Barker and Hedges Real Estate Blog

Buying Distressed Properties. Learn about buying a home that is vacant or condemned. The Powderhorn Residents Group, a Minneapolis nonprofit agency, sponsors the class, which is geared for owner-occupied homes, not for investors. 6:30 p.m. Wednesday. Free. Minneapolis Community Education, Henry High School, 4320 Newton Av. N. 612-668-1922.

Buying a Home. Overview of the steps involved, from the mortgage process to closing. 7 p.m. Wednesday. $15. Minneapolis Community Education, South High School, 3131 19th Av. S. 612-668-4326.

Community Land Trust. Learn about the City of Lakes Community Land Trust and affordable homeownership opportunities in Minneapolis. 6:30 p.m. Nov. 10. $5. Minneapolis Community Education, Henry High School, 4320 Newton Av. N. 612-668-1922.

Home Loan University. Learn about mortgages and the home-buying process. 7 p.m. Nov. 10. $15. Minneapolis Community Education, Northeast, 2955 Hayes St. NE. 612-668-1515.

Buying a Home. Topics include the best time to buy, tax advantages, financing and inspections. 7 p.m. Nov. 18. $15. Minneapolis Community Education, Roosevelt High School, 4029 28th Av. S. 612-668-4828.

Alfred F. Pillsbury was the only son of Pillsbury Co. founder John S. Pillsbury.  Alfred was never excited about the family flour-milling business, however. According to local historians, he instead devoted his time to collecting art.  With a particular fondness for ancient Asian art, he amassed a huge collection of Chinese bronzes, jade and porcelain during his lifetime. Pillsbury was also a stamp collector, owned the first high-wheeled bicycle, and one of the first three cars in the City of Minneapolis.

By the time Alfred died in 1950, he had amassed an estate of $6 million. He left his art collections to the Minneapolis Institute of Arts.  The 900 pieces Pillsbury bequest to the Minneapolis Institute of Arts still form the core of the MIA’s ancient Chinese, Islamic pottery and Chinese Qing period porcelain collections.

The English Gothic home in which he lived hasn’t been so greatly revered.  It can still be located at 116 22nd Street East in the Washburn-Fair Oaks Mansion District of the Powderhorn community of Minneapolis. The three-story, 8342 square-foot house was built of local Platteville limestone.  It was converted into a series of offices and later a boarding house. In 15 years, it changed hands four times.

Now with the loving hands of new owners Uri and Melissa Camarena, the Alfred Pillsbury mansion has been renovated and updated.  In keeping with its previous owner’s interests (and lets face it, the artistic nature of the Minneapolis – Saint Paul area in general), this private home moonlights as an arts venue.  About once each month, the Camarena’s open their home to host fundraisers for nonprofit arts organizations. They’ve also converted the former maids’ quarters into a gallery to promote emerging artists.

The Camarena’s put a lot of work into the home.  You can read more about their experience with the Alfred F. Pillsbury Mansion in this Star Tribune article.

The subject of many real estate-related conversations seems to be the number of vacant homes on the market.  Within the Twin Cities metro area and out around the rest of the country, foreclosures have increased the supply of available houses far past buyer demand.  To deal with the excess vacant houses, several suburbs are considering controversial policies which require home sellers to make repairs before the house can be bought. 

St. Paul began requiring vacant homes in rough shape be inspected and brought up to code.  Brooklyn Park requires that all houses be inspected and brought up to code before they can be sold.  Robbinsdale and Coon Rapids have had discussions on similar programs.

These cities are trying to maintain quality housing stock. At the same time, empty houses are falling into disrepair.  Investors are buying vacant houses in attempts to flip them, not bothering to undertake the necessary fixes.  People are buying houses at cheap prices without knowing that it requires up to $100,000 in repairs.  The effects can be devastating, on home owners and entire neighborhoods.

