Minnesota Homebuyer Blog: January 2011

Saturday, January 29, 2011

First Time Homebuyer’s Real Estate Word for Today is Deeded Access

The average home buyer only buys a home once every eight years. That said, even a repeat home buyer can forget some of the simple terms used in real estate on a daily basis. It can be hard to remember whether the earnest money or the money escrowed is a down payment and (if it is, on what?) Often buyers are easily confused by similar sounding terms like easement and encroachment as they both deal with property lines and usage but what do they really mean?

Whether you are a novice, first time buyer or someone who hasn’t purchased a home for several years, sometimes a refresher on real estate terms can be very helpful. I often notice buyers (and sellers) with a glazed look on their face when certain terms come up so I thought an online real estate glossary would be helpful. The real estate term for today is:

Deeded Access Deeded access is access to the lakeshore as outlined in the deed for the property. As a Minnesota REALTOR® I deal with lots of lakeshore properties. Heck, it is the “Land of 10,000 Lakes” after all. Some properties are right on the shoreline and the riparian rights (right to use the lakeshore) is obviously the property owners. But sometimes a property within close proximity to a lake will allow homeowners to use the lake as well. These rights can include the ability to use a private beach, put in a dock, dock a boat or other various rights. Not all deeded access is created equal. To understand the riparian rights associated with the property, a buyer must inquire and read the specifics outlined in the deed.

CLICK HERE for additional options on Affordable Minnesota Lakeshore

Additional Terms in the Real Estate Glossary:

EQUITY

ESCROW

EARNEST MONEY

ENCROACHMENT

FIDUCIARY

TITLE INSURANCE

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in

acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Oakdale, MN Real Estate Market Statistics Year End 2010

Oakdale is a community that has continued to expand and develop in the east metro of the Twin Cities. Just drive Hadley Avenue, Century Avenue or Interstate 694 to see all of the new retail establishments and residential developments to get an idea of how continuous changes have affected the community over the past several years. Conveniently located along I694 and north of I94, Oakdale is a vibrant part of Washington County. The community is served by the North St Paul/Maplewood/Oakdale School District #622 and is home to the Tartan Titans. The Tartan High School name is no doubt reflective of the roots of the international company 3M and Scotch Tape, with its distinctive red and/or green tartan plaid logo. The 3M main headquarters is located on the eastern border of our capital city, St. Paul, a border shared with the community of Oakdale.

Oakdale has an eclectic mix of housing opportunities. There are older communities with large yards and renovated farm homes as well as newer developments with townhomes, condos, twinhomes and single family dwellings. Whatever your housing needs, Oakdale is an area with various affordable choices to meet the requirements of all types of families.

2010 Average Sales Price of all homes sold in Oakdale:

All Homes $167,344
Single Family Homes $193,176
Townhomes/Condos $125,222

2010 Average Cumulative Days on Market in Oakdale:

All Homes 167
Single Family Homes 104
Townhomes/Condos 159

Year End Oakdale residential real estate statistics for single family homes:

Under $200,000~ 48 Active Listings, 17 Pending Listings, 129 Sold Listings, 99 CDOM

$200,000-300,000~ 18 Active Listings, 7 Pending Listings, 79 Sold Listings, 109 CDOM

$300,000-$400,000 ~ 6 Active Listings, 0 Pending Listings, 11 Sold Listings, 103 CDOM

$400,000+ ~ 2 Active Listings, 0 Pending Listings, 2 Sold Listings, 281 CDOM

Year End Oakdale residential real estate statistics for townhomes and condos:

Under $200,000~ 71 Active Listings, 12 Pending Listings, 130 Sold Listings, 168 CDOM

$200,000-300,000~ 5 Active Listings, 0 Pending Listings, 10 Sold Listings, 146 CDOM

$300,000-$400,000 ~ 2 Active Listings, 0 Pending Listings, 3Sold Listings, 168 CDOM

For additional information on any current Blaine real estate listing or for additional information on buying a home in Oakdale, MN contact Teri Eckholm, RE/MAX Specialists directly at 651-336-7073.

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/10 through 12/31/10.

FEATURED OAKDALE LISTING:

6794 Upper 28th St, Oakdale MN 55128

Articles on Real Estate, Lakeshore and Minnesota that might be of interest:

Hugo, MN Year End Real Estate Market Statistics 2010

Sandwiched between the cities of White Bear Lake and Forest Lake along Hwy 61 is the community of Hugo, Minnesota. While many people cannot forget the recent tornadoes that devastated the area a few years ago, that event does not define the community. Hugo is a vibrant and growing area with a deep history. The town has had a few names, first Oneka, then Centerville Station before finally adopting Hugo just after the turn ot the century in 1906. The name Oneka is still present in the community as it is the name of the city’s largest lake, Lake Oneka. According to Wikipedia, the name is derived from a Dakota/Native American word, onakan, a word meaning to hit rice into a canoe. However the origin of the Hugo name is a bit trickier to pinpoint. Per Wikipedia, “The Washington County Historical Society suggests it was for French author Victor Hugo, or more likely named after Trevanion William Hugo, who was chief engineer of the Consolidated Elevator Company in Duluth and former Duluth mayor, who likely had ties to the railroad.” Hugo was a big station stop on the way to Duluth back in the railroad heyday so this does make sense.

