Barker and Hedges Real Estate Blog

Adding art requires more consideration than picking between a nail or a screw.  

Proportion and placement of home accents are just as important as choosing the style.  Improper placement of an art piece will cause focal point confusion; furthermore, choosing decor that is out-of-scale with the space will leave buyers questioning the quality of the home.  Take a look at the examples below:

 Many amatuer decorators are under the impression that art work needs to be hung at eye-level; the problem with that theory is that what is eye-level for you isn’t necessarily eye-level for the buyer.

In the photo to the left, the art pieces (hung at eye-level) leave too much space between the pieces and the furniture.  The phenomenon is called “floating art syndrome,” and this room suffered from a double case with breakouts on both walls.

 The perscription for this “illness” is to reduce and lower.  The photo below shows how the artwork has been condensed to the focal point of the room and lowered to create a more intimate atmophere.  (Dr. KFM has cured the patient, and this house is now sold!)

 The next example (to the right) shows a bedroom with art work that is too small for the space.  Ignoring all the other obvious flaws displayed in the picture, this relatively small art piece is dwarfed by the king-sized bed.   If you thought the corrective measure would be to add a larger art piece, you would be right and wrong.

By adding a larger art piece, the room will start to look unbalanced (topic to be addressed on another post).  The method of correction would be to choose a piece or series of pieces that would add length but does not overwhelm the wall.

Rememer the “intimate” feeling created by lowering the art in the living room (pictured above).  This intimate setting should be refected in the master bedroom as well.  The photo below shows several small framed pieces placed side-by-side to create a horizontal display that is as grand as the bed itself but is not over-powering.

The improper placement of home decor and art pieces may seem like an unlikely culprit that hinders the sale of your home, but it is a “quiet killer” that leaves a bad impression on buyers.  So whether you are preparing your house for sale or are just updating it for your own pleasure, style, size, and placement of art should be considered before picking up your hammer.

The examples above show how good intentions at home staging backfired due to lack of knowledge.  After consulting with KFM Staging & Design, these sellers were shown the proper staging techniques that gave their house memorable appeal.  Your largest financial investment deserves a professional evaluation!

KFM Staging & Design is a Minnesota home staging company that has been creating “First Impressions that Sell” in Minneapolis, St. Paul, and surrounding communities.  For more home staging tips or to schedule an in-home or online consultation, visit our website at www.kfmstaging.com.

Last week, I wrote a lot of content to help first time home buyers prepare to buy their first home.  I provided information about “hidden costs” of owning your own home, budgeting tips for first time home buyers, and information on how people with bad credit can still purchase a home.  But sellers are important, too.  More to the point, what if you’re a first time home seller?  With inexperience and a sluggish real estate market making headlines nationwide, I could understand why selling a home for the first time could seem daunting. Here are some tips especially for those who may be trying to sell a home for the first time.

