St. Cloud, MN - Real Estate Blog

Laura and I are proud to announce our affiliation with Home for Heroes.  Homes for Heroes is a way of saying "Thank you" to our local heroes that protect and serve us.  Homes for Heroes offers discounts on just about everything related to buying and selling a home; from mortgages to home inspections.

What are some of the discounts?  We are offering 25% of our gross commission back to any local hero that uses our services.  Bill Pennings and Kelly Jacobsson of Wells Fargo Home Mortgage are offering 1/2 off their origination fee.  We have Greg Theis of GET Home Inspections and Tri-County Abstract and Title Guaranty offering discounts on their services as well as many others.

This program is available to veterans, active military personnel, peace officers, firefighters amongst other local heroes.  Give us a call at (320) 492-2667 or e-mail us at HomesForHeroes@StCloudEdinacom to see if you qualify today.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud, MN

http://StCloudEdina.com - Home of the e-Market Analysis (free home value estimator)

http://JasonTangen.EdinaRealty.com - Search homes for sale in St Cloud, MN

Best on the Internet for Real Estate St Cloud, MN

Posted by Jason Tangen at 09:44 AM | Permalink | Comments (0)

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Certain military personnel and federal employees might still be able to take advantage of the $8000 first time home buyers tax credit.  Here is a little quote talking about the extension from the IRS's website:

"Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010."
READ FULL ARTICLE>>>

If you'd like you can also view the YouTube Video from the IRS at http://www.youtube.com/watch?v=VoZ0CCGQ9U8.

Give me a call at (320) 492-2667 to see if you might qualify for this extension on the home buyer tax credit.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud.

http://StCloudEdina.com - Home of the e-Market Analysis (free home value estimator)

http://JasonTangen.EdinaRealty.com - Find Sauk Rapids City and School Information.

Best on the Internet for Real Estate in Saint Cloud, MN

Posted by Jason Tangen at 07:33 AM | Permalink | Comments (0)

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Below are some of the real estate sales numbers per company in the St Cloud Market.  This data is for residential properties sold within a 30 mile radius of St Cloud from 1/1/2009-9/28/2009.  Listed are the top three companies in each area covered.

Sold Volume (Listing Company)

    1) Edina Realty - $27,146,404

    2) Prudential Pladson Realty - $24,665,168

    3) Coldwell Banker Burnet Realty - $12,567,550

Sold Volume (Buyers Side of Transaction)

    1) Edina Realty - $28,346,662

    2) Prudential Pladson Realty - $19,155,798

    3) Coldwell Banker Burnet - $15,663,790

Days on Market(DOM) and Cumulative Days on Market(CDOM) - Who Sells Homes Fastest.

    1) Home 2 Home Properties - DOM (45.64) CDOM (54.00)

    2) Showcase Properties - DOM (74.76) CDOM (135.44)

    3) USA 4% Realty - DOM (78.26) CDOM (159.13)

Sold Price to List Price Average (Listing Side)

    1) Paramount Real Estate Services - 99.08%

    2) Haller Realty - 98.81%

    3) Hirschfeld Real Estate & Investment - 98.59%

Sold Price to List Price Average (Buyer Side)

    1) Century 21 New Horizons Realty - 93.26%

    2) Haller Realty - 93.85%

    3) Lind Realty Showcase Properties - 94.12%

Need more data?  Feel free to e-mail or post your querries here for me to crunch.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud MN.

StCloudEdina.com - Home of the e-Market Analysis (free home value estimator).

JasonTangen.EdinaRealty.com - Search open houses in Sartell MN.

Best on the Internet for Real Estate St Cloud MN

Posted by Jason Tangen at 08:58 AM | Permalink | Comments (0)

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I obtained these figures from Page 19 of the Spring 2009 issue of USAA magazine.  They have their source listed as the National Association of Home Builders (NAHB).

We know that construction costs havegone up in recent years, but how much??  I looked over some of these numbers and it really puts into perspective the problem that many home builders are facing in our current economic climate.