In any event, today the Hugo community is a vibrant area that is continually growing into a well defined community in the north and east Twin Cities suburbs. While Oneka is the large lake in Hugo, there is also Egg, Horseshoe and Rice as well as acres of wetland and ponds throughout this Washington County community. Hugo residents are served primarily by the White Bear Lake School District #624 although several homes to the north a part of the Forest Lake School District #831. Real estate opportunities include both historic homes and more recently constructed residences. First time buyers, executive home buyers, retiring downsizers and luxury lakeshore buyers have a wide variety of options if the choose to call Hugo home.

In 2010 there were 273 homes sold in the community of Hugo. Sold prices ranged from $52.000 to $799,000 with an average sales price of $191,466. The cumulative days on the market for homes in Hugo during 2010 was 153.

2010 Average Sales Price of all homes sold in Hugo:

All Homes $191,466
Single Family Homes $273,448
Townhomes/Condos $138,622

2010 Average Cumulative Days on Market in Hugo:

All Homes 153
Single Family Homes 172
Townhomes/Condos 140

Year End Hugo residential real estate statistics for single family homes:

Under $200,000~ 8 Active Listings, 5 Pending Listings, 23 Sold Listings, 129 CDOM

$200,000-300,000~29 Active Listings, 4 Pending Listings, 48 Sold Listings, 149 CDOM

$300,000-$400,000 ~ 7 Active Listings, 2 Pending Listings, 28 Sold Listings, 204 CDOM

$400,000-$500,000 ~ 6 Active Listings, 0 Pending Listings, 3 Sold Listings, 434 CDOM

$500,000 and Up~ 6 Active Listings, 0 Pending Listings, 5 Sold Listings, 326 CDOM

Year End Hugo residential real estate statistics for townhomes and condos:

Under $200,000~ 77 Active Listings, 11 Pending Listings, 153 Sold Listings, 136CDOM

$200,000-300,000~ 6 Active Listings, 1 Pending Listings, 11 Sold Listings, 190 CDOM

$300,000-$500,000 ~ 2 Active Listings, 0 Pending Listings, 2 Sold Listings, 269 CDOM

For additional information on any current Hugo real estate listing or for additional information on buying a home in Blaine contact Teri Eckholm directly at 651-336-7073.

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/10 through 12/31/10.

Articles on Real Estate, Lakeshore and Minnesota that might be of interest:

Monday, January 24, 2011

Record-Breaking Winter Weather Equals Extremely Affordable Minnesota Lakeshore!

Wonder whether buying a Minnesota lakehome make sense in the winter? Many people would never consider buying a lakeshore property in the middle of January but it could make sense…or better yet, cents! And lots of them too! When I posted The Good, the Bad and the Ugly of Buying a Minnesota Lakehome in the Winter, it explained that you can get a great lakeshore deal in the dead of winter. But how do you determine what Minnesota lakehome is best for you when the surface of the lake is covered with hundreds of those shacks people use for ice fishing? And how affordable is affordable?

Which lake is best for you will depend on how you want to use the lake. If you want to dock a speedboat or need acreage to set sail in a larger sailboat, you will need access to large acreage full recreational lake. But what if you just want to enjoy the calls of nesting loons and viewing brilliant rosy sunsets across the water? Maybe a natural wetland shoreline will be what you want. A home with that type of shoreline is very affordable in the current market.

A few years back, when lakeshore prices were seemingly out of reach, I wrote another article, Affordable Minnesota Lakeshore, that remains to this day one of the most popular pages on my website. It was written for those dreaming of a lake home but unable to afford the rising costs on shoreline property in Minnesota. (A full recreational lake will have few, if any, restrictions by the Minnesota DNR for usage of the lake…meaning you can have a speed boat, jet ski, etc.) Because not everyone needs, wants or can afford a home on a full recreational lake, I outlined the best affordable options and alternatives to a full recreational lakehome with shoreline. But with the changed real estate market, these variations on traditional lakeshore are now extremely affordable—usually not much higher than a home without water’s edge. And when you combine these affordable options with frigid temps, a home buyer with lakeshore dreams can find they can afford to live on Minnesota lakeshore!

Channel Shore Shoreline along a channel is a great option for a full recreational lake. Many large lakes will have channels or narrow extensions that lead to other lakes or ponds. Usually there is not a place for a beach but you can have a slip or short dock for your boat. The channel will provide access to the main lake. The view will probably inclu

de homes on the opposite shore of the channel but if your goal is affordable use of a full recreational lake, this is a great alternative.

