyers may have the option to pay discount points upfront to reduce the interest rate on the mortgage.

c. Appraisal Fee: This covers the cost of assessing the property's value.

d. Credit Report Fee: Lenders typically charge a fee for obtaining and reviewing the buyer's credit report.

e. Loan Application Fee: Some lenders may require an application fee for processing the mortgage application.

f. Underwriting Fee: This fee covers the lender's cost of evaluating and approving the loan.

g. Mortgage Insurance: If the down payment is less than 20%, the buyer may need to pay mortgage insurance premiums.

h. Title Insurance: The purchase of lender’s title insurance premium to protect against any title issues.

Title-related Fees

These fees are associated with ensuring a clear title and conducting the necessary searches. They can include:

a. Title Exam/Services: The cost of searching public records to verify the property's ownership history

b. Title Insurance: The purchase of owner’s title insurance premium to protect against any title issues. This is separate from the lender’s policy.

c. Closing fee: Payment to title company for providing closing service

c. Recording Fees: Fees charged by the county for recording the deed and other relevant documents.

d. Survey Fee: If a survey is required or desired, the buyer may need to cover the cost of a professional surveyor.

Government Fees

These fees are typically required by the state or local government and can include:

a. Mortgage Registration Tax (MRT): Minnesota imposes a mortgage registration tax on the principal amount of the mortgage. MRT is paid when recording a mortgage. The rate is 0.0023 of the mortgage amount. Hennepin and Ramsey Counties add an additional .0001 for an environmental response fund (ERF) per Minnesota Statute 383A.80.

b. Property Taxes: May need to be pre-paid at closing.

c. Transfer Taxes: Taxes imposed by the state or local government on the transfer of real estate ownership. In Minnesota, state deed tax is most often paid by sellers, however.

Prepaid Expenses

Buyers may need to prepay certain expenses at closing, such as property taxes, special assessments, homeowners insurance premiums, and mortgage interest for the remaining days of the month.

If you’re buying into a Common Interest Community (condo or townhouse) you’ll have Homeowners Association (HOA) dues which sometimes need to be paid in advance.

Miscellaneous Fees

Buyers may incur additional fees such as courier fees, wire transfer fees, conservation fees, attorney fees (if applicable), and other costs associated with the transaction.

Realtor Fees

If you are working with a real estate agent to find a home you most likely signed a contract at some point in the process. The most common type is a Buyer Representation Contract with an exclusive right to represent. Most brokerages in and around the Twin Cities charge buyers a retainer fee for their service, with a dollar amount written into this contract.

And, depending on what is agreed upon in your Buyer Representation contract, you might also pay your broker/agent for the service they provide.

What are seller-paids?

In a buyer’s market it is not uncommon to ask sellers to pay part or all of your closing costs, often referred to as seller-paids. You would simply write in a dollar amount or percentage of the price on the purchase agreement at the time of making the offer. Unfortunately for buyers, this hasn’t been the norm for a while. In a fiercely competitive market, asking for seller-paid closing costs puts buyers at a disadvantage if it lowers the seller’s net proceeds compared to competing offers.

It's important to note that the specific closing costs can vary, and buyers should receive a Loan Estimate and Closing Disclosure from the lender, outlining the estimated costs prior to closing. Working closely with a real estate agent and mortgage lender can help you understand the closing costs specific to your situation and ensure you are adequately prepared for the expenses associated with purchasing a home in Minnesota.

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Banner photo by Georgie Cobbs on Unsplash

Women and Homeownership

Who are typical home buyers? In the U.S. married couples make up the majority. Single women, however, are next. Since the National Association of Realtors® began recording home buyer profiles back in 1981, single females have made up the second most common demographic. The trend is holding steady. While the majority of 2019 home buyers were married couples (61%), single women represented the next largest group (18%), ahead of single men who made up just 9%.

In 2003 I was one of those women. I knew exactly why I wanted to buy a home (build equity, have freedom to make it my own) and have never regretted my decision. I suspected others in my position may have felt the same, but wanted to hear their two cents. So I asked friends and past clients three simple questions: Why did you buy a home? What do you like about owning? What advice would you give others who are thinking about buying. Read the Q&A below!

Characteristics of Homebuyers | 1981-2019*

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Elizabeth

What's the main reason you decided to buy a home?

I wanted to build equity, avoid "throwing my money away" on apartment rent, have the pride of owning my first home in my mid-20s, and put roots down after moving back home to MN.

What do you like about owning your own home?

With a condo, I love not having to worry about the yard work/shoveling/etc. that comes with buying a single family home. I have loved learning new skills such as fixing a dripping faucet and transforming the space into my own.

What advice would give others who are thinking about buying a home?

I would tell others not to settle. It was a sellers’ market when I purchased my home, and I saw a lot of properties before getting my offer accepted. I'm glad I stuck with the process, because I wouldn't have been happy settling on some of the other properties I looked at.

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S.J.

What's the main reason you decided to buy a home?

So I could adopt a super sweet dog. :) I also wanted to invest in myself. I yearned for a small morsel of land where I could grow flowers/veggies and a space where I always felt comfort and safe. I wanted the flexibility to express myself creatively and to expand my knowledge/skills through the process of remodeling a fixer-upper. Joining a supportive neighborhood community was also an important reason I decided to buy a home.

What did you like about owning your own home?

I enjoyed coming home to a quiet, cozy space that I had created. I loved the freedom. I could do my laundry whenever I wanted, let my dog roam freely in the fenced in backyard and even walk around naked! It felt empowering to fix the toilet, leaky faucets, loose door handles and to learn as I went along. I grew close to my neighbors and felt like I was part of a meaningful community. I was able to walk to the river and neighboring businesses which had an added environmental bonus.

What advice would give others who are thinking about buying a home?

It’s a leap worth taking! Do your homework to know how much you can afford, factoring in a buffer for unexpected expenses. Know that something will always need your attention and any dream-worthy remodel will always take longer than expected. Don’t rush it. Live in a 50’s style kitchen for a year to form a clear vision. If the flowers die or the vegetable garden struggles, no worries! You can always try again next year. Enjoy the process. Find a good realtor to help guide you along the way. Oh, and adopt a dog.

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Jessica

What's the main reason you decided to buy a home?

I had thought about owning my own home for a few years since I'd had bad experiences with renting. I was becoming more financially independent and progressing more in my career. My budgeting had become much better over the years and I had learned enough about mortgages to be confident that it was the right time to make a leap.

What do you like about owning your own home?

I love decorating my space and learning more about my house and how to take care of it. I started gardening a few years ago and I'm really excited that spring is around the corner so that I can start making outdoor plans. I have long-term projects for the house as well and I look forward to accomplishing those goals.

What advice would give others who are thinking about buying a home?

I was nervous about finding the right house for just me but there are so many options out there. Just keep your mind open, stay positive and be sure you have a realtor that understands what you're looking for and can give you the pros and cons, which in my case, was an older home with some character. I wasn't looking for a fixer upper but I probably couldn't afford a pristine home and it was important to have someone who could give me honest feedback about the sort of projects and maintenance a prospective house would need.

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Tammy

What's the main reason you decided to buy a home?

Truth be told I did not want my son at the time, 2 years of age, to grow up in an apartment. I wanted to raise him in a home with a yard and place we called ours. I never once thought I could not do this. I wanted to give my son the same upbringing I had — a home with a yard!

What do you like about owning your own home?

When you own your home you can make it a place where your family and friends are always welcome with your own style. The best part of owning a home is you are building equity — like putting money in the bank that one day will be paid off and then you own your home free and clear!!

What advice would give others who are thinking about buying a home?

I highly recommend buying a home verses renting, it’s a smart investment and you will never lose on it!!

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Thank you

Sincere thanks to Elizabeth, S.J., Jessica and Tammy for taking time to respond, sharing your wisdom and inspiring others!

Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540. 

*Source: National Association of REALTORS® 2019 “Profile of Home Buyers and Sellers”

Racism in Real Estate: Minnesota's Past Uncovered

The real estate industry in the U.S. has a racist history that includes both explicit policies and concealed yet common practices which have directly contributed to segregation and racial inequity still prevalent today. In cities across the country practices such as redlining, blockbusting and retooling deeds to restrict sales and occupancy based on race were common in our not-so-distant past. The Twin Cities were no exception.

Deed restrictions with racial language starting showing up in Minneapolis around 1910 and continued well into the 1950’s throughout the Twin Cities. What is a deed restriction, or covenant? It's a provision in a deed that limits what can be done with a property. For example, it might limit the number of outbuildings allowed, forbid home businesses, or require adherence to specific architectural styles or even paint colors. Covenants “run with the land” which means they apply to all current and future property owners.

Restrictive racial covenants specified who could or could not legally own or occupy a property based solely on race. For example, the first Hennepin County (1910) covenant reads ”premises shall not at any time be conveyed, mortgaged or leased to any person or persons of Chinese, Japanese, Moorish, Turkish, Negro, Mongolian or African blood or descent.”

Another common restriction stated, “the said premises shall not at any time be sold, conveyed, leased, or sublet, or occupied by any person or persons who are not full bloods of the so-called Caucasian or White race.” Though no longer enforceable, the use of these covenants combined with lender redlining (denying loans) created racial residential housing patterns in the Twin Cities that persist today; segregation of white and black neighborhoods throughout the metro is glaring.