Framing and Trusses:

•    2002: $27,887
•    2007: $34,600

Insulation:

•    2002: $2.387
•    2007: $3,471

Drywall:

•    2002: $8,047
•    2007: $11,185

Tiles and Carpet:

•    2002: $6,506
•    2007: $11,058

Plumbing:

•    2002: $8,229
•    2007: $11,753

Siding:

•    2002: $6,411
•    2007: $12,476

Exterior Door:

•    2002: $1,143
•    2007: $2,080

Foundation:

•    2002: $10,512
•    2007: $15,249

Cabinets and Countertops:

•    2002: $6,568
•    2007: $12,477

Electrical Wiring:

•    2002: $5,011
•    2007: $8,457

Windows:

•    2002: $4,966
•    2007: $6,322

Roof Shingles:

•    2002: $3,941
•    2007: $7,070

Stairs:

•    2002: $863
•    2007: $1,674

TOTAL CONSTRUCTION COSTS - EXCLUDING LABOR:

•    2002: $151,671
•    2007: $219,015

It is very easy to understand why builders are not putting up that many spec homes in the area.  As the values keep declining (to a point where we are similar to 2002 median prices on homes) and construction costs keep rising it is impossible to compete with a new home.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud

http://StCloudEdina.com - Home of the e-Market Analysis (on-line home value estimator)

http://JasonTangen.EdinaRealty.com - Search Open Houses in Sauk Rapids MN

Best on the Internet for Real Estate in St Cloud MN

Posted by Jason Tangen at 05:32 AM | Permalink | Comments (0)

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I had the chance to work at the Central Minnesota Builders Association's (CMBA) "Home Show" on Friday and spent a good portion of the afternoon on Saturday walking around the show to see what was available.  There was definitely a lot more people there this year as compared to last year.  What a great sign for some of the home builders who have been struggling in recent times.

I am always impressed with the great show that the CMBA puts together every year.  They always find a way to pack the St Cloud Civic center to the rafters with some phenomenal exhibits.

If you want to check out the Home Show, today is your last chance.  Tickets are available at the door for $5/adult (kids 12 and under are free).

To find out more about the CMBA's Home Show or the upcoming Tour of Homes, visit their website at http://CMBAOnline.org.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud MN

http://StCloudEdina.com - Home of the e-Market Analysis (on line home value estimator).

http://JasonTangen.EdinaRealty.com - Search homes for sale in St Cloud MN.

Best on the Internet for Real Estate in St Cloud MN

Posted by Jason Tangen at 06:43 AM | Permalink | Comments (0)

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I would like to question USBank's recent home equity line of credit ad campaign that I will affectionately call "...with your house."  For those of you who are not AM radio dwellers in the car or at work (like me), you can catch these ads on AM 1240 WJON and 1390 The Fan.  They go something like this:

With rates at historic lows there may never be a better time to pull out an equity line against your home.  Then they proceed to go into everything that you could potentially do with this money.  For example you could buy a car... with your home, consolidate debt... with your home, etc.

Does anyone else find this sort of ad irresponsible at this time or am I alone?  President Obama is looking to have a $70+ billion dollar housing package aimed at helping homeowners refinance to lower rates because they have NO EQUITY IN THEIR HOME!  Why are we trying to encourage other people in good standing to join them?

Ultimately, it's your money.  You can do with it whatever you like.  Maybe it is a good thing to have people pulling more credit and start buying cars and boats.  We can jump start the economy with money we don't have.

Or maybe we should be trying to save some money??

As always, your thoughts on this matter are greatly appreciated.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud MN

http://JasonTangen.EdinaRealty.com - Search homes for sale in Stearns County MN

http://StCloudEdina.com - Home of the e-Market Analysis (free home value estimator)

Posted by Jason Tangen at 10:49 AM | Permalink | Comments (0)

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This is the second time that I have been bit by using the company that the bank and listing agent would like to use when it comes to buying a foreclosed property.

Most banks are willing to purchase the owner's title insurance policy so long as you close with their title company.  The problem is that their title companies are so overworked that they can't get anything done.  I just spoke with the closing agent for a home that I was supposed to close on over a month ago now and she told me that she has given up.

Do you want that when you are trying to purchase a home?  A title agent that has just given up on trying to get you into your home?  My clients don't like it either.