Smaller Lake with Channel to Full Recreational Lake Often the lakes in Minnesota are connected to one or several smaller lakes. This can be a great opportunity. Shoreline that is shallow or weedy is not considered prime but if it has access to a larger lake, it could provide the same enjoyment at a much lower price.

Small Acreage Lake Smaller lakes can be of interest to the more laidback water lover. Often there will be restrictions disallowing motors or only small motors. These smaller lakes can still be great for fishing, canoeing, kayaking and swimming. Some will allow docks and beaches but check with the DNR for specific restrictions. A small lake will still offer wonderful natural views at a significantly lower price than a full recreational lake.

Environmental Lakes and Wetlands Very shallow lakes wonderful for privacy but not great for recreation. If you are looking for a home with awesome views of wildlife, this may be something to consider.Deeded AccessMany homes and associations near a full recreational lake have been developed with deeded access providing use of the lake. The ability to have a dock, use the beach, or moor a boat, will be outlined in a legal agreement specifying what uses are allowed. Not all deeded access is created equal! Request a copy of all of the specific uses and rules before writing an offer so you can fully understand the access available as a home owner.

Lake View A home with a beautiful lake view but no shoreline or lake access, can provide the wonderful picturesque views everyone dreams of without the high lakeshore taxes.Location with Public Access NearbyA final option is to look for a home that is near park with public lake access. I sold one such home where the public access to a good-sized full recreational lake was about a quarter mile down the street. This family uses the lake to canoe, cross country ski and fish without driving or trailers. There was none of the additional cost or taxes associated with lakeshore property but all of the benefits!

LINKS LAKE RESOURCES:
Department of Natural Resources Lake Finder Comprehensive search engine to find information regarding the size, depth and condition of Minnesota lakes by county and lake name. There is even information on approximate numbers and types of fish found in the listed lakes.

Protecting Minnesota Waters Need to know if you can have a dock? Put in a beach? If the water is safe? This site offers a directory of who to call for the most often asked water, lake and shoreline questions

So How Great are the Deals?

Here are a few I noted on lakeshore on the MLS recently:

Bald Eagle Lake, deeded access, 4BR/4BA/3Car two story built in 1986 listed at $390K (Over $60K less than tax value)

Little Coon Lake with access to Coon Lake 4BR/3BA/3Car two story built in 2005 listed at $400K (Over $150K less than tax value)

White Bear Lake, condo w/deeded access, 1BR/2BA/1Car 1000+sq ft w/$473 assoc dues listed at $290K (Over $70K less than tax value)

Forest Lake, foreclosure, 5BR/3BA/2Car built in 1975 on first lake. Listed by bank at $335K (Originally priced at $570K)

This is just a quick snapshot of the winter lakeshore bargains on Minnesota lakeshore. If you want to get in on a good deal before iceout in April, give me a call or send me an email to receive a list of all the current homes in the north and east Twin Cities metro with affordable lakeshore. Make this the year that you enjoy summer on the shore of one of Minnesota’s 10,000+ lakes!

White Bear Lake, MN Year End Real Estate Market Statistics 2010

Just about everyone who grew up in the Twin Cities north metro is familiar with the White Bear Lake community. Whether your memories are of passing the iconic gigantic white bear statue at Polar Chevrolet, swimming at Bellaire beach or setting sail across White Bear Lake, everyone in the north and east Twin Cities metro area seems to know the community. But I doubt that many know the legends that surround the lake and that Manitou Island is at the center of it all. I noticed awhile back that as you enter the City of White Bear Lake you are welcomed by a sign announcing you are entering White Bear Lake, the city of Lakes and Legends. So what is this legend? The story has been documented by several writers but the most notable was the infamous storyteller, Mark Twain who wrote of the Indian warrior who killed the great monster of a polar bear to save himself and his lover in his book, “Life of the Mississippi”.

Legends aside, today the White Bear Lake community is a vibrant area that is continually growing while preserving its rich heritage. While the shores of White Bear Lake are the most well known as one of the largest lakes in the north metro as it spreads from Ramsey County into Washington County , there are two other lakes in the community: Birch Lake and Goose Lake. The community is home to White Bear Lake School District #624 and Century College encompassing 11 square miles of land. Real estate opportunities include both historic homes and more recently constructed residences. First time buyers, executive home buyers, retiring downsizers and luxury lakeshore buyers have a wide variety of options if the choose to call White Bear Lake home.