Often called “point-of-sale” ordinances, some people say that requiring repairs when homes are sold saves neighborhoods. Others say that it may keep home vacant by adding an extra step to an already complicated process, interfering with owners’ rights, and burdening sellers. Opponents point to “truth-in-housing” programs are preferable, such as Minneapolis’, which require an inspection for the sake of disclosure, but don’t require fixes.

Cities’ programs differ, sometimes dramatically. Ordinance required that all homes in Brooklyn Park be inspected and repaired, while St. Paul requires them for only certain classifications of vacant houses. Homes in Hopkins can be evaluated by independent inspectors, while Brooklyn Park requires that they be done by city staff. The cost of an inspection also varies, from about $50 to $200.

Many cities allow buyers and sellers to set up an escrow for the repairs. All cities say they focus inspections on “hazardous” conditions, not cosmetic issues.

Some cities have had home inspection and home repair requirements for several years. Because of Osseo’s aging housing stock, its program began in 2000. Bloomington and St. Louis Park have long-standing home inspection and repair programs as well. More cities are exploring the idea now because of the increase in vacant and foreclosed properties.

Plymouth and Columbia Heights are two cities which made similar proposals, but opted against them in the end. 

As a home buyer, you probably should get a home inspection on any home you are considering purchasing regardless of whether or not there is a city ordinance that requires it.  Unless it is brand new, it is better to be safe and make your home purchase contingent on it passing an independent inspection.  The last thing you want is for that dream home turn into a nightmare of a money pit in need of expensive repairs.

The Minneapolis Park and Recreation Board is encouraging residents to take precautions against the spread of Emerald Ash Borer.  If you haven’t heard about this pest yet, the Emerald Ash Borer is an exotic beetle that attacks only ash trees.  The insect has already killed over 40 million ash trees across the country.  A considerable amount of damaged has occurred in southeast Michigan.  If allowed to spread, its effects could be similar to that of the chestnut blight and Dutch elm disease that devastated trees during the 20th Century.

The Emerald Ash Borer was first discovered in Michigan in 2002 and probably arrived in the U.S. on solid wood packing material carried in cargo ships or airplanes originating in its native Asia. The Emerald Ash Borer was found in Ohio in 2003, northern Indiana in 2004, northern Illinois in 2006, and Wisconsin in 2008. It has also been found in parts of Canada, particularly, Windsor, Ontario.

Slowly, the Emerald Ash Borer creeps closer to Minnesota.  The bad news is that it can be spread from region to region somewhat easily.  Something as simple as firewood being transferred from a campsite can be a carrier of a creature that could destroy Minneapolis’ urban forest. More bad news is that there is no known way to cure the disease.  The good news is that the spread of Emerald Ash Borer can be delayed or minimized with assistance from people like you.

If you’ve lived in the state for a day, you know what is at stake here.  Minnesota has the potential to lose 867 million trees because it has one of the nation’s highest volumes of forestland ash on public property.  In Minneapolis alone, 200,000 ash trees make up 20% of all trees on public and private land within the city.

The Emerald Ash Borer kills trees over a period of one to four years. The adult beetles cause little damage as they nibble on leaves. It’s the larvae, the insect’s immature stage, that cause the real damage.  They feed on the inner bark of ash trees, disrupting its ability to transport water and nutrients up the trunk (think of how hard it is to sip through a straw with a hole in it!).  This can cause the tree’s canopy to thin considerably, with many of its branches dying over a short time.

The Emerald Ash Borer adults can’t fly far, so the most likely way that EAB will reach Minnesota is by people moving ash logs, ash firewood or infested ash trees from nurseries. To help slow the spread of EAB Sievert recommends:

• Buying or harvesting your wood near the area where you are going to burn it. If you are buying firewood, ask where it came from. Avoid moving firewood from its area of origination. Especially avoid bringing wood into Minnesota from out of state. In Minneapolis, firewood dealers are required to be licensed by the City, so ask firewood peddlers for their City license.

• Watching ash trees carefully for tree canopy thinning or small “D” shaped exit holes left in the bark by Emerald Ash Borers. The earlier they are found, the sooner they can be addressed.