Unfortunately for both parties in this case, my buyer is slated to leave for Iraq this coming Friday and has decided to no longer sign any extensions to this agreement.  He doesn't want to leave his wife to deal with the entire purchase on her own.

So what can we learn from this situation?  Use a title company that you respect and trust when representing the buyers.  Don't go to the bank's choice as it will cost you more in the end.

Best Agent on the Internet for Real Estate St Cloud MN

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud

http://StCloudEdina.com - Home of the e-Market Analysis (Free on-line home value estimator)

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 10:04 AM | Permalink | Comments (0)

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I think one phrase best sums up the real estate world in 2008:

   Patience is a virtue.

I have two classic examples going right now to explain what I mean by this:

1) I have a closing that was supposed to happed two weeks ago, but the bank that owns the foreclosure still hasn't completed their title work to give my buyers a clean title.  Hopefully we can have it completed by mid-January.

2)  I have an offer that was presented to the foreclosing bank back in mid-November.  We still don't even have a counteroffer for the original offer.  No response has been given.

Whether you are dealing with bank owned properties, short sales, or even regular owner occupied sales you have to be willing to "roll with the punches."  Nothing seems to be happening at a normal pace these days.  I have seen short sales that haven't gotten back on offers for up to six months, to financing that has been pulled out from under the buyers because homes closed a day late.  It has been crazy.

One huge thing to not overlook in all of this is that homes are still selling.  That is definitely a bright spot.  You might have to use a little patience, but the job is getting done.

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud, MN

http://StCloudEdina.com - Home of the e-Market Analysis (free on-line home value estimator)

http://JasonTangen.EdinaRealty.com - Find open houses and times in Foley, MN

Posted by Jason Tangen at 09:34 AM | Permalink | Comments (0)

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It is always a little bit of fun to start digging yourself out (the first couple of times) each year in Minnesota after a healthy snowfall.  Yesterday's storm did not disappoint.  While today's biting cold temps could be done without, yesterday was great.

Between joking with the neighbors, shoveling out the driveway with my family, and helping to push out a pizza delivery kid who got stuck in the cul-de-sac; we had an all around great day.  It also helped that the Minnesota Vikings blew out the Arizona Cardinals.

The funny thing about inclimate weather is that it always makes the phone ring for my real estate business.  At first, I could never figure out why I would always get so many calls with real estate related questions when it snows heavy or if there were bad storms in the summer.  Yesterday, after repeatedly questioning potential buyers, I figured out exactly why.

It turns out, if there isn't anything better to do, people like to search real estate online (duh Jason - it sure took a genius to figure that out).  Knowing that I have the only website in St Cloud that is ranked within immediate vieweing range (top 4 or better) on Google, Yahoo, and MSN's Live Search search results for "real estate st cloud mn" makes it only stand to reason why I would get more work calls on inclimate days.

I guess with that in mind, "Let it snow, let it snow, let it snow...."

Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud.

http://StCloudEdina.com - Get a free list of the bank owned properties for sale in St Cloud, MN

http://JasonTangen.EdinaRealty.com - Open house search in St Cloud, MN

Posted by Jason Tangen at 09:37 AM | Permalink | Comments (0)

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So much is said about the real estate market and how it is in the tank.  I thought it would be nice if everyone got to see Edina Realty's (and their parent company Home Services of America, Inc.) plan during this downturn in the real estate market.

http://twincities.bizjournals.com/twincities/stories/2008/10/06/story1.html?b=1223265600%5e1710589

It is nice to be a part of a company that is growing and strong when so many real estate companies around us are having such problems.  We are the "PacMan" of the real estate industry; gobbling up the competition.