The average sales price of homes in White Bear Lake is up about 3.5% ($193,671 versus $186,735 in 2009) and overall cumulative days on the market are down almost 7% (136 compared 146 in 2009). These are good indicators that the market is stabilizing somewhat in the community of White Bear Lake. However, inventory is almost double what it was at this time last year for the under $200,000 homes. There was a big demand in this price point with the expiring tax credit. However the inventory is still manageable with an approximate 6 months absorption rate.
Higher priced inventory is down and sales are not completely stagnate but still much slower than a few years ago. There is about a year's worth of inventory in price points over $400,000. The inventory of lakeshore homes is also down in the White Bear Lake area. There are still options in several price points but lakeshore sellers in the higher price points don’t appear to have budged on their pricing too much. There is an opportunity out there for those interested in lakeshore in the White Bear community.

2010 Average Sales Price of all homes sold in White Bear Lake:

All Homes $193,671
Single Family Homes $203,576
Townhomes/Condos $151,799

2010 Average Cumulative Days on Market in White Bear Lake:

All Homes 136
Single Family Homes 131
Townhomes/Condos 156

Year End White Bear Lake residential real estate statistics for single family homes:

Under $200,000~ 65 Active Listings, 12 Pending Listings, 116 Sold Listings, 107 CDOM (No Lakeshore)

$200,000-300,000~ 27 Active Listings, 2 Pending Listings, 53 Sold Listings, 132 CDOM (Lakeshore Subgroup 2 Active, 0 Pending, 2 Sold, 88 CDOM)

$300,000-$400,000 ~ 8 Active Listings, 0 Pending Listings, 8 Sold Listings, 205 CDOM (Lakeshore Subgroup 0 Active, 0 Pending, 1 Sold, 205 CDOM)

$400,000-$500,000 ~ 4 Active Listings, 1 Pending Listings, 4 Sold Listings, 420 CDOM (Lakeshore Subgroup 2 Active, 1 Pending, 2 Sold, 591 CDOM)

$500,000-$1,000,000~ 4 Active Listings, 0 Pending Listings, 4 Sold Listings, 358 CDOM (Lakeshore Subgroup 4 Active, 0 Pending, 3 Sold, 465 CDOM)

$1,000,000 and Up ~ 4 Active Listings, 0 Pending Listings, 1 Sold Listings, 357 CDOM (Lakeshore Subgroup 4 Active, 0 Pending, 1 Sold, 357 CDOM)

Year End White Bear Lake residential real estate statistics for townhomes and condos:

Under $200,000~ 39 Active Listings, 3 Pending Listings, 36 Sold Listings, 144 CDOM

$200,000-300,000~ 18 Active Listings, 0 Pending Listings, 4 Sold Listings, 238 CDOM

$300,000-$400,000 ~ 4 Active Listings, 0 Pending Listings, 3 Sold Listings, 205 CDOM

$400,000-$500,000 ~ 0 Active Listings, 0 Pending Listings, 1 Sold Listings, 156 CDOM

$500,000-$1,000,000~ 1 Active Listings, 0 Pending Listings, 0 Sold Listings

$1,000,000 and Up ~ 1 Active Listing, 0 Pending Listings, 0 Sold Listings

For additional information on any current White Bear Lake real estate listing or for additional information on buying a home in White Bear Lake contact Teri Eckholm directly at 651-336-7073.

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/10 through 12/30/10.

Articles on Real Estate, Lakeshore and Minnesota that might be of interest:

Thursday, January 20, 2011

First Time Homebuyer’s Real Estate Word for Today is Easement

A couple of weeks ago, a friend mentioned a new company had opened in the Minneapolis/St. Paul area. He later realized it was just Fair Isaac now going by the new name, FICO. I was taken aback by the confusion because most people living in the Twin Cities north metro are aware the business analytics company, Fair Isaac Corporation, has been located in Shoreview for decades. What surprised me is that few outside the real estate and mortgage industry may have made the connection that FICO is an acronym for the Fair Isaac Corporation.

Once again, I was a bit surprised that such a simple term I use everyday as a REALTOR® would be unknown to others. But then it got me thinking of all the times a glazed look came over a buyer’s eyes when I talked about escrow or earnest money. These can easily be confused with other real estate and mortgage terms like down payment or cash to close. It is totally understandable because most homebuyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Homebuyer that I thought an online glossary of real estate terms might be helpful. So over the next several weeks I am going to have a series of posts for the first time homebuyer with explanations of the most often used (and sometimes confusing) real estate terms. This way you can skip buying that big “how to buy a house” book or attending that First Time Homebuyer Class and have a quick resource at your fingertips. Today’s Real Estate Term is:

Easement—A right given by the landowner for a specific use of a portion of his/her property granted to a third party. Once the right is given and recorded on the title it continues unless vacated by the entity that received it. Common easements include utility and driveway easements. There can be more than one easement on any given property. When buying a home it is important to understand where the easements are as they can dictate what you can and cannot do with the land.

For instance, a new septic system, storage shed or flower garden cannot be constructed in a utility easement as the easement holder uses the easement for access to under and above ground utilities. Likewise a drainage easement could literally wash away your landscaping investment.