• If there is any suspicion that a tree is infested with Emerald Ash Borer, residents can contact the MPRB at 612-370-4900, or the Minnesota Department of Agriculture’s “Arrest the Pest” Hotline at 651-201-6684; 1-888-545-6684 for Greater Minnesota.

Learn more about Minneapolis’ urban forest.

I wrote earlier this year about how residents that purchased a home between April 9 of this year and June 30 of 2009 could receive a tax credit up to $7,500.  There is even more good news! Potential home buyers could receive additional tax and financing incentives in coming months.  It could come from either a post-election lame-duck congressional session or from the newly elected Congress arriving in January.

National housing industry trade groups are pressing hard federal officials for a second round of emergency economic stimulus legislation to encourage activity in the housing market. Though House and Senate leaders have not yet agreed on whether or not to hold a session immediately following the election, advocates would like to see action by the end of December.

The National Association of Home Builders (NAHB) is working on a plan for a more generous tax credit for home buyers, possibly ranging as high as $12,000.

The reasoning behind their push is pretty straightforward. The housing and mortgage crisis helped to trigger the current financial meltdown, but until the real estate market is put back on track, and the flood of unsold new and existing homes is decreased, a deeper recession could be unavoidable.

The NAHB also wants to make the new tax credit immediately spendable as cash for a down payment. This could be achieved through credit-anticipation loans from private lenders that would be repaid by buyers following receipt of the credit on their next federal income tax return.

The National Association of Realtors has its own proposed package to jump-start action on the real estate market. One of their proposals is to rework the current $7,500 first time buyer tax credit enacted this summer by removing the requirement that the credit be repaid government over a period of years or when the property is sold. Under the Realtors’ plan, the credit would stay at $7,500 but would be available to all types of primary residence home buyers (not just first timers) and would not need to be paid back.

Lawrence Yun, the chief economist for the association, said that Congress’ repayable $7,500 credit has not been sufficiently attractive to pull large numbers of buyers into the market.

Potential buyers “view [the current credit] as a loan that they’ve got to pay back,” he said, “but they don’t want to be burdened with more debt,” even at a zero interest rate. The repayment feature “is a big psychological barrier” for consumers, he said.

Although Yun believes that a “larger credit [than $7,500] would be better,” simply getting rid of the repayment feature and broadening the spectrum to all buyers would spur significantly higher sales at a relatively modest cost to the Treasury.

Both of the organizations want Congress to step in before the end of the year to extend the original 2008 stimulus bill’s high-cost mortgage limits, which are scheduled to expire December 31.  In the 13-county Twin Cities metro area,  that changed the limit on FHA backed loans from $276,683 to $365,000. For greater Minnesota, the limit rose to $271,050, up from $200,160.  That means 77% of homes currently for sale could be purchased through FHA backed loans, yet another incentive to induce action in the real estate market.

However, absent congressional action, the limits would drop back to their previous, lower levels.

The builders’ stimulus proposal also includes support for reinstitution of controversial down-payment assistance programs for certain FHA home buyers.  Legislation was passed this year that banned programs where sellers basically funded all or parts of their home purchasers’ down payments.  This was accomplished by making charitable contributions to nonprofit organizations.  The groups take out an administration fee of about $500 or more, and then channel the money to the buyers. The ban took effect just recently in October.

FHA officials oppose all types of seller-funded down-payment assistance.  They argue that they result in disproportionately higher delinquency and foreclosure rates.

Not all housing trade groups support a new emergency stimulus effort aimed at stoking home sales. The National Multi Housing Council says that special tax credits and revived down-payment assistance would just prolong imbalanced housing policies that triggered housing boom abuses in the first place.

You’ve probably heard that if you buy a new home in a planned community, you can choose one that suits your lifestyle.  There are communities built specifically for families with plenty of green spaces and play places. Developments for active people have trails for biking, walking, and running.  Some neighborhoods are built specifically with seniors in mind.  Now there is a new type of community being built in Minnesota, adding to its 10,000 lakes. 