Jason Tangen - GRI, e-Pro - Real Estate Broker Associate with Edina Realty in St Cloud

http://StCloudEdina.com - Search homes for sale in St Cloud MN and surrounding areas.

http://StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 03:36 PM | Permalink | Comments (0)

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Well, we are entering the fourth quarter of what has been a truly crazy year for both the real estate community and the financial community as a whole.  Here are some of the preliminary numbers that have come off the St Cloud MLS:

2007 3rd Quarter in St Cloud, Waite Park, Sartell, Sauk Rapids, and St Joseph

•    290 - Single Family Homes Sold
•    $184,696 - Average Sales Price
•    95% - Original Listing Price to Selling Price Ratio
•    7.6% - Percentage of Total Homes Sold Due to Foreclosure

2008 3rd Quarter in St Cloud, Waite Park, Sartell, Sauk Rapids, and St Joseph

•    278 - Single Family Homes Sold
•    $164,988 - Average Sales Price
•    93% - Original Listing Price to Selling Price Ratio
•    26.3% - Percentage of Total Homes Sold Due to Foreclosure

While sales numbers are strong, we are definitely seeing a decrease in average sales price that is reflecting the increase in the number of foreclosed units sold.  While it is good to be getting rid of the foreclosures that are available, they do create an unwanted strain for everyone else that is trying to sell their home.

Look for the full Tangen Report to come out in just a few weeks.  Look over previous issues of the Tangen Report at http://StCloudEdina.com/blog.

Jason Tangen - GRI, e-Pro - Real Estate Broker Associate with Edina Realty in St Cloud

http://JasonTangen.EdinaRealty.com - Search All Homes for Sale on the St Cloud MLS

http://StCloudEdina.com - Get a free list of the foreclosed properties available on the St Cloud MLS

Posted by Jason Tangen at 07:59 AM | Permalink | Comments (0)

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Thanks to some changes in the local MLS systems, it is now possible for everyone to search for real estate open houses on-line at most all real estate websites in Minnesota.  With these changes, any agent that adds the new feed will be able to showcase all the open houses around St Cloud, MN in a searchable format.

What does this mean to you as a buyer and seller?

As a buyer, no longer do you have to weed through the paper to find open houses.  You can now go on-line and search by area, amenities, etc.  Results will even include open houses held on odd days of the week and not just on Saturday and Sunday.

As a seller, it is another way to showcase your property.  If your agent isn't willing to do open houses or doesn't update your home on the open house section of the MLS, you had better get them to change their ways.  Are you paying them to sell your home?  How many ways would you like them to try to sell your home?

If you have a favorite site to search homes for sale, you can more than likely go there and search for open houses.  If you are having troubles finding open houses, visit http://StCloudEdina.com and there you can search for open houses in St Cloud MN and surrounding areas.

Jason Tangen GRI, ePro - Real Estate Broker Associate with Edina Realty

http://JasonTangen.EdinaRealty.com - Search open houses in St Cloud, Sartell, Sauk Rapids, Waite Park, St Joseph, Avon, Albany, Cold Spring, Foley, Clearwater, Clear Lake, and basically all of Central MN

Posted by Jason Tangen at 07:24 AM | Permalink | Comments (0)

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I would like to publicly say congratulations to the St Cloud Times for finally correcting the mistake that was their old Home Times Website.  I received a copy of a form letter this weekend regarding how the St Cloud Times will be abandoning its current real estate website and favoring a up to date, broker reciprocity website.

This new website should allow users to view all of the homes that are listed for sale on the St Cloud MLS.  I haven't seen the new format yet, but anything is better than the inaccurate data source that they had in the past.  It is so nice to see that the St Cloud Times has finally put the needs of its readers as a top priority.

If you are curious to see what the problem was with the old St Cloud Time Home Times Website, visit my prior post at: http://stcloudedina.com/blog/2007/11/searching_homes_for_sale_on_st_cloud_times_website.html

Look for the new St Cloud Times Home Times Website to launch sometime soon.

Once again, I can't say how much it impresses me that the St Cloud Times has finally stepped up and fixed their website concerning real estate for sale in St Cloud MN.  Congratulations.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud MN

http://www.stcloudedina.com - Search for open houses in St Cloud and Central Minnesota.

http://jasontangen.edinarealty.com - Search real estate in St Cloud MN and surrounding areas.

http://www.stcloudedina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 11:57 AM | Permalink | Comments (0)

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I read today from Realty Times a phrase that got me thinking.  The article is at: http://realtytimes.com/rtpages/20080402_sandiego.htm

I believe that the articles take on real estate professionals trying to predict real estate market trends is sometimes extremely careless.  However, I also believe that some real estate professionals spend a lot of time analyzing the data that comes from their MLS systems.  These real estate agents and brokers can be extremely accurate interpreters of real estate trends for their local area.