Visualizing a Hidden History

The Mapping Prejudice team, a University of Minnesota affiliate, along with thousands of volunteers have been uncovering the history of these covenants through painstaking research, reading, and plotting of deeds on a county map. Hennepin County’s racial covenant map, the first of its kind in the county, is now complete. In an interactive visualization it reveals the spread of racially-restrictive deeds across the county from 1910-1955. Viewers can zoom in to identify specific blocks and lots or zoom out to witness the patterns of segregation emerge over time. Click here to explore the map.

View fullsize

Volunteer Opportunity

Similar work in Ramsey County is now underway. Mapping Prejudice is seeking volunteers to help build the next database which will be used to create a second interactive map. Volunteers have a couple of training options for getting started, both quite simple and available remotely. I was able to register within minutes, learn procedures for transcription via their easy-to-follow tutorial, and get started on my first deed right away. They also hold 1-hour weekly Zoom training sessions to teach the process.

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Examples of Racial Covenants Found in Ramsey County

Racial covenant from Ramsey County, Frankson’s Como Park Addition of St. Paul | Nov. 22, 1916: “grantee can not sell or lease said real estate to a colored person.”

Racial covenant from Ramsey County, Steenberg's Parkview Addition | Oct 31, 1947: “No person of any race other than Caucasian race shall use or occupy any building or lot except that this covenant shall not prevent occupancy by domestic servants of a different race domiciled with an owner or tenant.”

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Researching Your Home’s History

Property owners who wish to learn more about the history of their homes, specifically about existing racial restrictions, can request certified copies of deeds through their county recorder’s office. I’m currently awaiting mine from Ramsey County. Due to COVID-19 concerns, I was required to send a $10 check and written request through snail mail. In non-pandemic times, an in-person visit would of course be faster. Processes for obtaining the document will vary; call your county or check their website to learn more.

Keep in mind the age of your home when researching. So far the earliest racial covenant was dated 1910. If your home was built prior to that, it’s likely you don’t have a restriction. The same holds true for homes built after the mid-to-late 1950s. Also, if your property is recorded as Torrens (versus abstract) you may not find a restriction as the majority of racial covenants have already been removed (or will automatically be removed) upon the next transfer of title in the Torrens system.

Though the covenants are no longer legal and enforceable, Minnesota property owners now have the option to officially denounce them from the record by filling out the Discharge of Restrictive Covenant Affecting Protected Classes form and recording it at the county (with standard recoding fee). Hennepin County’s website lists detailed instructions for residents wishing to discharge existing racial covenants. Residents outside Hennepin should call their county recorder’s office for location-specific steps.

Resources

The Mapping Prejudice website is much more than the map. They’ve compiled a comprehensive list of resources — articles, books, presentations and videos as well as an Educator’s Toolkit tailored for online learning. Teachers of all levels can use this and other resources to engage students around the topic of structural racism as it applies to inequity in housing and the role of racial covenants. And if you haven’t seen it already, check out TPT’s Emmy award-winning documentary Jim Crow of the North to see a compelling overview of our region’s racist real estate policies and practices that led to massive discrepancies in housing still being experienced today.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540. 

Banner photo by Donny Jiang on Unsplash

Simple House Projects that Boost Livability, and Appeal to Buyers

If you’re staying safe at home, now might be good time to start knocking house projects off your list, especially if you plan to sell in the near future. After a long winter of inside living, the list of possible tasks can seem overwhelming. How do you prioritize? Here’s a list of fairly simple and inexpensive projects that will make your home more appealing to buyers in the event of a future sale. At the very least, you might enjoy the small changes and improvements to your space during your days and weeks spent quarantining.

Organize Your Entry

Outdoor gear tends to pile up near main entry points, especially during colder months. Take time to clean it up and create system for organizing coats, hat, bags and shoes, ideally out of sight. Decorative hooks, baskets, bins or cubbies can work wonders. If you have a coat closet that needs reorganizing, even better. Clean it out and keep it organized. This is something you could do in a weekend. It’s an easy and inexpensive way to boost appeal and create a positive first impression.

Purge and Declutter Closets, Drawers, Shelves and Cabinets

This always takes longer than you think. Start now, go room by room, closet by closet, drawer by drawer…or whatever system works best for you.

Replace, Fix, Dispose of Broken Appliances

Broken dishwasher? Replace or fix it. You should have functioning appliances at the very least when selling a home. Old broken freezer in the basement? Remove it. Most buyers don’t want to inherit old appliances they’ll have to pay to dispose of. They may make removal a condition of the sale prior to closing so you might as well do it now. And if a new one is needed, at least you’ll have time to enjoy it. Assess your appliance situation and make improvements if needed.

Fix Leaks or Broken Faucets

This might help your water bill too so you might as well do it now while you’re still living there. If you have a leaky faucet or a running toilet plan on a future buyer asking for this repair. If you have loose fitting ones, tighten or replace them now.

Update Cabinet Hardware (Kitchen + Bath Pulls, Knobs, etc.)

This is a cheap way to refresh cabinets. Modernizing hardware, even on outdated cabinets, can make a big difference. Consider coordinating with updated faucets to create unity.

Clean Out the Garage

Here’s a good spring project. Decluttering your house should be priority when getting ready to sell, but tackle the garage too if you have time.

Repair Holes, Cracks, Water Damage in Walls and Ceilings

Filling holes left from old wall art is cheap and well worth your time. It may require paint touch-ups or even new coats though. Do that too if you can.

Seeing spots from past water damage raises concern for some buyers. Take care to repair them but know you’ll need to disclose in writing any known damage.

Finish Incomplete Paint or Remodel Projects

You may have started a project, stopped it eons ago, and forgotten about it completely. You might not notice it, but a buyer will. Most new owners don’t want to inherit someone else’s half-completed project. Do what you can to finish it off while you have the time.

Cover or Paint Radiators

I love older homes and hot water heat but radiators can become dust-collecting eye-sores if neglected. At the very least, clean them. If time and budget allow, consider getting custom-made covers or repainting them.

Covers

Chris Seidl is a Minneapolis-based carpenter who creates custom covers for just about any space. This spring he designed, built, painted and installed a custom cover for my kitchen — I highly recommend! This is a great way to add extra storage too, which any potential buyer will appreciate.

Painting

If radiator covers aren’t in your budget, you may want to just clean and paint them. Color and paint type matter when finishing radiators so I recommend consulting with experts at a local paint store when selecting products.

Chris Seidl of Craftsman Radiator Covers, a Minneapolis-based one-man-show who designs and installs custom radiator covers

Fix Missing Trim, Thresholds, Broken Doors, etc.

Again, like abandoned remodel projects, these can be easily overlooked — you just stop seeing them. Buyers will take note, and may also wonder, “What else has been neglected?

Refresh Outlets and Cover Plates

If you have old, dirty, or mismatched plate covers in rooms, replace them with new matching ones. It’s super cheap, just takes a little time. You also might want to consider grounding outlets and putting GFCIs in all the right places, if you haven’t already. Though these are common inspection items, they’re usually not deal breakers for buyers.

Replace or Remove Broken (or Outdated) Window Coverings and Blinds

Think “less is more” when considering your window treatments. People love natural light so let it in whenever possible. Replace broken blinds and shades, or remove them altogether if privacy isn’t a factor. Minimalist coverings are more in vogue. Think plain, airy and simple designs, textures and colors.

Wash Your Windows

Thoroughly clean all windows, inside and out. If you’ve never done it, or if it has been a while, you will be amazed, especially after a Minnesota winter or two. It will make your whole house will feel cleaner. It can be a daunting task depending on your home size but plenty of companies will do it for you. They do schedule the service colder months but when temperatures dip below 32 anti-freezing product will be added, diminishing the result.

Replace Old Rugs and Welcome Mats

One very simple project is to get rid of old muddied rugs and welcome mats and replace with new. Clean points of entries are key to creating positive first impressions, and door mats and rugs are usually the first things to come into view when buyers walk into homes. You might want to do this closer to listing though to keep the new ones clean. You could just buy now them and have them ready. One more thing off your list!

Add or Transplant House Plants

Adding plants to your rooms is a simple and inexpensive way to warm up your space, especially in colder months. House plants add life and can be used as pops of color. Use a floor plant in place of furniture or knick knacks to fill in empty spaces (in big corners, on bookcases, etc.) Add to a bathroom to create a spa-like feel or use as simple centerpieces for a kitchen, dining or coffee table.

Be sure to keep plants looking healthy — trim dead leaves and follow instructions for keeping them alive! If you’re not a plant person you might want to wait until closer to listing before taking on the task, or pick hardy varieties that demand little attention. Succulents and cacti are easy options. They’re also trendy right now and can add a modern, up-to-date accent that complements most home styles.

Deep Clean Everything, Even the Fridge

This may not be so quick and simple, depending on your starting point, but it is the most important, and it’s free (or can be). So if there’s anything that needs deep cleaning (refrigerator shelves, bathtub & shower, stovetop, hall closet, garage, etc.) might as well begin now.

When cleaning spaces it’s also best to clean out. Start purging and getting rid of unwanted stuff sooner than later. This part can be overwhelming so go bit by bit and celebrate small completions. Clean and tidy kitchens and baths are most noticeable to buyers so you may want to start there.