Trophy Lake Estates in Center City, Minnesota, is one of three gated communities built around man-made lakes designed for water sports like skiing and fishing. Although new-home sales are slow, ground has been broken on a fourth “lake side” development in New Germany. The concept, which is popular in other states like Florida and California, is relatively new to the Twin Cities area, probably because we already have so many lakes.  But with all that lakeshore property snapped up, I suppose this as naturally the next step. 

The developments are aimed to appeal to homeowners who want the fun of a lake cabin without having to travel long distances, spending money on gas. Additionally, it saves on maintenance, because one only has to care for a single property.

The development also has other features, like basketball, volleyball and tennis courts, play fields, and trails. The lakes are stocked with fish, so Trophy Lake residents can fish off the docks on their own shoreline.

tournaments on private man-made lakes in housing developments from Florida to California. He hadn’t seen anything like it in Minnesota.

Specialty housing projects have been successful for golfers in the past. These communities, plus other “lake side” communities in other states, were the inspiration for the Trophy Lakes Estates projects.  The first Trophy Lake Estates, built on 66 acres in Glenwood in 2000, has 16 lots that line the shore of a man-made lake engineered specifically for recreational water sports. It has a permanent ski jump and slalom course. The lakes in all the developments are about a half-mile long, 250 to 350 feet wide, 10 feet deep and wide enough at each end for a boat to turn around.

Trophy Lake Estates in Pine Island and Center City followed. The latest project is a 120-acre development in New Germany, about a half-hour west of Minnetonka.  It will be the largest Trophy Lake venture yet, with 60 lots surrounding two lakes and a swimming pond. The project will be done in phases, to ensure that lots aren’t standing empty.  Most of the 30 powerboat lots in the first phase have already been reserved. Lot costs range from $75,000 for off-water to $195,000 for a powerboat lot.  That is pretty cheap compared to the prices of lakeshore real estate in the Twin Cities metro area.

The man-made lakes follow a standard design, but owners can build a wide range of house styles and sizes. They can choose their own builder or from a list of preferred builders offered by developer Grant Hustad, but each design must be approved by an architectural review committee.

Anoka city planners have a plan to try and draw more people to their historic downtown.  The city has partnered with Rottlund Homes on the $20 million Historic Rum River District project.  The plan will place senior condos and lofts along the Rum River.

The project will include two, three and four-story brick condo buildings with 92 units for people 55 and over.  Additionally, there will be two loft buildings with 100 units that will also house first-floor retail space. It is hoped that adding more residents in the downtown will turn the Main Street area into a prosperous commercial district.

The first senior condo building already began construction last month.  It will offer another housing option for longtime Anoka residents who wish to sell their houses but want to remain in the area.  This in turn will free up single-family homes in Anoka MN for young families and first-time home buyers to move into.

To capitalize on the development’s proximity to the river, Anoka city planners also plans to build a park.  Riverfront Park will feature a fishing pier, walking and biking trails, and a playground.  What’s more, the downtown condo project will be just a few blocks away from a Northstar Commuter Rail station that open next year.

Rottlund Homes has not set a completion date for the project. It will be constructed in phases dependent on sales of the properties.

A free home tour in the Dayton’s Bluff neighborhood of St. Paul will run on Sunday, October 26, from1:00 to 5:00 p.m.  Vacant homes will be the highlight of the tour.  People who would like to participate can climb aboard the home tour trolley and travel from place to place with ease!

Maps with the home information and locations can be picked up at the Dayton’s Bluff Community Council at 798 East 7th Street at the beginning of the tour.  Here, participants also can get coffee and hot apple cider.

Dayton’s Bluff is a great place to live.  It has a Historic District, great parks, wonderful people and very close to downtown.  Additionally, with the high cost of gas and the cost of living in general, homes in Dayton’s Bluff St. Paul are pretty much close to everything one would need.