That isn't the topic that I wanted to cover. 

What got me thinking was how long it would take until you can tell that the real estate market HAD hit its bottom.  The line from the article stated that it would at least a couple of years afterwords that someone could honestly say that the bottom HAD come for the San Diego real estate market.  How true.

Think about how long it takes (with the last 5 years removed) to show significant changes in the real estate prices.  The trend for low rates of appreciation over time (1-2%) in housing could make very easy to interpret a bottom when only a specific segment of the market picked up.  With two years of data, a person can hopefully eliminate market spikes and get a much broader picture of what the real estate market actually did.

So if you are hoping to know when the bottom is going to be, the earliest we can tell you is two years from now (if today is the bottom).  If you want a crystal ball prediction, hmmm... That will cost you $10.  No self repecting psychic would give out such valuable information for free:)!

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud, MN

JasonTangen.EdinaRealty.com - Search real estate in St Cloud, MN and surrounding areas.

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 08:35 AM | Permalink | Comments (0)

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With the end of the first quarter fast approaching, I am a little curious to find out how the numbers are going to stack up for real estate sales in '08 vs. '07.  I've heard that the number crunchers nationally and statewide are seeing a 2% increase in residential sales over the same time frame last year.

My hunch is that we will see an increase in the total number of homes sold but a decrease in the average and median prices in the St Cloud market.  My reasoning for this is the broken chain in home purchases that is caused by the increased number of foreclosed properties available on the St Cloud MLS. 

As a region in whole, we are selling through the foreclosure inventory at a very good pace.  The problem is that these distressed sales are generally of homes that are not in "Grade A" condition.  Therefore, these home price averages will reflect these smaller values. 

The positive turn on this topic is that in selling these foreclosures at a good pace, the end of this lull in the real estate market comes closer into view.  I wouldn't be surprised if by early next year we don't see some appreciation in the real estate market once again (around Central Minnesota).  It won't be anything like what we saw in the past five years, but 1-1.5% isn't out of the question (*Hint, if you are waiting for the bottom, it's probably coming if it isn't already here).

Be sure to keep an eye out for the Tangen Report which will come out in the St Cloud Area Chamber of Commerce's Chamber Pack in early May and will also be posted here by mid April.  Every quarter I break down the sales statistics for each local region on the St Cloud MLS (West St Cloud, North St Cloud, East St Cloud, South St Cloud, Waite Park, Sartell, and Sauk Rapids).  If you would like to see the past reports, click on the Tangen Report link on this website.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Home of the e-Market Analysis (Free Home Value Estimator)

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 12:31 PM | Permalink | Comments (0)

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At a closing, everyone who is buying a home as their principal residence in Minnesota is informed about how to homestead their new property.  People are generally more than willing to homestead a property as they feel that it will keep their property taxes lower.  While this is true, it is not the only reason to homestead a property.

The Homestead Law is meant to protect a family from a forced sale (foreclosure) on their home by unpaid creditors.  In a nutshell, it's a safe haven for your money.

There are several stipulations that are mandated in order for a property to be homesteaded.  The easiest description is that your homestead needs to be your principal residence.  There are other rules involved, but this rule of thumb covers about 99% of all situations.

What does homesteading a property protect you from?

The Homestead Law protects home owners against foreclosure of their home by unpaid creditors.  It does not protect a home owner from foreclosure due to lack of property tax or special assessment payments, mechanics liens (work performed by contractors on the property), lack of payment to mortgage company, or failure to pay association dues.  All of these items are attached to your property and will supersede the Homestead Law.  Rule of thumb: The banking institutions and the government will always get their money.

This also brings up a very good point about having good title work done on a property prior to closing the sale.  You do not want any outstanding liens for assessments or lack of payment to a contractor to make you lose your newly purchased house to foreclosure.  I won't go into this here; It's a different topic for a different day.