1. It Can Be Done. Some 5.25 million existing homes were sold in 2001. 5.65 million existing home were sold even in 2007, the fifth highest year on record, though that was 12.8% short of the 6.48 million sold in 2006.  Even in this down market, other owners have sold their homes and you can, too!
2. Don’t Go It Alone.  Though you knew it was important to have representation when you bought the house, it’s especially important to have a Realtor looking out for your best interests when you sell a home.  After all, it is your equity. And don’t just choose your cousin or best friend from high school, who happen to be Realtors, sell your house.  For your home sale to truly be successful, you must have a strong negotiator in your corner to help you get the both the best price and terms. This takes some research and interviewing multiple real estate agents until you find the right one for you.
3. Times Have Changed. If it has been a while since you purchase your home, know that today’s real estate market is a radically different place. Potential home buyers are very informed through use of the Internet, ask for seller disclosure forms, get professional home inspections, and are often represented by buyer agents. Because buyers are better prepared than they may have been in the past, it may take some extra preparation and marketing practices to attract just the right buyer.
4. Polished to a Shine. One thing which hasn’t changed is “First impressions are everything.”  That applies to what a home looks like inside and out.  Giving a good impression from street-level in the real estate world is known as “curb appeal.”  If your house is attractive to people from the outside, it makes it more likely that people will want to take a look inside.  But that also means that the house has to make a good first impression once people step in the door. Completely clean a home inside and out before putting it on the market.  This could also include doing minor home improvements like interior and exterior painting and other cosmetic enhancements.
5. Everything in Working Order. That doesn’t mean that cosmetic improvements are all that you’ll need.  When most people decide to purchase a house, they expect everything to work and be in fair condition. If there are problems with the house, when a potential home buyer misses it, the professional home inspector they hire probably won’t. Mend anything which may need repairs now, before the home is on the market.  That way, you can choose who fill fix it and how much you will spend on it, not the potential buyer.
6. Less is More. When you present your home to potential buyers, you want to help them imagine themselves living there. It’s hard to do this when the house is filled with very personal item.  You know what houses look like in magazines?  Yes, this is something to aspire to.  Remove as many personal items as you can and try to reduce the amount of furniture you have in each room. When deciding what types of decorations to leave, remember that simple is better.
7. Know Your Market. Real estate is highly local. Your Realtor, real estate agent, or broker can explain current market trends in your specific community, including what’s selling, what isn’t selling, and why. This information is important in order for you to get the best possible price and terms when you sell your home.
8. Know the Competition. Yes, in a way, selling a home is a competition right now.  Let’s face it, it’s a buyers market.  Buyers are taking their time, picking and choosing just the right home.  Research other properties in the area which are up for sale, and therefore competing for buyer attention. You can ask your Realtor about what it will take to be competitive in your specific market.  They should also be able to tell you if your property has an edge over others which may be nearby.
9. Know the Timing.  Location and competition are one thing, timing is a whole different topic altogether.  When interest rates are low like they are now, it’s great to be a seller. But when the credit market is being crunched like it is right home, well, homes still sell.  The goal is to be realistic and sell your home for as much as market conditions will allow. That could mean waiting until a better time to sell in drastic cases.
10. Understand The Plan. Marketing a home to potential buyers takes much, much more than putting a sign in the yard, some pictures on the internet, and an ad in the paper. A successful Realtor will use a variety of methods to attract prospective home buyers. Your Realtor will discuss with you what the specific strategy is going to be for your particular home.

It is important to remember that selling a first home is an emotional process.  You will have attachments to the property, because it is your first home.  It’s exciting to move on to bigger and better houses once you’ve outgrown your current property, though.  Remember the reasons your selling and it should be much easier to find the motivation to sell your first home.

This week, I’ve been writing articles to help first time home buyers.  On Tuesday, I wrote about the hidden costs of ownership and yesterday, I wrote about budgeting tips to help you get into, and keep, that first home.  But what are you supposed to do if you have bad credit and you want to buy a home?  It would be great if every person in the U.S. who wanted to buy their first home could just be approved for a low-interest loan immediately. That’s not how it works though, as not every first time home buyer has good credit and a high score.

Don’t despair, though, there are still ways for people with bad credit to accomplish the American Dream of buying a home.  While having bad credit will mean that some first time home buyer programs will be unavailable, there are others which are still a good possibility.  Whether or not these programs are a good option for you will depend on the status of your individual credit situation.

Basically, the options of first time home buyers can be reduced to these two options.

You can buy a house now through Housing and Urban Development (HUD) first time home buyer loan programs From the Federal Housing Administration (FHA).  These programs should be the first place a potential first time home buyer with bad credit should look.  FHA first time home buyer programs guarantee loans through normal, local mortgage lenders with a reasonable interest rates and just a 3% down payment.  Additional information regarding Federal First Time Home Buyer Programs can be found here and here.

There are also local and regional first time home buyer programs for which individuals may qualify.  Some counties and cities within Minnesota have their own grant and loan programs for first time home buyers, including Hennepin County, Ramsey County, Dakota County, and Anoka County.  Minneapolis and St. Paul have a combined program called CityLiving to help first time home buyers.  Even some individual lenders may have their own ways of helping people with bad credit buy their first home.  Additionally, Realtors, financial advisors, and mortgage lenders themselves may be able to point first time home buyers in the right direction for unadvertised local programs. It takes research and diligence to find a lender willing to take a risk on you, but you will most likely find someone willing to help you buy a home.