Fix Lights and Replace Bulbs

Natural light is always best but sometimes showings happen after sunset. There’s a good chance buyers will be viewing your home at night, especially in winter months. Pleasant lighting will add to a buyer’s overall impression of a space. Take a close look at your lighting situation and make the simple additions, repairs or replacements needed to enhance it.

Check all overhead fixtures and sconces for burned out bulbs. Replace where needed and make sure to match bulb strength and color. For example, if you have a 3-bulb bath fixture be sure all three have the same type bulb. And if a fixture is broken, now is a good time to replace it.

Soft, warm light is preferred for creating a cozy atmosphere. Florescent or blue-white bulbs feel cold and harsh. Lamplight also creates a more comforting, homey feel, especially compared to flush mount overhead lights. Add lamps (with warm bulbs) to rooms where space allows. Thinks bedside tables, poorly-lit corners and even bathrooms or hallway console tables. Dimmers on pendants and chandeliers are also handy for creating a cozy ambience. Again, this is an easy, quick way to increase appeal that could be done in a weekend.

Spruce Up Your Entry with New House Numbers

This simple change can add instant style and curb appeal. Make sure the font matches your home’s style.

Paint or Touch up Exterior Trim, Siding and Doors

If you have flaking paint, scrape and repaint if possible. If your exterior door needs a refresh, paint it. A pop of color and an inviting entry create curb appeal and positive first impressions. I recommend a statement color in keeping with the style of your home.

Though April is usually too early in Minnesota for outdoor painting, it may be a good time to start planning and scheduling a future project. Martey Jakel, local St. Paul-based painter and owner of Showcase Home Painting takes outdoor jobs all spring, summer and fall, as long as paint can properly adhere. Most paint can be applied with temps and drying time as low as the high 30’s (40 to be safe). Martey recommends doubling the manufacture’s drying time at these temps to ensure adhesion. He also recommends checking window sills and seals where built-up moisture can cause flaking and rot. Caulking and priming these trouble spots before winter can be well worth your time and effort. If you’re not sure how to identify what needs what, call a paint professional. You’ll have better luck scheduling them this time of year as construction and repair projects slow with seasonal changes.

Clean Gutters and Repair Downspouts

Use warmer, rain-free days to do a spring cleaning of gutters. Repair and reposition broken or leaking downspouts to divert rainwater and melting snow.

Repair Rotting Exterior Trim Pieces and Decking

If you have rotting boards, replace them, especially floor boards that can create hazards or let in moisture. If weather permits, paint or stain replaced parts. If you need to hire someone to do the repairs, start calling now to get scheduled. Contractors’ calendars fill up fast this time of year.

Add Mulch to Gardens and Landscape

Get ahead of the weeds and spruce up your yard by laying mulch early spring. Avoid bags of plastic by using recycled wood from around the Twin Cities. Many counties and cities offer free wood chips/mulch for pick-up. Ramsey County and the City of Minneapolis have several pick-up sites around the metro, for example. Check your city/county websites for availability, locations and hours.

Get Help

Your home’s condition and age matter when prioritizing your to-do list. These projects may be totally irrelevant or just a starting point, it all depends. If you are considering selling, I recommend getting help creating a customized list before you begin. Walking through your house with a second set of eyes is often what’s needed to zero in on the best use of your time and money. I do this often with clients, sometimes long before listing. If you need help figuring out where to start, call or message me for a consultation. We can even schedule a virtual walk-through to practice safe distancing — whatever works for you.

651-503-1540 | heidi@lyndenrealty.com

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540. 

COVID-19, “Stay at Home” and Real Estate in Minnesota

Minnesota’s governor has ordered a “stay-at-home” order effective Friday, March 27 at midnight. What does this mean for the local real estate market and people looking to buy or sell a home?

The Executive Order exempts a number of “Critical Sectors” that will remain open for business — “Real Estate Transactions” is one of these sectors. According to the order, this category is “limited to workers who facilitate and finance real estate transactions and real estate services, including appraisers and title services.” Realtors help facilitate transactions, so as long as we comply with COVID-19 Guidelines set forth by the Minnesota Dept. of Health (including hygiene, social distancing, etc.), we may keep assisting our clients with buying and selling their homes.

Related services like inspections, appraisals, photography, lending and title work will continue as well. For anyone moving, the order includes an exemption for individuals to move to a new home or place of residence provided they follow the Minnesota Department of Health (MDH) Guidelines to the maximum extent possible. (Moving companies are also considered “essential” and are open for business.) So, Minnesota buyers and sellers, please know your team will be in place during this time, ready and willing to help.

Keeping Clients Safe

Over the the past few weeks, Realtors and Regional MLS Services, guided by the state and national associations, have been rapidly responding to the evolving state of the COVID-19 pandemic. Our intent has been to keep all parties safe, stop the spread of the virus and continue helping clients sell and find homes (a real need for many people despite these uncertain times.)

To help clients and customers understand the precautions and policies being implemented in and around the Twin Cities, I’ve put together a list of FAQs with answers based on the most up-to-date information from our state Realtor® association, our Regional MLS, and anecdotes from the field. This information will evolve; here’s what we know as of today.

Will there be open houses?

No, not for now. On March 25th the Northstar Regional MLS, where the majority of homes get listed, notified its subscribers (mainly Realtors) of the following regarding the new open house scheduling restrictions:

Effective now [March 25] and until further notice, the scheduling of Open Houses in NorthstarMLS has been suspended. Any currently scheduled Open Houses in the NorthstarMLS system have been cancelled and removed from the MLS. This decision was unanimously approved by the NorthstarMLS Executive Committee of its Board of Directors in the interests of public safety during this crisis.

This ban may be lifted at the end of Minnesota’s “stay-at-home” order.

How can home shoppers view homes for sale?

Demand for homes has been holding steady this month as more and more new properties enter the market. We’re still seeing listings get snapped up in multiple offer situations, despite the pandemic disruption. If you’re out shopping this spring, how can you get in to see these new homes? I recommend working with an agent to book private showings. Virtual tours and FaceTime tours can useful as well, though not quite the same.

Private Showings

If the seller agrees, a property can be toured by scheduling a private showing, which is how homes are typically viewed. But it can get crowded. Day (or week) one of a popular new listing can draw hordes of buyers, and their agents, all touring at once. But no more. Though agents have been advised in recent weeks to not allow overlapping appointments, beginning March 25th our scheduling software made it impossible to do so. As a result, the number of people touring a home in a private showing will be limited to one agent and her or his client(s).

Realtors have also been advised to provide hand sanitizer, foot coverings, gloves, etc. at entry points and to ask buyer clients to walk through homes with hands in pockets, or at to least avoid touching surfaces like light switches, door handles, cabinets pulls, etc.

If you’re a buyer, plan to meet your agent at the property as Realtors have been asked to drive separately from their clients for the time being. Social distancing is the goal when touring homes, and it can be quite easily achieved with these precautions in place and persistent behavior on the part Realtors and their clients.

Virtual Tours

Another way to get an up-close look homes is through 3D virtual tours. Though not the same as viewing in person, a 3D tour can be a useful way to do a preliminary walkthrough before deciding on a private showing. Lynden Realty uses Matterport technology when marketing homes which allows viewers to navigate virtually, “walking” room to room and floor to floor. Check out this sample from a current listing.

Sellers should be aware that virtual 3D marketing is always an option when listing a home, and may be especially helpful during periods of social distancing.

Zoom Tours

Using Zoom, FaceTime or a competing platform can also be a useful alternative to live tours. I’ve used this technology with out-of-town clients who want to see more than just photos but can’t make the trip. This type of “showing” has now become a new normal.

Our local MLS recently added “Virtual Showings” as a new appointment type for touring homes through the Showingtime scheduling app. Buyer’s agents can now officially and transparently request a virtual tour from sellers. The buyer’s agent can also add a note for the listing agent/sellers indicating which streaming video technology they’ll be using (FaceTime, Zoom, etc.).

Though screen viewing can’t replace the live experience of walking through a home, it might help in your preliminary search. Consider asking your agent to virtually tour a home with you before proceeding with an in-person showing. It may be a safe and effective way to pre-screen properties before moving forward in your search.

What can be done electronically or remotely?

Just about everything. With the exception of live home tours, inspections and some required “wet” signatures, most everything in the home buying and selling process can be done electronically. Our e-signing software makes signing contracts, disclosures, purchase agreements, etc. a breeze. With wifi access, clients can even read and sign documents on their smartphones.

Closing companies have been advised to conduct closings with buyers and sellers in two separate rooms, or at least spaced 6 feet apart. And “pre-signing” alone on a preceding date can also be an option, especially for sellers.

Earnest money deposits can be submitted electronically through an app called TrustFunds. Many brokerages had already been using electronic transfers (versus delivery of a personal check); it’s now being used more widely.

Learn more

Real estate professionals throughout the Twin Cities are well aware of the situation and are working together to keep clients and each other as safe as possible. If you have questions or concerns about how the process of buying or selling may affect you during this time, please don’t hesitate to ask. Heidi@lyndenrealty.com | 651-503-1540

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540. 

What does “Coming Soon” mean in the Twin Cities?

{Spring 2021 Update: At the time of initial publication regional Northstar MLS “Coming Soon” properties were not synched to IDX (Internet Data Exchange) sites like Zillow. Agreements between Northstar and those sites have since changed — all Coming Soons are now shared and visible.}

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Spring 2019 marked the first home-selling season with the regional Northstar MLS’s “Coming Soon” status in play. The parameters for listing a property as “Coming Soon” are well defined by our MLS and many agents have started strategic use of this option. There may be some confusion for consumers, however. Here’s what home buyers and sellers need to know when they see a home listed as “Coming Soon”.