There are also a couple of limitations to the amount of money that is covered by Homestead Law.  In Minnesota, homestead protection is limited to 160 acres and $300,000 for a residential homestead ($750,000 for an agricultural homestead).

Please note that these figures are for Minnesota Homestead Laws and do not entail what other States utilize as their guidelines.  I've heard that the old CEO of Enron moved into a property in Florida when his business came under attack.  The reason, there is no limit to the value that homesteading can protect in that State.  He can shelter millions of dollars against judgments in court about his business practices.

If you are in question about homestead law, seek competent legal advice.  I don't pretend to be a lawyer that knows everything related to real estate law, but I know enough to get me in trouble.  If you'd like, post your questions and comments here.  If I don't know the answers, I know someone who will.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

JasonTangen.EdinaRealty.com - Search Homes for Sale in Minnesota

Posted by Jason Tangen at 07:19 PM | Permalink | Comments (7)

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I have been asked to give a presentation at a career day tomorrow and it has got me pondering the top moments and reasons to be in real estate sales.  Below is my list thus far.  Feel free to add some of your thoughts if you'd like.

1) Helping people with the single greatest building block of financial success.

2) Negotiating your client a great deal.

3) Watching a kids face when they get to pick their own room.

4) Making money.  It's a great profession, but without the money it would just be a very expensive hobby.

5) Meeting all sorts of people and dealing with their greatest joys (and sometimes biggest stresses).

6) Never having the same day twice.

7) Working in a just industry.  What I mean by this is that the people who work hard make money; the people who don't work hard don't make money.

8) Having the hot topic that everyone wants to talk about.  Right now it could be a close second to politics.

9) Seeing the best real estate bargains first.

10) Being your own boss.

I could go on and on, but I need to focus more on my presentation for tomorrow.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Search the St Cloud MN MLS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 10:46 PM | Permalink | Comments (0)

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The real estate market around the St Cloud area seems to be hot.  The temperature on the other hand leaves a little to be desired.  I went to my first showing this morning (of 6 sets of showings to different buyers this weekend) and the temperature gauge said -15 degrees.  Bundle up out there!

Yes indeed, it does seem as though the real estate market is definitely picking up around St Cloud MN.  Lately, I have been fielding a lot of calls from buyers who are anxious to see what is available to purchase.  They have heard "theres gold in dem der houses" and they are starting to believe.

It could be the 300+ foreclosed properties on the St Cloud MLS and the lure of a phenomenal deal that has given them the home-buying bug.  I know the last few of my buyers have been bitten by the foreclosure bug.  They have also averaged about $25,000 between their homes purchase price and the appraised value at time of purchase.  That is with work to be done!

It could also be that people are getting interest rates on their mortgages at around 5.5%.  We know that the rates have been slipping in anticipation of Mr. Bernanke's potential 50 basis point drop in the fed rate coming soon.  Is it possible, like some bloggers are hinting, rates will go even lower and break that 5.0% barrier?

There are many different reasons to believe that this years spring market will be a good one (especially for home buyers).  This is also a good sign that we might be able to turn the corner and get the real estate market back on track in Central MN.

Let me get off my soapbox for a little while.  I guess I'm just a little excited because I am busy and the people I am talking to seem to be picking up additional business as well.  I hope that this is a sign that St Cloud and the surrounding areas have started to turn around.  I know of a lot of good people in this area that would be more than willing to buy or sell a home if they could just get a ray of hope that the bottom isn't going to fall out.

Posted by Jason Tangen at 01:40 PM | Permalink | Comments (0)

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Another one of the great implications that Bush has signed into law involves short sales and how they will affect property owners come tax time.  It looks like the amount of money lost in a short sale transaction will no longer be taxed as "phantom income" like before.  This means that there are very few reasons not to attempt a short sale (if the bank will approve the sale).  Before anyone goes through the foreclosure process, talk with a local real estate professional about how this new law can help.