You can buy a house later more easily if you can wait at least six months before you buy a home so you can repair your credit.  Taking the time to repair credit and build up a credit score will provide a first time home buyer with a variety benefits.  First, you are more likely to get a lower interest rate, which can save tens of thousands of dollars over the life of the loan.  Remember, most mortgages are paid over a period of 30 years.  You don’t want to be strapped with a high interest rate long after you’ve repaired your credit.  The second benefit of taking the time to rebuild credit is that first home itself.  You could be eligible to buy a bigger house or one in a better neighborhood if you repair your credit first.

How do you rebuild your credit? You don’t need to spend extra money on a credit rebuilding service.  Anyone can rebuild their own credit without much help.  Here are the basic steps of how to do it:

• Evaluate All 3 Credit Reports.  Credit reports can be obtained from three main consumer reporting companies, known as Equifax, Experian, and Trans Union.  You can contact them separately or all at the same time by going to annualcreditreport.com.  According to U.S. law, every citizen can obtain a free credit report from each of the bureaus once each year from that website.  Review all three credit reports for accuracy.  If any errors are found, follow the instructions each bureau provides investigating and correcting bad information.
• Pay Bills On Time.  Timing is everything, and this is particularly true when it comes to repairing or maintaining credit.  Promptly pay all bills on time, every time.  Late payments do not reflect well on a credit report and will drag down credit scores. 
  
• Clear Out Debts.  If you seek to buy your first time home but you have bad credit, you should pay off as much outstanding debt as possible.  All debts that have higher interest rates should be paid first, moving on to debts with lower interest rates next.  Paying off debt will have a positive impact on raising your credit score.
• Reduce Credit Card Use.  Reduce or eliminate your use of credit cards.  Not only do they help you accumulate debt, you end up paying much more for your items due to interest.  You might not want to actually close your accounts, as that can actually hurt your credit status.  Whatever you do, don’t apply for any new credit accounts.
• Avoid Other Credit Pitfalls.  Do not file for bankruptcy, as this may prevent a first time home buyer from being approved for a loan for many years in the future.  Other credit traps to avoid are tax liens and accounts in collection.  These negative marks on a credit score will have a detrimental effect on a first time home buyer’s mortgage eligibility.

Just because you have less-than-perfect credit, doesn’t mean you can’t buy a home.  Either with the use of special programs or some time spent cleaning up your credit and raising your score, you can accomplish the American Dream of home ownership.

Yesterday, I wrote a post about the hidden costs of home ownership that first time home buyers might not have thought about.  It wasn’t meant as a discouraging article, it was meant to enlighten potential first time home buyers so they know what is in store for them.  Today, I’m going to give some budgeting tips to go along with those costs.  Following these tips could help first time home buyers reign in spending so they can buy the home they want and take good care of it.

Recognizing spending habits and making a budget is vital for first time home buyers.  The responsibility of owning a home requires good money management skills and control over impulsive spending.  For first time home buyers, creating a budget is the first step in saving money for a down payment before a home is bought and keeping ahead of finances after purchase.  Additionally, if a first time home buyer runs into financial difficulty, knowing how to properly budget can mean the difference between keeping that first home or losing it. Here are some budgeting suggestions for people seeking to buy their first home.

1. When you create your budge, include all of your income and all your expenses. Plan your budget according to what your income is now, not what you expect it to be.
2. Don’t copy someone else’s budget, their spending plan isn’t going to help your situation. Develop a spending plan specifically suited to your family’s or your individual income, expenses, necessities, and future needs and goals.
3. Do what you can to plan ahead for the whole year.  By having this long view, you will you have sort of a “road map” to where you are going financially.  Having an extended budget will also help you determine how well you are following your budget plan.
4. Take the time to decide what your most important goals are for the future.  After you’ve determined your goals, it’s much easier to spend your money on things which mean most to you or your family.
5. Develop a personal savings plan and pay yourself first. Try to save 10% of your income each month. If you can’t cope with saving10% right away, save a smaller amount, but do so regularly.
6. Stop wasting money on products or services you don’t need, including things like extra cable or cellphone features, magazine subscriptions, and health club memberships.
7. Don’t spend impulsively. Make purchases wisely by defining needs versus wants, comparison shop for lower prices, and have an understanding of value based on quantity and quality.  This will help you determine if what you’re paying is worth it for the end result.  If you take the time to think hard about it, you may find out you don’t really want to make that purchase.
8. Plan, budget for, and stockpile a savings account exclusively for home maintenance projects and repair.  As a homeowner, you will need this money to cover any home repair emergencies you may have in the future. 
9. Keep good records of what you spend, but don’t make it a complicated process. Remember, you’ll have to follow through with keeping records. Many people have no idea where their money really goes when it comes to accounting for each dollar. Trying to track every penny you spend will help you take control of your spending habits.
10. Review your budget and financial plan once each month. Scrutinize your expenditures and make any alterations to your budget which may be needed.