It’s not Zillow

It’s not the same as Zillow’s “Coming Soon”. In fact, unlike Active, Pending and Sold MLS listings, “Comings Soon” properties are not even visible on Zillow. Northstar MLS has not (yet) contracted with Zillow or similar synched-up sites like Trulia to allow access. Zillow has rights to display homes with other listing categories, but not this one.

This MLS option should not be confused with a similar feature on Zillow that allows home owners and “Premier Agents” (Realtors paying to advertise) to create separate Zillow Coming Soon listings. The two are not the same. Our MLS “Coming Soon” properties can only be viewed by MLS subscribers (agents, brokers and real estate professionals) and are typically emailed directly to clients via the MLS database.

Coming soon…how soon?

A property can be “Coming Soon” in the MLS for a maximum of 21 days. With home seller approval, the agent/broker manually sets an activation date when creating the listing. When that date hits, the status automatically switches to “Active” and goes live on major search sites. If the sellers aren’t ready to show by that date they have a couple of options: cancel altogether or switch it to TNAS (Temporarily Not Available for Showing) — a common short-term delay maneuver used for a variety of reasons (unexpected repairs, houses guests, etc).

Can I tour a “Coming Soon” listing?

Strict rules set up to create fair play prevent listing agents from showing a home when its status is “Coming Soon”. In fact, an agent could be fined $1000 for doing so. Once a home is “Active” in the MLS sellers should be ready to allow showings, but not before.

Buyers’ agents can, however, request showings for anytime after the “Active” date, even if it’s 3 weeks out. So if you want to be the first one in a property once it’s live/active, get a showing appointment request in asap. Planning ahead to be the first one to view a home is a smart move in a tight seller’s market.

Why no photos?

“Coming Soons” require a minimum of one photo to be listed. Some agents are adding more now but I still see many with just one or two exterior shots. This can be a source of frustration for buyers whose interests are piqued by location, price and curb appeal but still want to see the inside. If you’re not seeing the full set of photos right away do check back. The listing agent will likely add the rest on or near the “Active” date.

Buyer advantage

In this fast-paced seller’s market the “Coming Soon” option may give buyers some room to breathe as well as the luxury of lead time for making a sound decision. If enough information is revealed in a “Coming Soon” listing (full set of photos for example) buyers may be able to decide yea or nay before it goes active. If the home is of interest, shoppers can use the interim to mentally prepare their offer price and terms, jockey schedules for a fast future showing and connect with their lender for an updated pre-approval. It may enable them to act swiftly with a competitive offer when the time comes.

Seller strategy

If you’re contemplating selling your home, you should seriously consider your options for a successful entrance into the market. Creating an effective “Coming Soon” listing is one strategy but it might not be right for your situation. A poorly planned entrance can easily backfire, even in a hot seller’s market.

Create a course of action that makes sense with current buyer activity and your target market — of course I recommend working with a real estate professional when doing so. A good agent who stays on top of local trends (what’s working and what’s not) will be an invaluable resource in helping you take advantage of the seller’s market now in full swing around the Twin Cities.

If you want to know more or need some advice I’m happy to talk through selling (or buying) strategies. If you want to keep watch for “Coming Soon” listings in particular neighborhoods or cities, I can set those up as well.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

5 Quick and Easy Ways to Boost Your Home’s Appeal

If you’re thinking about selling soon you’ll want to take a close look at your home’s condition and determine what projects, if any, will need to be done before marketing it. Some projects can feel overwhelming and may or may not be necessary (meeting with a real estate professional is a good way to prioritize that list.)

Details matter to home buyers but can easily be overlooked by sellers, especially if you’ve been in the home a while. It’s easy to just stop seeing what is always in view. Know that buyer perception will be affected by small, seemingly insignificant improvements. Here’s a list of five simple projects you could do in a weekend to start boosting your home’s appeal for those future buyers.

Organize Boot, Bag & Coat Storage

Winter gear tends to pile up over the season, especially near main entry points. If you list during this time of year, you’ll want to address the mess. Walking into mound of jackets and footwear is a distraction for buyers at the very least, and can easily can create a less-than-ideal first impression for anyone touring your home. Take time to clean it up and create system for organizing coats, hat, bags and shoes, ideally out of sight. Decorative hooks, baskets, bins or cubbies can work wonders. If you have a coat closet that needs reorganizing, even better. Clean it out and keep it organized. This is something you could do in a weekend. It’s an easy and inexpensive way to boost appeal and create a positive first impression for buyers.

Add Mood Lighting

Natural light is always best but this time of year many showings happen after sunset. There’s a good chance buyers will be viewing your home at night, and the light illuminating the space will add to their overall impression. Take a close look at your lighting situation and make the simple additions, repairs or replacements needed to enhance it.

Check all overhead fixtures and sconces for burned out bulbs. Replace where needed and make sure to match bulb strength and color. For example, if you have a 3-bulb bath fixture be sure all three have the same type bulb. And if a fixture is broken, now is a good time to replace it.

Soft, warm light is preferred for creating a cozy atmosphere. Florescent or blue-white bulbs feel cold and harsh. Lamplight also creates a more comforting, homey feel, especially compared to flush mount overhead lights. Add lamps (with warm bulbs) to rooms where space allows. Thinks bedside tables, poorly-lit corners and even bathrooms or hallway console tables. Dimmers on pendants and chandeliers are also handy for creating a cozy ambience. Again, this is an easy, quick way to increase appeal that could be done in a weekend.

Replace Worn Rugs & Welcome Mats

An even easier project is to get rid of old muddied rugs and welcome mats and replace with new. Clean points of entries are key to creating positive first impressions, and door mats and rugs are usually the first things to come into view. You might want to do this closer to listing though to keep the new ones clean. You could just buy now them and have them ready. One more thing off your list!

Add Potted Plants

Adding plants to your rooms is a simple and inexpensive way to warm up your space, especially in colder months. House plants add life and can be used as pops of color. Use a floor plant in place of furniture or knick knacks to fill in empty spaces (in big corners, on bookcases, etc.) Add to a bathroom to create a spa-like feel or use as simple centerpieces for a kitchen, dining or coffee table.

Be sure to keep plants looking healthy — trim dead leaves and follow instructions for keeping them alive! If you’re not a plant person you might want to wait until closer to listing before taking on the task. Or pick hardy varieties that demand little attention. Succulents and cacti are easy options. They’re also trendy right now and can add a modern, up-to-date accent that complements most home styles.

Clean!

This may not be as quick and simple, depending on your starting point, but it is the most important, and it’s free (or can be). So if there’s anything that needs deep cleaning (refrigerator shelves, bathtub & shower, stovetop, hall closet, garage, etc.) might as well begin now.

When cleaning spaces it’s also best to clean out. Start purging and getting rid of unwanted stuff sooner than later. This part can be overwhelming so go bit by bit and celebrate small completions. Clean kitchens and baths are most noticeable to buyers so you may want to start there.

As the weather warms consider scheduling window washers to clean all windows inside and out (or do it yourself). This will make the whole house seem cleaner. If you’ve never done it, or if it has been a while, you will be amazed, especially after a Minnesota winter or two. And if hiring whole-house cleaners is in your budget, do it. Try to schedule it as close to listing time as possible though.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

Photo Credits

Succulent: avery klein on Unsplash | Rugs: Lida Sahafzadeh on Unsplash

Welcome mat: Jon Tyson on Unsplash | Sink: pascalhelmer on Pixaby

Winter 2020 | Things to Do in the Twin Cities

Feeling cabin feverish? For anyone wanting (or needing) to get out, there’s plenty going on in the remaining weeks of winter — festivals, skiing, skating, and more. Here’s a list of some favorites.

Como Park & Conservatory | St. Paul

Music Under Glass Series - “Join us in the tropical gardens, and beat the “winter-blahs” as live, local musicians play blues, bluegrass and ballads. Beer and wine will be available to purchase.”

• Sundays 4:30-6:30pm, Jan. 5 - March 1

Lake Harriet Kite Festival | Minneapolis

• “Kites of all shapes, sizes, colors, and themes will fly over frozen Lake Harriet. Other fun family activities at the festival include ice fishing, snowshoeing, and a marshmallow roast.”

• Sat. Jan 25, 12-4pm

The Great Northern Festival | Mpls + St. Paul

“10 days of outdoor winter events: one big celebration.”

• 15th Annual Pond Hockey Event (Jan. 23 - 26)

• City of Lakes Loppet Winter Festival (Jan. 31 - Feb. 2)

• St. Paul Winter Carnival (Jan. 23 - Feb. 2)

Luminary Loppet | Minneapolis

“Ski, walk, or snowshoe with friends, family, and neighbors on the lake’s groomed trails while being immersed in a serene landscape of glowing ice luminaries in the heart of Uptown.”

• Sat. Feb. 1, 6-9:00pm

11th Annual Winter Beer Dabbler | St. Paul

• 180+ breweries and cideries, live music, silent disco, meat & cheese showcase and more

• Feb 22, 2pm-6:30pm

• State Fair Grounds

Trails by Candlelight | Dakota County Parks

“Enjoy each park by flickering candlelight. A variety of cross-country ski, snowshoe, hiking and walking trails, and distances, will be lit with hundreds of candles. Warm up with hot cocoa and crackling bonfires. Cocoa provided. Hot food available for purchase from food trucks.”