Read more at : http://www.govtrack.us/congress/bill.xpd?bill=h110-3648&tab=summary

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty of St Cloud

www.StCloudEdina.com - Get a Free List of Foreclosed Properties on the St Cloud MLS

Posted by Jason Tangen at 04:44 PM | Permalink | Comments (0)

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For those of you who haven't seen the new tax changes regarding capital gains on homesteaded properties, here's a quick highlight of one of the good changes.  On of the biggest changes to note is the ability for widows/widowers to sell their property, within two years of spouses death, and still be able to claim the $500,000 capital gains exemption that all married people enjoy.  After that year, it reverts to the $250,000 that single people are allotted. 

Read more about this story at: http://realtytimes.com/rtpages/20071228_washingtonreport.htm

Posted by Jason Tangen at 12:45 PM | Permalink | Comments (0)

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I am anxiously awaiting the turn of the year so that I can start compiling my year end numbers of homes sales on the St Cloud MLS.  Below are my predictions (we'll see how accurate my guesstimates end up being):

I predict that sales will be down from 2006 approximately 14% for the total number of homes sold.

I predict that average and median home prices will be approximately 1.5% lower than 2006 with some areas actually showing slight increases due to the price range of homes that were sold.

I predict that the time on market it takes to sell a home actually went down - further proof that the homes at great prices are still moving fairly fast.

Big prediction - 2008 will continue to be a sluggish year in real estate sales in the St Cloud area.  It will continue to be a buyer's market with plenty of inventory to chose from.  The biggest addition of homes for sale will come from bank foreclosed properties.

Jason Tangen - Real Estate Broker Associate with Edina Realty St Cloud

jasontangen.edinarealty.com - Search Open Houses in Central MN

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 09:37 AM | Permalink | Comments (0)

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I feel the need to at least give my two cents on the issue of Bush's legislation to freeze the rates on some adjustable rate mortgages (ARMs).  This legislation is meant to aid the people who could potentially face foreclosure due to the expiration of their original interest rates on ARM loans.

In some areas of the nation (i.e. California, Nevada, Florida and others), I can see where this policy will definitely help.  There are many people in these areas that couldn't afford to purchase a home due to the increasing home prices.  The only option for them was to try one of these riskier loan products and hope for continued appreciation. 

This is not necessarily the case in Central Minnesota.  Although there are some people in the St Cloud area who have chosen to go with one of these riskier ARM loans (Note - not all ARM products are bad - find a good lender that will get you in the right loan product for you), the majority chose a less risky loan or went with the traditional 30 year fixed rate mortgage.  I believe that freezing the interest rates around St Cloud MN will only lengthen the time it takes for our market to fully correct.

Instead of this legislation, I think we should let this downturn run its course.  If we freeze interest rates and delay this problem into 2009 or even 2010, many home owners might see their home values dip even further than they necessary.  I think that one year of a market flooded with foreclosed properties is in the majority of the St Cloud area's best interest over 2+ years of sales stagnation and falling prices.

I know that this is not the best alternative for many of you who might be currently facing a foreclosure process.  I'm sorry that your situation has turned south and things are not working as originally planned.  Whether it be purchasing advice from a poorly informed lender, real estate professional, or just bad judgment on your part, the problem needs to be fixed.  The sooner the better.  Call a local real estate professional that you trust so they can try to help you out of your current situation if it is fixable.  If you have just plain given up, please don't trash the home as you leave.  That affects everyone in the neighborhood and community more than the bank.

I'd love any of your takes on this issue.  This is just my opinion and thoughts on the issue.  Please post your thoughts or questions here for answers and review.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Search the St Cloud MLS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 12:30 PM | Permalink | Comments (0)

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In reading a couple of real estate blogs here recently, I've seen some statistics thrown at me that were slightly alarming.  Also, I'm not sure that they are quite accurate.

In one post a gentleman claims that 70% of the real estate transactions in his area are dual agent situations where the potential buyer calls the listing agent and buys the real estate through them.  I'll have to do a little further research, but I would wager that the St Cloud MN area is closer to 30% of homes sold have the same listing and selling agent (dual agency).

For my own business practices, I will not be a dual agent in a real estate transaction unless my sellers give me written permission to do so.  The reason for this is that I can not have a true fiduciary responsibility to both the seller and the buyer in the same real estate transaction.  I expect more of myself and offer more to my clients than just being a "go-between".