Most importantly, when you create your budget, try to keep to it.  If at first you don’t succeed, try, try again.  It’s important not to give up.  If you are determined, you will eventually teach yourself how to keep within your budget.

I’m going to write a few posts about important things first time home buyers should know before they take the leap into buying a home.  If you are considering purchasing a home in the Twin Cities area, there are things to understand or do which can make transitioning into home ownership much easier.  Additionally, simply having as much helpful information as possible could help you keep your first home once you have it.

First, as the title of this post suggests, I’m going to talk about the hidden costs of home ownership which a first time home buyer may not   Owning a home has been touted as the American dream for generations.  Because dreams are supposed to be perfect, the liabilities of owning a home don’t tend to be talked about.  Though buying a home offers advantages like housing security, tax advantages, and ultimately, no more housing payments after it’s paid off, if you are considering buying a home for the very first time there are some things you should consider first.  It is a mistake to believe that a mortgage equal to how much you pay for rent is all that is needed to become a homeowner.  Here are some costs of home ownership you might not have thought of which may impact the size of your mortgage, and the size of your home!

Appliances
Most rental units have basic, necessary appliance like refrigerators and stoves installed.  Lucky renters may even have a dishwasher, clothes washer, and dryer.  When you buy a home, unless the previous owner agreed to leave their appliances in the home, it is your responsibility to buy these items.  Some new homes have appliances installed, but even if you buy new construction, you will most likely need to purchase the necessary large appliance.  That being said, if the home you buy comes with all the needed appliances, they will break down eventually.   When they need repairing or replacing, home owners can’t call the landlord. The money will have to come out of your wallet.

Utilities
As a renter, some of the utilities you use may be included in your rent.  Your rent agreement could include electric, heat, water, sewage, garbage disposal, maybe even cable or other expenses.  When you buy a home, these utilities will not be included in your monthly mortgage payment.  You will have to pay for those utilities separately.  But how will you know what the bills are like before you move in? When you find a home that you think you want to buy, ask the owner for estimates or copies of the utility bills for the past few months.  Doing this may give you a good idea of how much you will have to pay monthly for utilities in a specific home.  Remember that the size of a home will have a great impact how much electricity it utilizes and the price of heating or cooling it.  Additionally, you may want to pay for satellite, cable, phone service, or internet services.

Landscaping
For many first time home buyers, having a yard could be a great selling point for a home.  You could even be anticipating planting shrubs and trees, growing vegetables in a garden, or adding color with some beautiful flowers.  All those landscaping costs are going to ad up. As a potential first time home buyer, you may not have a few landscaping necessities like a lawnmower, weed eater, pruning shears, a snow shovel or blower, and other similar items.  Many landlords tend to the landscaping, lawn mowing, leaf raking, and snow removal without the renter ever lifting a finger.  Whether you plan is to take care of the yard on your own or hire someone else to do it, landscaping and yard duties will have its price.

General Maintenance
Observation, time, money, and manual labor are all required in order to keep any home in good condition. Landlords make sure air conditioning systems, furnaces, sump pumps, plumbing, and electrical systems are all working properly and are well maintained.  As you might have guessed, as a first time home buyer, this will be your responsibility.  You should observe of what is “normal” for your home and the working parts within it.  This way, you’re more likely to be tipped off problems early and prevent more costly repairs later on.  It’s also an excellent idea to keep a record of any maintenance you do for future reference.  It may be advisable to hire a professional inspector to evaluate your heating and cooling systems to make sure there are no safety concerns.