Driveway easements allow access to a landlocked property. While such agreements often provide an acceptable solution for access, they can cause headaches for neighbors who aren’t respectful of each others.

Easement holder does not own the land but has a right to use the land as specified in the easement agreement. This differs from an encroachment where a third party uses the land without permission.

Additional Terms in the Real Estate Glossary:

FIDUCIARY

TITLE INSURANCE

Lino Lakes, MN Real Estate Market Statistics Year End 2010

Like much of the real estate in the Minneapolis/St. Paul area, Lino Lakes, MN in Anoka County has seen reduced inventory and increased market times in 2009. This year nearly twice as many properties sold but the average selling price was directly affected by the bank owned and lender mediated properties on the market. Traditional homes had longer market times but properties were selling throughout the Lino Lakes area.

Though Lino Lakes has a good mixture of lakeshore, acreage and townhome residences but is more known for having a bit of space between the houses. It conveniently located near the junction of the 35E and 35W split, just north of the Twin Cities, Lino Lakes is a 33 square miles treasure. With 13 lakes and acres of beautiful protected wetland, the community is served by three school districts; Centennial District #12, Forest Lake District #831, and White Bear Lake District #624. The gem attraction is the pristine 2,700-acre Rice Creek Chain of Lakes Regional Park Reserve is situated within the heart of the city. Lino Lakes is committed to maintain this treasure and its natural settings and wildlife habitats for years to come.

The year end numbers for Lino Lakes sales show area homes were selling much faster than last year with an average of 147 cumulative days on the market (CDOM) for sold properties compared with 170 CDOM in 2009. The average home price was just slightly lower only lower by about a hundred bucks…that’s a good indicator of a stable market for Lino Lakes. Also current inventory levels remain at manageable levels. Looking at homes priced under $300,000, there is about 6 months of inventory. This time in 2008, there were nearly 12 months of inventory in this price category.

And the lower inventories are also in higher price points too. Based on the year end statistics, it will now take about 12 months to sell the current inventory of homes with a $400,000+ price tag. This is comparative to last year when the inventory levels in Lino Lakes hovered around the 12 month mark for absorption too but much better for the $500,000+ homes where the absorption was about 3 years a year ago.

2010 Average Sales Price of all homes sold in Lino Lakes:

All Homes $229,540
Single Family Homes $255,271
Townhomes/Condos $143,969

2010 Average Cumulative Days on Market in Lino Lakes:

All Homes 147
Single Family Homes 148
Townhomes/Condos 144

Year End 2010 Lino Lakes residential real estate statistics for single family homes:

Under $200,000~ 26 Active Listings, 6 Pending Listings, 45 Sold Listings, 130 CDOM
$200,000-$300,000 ~ 23 Active Listings, 4 Pending Listings, 55 Sold Listings, 154 CDOM
$300,000-$400,000 ~ 18 Active Listings, 0 Pending Listings, 29 Sold Listings, 131CDOM
$400,000-$500,000 ~ 10 Active Listings, 0 Pending Listings, 11 Sold Listings, 181 CDOM
$500,000 and Up~ 3 Active Listings, 1 Pending Listings, 3 Sold Listings, 349 CDOM

Year End 2010 Lino Lakes residential real estate statistics for townhomes and condos:

Under $200,000~ 28 Active Listings, 1 Pending Listings, 39 Sold Listings, 134 CDOM
$200,000-300,000~ 1 Active Listings, 0 Pending Listings, 3 Sold Listings, 263 CDOM
$300,000-$400,000 ~ 1 Active Listings, 0 Pending Listings, 1 Sold Listings, 1 CDOM

Lakeshore available in Lino Lakes
3 Active Listings

Lino Lakes lakeshore price range: $381,896-$575,000
2 Homes on Marshan Lake
1 Home on Reshanau Lake

Acreage properties available in Lino Lakes

7 properties listed on 1-5 Acres priced between $142,500-$440,000.
4 properties listed on 5-10 Acres priced between $189,900-$459,900
1 property listed on 22 Acres priced at $625,000
1 property listed on 80 Acres priced at $6,000,000

For additional information on any current Lino Lakes real estate listing or for additional information on buying a home in Lino Lakes contact Teri Eckholm directly at 651-336-7073.

**All Statistical information sold based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/10 through 12/31/10.

More Anoka County Articles that Might be of Interest:

Does "Minnesota Nice" Affect the Real Estate Market? "Yah, You Betcha!"

Dreaming of Life on MN Acreage?--What YOU Need to Know Before YOUR Move!

Buying a Home on Minnesota Wetland--Affordable Beauty and Privacy!

The Good, the Bad & the Ugly of Buying a Minnesota Lakehome in the Winter

Monday, January 17, 2011

Resolve to Save for a First Home in 2011!