Question: How can you work for the sellers best interests and the buyers best interests at the same time?  I realize that some transactions are smooth full price offers that close in under a month, but that is not the norm.  Most of the time, real estate transactions vary from slightly friendly counter offers between buyer and seller to truly heated arguments.  This is the way it should be.  As a real estate professional, one of your fiduciary duties is to get your clients the best deal possible.  This will more than likely aggravate an opposing home owner or buyer on more than one occasion.

Here is the scenario of why I will not perform a dual agent transaction without first having my sellers written approval:

A seller has a home listed for $200,000.  They need to sell and say, "Jason, get us an offer for $170,000 and we will sell this home today."

I have a buyer for that same home who says "Jason, do you think that they will take $185,000 for their home?" 

What should I do?

If I tell the buyer to write the offer for $185,000 and see what happens, I have just cost them $15,000.  If I tell them the seller might be willing to take less, then I am taking money out of my sellers pocket.  How can I feasible work in both of these real estate consumers best interests?

I'd love to hear your take on this issue.  How would you like to be represented as a buyer or seller?  I'd also like to hear some real estate agents takes on how they view dual agency.

Jason Tangen - Real Estate Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Search the St Cloud MN MLS

www.StCloudEdina.com/blog - REAL ANSWER for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 11:05 AM | Permalink | Comments (0)

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Attached below is a copy of the form laying out the specifics of agency relationships in real estate transactions in the State of Minnesota.

Download file

For more information regarding this disclosure form, visit my prior post at http://stcloudedina.com/blog/2007/11/minnesota_agency_relationships.html

Jason Tangen, GRI - Broker Associate

Edina Realty

http://jasontangen.edinarealty.com

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 10:04 PM | Permalink | Comments (0)

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Early in any sort of real estate relationship between a potential home buyer or seller and a real estate professional, the state law is that the agent must disclose where their loyalties lie and who they represent.  By default, any agent working with a home buyer or seller without a signed contract is a facilitator of that potential client.  They are facilitating the potential client by showing them properties, preparing a CMA, or giving them advice.  Please note that while working in this role the only duty a real estate professional is mandated to give the potential client is confidentiality.  Other fiduciary duties may be laid out by state law or specific terminology in a Facilitator Services Agreement.  The other mandated fiduciary duties of loyalty, obedience, disclosure, reasonable care, and accounting are only obtained through hiring a real estate professional with a specific contract.

The other four forms of real estate relationships break down as follows:

Seller's Broker - The real estate professional AND EVERYONE LICENSED AGENT WITH SAME COMPANY that has a home listed for sale.  For example:  Jim Schaaf is the managing broker for Edina Realty in St Cloud MN.  If he has a home listed for sale, I am by default a Seller's Broker mandated to look out for that seller's best interests.  This is regardless to whether or not I know the seller's intimately or what their situation entails.

Sub-Agent - A person who is working with the buyer, but represents the seller.  This is not very widely used in Minnesota because who would want to have someone help them purchase a home knowing full well that they are representing the other party?

Buyer's Broker - This role is when a potential home buyer signs into contract with a real estate professional to represent their best interests in the purchase of a home.  This is generally a free service provided to home buyers, but there are scenarios when a potential home buyer may have to provide payment for the real estate professionals services.  Definitely ask your potential real estate professional what these circumstances may be before you sign into contract with them.

Dual Agency - When a real estate professional represents both the buyer and the seller in a given real estate transaction.  When you are filing out a contract with a real estate professional to represent you, make sure they go into detail how they approach this situation if it presents itself.  It can be very difficult to represent both involved parties to a given real estate transaction without a specific set of guidelines that the real estate agent plans to follow.  To view the entire Minnesota form regarding real estate relationships, click on the following link:  http://stcloudedina.com/blog/2007/11/minnesota_disclosure_form_for.html

Feel free to post your questions, comments or concerns here for answers and review.

Jason Tangen, GRI - Broker Associate

Edina Realty St Cloud

www.StCloudEdina.com

www.StCloudEdina.com - REAL ANSWERS for REAL ESTATE in St Cloud MN

Posted by Jason Tangen at 09:40 PM | Permalink | Comments (0)

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