Repairs
Even if you expect maintenance, the need for repairs are hard to anticipate.  New homes tend to need less maintenance and fewer repairs while older homes will most likely need more attention.  Either way, every home will eventually need something fixed.  It could be a relatively simple fix, like installing tile in the bathroom, replacing shoddy carpeting, or repainting.  Conversely, it could be more involved, expensive, and immediate need of attention like a leaky roof, a flooded basement, or buckling floors.  Whatever needs repairing, as a home owner, you will have to cover the expenses.  Homeowners should be prepared for needed repairs by having a few thousand dollars saved in an emergency repair fund for just such an occasion.

Taxes
As a renter, you’re probably not concerned about property taxes.  As a Minnesota renter, you may even qualify for a renter’s credit at tax filing time.  Though it is true that as a homeowner, some of the interest you pay on your mortgage can be written off of your taxes, real estate and property taxes must be paid.  The taxes you must pay will depend on where you live and the value of your property. Taxes vary by state, county, and city.  For the most part, the larger the lot and home, the higher your property tax payment will be.  Don’t be surprised: When you decide to buy your first home, research the property, school, state, and local tax rates for the specific places you seek to live.

Insurance
As a renter, you may have renter’s insurance already, but when you buy your first home, you will absolutely need several types of insurance.  There is insurance to cover the property itself, insurance to cover the personal possessions inside, and in many cases, mortgage insurance to cover the lender’s loss in case you default on the loan.  All of adds up.  When you buy insurance, make sure your buying the coverage you need.  Shop around and explore different insurance options until you find the plan that fits your needs.  One thing which is important to note for first time home buyers in Minnesota, where lakes, rivers, and streams may flood:  Your homeowner’s policy does not cover flood damage.

Disaster
You’re probably aware as a first time home buyer in Minnesota that there is the potential for natural disasters here.  In the winter, the weight of snow can collapse roofs.  During the spring, melting snow and rains cause overrun rivers and flood houses.  In the summer, tornados can reduce a home to toothpicks.  If a disaster like this occurs, it’s up to you, the homeowner, to determine rebuilding or repairing plans for a destroyed or damaged home.  As I said before, insurance can be bought to cover a lot of disasters.  If you have good homeowners insurance, not all damages will be covered in full but the cost to a home owner will be much less than if you had no insurance.

By mentioning these expenses, I am by no means trying to discourage anyone from buying a home.  In fact, just the opposite.  It’s important for first time home buyers to know as much as possible before they make the home ownership plunge.  The more you know, the less likely you are to bite off more house than you can afford.  By knowing what types of expenses to expect, first time home buyers can more accurately determine how much they can afford to spend on buying a house.

I’ve been meaning to write this blog post for a while, as evidenced by my resource-article’s age of nearly one whole month!  That’s okay, as I recall there was another “Strange But True” around that time as well.  I didn’t want them to appear too closely to each other.  So, without much more delay, I’ll get to this Strange But True real estate related story. 

As evidenced recently by our Minneapolis and St. Paul market analyses, the number of homes on the market in the Twin Cities area has been pretty high in comparison to how many closed sales have been occurring.  Particularly, there have been an unusually high number of upper-bracket homes for sale out there.  Homes are also spending a lot longer on the market on average before they finally sell.  In this kind of atmosphere, doing all that is possible to make a home stand out amongst the rest may mean the difference between the house selling quickly and it languishing on the market for a while. 

This brings me to the point of this post: real estate soirees.  Brunches, cocktail parties and progressive dinners that showcase a luxury property have become increasingly popular as a marketing strategy.  These events can vary from simple wine-and-cheese affairs to elaborate garden parties.  This non-traditional style of open house are not only taking place in the Twin Cities, but all across the United States. Agents who host the gatherings hope that by inviting influential business associates, neighbors and other agents, they’ll be able to attract more attention to the house and in turn sell it more quickly.  Maybe even for a higher price than originally anticipated!

Last month (when the article was written), an event like this was held at a 7,000-square-foot Nantucket-style house in Edina.  About 130 guests were served appetizers and wine as they toured the home, seeing first-hand what the home had to offer.  With that type of exposure, it’s easy to imagine that the home sparked the interest of at least one visitor.  Additionally, if the right person happens to show up who knows someone else who would love the home, word-of-mouth “buzz” can be generated as well, which has always been a good sales tactic.