Thompson County Park - Friday, Jan. 24, 6-9 p.m.

Spring Lake Park Preserve - Friday, Feb. 7, 6-9 p.m.

Lebanon Hills Regional Park - Friday, Feb. 28, 6-9 p.m.

Valentine’s Arctic Market | Minneapolis

Sun. Feb 9, 12-5:00pm

“30 local makers selling jewelry, woodwork, home goods, apparel, and other giftables, there's something for even the most tricky to buy for valentines...visit with local artists and makers while sipping delicious farm-to-table beers and pick up a gift for your valentine, your galentine, your furry friend, or yourself!"

Location: Lakes & Legends Brewing Company | 1368 Lasalle Avenue, Minneapolis

Ongoing

Minnesota Landscape Arboretum

• Plant Maker Studio, Saturdays & Sundays 12-4:00pm, drop in anytime

• Free admission the month of January

Winter Skate at CHS Field | St. Paul

• Free open skate Sun-Thurs 11am-5pm, Fri. & Sat. 11am-10pm

• Skate rental available ($5)

Trivia Mafia Nights | Twin Cities

• “high-quality trivia nights in bars, taprooms, distilleries, and private events every night of the week throughout the Midwest.”

• Times & locations vary. Check Trivia Mafia’s website for details

US Bank Stadium Winter Warm Up | Minneapolis

• “Inline Skating and Indoor Running…a series of twelve recreational fitness nights at U.S. Bank Stadium. These public events are open to all ages and will take place on the stadium’s main and upper concourses”

• 5-9:00pm, Various dates

Cross Country Skiing | Minnesota

• Groomed Twin Cities Metro Ski Trails

MIA | Minneapolis

• Programs for all ages at the Minneapolis Institute of Art (MIA)

• Just Kids Exhibition - “This is an exhibition of photographs of and by children, teens, and young adults, organized in partnership with middle and high school students.” (Jan 4 - June 14)

Omni Theater - Science Museum of MN | St. Paul

Film: Super Power Dogs - “Follow six of the world’s boldest four-legged heroes (and their human companions) as they brave earthquakes and avalanches, protect endangered species like rhinos and elephants, and transform lives.”

• Through March 5, various times

Winter Recreation at Wirth Park | Minneapolis

• Cross-country skiing, snowboarding lessons, tubing, skijoring, and off-road cycling provided through MPRB’s partnership with Loppet Foundation

Keg & Case Market | St. Paul

• Outdoor Skating Rink - BYOS (Bring Your Own Skates) + Indoor Food Hall & Market

Outdoor Ice Skating | Twin Cities

• Link to dozens of spots across the metro and state - frozen lakes, ponds, rivers and rinks!

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

No. 1 Thing Home Buyers Should Do (Before Shopping)

If you’re gearing up to buy soon you’ve probably been perusing new listings and hitting a few weekend open houses. Smart moves. The faster-paced Minnesota spring market will be here before we know it so it’s good to get a sense of what’s out there.

Looking at houses the fun part (for most!) If you find your dream home though, and haven’t done this one critical first step (unless you’re paying cash) there’s a good chance you’ll miss out. What’s the number one move? Getting pre-approved for a loan.

Low inventory throughout the Twin Cities has increased competition among buyers, especially for those looking in the lower price ranges. Sales with multiple offers were typical last spring and summer, and the 2020 selling seasons will most likely be repeats. If you want to compete in the spring market start working with a lender asap, if you haven’t already. Buyers who cannot demonstrate their ability to finance a purchase with not be taken seriously. If you’re in position to buy soon, get a pre-approval letter in hand (or in email) before you set your sights on a home. Sellers will not want to view your offer without one.

GET HELP

A trusted loan officer ought to be a valuable support in the potentially daunting process, so should a good Realtor. The agency relationship you establish as a home-buying client in Minnesota is meant to benefit and protect you. Serious home buyers would be wise to put this additional important step at the top of their lists.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

Photo by Tierra Mallorca on Unsplash

What Sellers (and Buyers) Should Know About Minnesota Property Disclosure

If you’re buying or selling a home in Minnesota you’ll need to get familiar with the state’s required disclosure laws. Sellers of single-family properties (including condos, townhomes and co-ops) are legally required to disclose in writing any known information that may adversely and significantly affect a buyer’s use or enjoyment of their property (MN Statutes 513.52 through 513.60).

Minnesota homeowners planning to sell should be aware of this requirement prior to listing. They should also understand the liability involved in such a disclosure. (They can be held liable for up to two years for intentionally omitting or misrepresenting information.*)

Home buyers in Minnesota need to know where and how to access this information, what to look for and what alternatives sellers may use in lieu of the standard form.

The Minnesota Seller’s Property Disclosure

The Minnesota Association of Realtors (MAR) uses a standard Seller’s Property Disclosure form to satisfy the statute requirements. Sellers fill out this 10-page form to the best of their ability, sign and make it available to prospective buyers during the listing period. Typically, the listing agent will upload a copy to the MLS where buyers’ agents can view, download and share with interested clients. Hard copies may also be left at the property for viewing during open houses and private showings. A buyer making an offer will need to sign the Seller’s Disclosure and present it along with the purchase agreement.

Filling it out

Homeowners should make a good faith effort to disclose all material facts to “the best of the seller’s knowledge at the time of the disclosure.” They must complete it themselves (Realtors cannot contribute) and should check any previous disclosures or past inspections for additional information.

Updating as needed

If anything changes from the date the Disclosure is completed and signed through the day of closing, sellers must notify the buyers in writing with a signed amendment disclosing any new information. Your real estate agent can provide a blank amendment.

The Minnesota Disclosure Alternatives Form

Sellers may choose one of two alternatives to the full Seller’s Disclosure — either a third-party inspection or a waiver. To satisfy one of these two options MAR uses a second “Seller Disclosure Alternatives” form which is also shared with prospective buyers. A seller checks one of two options, signs and makes available to buyers along with any corresponding inspection reports.

Third Party Inspection

One alternative is to provide a “qualified third party” inspection report. A qualifying party would be any “federal, state, or local government agency, or any person whom the seller, or prospective buyer, reasonably believed has the expertise necessary to meet the industry standards of practice” for preparing such a report. This option will most likely cost the seller and isn’t often used. When this report is provided, sellers and their agents are still obligated to disclose any known material facts that contradict the report or that are omitted from it.

Waiver

If buyers and sellers agree, the Sellers Disclosure may be waived. The “Waiver” box is then checked on the Alternatives form and both parties sign off on it. Why might a seller choose a waiver? Reasons vary but it’s sometimes due to simple lack of information. For example, if adult children sell their parents’ home having never lived there, they may choose a waiver. Or if an investor sells a home that was occupied solely by renters, a waiver might make sense. Seeing a waiver can make buyers nervous, however, so I typically recommend that home sellers share as much information as possible using the full Disclosure form.

Common Red Flags for Buyers

If you’ve found a house that fits and are thinking it’s the one, you should examine all disclosures. Your real estate agent should provide them. If not, ask.

What do buyers commonly look for when reviewing the Seller’s Disclosure? Big ticket items like age of the roof (if known) and details relating to any past damage to foundation, windows, walls, siding and roofs of all structures should be noted. Water seepage and sewer back ups can also be red flags, though basement moisture is not uncommon in older Minnesota homes. A previous sewer back-up could signal a future problem unless properly remedied. Getting a sewer scope during your inspection period can be money well spent if you suspect an issue. Checking for a past problem on the Disclosure is a good place to start.

Past work done on the property must also be disclosed along with any work done without appropriate permits. You’ll also want to check for any easements, encroachments, restrictions, etc. These items, often found through title searching, aren’t always visible but may affect your use and enjoyment. Buyers can also check the working order and presence of all appliances and systems including heating, electrical, plumbing and mechanical.

Disclosures NOT Required by Sellers

• Ghosts, paranormal activity

• Natural death or suicide

• HIV-infected owner or occupant

• Proximity to adult residential facilities

If you suspect your house is haunted, you’re not legally obligated to share. In addition to paranormal activity, sites of suicide, natural or accidental deaths need not be disclosed (murder on site is required.)

Disclosure of homes currently or previously “occupied by an owner or occupant who is or was suspected to be infected with human immunodeficiency virus [HIV] or diagnosed with acquired immunodeficiency syndrome” is not required.

Sellers also are not legally obligated to disclose whether the neighborhood has an “adult family home, community-based residential facility, or nursing home.”

Read the full statute section here.

Selling? Plan Ahead

If you’re planning to list soon you should get familiar with this form, begin formulating your response and start digging up past disclosures and paperwork that might be useful. Do you remember purchasing title insurance, for example? Your old closing documents may have the answer. Can you recall years when you did major repairs? Look for old receipts to confirm when and what work was done. If work was extensive, start making a list of everything, it can be attached to the Disclosure saving you time when you’ll most likely need it. Read through the form carefully and highlight unknown terms. Your agent should be able to clarify or at least point you in the right direction when filling out this form.