So as we head into 2011, have you set any financial resolutions or goals? Maybe despite all the gloom, doom and foreclosures of the past several years you are still hoping to be a homeowner one day soon. If homeownership remains your dream, you are in very good company. According to a CNNMoney.com article, Housing Bust? So What? We Still Want to Own, over half of Americans still want to own their own home. In fact, over a quarter of Americans indicated are even MORE likely to buy real estate since the foreclosure crisis.

Surprising? Not to me. As a REALTOR® who has sold homes during this entire decade of rising and falling housing prices, one thing has remained constant: People prefer the freedom of owning their own house and piece of land. Whether it is a bungalow on a corner lot in Oakdale, a two story on acreage in Anoka County or 100 feet of sandy lakeshore on Forest Lake, people want to OWN! The biggest change (and reason I believe that there has been a rise in wanting to own) is simple. Owing a home is affordable again!

Home prices have continued to be at all time lows throughout,the Minneapolis/St Paul area. Though there have been a few areas that have improved a bit, most communities are seeing significantly lower housing prices than a few years ago. Combine this with the record low interest rates and there is a really opportunity for the first time home buyer as we head into 2011.

But one thing has changed since a few years ago, a first time homebuyer will need a down payment. It is also important to have some cash reserved for repairs, remodeling and of course new furnishings for the new house! So how does a first time buyer get started saving?

Here’s a cool financial tool I came across at Mint.com to help would-be first time homebuyers save toward their goal. It is a budgeting tool to show how you are currently spending your money. Once you understand where you are spending your disposable cash, you may choose to divert some of those dollars toward a bigger goal. Check out their "GET YOUR DREAM HOME" that explains their simple system. With a little persistence and perseverance, you may be ringing in 2012 in your very own new home!

Other Articles that Might be of Interest:

Blaine, MN Real Estate Market Statistics 2010 Year End

At the New Year’s Eve comedy show at the Ham Lake VFW a few days ago, Scott Hansen quipped that with all the new bridges and overpasses on Hwy 65, you can just blow past Blaine now…But why would you want to? The community of Blaine, Minnesota has transformed over the past decade. Just drive down Highway 65 and see the Main Street (125th) overpass as well as several others and all of the new retail establishments, restaurants and even residential properties to get an idea of how the changes have affected the community. Though housing construction slowed during 2010, it has not completely stopped. New developments have continued to expand the housing base, especially in the townhome and lower level price points. Conveniently located along 35W and Highway 65 and connected by Highway 10 just north of the Twin Cities, Blaine is an attractive location for both business and residential development. The community is served by three school districts; Anoka Hennepin District #11, Centennial District #12, and Spring Lake Park District #16. Blaine is best known for the National Sports Center a sport and meeting facility that hosts an annual worldwide soccer event and Tournament Players Club golf course where the PGA Senior tour is played every summer.

Builders’ incentives to home buyers have required sellers of existing homes to be very competitive with housing prices making if very affordable to buy a home in the Blaine area. While existing single family homes have continued to hold their own in the competition against builders for the past few years, it was a tough road in the existing townhome market. However previously-owned Blaine townhomes appear to be selling again with CDOM very similar to single family homes. It seems that existing townhome sellers in Blaine finally got the message and decided to price their properties competitively in 2010 to get their properties sold. The average sales price rose ever so slightly (just a few thousand dollars) but that shows a somewhat stable market for Blaine. Likewise CDOM were just a bit down; another good market indicator. Blaine’s inventory of property for sale is very manageable across all price points. Currently there is 2-6 months of inventory for homes with price points under $500,000 and just over 12 months of inventory for homes priced over $500,000. These are better inventory statistics for Blaine than I have seen in the past 4 years!

The townhome and condominium market has exploded in Blaine and builders have pulled out all the stops bringing pricing down. Like last year, builders have been careful not to overbuild in Blaine after a few years of too much inventory. Currently there is about 6 months of new construction townhome/condo inventory compared with 18 months at the end of 2008 and nearly 3 years of inventory in 2007. Existing townhome sellers will have to keep their prices very attractive as the builder’s are still selling in this area so they continue to compete with the new construction. Pricy existing executive townhomes listed over $500,000 has finally seen some activity with 3 homes sold and only 2 currently listed after a couple of years of zero buyers.

2010 Average Sales Price of all homes sold in Blaine:

All Homes $198,506
Single Family Homes $219,873
Townhomes/Condos $153,881

2010 Average Cumulative Days on Market in Blaine:

All Homes 131
Single Family Homes 129
Townhomes/Condos 134

Year End Blaine residential real estate statistics for single family homes:

Under $200,000~ 133 Active Listings, 26 Pending Listings, 263 Sold Listings, 117 CDOM (New Construction Subgroup 8 Active, 1 Pending, 4 Sold, 231 CDOM)
$200,000-300,000~82 Active Listings, 12 Pending Listings, 169 Sold Listings, 134 CDOM (New Construction Subgroup 31 Active, 3 Pending, 64 Sold, 124 CDOM)
$300,000-$400,000 ~ 35 Active Listings, 4 Pending Listings, 52 Sold Listings, 146 CDOM (New Construction Subgroup 17 Active, 2 Pending, 28 Sold, 176 CDOM)
$400,000-$500,000 ~ 14 Active Listings, 2 Pending Listings, 21 Sold Listings, 240 CDOM (New Construction Subgroup 4 Active, 1 Pending, 8 Sold, 353 CDOM)
$500,000-$1,000,000~ 13 Active Listings, 4 Pending Listings, 17 Sold Listings, 137 CDOM (New Construction Subgroup 2 Active, 1 Pending, 11 Sold, 81 CDOM)

Year End Blaine residential real estate statistics for townhomes and condos:

Under $200,000~ 115 Active Listings, 13 Pending Listings, 216 Sold Listings, 126 CDOM (New Construction Subgroup 19 Active, 2 Pending, 35 Sold, 187 CDOM)
$200,000-300,000~13 Active Listings, 0 Pending Listings, 23 Sold Listings, 276 CDOM (New Construction Subgroup 11 Active, 2 Pending, 18 Sold, 177 CDOM)
$300,000-$400,000 ~ 5 Active Listings, 0 Pending Listings, 4 Sold Listings, 259 CDOM (New Construction Subgroup 3 Active, 0 Pending, 4 Sold, 270 CDOM )
$400,000-$500,000 ~2 Active Listings, 0 Pending Listings, 4 Sold Listings, 359 CDOM (New Construction Subgroup 1 Active, 0 Pending, 2 Sold, 1 CDOM)
$500,000-$1,000,000~2 Active Listings, 0 Pending Listings, 3 Sold Listings (No New Construction)

For additional information on any current Blaine real estate listing or for additional information on buying a home in Blaine contact Teri Eckholm directly at 651-336-7073.

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/10 through 12/30/10.

Articles on Real Estate, Lakeshore and Minnesota that might be of interest:

Friday, January 7, 2011

First Time Homebuyer’s Real Estate Word for Today is Encroachment

In a recent episode of the Emmy award winning television show, Cash Cab, several people with stumped by the acronym, FSBO. This is a term often used in the real estate world to describe a person selling their home by owner (For Sale By Owner). As a REALTOR® I was a bit surprised but then I started to remember of all the times a glazed look came over a buyer’s eyes when I talked about escrow or earnest money. These can easily be confused with other real estate and mortgage terms like down payment or cash to close. It is totally understandable because homebuyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Homebuyer that I thought a glossary of real estate terms might be helpful. So over the next few weeks I am going to have a series of posts for the first time homebuyer with explanations of the most often used (and sometimes confusing) real estate terms. This way you can skip buying that big “how to buy a house” book or attending that First Time Homebuyer Class and have a quick resource at your fingertips. Today’s Real Estate Term is:

Encroachment—An encroachment is when something owned or constructed by a neighbor extends beyond the property line and onto another land owner’s property. Examples of common encroachments are fences, paths and branches of overgrown trees. Known encroachments must be disclosed by the seller on the Minnesota Seller’s Property Disclosure Statement (unless the buyer agrees in writing to an alternative inspection report or no disclosure).

Sometimes there is a reason for an encroachment. Trees often grow and will encroach into a neighbor’s yard. This usually isn’t a problem unless a branch was to break and cause damage in the neighboring yard.

There are times when a homeowner may not be aware of the encroachment because at the time of the construction the builder “guessed” at the property line or the survey was incorrect. It is common for an encroachment to be discovered when a new survey has been completed. A conflict can arise when it is discovered that a fence or shed has been constructed “on” or “near” what was thought to be the property line, but is actually over the line and encroaching on the neighbor’s property. The structure owner can then be required to move or remove the structure which can be very costly. Most communities will require a permit before construction and a setback to avoid these situations.

Ham Lake, MN Real Estate Market Statistics Year End 2010

The Ham Laker Newsletter arrived last week with some great news for our semi-rural community. We are not going to be facing the drastic tax increases that are plaguing many other communities in the Minneapolis/St Paul metro area. Ham Lake is a community without the expensive infrastructure of water and sewage utilities so our costs were down this year. In fact, Ham Lake boasts one of the lowest tax bases in Anoka County; second only by a small margin to the small community of Nowthen. But has that helped the sales and market values of Ham Lake homes? Let’s take a look.

Though the sluggish real estate market has affected Ham Lake, MN and Anoka County in 2010, homes did sell. Homes did sell just a bit more quickly with an average Cumulative Days-on-Market (CDOM) of 175 days for homes during 2010 versus 180 CDOM in 2009. Note that CDOM increase exponentially with the price point of the home. Homes under $200,000 sold in an average of 110 days where homes priced over $400,000 the CDOM was closer to 290 days. The average price of a home sold in Ham Lake was down to $237,092 in 2010 versus $248,424 in 2009.