For motivated sellers, traditional methods aren’t enough these days.  Though this party cost more than $1,000, attracting the right buyer for a property can be well worth the price.  That is just a mid-range party however.  “Real estate soirees” in the Twin Cities can be held that cost $200 to $400.  Some have even been held for a cost of $2,000 or more.  Of course, as stated earlier in the article, this may not be an advisable home sale tactic for less stately homes.  Most of this type of “Open House” have been happening in homes worth over $1 million.  High-bracket homes attract high-bracket buyers: Helping them to see how their life could be within the house can be a key selling method.  But as Laurie Moore-Moore, founder of the Institute for Luxury Home Marketing in Dallas, put it “It gives you the ability to target prospective buyers and highlight the lifestyle the home represents.” 

Some have even gone so far as to have their own miniature sized home tours.  The article here says that last fall, several real estate agents got together and hosted a group open house at five mansions priced at $1.5 million and up on Minneapolis’ Mount Curve Avenue.  A “neighborhood dinner party” of sorts was held, with guests traveling from house to house, enjoying a different course of a meal at each property.  

Does the strategy work? Sales agents who have held events say it can be difficult to determine which marketing tactic led to a home’s sale, but they agreed it’s worth the time and expense.  At the time the article was written, the house in Edina had not yet sold (Mind you, the article was written a month ago).  However, after the event, the home had five individual showings immediately following the event. 

The transition from summer to fall signifies more than just back to school and football.  Individuals who are selling their house should use the changing of the seasons to re-evaluate the showing condition of their home.

Home Staging Tips for Fall:

• Curb Appeal:  Don’t be too eager to winterize the lawn mower.  Even in cool weather, regular yard care should be exercised; a lush, manicured yard translates into a well-cared for home.  Be sure to cut back dead or dying perenials and replace with fall blooms such as mums.  Fallen leaves, sticks, and other yard debris should be gathered and moved to a compositing collection site.
• Fall Decorations:  Both indoors and out, keep your fall decorations to a tasteful minimum.  Setting out too many (or too large) yard displays will not only decrease the visual size of your yard, but it will distract the buyers from what they really should be focusing on… your home.  Instead of setting up your impromptu grave yard for the kiddies, use neutral fall decor (such as pumpkins and small hay bales) that appeals to the adult buyer.  (see photo below)

• Seasonal Scents:  Nothing conjures up warm memories of family better than the sweet, spicy scents of fall.  However, using artificial sprays may irritate some buyers; and lighting scented candles for showings can be a fire hazard.  Natural scents such as freshly baked spice cookies or simmering apple cider adds a fresh aroma without overpowering the buyer.

Making the effort to update your listing during the change of seasons will ensure that your home remains fresh and therefore attracts a greater number of buyers.

KFM Staging & Design is a Minnesota home staging company that has been creating “First Impressions that Sell” in Minneapolis, St. Paul, and surrounding communities.  For more home staging tips visit our website at www.kfmstaging.com.

South St. Paul opened its first off-leach dog park last month.  The 6.3 acre site along the Mississippi River used to be a demolition landfill. The dog park is the first in northern Dakota County.

The park itself is part of South St. Paul’s long-term plan to transform the former 87-acre Port Crosby industrial landfill into a recreational area which has been named Kaposia Landing.  The city purchased the former landfill for $1 million in 1999 and secured $4.5 million from the Legislature between 2004 and 2006 to prepare the area. Cleanup involved clearing trees and brush and then covering all 70 acres with 526,000 cubic yards of fill dirt.

As a result, the park is wide open and ideal for dogs that need to run. The park is enclosed by a 4-foot fence and has two shelters and two disposal stations for dog waste.  Another $6 million would be needed to carry out South St. Paul’s long-term vision for Kaposia Landing, which include plans for ball fields, volleyball and bocce ball courts, an outdoor performing arts area, picnic areas and river overlooks

The City of South St. Paul is asking dog owners to buy a $20 annual membership that will go toward maintenance and help officials compile a database of dog owners. Eventually, the database could be used as a way to notify owners of news and events at the park.