If you would like to learn more about our state (and city) disclosure requirements feel free to connect. heidi@lyndenrealty.com

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

*Consult with legal professional for advice if needed

Image by WikimediaImages from Pixabay

Winter 2019 Housing Market Update | Twin Cities

Median values across the metro continue inching up while inventory stays low, but not quite as low as last year around this time. Over the past 12 months the median home price in the Twin Cities Region rose 5.98% to $280,000 in November 2019. The months supply of homes for sale increased by 4.7% to a 2.2 months supply this November compared to 2.1 last. During this 12-month period the total number of new homes for sale increased by 2.5% to 10,959 across the 16-county region while the average number of days on market remained steady at 49. This is good news for buyers who have slightly more choices than last year, however, the market still favors sellers with low inventory (especially at lower price points) and median home values increasing overall.

$280,000

Minneapolis | Median Sales Price

Nov 2019

$224,450

St. Paul | Median Sales Price

Nov 2019

Seasonal Trends

Cold weather and holidays mark the slow season for home buying and selling in Minnesota. These predicable dips in inventory and corresponding sales typically begin the last weeks of summer and bottom out around January. We’re in the downslope now but I’m still seeing hard-to-find homes selling within days, especially in the most sought-after neighborhoods.

Selling

For homes that do sit longer, sellers sometimes choose to pull them off the market temporarily over the holidays. This “off market” status stops the clock, minimizing visible days on market, so it can be a smart move for listings with dwindling activity. Cancelling and re-listing after the New Year is another option for sellers wanting to reset and come back on as “new”.

Buying

Buyers who find their dream home during these slower months might want to act. There’s most likely less competition, so less pressure to bid up. It’s also more likely they’ll be working with motivated sellers who may be more willing to negotiate on price and terms. And interest rates are still historically low — excellent news for non-cash buyers. Come spring, there will be more homes to choose from but also more shoppers, raising sellers’ expectations. A competitive spring market will likely generate multiple offer scenarios and greater hope among sellers who hold out for highest and best, adding stress to an already (potentially) stressful process.

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Data derived from Northstar MLS 12/4/19. Includes all home styles (single-family, condo, townhouse), sizes, and construction types (new and existing). Twin Cities Region includes 16-county metro area.

Local Trends

Real estate markets are often hyperlocal so it’s worth taking a closer look at variations within the two cities and their surrounding suburbs.

St. Paul

A late-fall snapshot of the St. Paul market reveals a steady increase in sales prices with inventory still low at most prices, especially below the $600K mark. St. Paul’s overall median sale price for all home types rose 6.78% over the past 12 months — from $210,000 Nov 2018 to $224,450 Nov 2019. Compared to Minneapolis’s $280,000 median price, the capitol city remains a more affordable option for buyers seeking walkable neighborhoods with urban amenities. Current St. Paul homeowners may welcome the news of continued bump-ups in sales prices, especially those looking to sell soon.

% Change in median sales price - Nov 2018 to Nov 2019

Date derived from Northstar MLS 12/4./19. Includes all home types (single-family, condo, townhouse), sizes, and ages.

Several of St. Paul’s more affordable neighborhoods experienced some of the highest year-over-year increases. Payne-Phalen, for example, topped the chart with a +11.17% jump from fast fall, and Thomas-Dale had the second highest increase despite being the third most affordable area.

In some instances, an overall median price fails to reveal insignificant variations within a neighborhood. For example, homes sold in the past 12 months in Summit-University ranged from $83,000 to $2.2 million. Though not an apples-to-apples comparison, it’s important to note such drastic differences and stay cognizant of how values can change block-by-block. If you’re working with a real estate agent they should be neighborhood-savvy enough to understand where and how values shift in your area.

Minneapolis

Minneapolis home prices also continued their steady rise over the past year. November 2019 data revealed a median value of $280,000 for all home styles, sizes and sale types — a 7.3% increase from the November before. The city’s median values remain higher than St. Paul’s and a 10-year trend shows that gap slowly expanding.

The median sale price of newly constructed MLS-listed* condos has dipped slightly since last year at this time, while inventory levels inched up a bit to a more balanced level. The November 2019 median price for newly-built condos was $538,439, down half a percent from last November. Late fall inventory levels of new units remain low-to-balanced with a current 3.4 month supply, up slightly from a 2.2 months supply the fall before. The combo townhouse/condo median sales price of both new and previously-owned units increased by 14% over the last year, far exceeding the 4.3% increase in the city’s single-family market.

How does Minneapolis compare overall to its immediate first-ring neighbors? On average, it sits near the middle, with Edina at the high end ($470,000) and Brooklyn Center at the low (220,000). Cities just west of downtown hold value as second highest — Golden Valley and St. Louis Park have fall 2019 median sale prices of $339,500 and $304,500, respectively. Of course neighborhoods vary greatly so specific locations, and even certain blocks within a community, should always be considered when determining real market values.

Data derived from Northstar MLS 12/4/19. Includes all home styles (single-family, condo, townhouse), sizes, and construction types (new and existing).

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Aside from the predictable winter slow-down, it’s still a seller’s market, especially for fairly priced, move-in ready homes. And despite having fewer choices, shoppers are still out, though not as many as in spring & summer. Buyers who do shop diligently during winter months can sometimes be more aggressive, needing to buy within a certain timeframe. Why else would they brave the cold at showings and open houses? Leisurely lookers also peruse winter listings however, often waiting and watching for price drops. Though situations do vary, factors like rising rents and low interest rates continue to motivate many shoppers.

Sellers who need or choose to list this time of year shouldn’t lose hope, homes do sell in winter. If timing isn’t a factor though, waiting until after the New Year might not be a bad idea. Listing in late January/early February could catch waves of early-bird buyers, eager to get ahead of the competition. Everyone’s situation is different though, so it can be helpful to talk it through. I’d be happy to assist with any questions about the timing of selling or buying. Feel free to reach me at heidi@lyndenrealty.com or 651-503-1540.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on a variety of real estate related topics including buying and selling, market conditions, homeownership trends and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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*New condos sales and inventory numbers from Northstar MLS database; they do not include in-house sales from developers.

Banner photo credit: Hal Tearse from Pixabay

What does "off market" mean in the Twin Cities?

If you’ve been shopping for homes on sites like Zillow and Trulia you may have noticed several previously listed homes suddenly going “off market”. Why is this happening? Does it mean they’re no longer available? Maybe, maybe not. A closer, more accurate look into our MLS database often reveals a switch in status — from “Active” to “Temporally Not Available for Showing” or TNAS. Since third party sites like Zillow don’t display TNAS, this change can be confusing. So what does TNAS mean?

Temporarily Not Available for Showing (TNAS)

When an active listing will be unavailable for showing appointments for more than 24 hours, the listing should be switched to TNAS, according to the rules of our local MLS. This could happen for any number of reasons — a needed repair, repainting, a light remodeling project, etc. A common reason this time of year is holiday activity. A home seller may be entertaining house guests over a long weekend and wishing not to be displaced for showings. Or, they may be traveling for an extended period and prefer not to have strangers in their home while away.

Another reason for TNAS might be response to a slowing winter market. Cold weather and holidays reduce market activity as people’s priorities shift. Some sellers would rather wait out these weeks or months by stopping showings temporarily, then switching to “Active” again once holidays pass. Doing so also stops the clock counting the number of days on market, so the days in TNAS won’t affect the overall time on market, as publicly displayed.

Third party sites like Zillow translate TNAS to “off market”, which can be puzzling. The best way to get accurate status updates on past or current listings is to ask a real estate agent who has access to the local MLS. A status look-up is a quick first step in getting up-to-date info on a home. If additional notes in the listing don’t explain more, a call to the listing agent usually solves the mystery. I do this often for clients who are searching online.

TNAS status isn’t the only data gap in sites like Zillow. Properties listed as “Coming Soon” in our MLS currently do not get displayed on Zillow and its affiliates. “Coming Soon” is a fairly new option for sellers in our region and is still gaining traction. Read details on it here.

Pocket Listings

The “off market” status for TNAS listings should not be confused with properties being actively marketed by agents before going live on the MLS. These types of listings have a variety of names including “pocket listings”, quiet listings", “pre-MLS”, “non-MLS”, and “off market”. The practice of marketing selectively, before officially entering the listing into a universally shared network, has been debated nationwide and will be banned by the National Association of Realtors beginning Jan. 1, 2020, with full implementation expected by May 1. Once in effect, the rule will require brokerages to submit listing information to their MLSs within one business day of any public marketing. The new policy is intended to level the playing field and maintain the industry’s focus on cooperation and broker reciprocity, ultimately benefitting both buyers and sellers.

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying, selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

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Banner photo by Eugene Zhyvchik on Unsplash

Screenshots taken 11/27/19: TNAS listings and 2196 St. Clair on Zillow (not listed with Lynden Realty)

What can you do now if you're planning to sell this spring?

Planning to list your home this spring? It may seem far off, with heavy snow yet to hit, but the early spring market will be here in no time. In fact, it can start as early as February depending on factors like weather, inventory and motivation.

If you have a 3-month window to prep, what projects should you start now? I’ve put together a list of common tasks sellers often tackle when preparing homes for the market. It’s not exhaustive and may be way more than needed (every situation is unique), but take a look and decide what makes sense for you.

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Seller’s Fall & Winter To-do List:

Attend to the pre-sale inspection

Currently 16 cities around the metro require some type of inspection prior to listing a home for sale. Sometimes called a TISH, or Truth-in-Sale-of-Housing inspection, they are typically good for 1-2 years. Some cities require repairs based on items found in the TISH. Others just want the report available to potential buyers. You could use this time to address any items that might be flagged in the inspection. Check with your city for specific items covered.