Inventory is about the same as last year at this time with 84 active single family homes in Ham Lake now compared to January 2009 (84 versus 88 active listings). Homes are continuing to taking a bit longer to sell and even with the now expired $8000 tax incentive for home buyers that boosted the last two years’ market, there continues to be more homes on the market than buyers. But we are making progress. Homeowners considering selling a home in the Ham Lake area must understand the average time to sell a home in the area is approximately 6 months, but inventory levels indicate a more complex story depending on the home’s list price.

Inventory levels are manageable for homes under $300,000 with about 7 months of inventory. This is higher than last year at this time when the under $300K absorption rate was closer to 6 months. But inventory levels are much better on homes with prices between $300,000 and $500,000. These price points stand at just over 4 months but this could be a seasonal decrease in inventory as many traditional sellers will remove their homes over the winter. But still it is a good sign of stability for Ham Lake prices. Another positive sign is that homes over $500,000 have about 12 months of inventory in the Ham Lake area versus 18 months at this time last year. This is much better than how Ham Lake real estate started 2009 when there was upwards of 5 YEARS of inventory in the half million plus properties. Seller have seem to have gotten the message that having a home properly priced and prepared for showings was essential to sell a home in this Anoka County community in 2010.

Year End 2010 Ham Lake residential real estate statistics for single family homes:

Under $200,000~ 30 Active Listings, 9 Pending Listings, 59 Sold Listings, CDOM 101 (New Construction Subgroup ~ 0 Active, 0 Pending, 1 Sold)

$200,000-300,000 ~ 33 Active Listings, 3 Pending Listings, 45 Sold Listings, CDOM 207 (New Construction Subgroup ~ 4 Active, 0 Pending, 3 Sold)

$300,000-400,000 ~ 10 Active Listings, 2 Pending Listings, 23 Sold Listings, CDOM 262 (New Construction Subgroup ~ 3 Active, 1 Pending, 5 Sold)

$400,000-$500,000 ~ 5 Active Listings, 0 Pending Listings, 10 Sold Listings, CDOM 288 (New Construction Subgroup ~ 0 Active, 0 Pending, 5 Sold)

$500,000 and Up~ 6 Active Listings, 1 Pending Listings, 6 Sold Listings, CDOM 352 (New Construction Subgroup ~ 0 Active, 1 Pending, 2 Sold)

Lakeshore available in the City of Ham Lake
2 Active Listings

Ham Lake lakeshore price range: $259,900-$279,900

1 Home on Ham Lake
1 Home on Little Coon Lake

Acreage Listings in the City of Ham Lake

37 Properties listed on 1-2 Acres Priced from $74,900-$739,900
10 Properties listed on 2-3 Acres Priced from $215,900-$399,900
6 Properties listed on 3-5 Acres Priced from $175,000-$645,000
2 Properties listed on 5-10 Acres Priced from $180,000-$449,000
3 Properties listed on 1-2 Acres Priced from $439,900-$759,000

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/10 through 12/31/10.

Articles on Ham Lake, Lakeshore and Minnesota that might be of interest:

Tuesday, January 4, 2011

First Time Homebuyer’s Real Estate Word for Today is Title Insurance

In a recent episode of the Emmy award winning television show, Cash Cab, several people with stumped by the acronym, FSBO. This is a term often used in the real estate world to describe a person selling their home by owner (For Sale By Owner). As a REALTOR® I was a bit surprised but then I started to remember of all the times a glazed look came over a buyer’s eyes when I talked about escrow or earnest money. These can easily be confused with other real estate and mortgage terms like down payment or cash to close. It is totally understandable because homebuyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Homebuyer that I thought a glossary of real estate terms might be helpful. So over the next few weeks I am going to have a series of posts for the first time homebuyer with explanations of the most often used (and sometimes confusing) real estate terms. This way you can skip buying that big “how to buy a house” book or attending that First Time Homebuyer Class and have a quick resource at your fingertips. Today’s Real Estate Term is:

Title Insurance A policy of insurance to protect against losses arising from defects or problems with the title to the property. The premium (fee) is paid at the closing and is a one time charge. Title problems can range from an encroachment of a neighbor’s fence on the wrong side of a property line to an old mortgage that was not paid prior to the sale of the home.

On any home purchase there can be two different types of title insurance; one protecting the lender and one protecting the homeowner. If a homebuyer is taking out a mortgage to purchase the property, the lender will require the home buyer to purchase mortgage insurance to protect the lender’s equity in the property. A home buyer will be asked if they would like to purchase optional coverage to cover their own equity in their new home.

Some first time homebuyers mistakenly think that optional translates to unnecessary. This couldn’t be further from the truth. A homebuyer cannot be forced to purchase an owner's policy. But consider this, if the lender stipulates that you must buy to protect their interests, why wouldn’t you want to protect your own?

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in