The Twin Cities is generally a very dog friendly area.  The City of St. Paul has one dog park. Minneapolis has seven, including one that opened a few weeks ago in downtown.  However, dog owners would like to see more.  Since they are relatively new, it will take some time for them to be built.  But all that is changing.  In 2006, there were about 700 dog parks in the U.S.; now there are close to 3,000. During August alone, 98 dog parks opened or were approved to be built.

It’s September and it’s getting colder outside.  Soon it will be fall, the time to seal up homes for the winter, prepare to start the furnace, and getting ready to use fireplaces.  This is the time of year when many carbon monoxide leaks are found.

On August 1st, a new law went into effect within the state of Minnesota which requires that ever new and existing single family home have a carbon monoxide detector installed within 10 feet of every room used for sleeping.  Multi-family homes and apartment buildings must comply by August 1, 2009.

According to the State Fire Marshall website:

• Every single family dwelling and every multifamily dwelling unit shall be provided with a minimum of one approved and fully operational carbon monoxide alarm installed within ten (10) feet of each room lawfully used for sleeping purposes.
• If bedrooms are located on separate floors additional carbon monoxide alarms would be necessary within ten feet of these areas.
• If bedrooms are located in separate areas (on the same level), additional carbon monoxide alarms would be necessary within ten (10) feet of these areas.
• In lieu of installing multiple carbon monoxide alarms in the hallway, a separate carbon monoxide could be installed inside each sleeping room.
• It is important that these devices be installed in accordance with the manufacturer’s installations instructions and not be placed in ‘dead’ air pockets such as corners of rooms, at the junction of walls and ceilings or within thirty-six (36) inches of ventilation ducts.
• Carbon monoxide alarms shall be installed at the height specified in the manufacturer’s installation instructions.
• Carbon monoxide alarms have an effective life-span of 5-7 years. Many manufacturers recommend these devices be replaced at six (6) year intervals.

If you need further information on Minnesota’s new carbon monoxide detector law, visit the Minnesota Fire Marshall Website at www.fire.state.mn.us

How does this impact you if you are selling a single-family home?  It means that you must purchase and install them.  Otherwise, a professional home inspector may rate your house as dangerous for not being up to current code.  You really should have a carbon monoxide detector anyway for your safety.  They can save a life in the same way as a smoke detector.

Carbon monoxide has no odor.  The initial symptoms of carbon monoxide poisoning are similar to many illnesses: nausea, headache, fatigue.  Most people who feel the symptoms feel as if they’re just coming down with the flu.  The vague symptoms can make carbon monoxide poisoning particularly deadly because those who are exposed to the gases may go to bed to “sleep it off” instead of seeking help, which can lead to tragic consequences.

Protect yourself and the people you love by purchasing a carbon monoxide detector with a loud enough alarm to wake people in the night.  A good one will cost less than $50, which when compared to what could be lost is a very a small price to pay.

All through August of 2008, the number of new listings in Minneapolis decreased significantly this month when compared to last year’s statistics, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities.  During August, there were 876 new listings. In August 2007, there were 1,099 new listings, meaning that there was a drop of -20.3%. In August, the Phillips and Northeast communities experienced the greatest decrease in new listings during August, with about -40% fewer than last year.  Conversely, the Camden and North communities each saw increases of new listings that amount to about 7%.  Here is an inventory of August 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to August 2007 (To see a Barker & Hedges article about July 2008 Minneapolis Market Activity, please click here.)

Camden 155 (+6.9%)
Downtown Minneapolis 104 (-29.3%)
Longfellow 51 (-21.5%)
Nokomis 108 (-30.8%)
North 120 (+7.1%)
Northeast 63 (-40.6%)
Phillips 13 (-40.9%)
Powderhorn 60 (-6.3%)
Southwest 93 (-23.8%)
University Area 17 (-37.0%)
Uptown-Lakes 91 (-28.3%)

Minneapolis’ posted new listing for the 2008 year-to-date slipped a full percentage point from last month’s gains.  From January through August of 2008, there were 8,086 new listings, compared to 9,305 during the same time period of 2007. That is a decrease of -13.1%.  The greatest fluctuations in new listings for the year-to-date have happened in the Uptown-Lakes and Downtown areas, which have experienced a drop in new listings of -27.4% and -24.2% respectively compared to last year.  The Phillips community is still in the lead for having the most new listings this year compared to 2007 with a 15.9% increase.  Here is a depiction of new listings in Minneapolis by community for the 2008 year to date and the percentage of change that has occurred compared to 2007:

Camden 1,141 (-3.6%)
Downtown Minneapolis 1,019 (-24.2%)
Longfellow 447 (-11.1%)
Nokomis 944 (-20.9%)
North 1,022 (+10.2%)
Northeast 597 (-20.7%)
Phillips 233 (+15.9%)
Powderhorn 621 (+11.3%)
Southwest 981 (-16.6%)
University Area 187 (-18.3%)
Uptown-Lakes 892 (-27.4%)

Within the City of Minneapolis, closed sales during August fell compared to last year.  During the month, there were 485 properties sold, which means there were -7.6% fewer closed sales than in August of 2007. But that’s 10 more than the 473 sales we had in Minneapolis during July.  For the 2008 year to date, the Minneapolis closed sales are -5.0% lower than last year. 3,131 home sales were closed in Minneapolis so far in 2008 compared to 3,297 during the same time period of 2007.  Once again, the Camden, North, and Powderhorn communities have seen incredible increases in sales while Phillips, Downtown, and the Uptown-Lakes communities have seen decreases.  Here are the closed home sales in August broken down by community:

Camden 44 (+22.2%)
Downtown Minneapolis 55 (-38.9%)
Longfellow 34 (-20.9%)
Nokomis 54 (-26.0%)
North 64 (+68.4%)
Northeast 50 (+2.0%)
Phillips 6 (-33.3%)
Powderhorn 64 (+137.0%)
Southwest 65 (-16.7%)
University Area 17 (-19.0%)
Uptown-Lakes 32 (-56.2%)

When it comes to home sales prices, it probably comes as no surprise that they have dropped again.  Though the average sales price of a home in June was $222,804 and in July was $233,770, in August the sales price of a home sold in Minneapolis had fallen to $200,642.  The price in August 2007 was $254,673.  The average sales price year-to-date in the City of Minneapolis fell -16.6% from last year to $216,587 in August.  The percentage of Minneapolis homes which sold at their original list price was 92.1% during the month of August, down from 94.1% in 2007. Once again, the sales prices of homes sold in Downtown Minneapolis and the Uptown Area have increased due to high demand for properties here.  Average prices of homes sold in Minneapolis by community during August 2008:

Camden $78,215 (-35.3%)
Downtown Minneapolis $290,316 (-4.6%)
Longfellow $184,983 (-15.8%)
Nokomis $228,910 (-4.8%)
North $62,856 (-25.5%)
Northeast $162,551 (-20.9%)
Phillips $164,400 (+13.1%)
Powderhorn $126,335 (-30.0%)
Southwest $301,338 (-16.0%)
University Area $197,900 (-12.0%)
Uptown-Lakes $415,842 (+18.1%)

Lastly, homes for sale in Minneapolis are staying on the market for nearly a month longer on average than they were in 2007. Last year in August, Minneapolis homes tended to be on the market for an average of 97 days before they were sold.  During August of 2008, a home was on the market for an average of 121 days when it finally sold. The statistics vary based on neighborhood and the types of housing on the market. Condos and town homes are selling much more quickly, while single family homes will stay on the market for much longer. Here is the average number of days a home is on the market at the time of sale by individual Minneapolis community during the month of August 2008.

Camden 127 (-17.7%)
Downtown Minneapolis 112 (+75.9%)
Longfellow 95 (+44.6%)
Nokomis 107 (+16.2%)
North 123 (-33.1%)
Northeast 144 (+33.5%)
Phillips 201 (+52.8%)
Powderhorn 138 (+93.9%)
Southwest 109 (+15.5%)
University Area 92 (+52.3%)
Uptown-Lakes 135 (+39.2%)

This is a brief analysis of the Minneapolis real estate market based on calculations by the Minneapolis Area Association of Realtors. These statistics do not reflect each individual situation of course.

Browse homes for sale by Minneapolis community:

Calhoun Isle
Camden
Central
Longfellow
Phillips
Powderhorn
Near North
Nokomis
Northeast
Southwest
University