Inspect roof & make needed repairs

Walk the roof, or have a professional do it for you. Many roofing companies schedule regular seasonal check-ups to inspect for built-up debris, compromised caulking around chimneys, and more.

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Spruce up your entry with new house numbers

This simple change can add instant style and curb appeal. Make sure the font matches your home’s style.

Insulate

With winter comes the possibility of ice dams. In past years they’ve created major headaches for early spring sellers. You can work to prevent them by getting your home assessed and taking preventative action while you can. Check for adequate attic insulation and ventilation. More importantly, seal your attic bypasses — those gaps where warm air from can easily escape into your attic. Think plumbing vents, bath fans, electrical conduits, can lights, etc.

Close out permits

Check with your city for outstanding permits and get them closed. This may take time if inspections are required so it’s best to get the process rolling.

Purge & declutter

This always takes longer than you think. Start now, go room by room, closet by closet, drawer by drawer…or whatever system works best for you!

Replace/fix/dispose of broken appliances

Broken dishwasher? Replace or fix it this winter. You should have functioning appliances at the very least. Old broken freezer in the basement? Remove it. Most buyers don’t want to inherit old appliances that are costly to remove. They may make removal a condition of the sale prior to closing so you might as well do it now. And if a new one is needed, at least you’ll have time to enjoy it. Assess your appliance situation and make improvements if needed.

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Fix leaks or broken faucets

This might help your water bill too so you might as well do it now while you’re still living there. If you have a leaky faucet, plan on a future buyer asking for this repair. If you have loose fitting ones, tighten or replace them this winter.

Repair holes, cracks & water damage in walls and ceilings

Filling holes left from old wall art is cheap and well worth your time. It may require paint touch-ups or even new coats though. Do that too if you can.

Seeing spots from past water damage raises concern for some buyers. Take care to repair them but know you’ll need to disclose in writing any known damage.

Paint the interior

Neutralize your room colors as needed (soft, warm grays, whites and creams are safe choices.) Or use existing neutral colors to refresh scuffed up walls and trim. New (and carefully applied) paint is an inexpensive and highly effective way to freshen your space. If you don’t have the time or energy, winter is a good time to hire a professional — they’re not as busy so easier to schedule.

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Update light fixtures

Take a close look at your light fixtures. Replace anything broken and outdated, especially in highly visible areas (think dining room, bathrooms, kitchen pendants, etc.)

Update cabinet hardware (kitchen & bath pulls, knobs, etc.)

This is a cheap cabinet refresh. Modernizing hardware, even on outdated cabinets, can make a big difference.

Refresh outlets & cover plates

If you have old, dirty, or mismatched plate covers in rooms, replace them with new matching ones. It’s super cheap, just takes a little time. You also might want to consider grounding outlets and putting GFCIs in all the right places, if you haven’t already. Though these are common inspection items, they’re usually not deal breakers for buyers.

Clean out the garage

Here’s a good fall project. Decluttering your house should take precedence, but do the garage too if you have time.

Finish incomplete paint or remodel projects

You may have started a project, stopped it eons ago, and have totally forgotten about it. You might not notice it, but a buyer will. Most new owners don’t want to inherit someone else’s half-completed project. Do what you can to finish it off this winter.

Fix missing trim, thresholds, broken doors, etc.

Again, like abandoned remodel projects, these can be easily overlooked — you just stop seeing them. Buyers will take note, and may also wonder, “What else has been neglected?”

Replace or remove broken (or outdated) window coverings, blinds, etc.

Think “less is more” when considering your window treatments. Buyers love natural light so let it in whenever possible. Replace broken blinds and shades, or remove them altogether if privacy isn’t a factor. Minimalist coverings are more on trend. Think plain, airy and simple designs, textures and colors.

Wash your windows

Thoroughly clean all windows, inside and out. If you’ve never done this before you’ll be amazed. Your whole house will feel cleaner! It can be a daunting task depending on your home size but plenty of companies will do it for you. Companies do schedule cleanings in winter months but once temperatures dip below 32 degrees, anti-freezing product will be added. Do it now to enjoy the benefits and knock it off your list, or clean them come spring (before photos!)

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Tile backsplashes

Tile can be a fairly inexpensive way to finish off a kitchen or bathroom space, adding an element of interest or a splash of color. If you have time and resources, consider doing small tile jobs that align with the style and era of your home.

Replace old carpet (or remove)

If your carpet is old and worn seriously consider replacing it before listing. Winter is a good time to shop and schedule this. If it’s newer and looking good, get it professionally cleaned closer to your listing date (you’ll want it as clean as possible when showing off your house.) If you have hardwood floors under the carpet, expose it — buyers value original wood, especially if it’s well preserved.

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Weather permitting:

Paint or touch-up exterior trim, siding & doors

If you have flaking paint, scrape and repaint if possible. If your exterior door needs a refresh, paint it. A pop of color and an inviting entry create curb appeal and positive first impressions. I recommend a statement color in keeping with the style of your home.

Though it’s too late for a whole-house paint job, there may still be time to sneak in smaller projects, weather permitting. Caulking and priming these trouble spots before winter can be well worth your time and effort. If you’re not sure how to identify what needs what, call a paint professional. You’ll have better luck scheduling them this time of year as construction and repair projects slow with seasonal changes.

Clean gutters & repair downspouts

If it’s not too late, use warmer, snow-free days to do a final leaf cleaning of gutters. Repair and reposition broken or leaking downspouts to divert thawing snow come spring.

Repair rotting exterior trim pieces and decking

If you have rotting boards, replace them, especially floor boards that can create hazards or let moisture in. If weather permits, paint or stain replaced parts.

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Get help

Your home’s condition and age matter when prioritizing your to-do list. These projects may be totally irrelevant or just a starting point, it all depends. I recommend getting help creating a customized list before you start winter projects. Walking through your house with a second set of eyes is often what’s needed to zero in on the best use of your time and money. I do this often with clients, sometimes long before listing. If you would like to talk about preparing and selling your home, feel free to reach out.

651-503-1540 | heidi@lyndenrealty.com

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying, selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

Holiday Art & Maker Markets | Twin Cities 2019

Shop local

The Twin Cities has become a maker’s mecca and this month kicked off the high season for hitting local pop-up markets and art fairs. Dozens of venues around town will partner with organizers and talented makers to host markets for holiday shoppers, making it easier than ever to shop local!

Check out the lengthy list of upcoming maker’s markets and sales events starting early November, through December:

Art Attack | Minneapolis

Nov 1 - Nov 3

Friday, Nov 1 5pm-10pm 

Saturday, Nov  2 12pm-8pm

Sunday, Nov 3 12pm-5pm

Location: Northrup King Building (NKB) | 1500 Jackson Street NE | Minneapolis, MN

MN Christmas Market 2019 at Union Depot | St. Paul

Nov 2

10am-5pm

Location: St. Paul’s Union Depot | 214 4th Street East | Saint Paul, MN

Plate & Parcel Holiday Market | Minneapolis

Nov 2 - Dec 22

Every Sat. & Sun

10am - 3pm

Linden Hills Holiday Market is now Plate & Parcel Holiday Market -- a “ bustling hub of local farmers, foodies and artists we've been since 2016” 

Location: Wagner's Garden Center | 6024 Penn Ave S | Minneapolis, MN

Handmade for the Holidays | Minneapolis

Nov 3, 12-5pm

Nov 24,  12-5pm

Location: La Doña Cervecería | 241 Fremont Ave North Unit B |  Minneapolis, MN

Minneapolis Gift & Art Expo 

Nov 1, 12 - 7pm

Nov 2, 10am - 6pm

Nov 3, 10am - 4pm

Location: Minneapolis Convention Center | 1301 2nd Ave S | Minneapolis, MN 

Arts for the Holiday Show & Sale | Minnetonka

Nov 8 – Dec 23

Gallery open Mon-Sat, 10 a.m. – 4 p.m.

Opening Preview Nov 7, 6 – 9 p.m.

Location: Minnetonka Center for the Arts | 2240 North Shore Drive | Wayzata, MN

Nokomis Fall Urban Craft and Art Fair

Nov 9

9:30am - 4pm

Location: Lake Nokomis Community Center | 2401 E Minnehaha Pkwy | Minneapolis, MN

Minneapolis Holiday Boutique

November 8 - 10

Fri 10am - 9pm

Sat 10am - 9pm

Sun 10am - 5pm

Location: U.S. Bank Stadium | Minneapolis, MN

Minneapolis Vintage Market

Nov 10

11 - 12 - Early Bird Ticket Holders Only

12 - 5 - Free General Admission

Location: Chowgirls at Solar Arts (third floor)| 711 15th Ave NE | Minneapolis, MN

Shop Small St. Paul Holiday Crawl

Nov 15 - Dec 15
Location: Various shops in St. Paul — list and passport here.

Yard & Yarn Fiber Arts Market | Minneapolis

Nov. 16

11am - 4pm

First annual Yard & Yarn Fiber Arts Market at Textile Center, hosted by Minneapolis Craft Market 

Location: Textile Center | 3000 University Ave SE | Minneapolis, MN

Craft’za

Nov 16

10am - 4pm

Location: Grain Belt Bottling House | 79 13th Ave NE | Minneapolis, MN

Northeast Winter Market | Minneapolis

Nov 17 10am - 2pm

Dec 19 10am - 2pm

Location: Chowgirls at Solar Arts (third floor) | 711 15th Ave NE | Minneapolis, MN

MN Christmas Market | Minneapolis

November 17

10am - 5pm

Location: Nicollet Island Pavilion | 40 Power St | Minneapolis, MN

Urban Growler Holiday Market | St. Paul

Nov 17

2pm - 7pm

Location: Urban Growler Brewing Company | 2325 Endicott St | Saint Paul, MN 

Holiday Spirits Maker Market | Minneapolis

Nov 17 & Dec 14

12pm - 5pm

Location: Royal Foundry Craft Spirits | 241 Fremont Ave. N. | Minneapolis, MN

MCAD Art Sale | Minneapolis

Nov 21-23

Thurs 6pm - 9pm ($150)

Fri 6pm - 9pm ($25/$30)

Sat 9am - 5pm (free)

Location: Minneapolis College of Art and Design (MCAD)  | 2501 Stevens Ave | Minneapolis MN

A Grand Makers Market | St. Paul

Nov 23

10am - 3pm

Indoor pop-up shop in common areas and open storefronts of the Bread & Chocolate building, just outside the Lynden Realty office. Free to attend and open to the public. (Lynden Realty will be there too, with treats, art and answers to any real estate questions. Stop by for a visit!)

Location: 867 Grand Ave | St. Paul, MN

Homespun Holiday Makers Market | Eden Prairie

Black Friday through Christmas Eve

Nov 29 - Dec 24

Location: Eden Prairie Center Mall | Eden Prairie, MN

Plaid Friday | Minneapolis

Nov 29, 30 & Dec 1

Outdoor winter market | Thanksgiving weekend

Location: Sociable Cider Werks 1500 Fillmore Street Northeast | Minneapolis, MN

Black Friday on Broadway | Minneapolis

Nov 29  | 2pm - 8pm

Nov 30  | 10am - 4pm

Local shopping event More than 30 shops in the north Minneapolis area organized by Northside Economic Opportunity Network (NEON).

Location: West Broadway Ave. From Lyndale Ave. to Penn Ave. N. | Minneapolis, MN

6th Annual Made By Hands Holiday Sale | Minneapolis

Nov 30

12-8pm

Location: Bauhaus Brew Labs | 1315 Tyler St. NE | Minneapolis, MN

Holiday Market at The Schmidt | St. Paul

Nov. 29, 10am - 6pm

Nov 30, 10am - 6pm

Dec. 1, 10am - 2pm

Location: Schmidt Artist Lofts | 900 West 7th St | Saint Paul, MN

Merry Maker's Studio | Minneapolis

Saturdays & Sundays

Nov 30 - Dec  22

10am - 6pm

Location: Third Haus, 4420 Drew Ave. S | Minneapolis, MN

Keg and Case Outdoor Holiday Market | St. Paul

Nov 29 - Dec 24

Features “twenty local artisan pop-ups featuring an array of unique gifts and tasty treats! Take photos with Santa, visit our tree farm, and take a spin on our community ice rink.”

Location: Keg and Case West 7th Market | 928 West 7th St | Saint Paul, MN

North Loop Holiday Bazaar | Minneapolis

Dec 1

12pm - 5pm

Location: Modist Brewing Co

505 N 3rd St | Minneapolis, MN

Hygge Holiday Market | Minneapolis

Dec 1, 8, 15

4-8 pm

Lawless Distilling 

2619 28th Ave South | Minneapolis. MN

SooVAC’s Artists’ Holiday Shop

Dec. 6 

11am - 7pm

Location:

Soovac | 2909 Bryant Ave S, Suite 101 | Minneapolis, MN

First Thursdays in Northrup King Building | Minneapolis

Thurs Nov 7

Thurs Dec 5 

5pm-10pm

Location: NKB | 1500 Jackson St NE | Minneapolis, MN

European Christmas Market | St. Paul 

Dec. 6, 4pm - 9:00 pm

Dec. 7,  10am - 8pm

Dec. 8, 11am - 6 pm

Dec. 13, 4pm - 9:00 pm

Dec. 14, 10am - 8pm

Dec. 15, 11am - 6 pm

Dec. 20, 4pm - 9:00 pm

Dec. 21, 10am - 8pm

Dec. 22, 11am - 6 pm

Location: Union Depot, East Plaza | St. Paul, MN

No Coast Craft-o-Rama | Minneapolis

Dec 6, 3pm - 8pm
Dec 7, 9am - 5pm

Location: Midtown Global Exchange building | 2929 Chicago Ave | Minneapolis, MN

Craft Bash | Minneapolis

Dec 6, 6:30pm - 10:00pm

Dec 7, 11am - 6pm

American Craft Council hosted 

Location: Parallel and Hennepin Made | 145 Holden Street N. | Minneapolis, MN

4th Annual Nordic Julemarket | Minneapolis

Dec 6, 3 - 9pm

Dec 7, 12 - 8pm

Dec 8,  12 - 6pm

Location: Utepils Brewing Company | 225 Thomas Ave N | Minneapolis, MN

A Handmade Holiday Market | Minneapolis

Dec 7, 14 & 21

12:00-5:00pm

Location: Lakes & Legends Brewing Company 1368 Lasalle Ave | Minneapolis, MN

Julmarknad - ASI's Christmas Market & Festival | Minneapolis

Dec 6, 7 & 8

Friday Preview Party

Sat 10am - 5pm

Sun 11am - 4pm

Cost: $15 adults, $10 seniors, $6 children ages 6-18, free for children 5 and under and for ASI members.

Location: American Swedish Institute | 2600 Park Avenue | Minneapolis, MN

Betty Danger’s 4th Annual Bizarre Bazaar | Minneapolis

Dec 7 & 8

10am - 4pm both days

Location:  Betty Danger’s Supper Club | 2501 Marshall St NE |  Minneapolis, MN 

A Very Vintage Holiday Market | Minneapolis

Dec 8

11 - 12pm - Early Bird Ticket Holders Only

12 - 5pm - Free General Admission

Location: Machine Shop, 300 2nd St SE |  Minneapolis, MN

Bad Weather Holiday Markets | St. Paul

Dec 8 & 15

2:00-6:30pm

Location: Bad Weather Brewing, 414 7th St W | St Paul, MN

Old St. Anthony Holiday Bazaar | Minneapolis

Dec 15 

12-5pm

Location: Machine Shop | 300 2nd Street SE | Minneapolis, MN

Mill City Winter Market  | Minneapolis

9am-1pm, Mpls

Holiday Markets – Dec. 7 & 14

Location: 704 S 2nd St | Minneapolis, MN

Holidazzle | Minneapolis

Each weekend of the Holidazzle Minneapolis Craft Market will be bringing 20+ makers to their space (different  lineup of artists each day). “Handmade jewelry, clothing & accessories, woodwork, home decor, prints, fiber art and more.” 

Thursdays: 5 - 9pm

Fridays: 5 - 10pm

Saturdays: 11am – 10pm

Sundays: 11am – 7pm

Location: Loring Park | Minneapolis, MN

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.

When is the best time to buy a home In Minnesota?

Should I buy now or wait until spring? I’ve been asked this question a lot lately. Everyone has a different story so my first response is often a question…When would work best for you? It often depends on your life situation. Are you renting and need to wait out your lease? Or can you end the lease without penalty? Do you need to sell a home first before buying? Or can you afford to buy first and sell later? Would you like your kids to finish out the year before switching schools? Maybe you’re moving into town and want to get settled before starting a new job. Or you may be living with parents or family with maximum moving flexibility.

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Spring: more choices, more competition

If you’re not bound by leases, job transfers or school schedules, consider our seasonal market trends along with the larger economic picture. In Minnesota spring is typically the hottest season for real estate. Historically, more homes get listed in the spring and summer months, so as a buyer you’ll have more to choose from. You’ll also have more competition. Warm weather coupled with an expanding inventory attracts more home shoppers. The last few spring markets have been highly competitive with multiple offers and overbidding as the norm in the most desirable homes and neighborhoods. Low inventory has been a major factor, especially at the starter-home price point.

Seasonal trend | New Listings

Winter: price drops & low inventory

Winter months, especially around major holidays, tend to slow market activity. As a buyer, you may be in a better position to negotiate a lower price during these months. The slower pace may give you more time to process, decide and present your offer. Anxious sellers might be more willing to consider price drops during colder months as they rack up days on market. But don’t expect an automatic deal. Some sellers are more than willing to wait out the slower months in hopes of a strong offer come spring. They may even decide to temporarily pull their house from the market over the holidays then pop it back on once the weather warms.

Seasonal trend | Median sales price

Get ready

My best advice is to be prepared. Get your finances ready with a pre-approval in hand, watch for new listings and get out there. Visit as many houses as you can so you know exactly what you want and don’t want. Walking through a house is very different from clicking through pictures, so take the time to tour! Open houses are one way of course but private showings are even better (do it on your time without the seller’s agent hovering.) If you find your dream home in the slower winter months, perfect! Make your move. If not, hold tight, there’ll be more to come as spring approaches.

If you’re seeing houses online and what to know more, give me a call or email to set up a private tour or get details on particular listing. 651-503-1540 | heidi@lyndenrealty.com

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Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.