Saint Paul Dayton’s Bluff spring Vacant Home Tour was a fantastic success, with about 300 people in attendance. Since then, eight of the twelve homes on the tour have sold.  This fall home tour will also have some great homes and great deals.
For more information, call 651-772-2075 or visit www.daytonsbluff.org.

Finding and Buying Your First Home. Topics include choosing a mortgage, first-time home buyer programs, government loans and negotiating the best price in a buyer’s market. 6:30 p.m. Monday. $15. Minneapolis Community Education, Anwatin Middle School, 256 Upton Av. S. 612-668-2470.

Home Ownership. Overview of steps to take to buy a new home. Attendees will receive a copy of their credit report. 7 p.m. Tuesday. $15. Minneapolis Community Education, Southwest High School, 3414 W. 47th St. 612-668-3100.

Buying Foreclosed and Short-Sale Properties. Topics include how to find deals in the foreclosure market and negotiate with banks. For first-time buyers or experienced investors. 7 p.m. Wednesday. $15. Minneapolis Community Education, Anwatin Middle School, 256 Upton Av. S. 612-668-2470.

Home Inspections. Topics include what to look for when buying and selling and the Truth in Housing Law in Minneapolis. 6:30 p.m. Wednesday. $15. Minneapolis Community Education, Anwatin Middle School, 256 Upton Av. S. 612-668-2470.

Mortgage Basics. An overview of the mortgage process. 7 p.m. Wednesday. $15. Minneapolis Community Education, South High School, 3131 19th Av. S. 612-668-4326.

Duplex and Multi-Unit Housing as an Investment. Topics include the tax benefits of owning real estate, how to find and evaluate property and how to do an investment property worksheet. 6:30 p.m. Wednesday. $15. Minneapolis Community Education, Lake Harriet Community School, 4912 Vincent Av. S. 612-668-3330.

Minneapolis Rental Property Workshop. Topics include property management basics, working with housing inspections, tenant issues, risk of lead poisoning and Hennepin County Housing Court and mediation. 5 to 9 p.m. Thursday. $30. St. Mary’s Greek Orthodox Church, 3450 Irving Av. S., Minneapolis. For a registration form, go to www.minnesotainvestmentrealestate.com. 612-673-2812.

North Minneapolis Home Buyer Tour. The GLBT Northsiders are holding a tour of single-family homes Oct. 26. The gay, lesbian, bisexual transgender group’s event will introduce prospective buyers to homes for sale, point out neighborhood amenities and provide information on home-buying assistance programs. For details, go to glbtnorthsiders.blogspot.com or send e-mail inquiries to MyNewNeighbor@gmail.com.

Reverse Mortgage: Your Real Estate Retirement Account. Learn the facts about this potential source of retirement income. 1:30 p.m. Oct. 28. $10. St. Paul Community Education, Conway Recreation Center, 2090 Conway St. 651-293-8733.

Cabin Design Class. “For the Love of Cabins,” a cabin design class taught by architect Dale Mulfinger. 7 p.m. Oct. 29. $14; $19 per couple. Edina Community Center, 5701 Normandale Road. 952-848-3952.

Book Signings. Authors Dale Mulfinger, Bill Holm and John Henricksson, who have written about cabin ownership. 7:30 p.m. Nov. 11. Common Good Books, 165 N. Western Av., St. Paul. 651-225-8989.

In the world of real estate, a seller has control over two things:  the price of their property and condition of their home.  While Realtors help sellers determine a price, many agents count on home stagers to deliver the “bad news” to their clients about the appearance of their house.

  TOP TEN THINGS (some) REALTORS WON’T TELL YOU

1. “Your kids aren’t that cute… pack the photos.”
2. “Multi-colored carpet does not include stains.”
3. “Hummel collections are not considered focal points.”
4. “Toilet seat covers do not qualify as ’spa-like’ accessories.”
5. “Mint green is not a neutral color.”
6. “Your dining table should never be used as long-term storage space.”
7. “Most buyers are not looking for Jeff Gordon themed houses.”
8. “No amount of scented candles are going to remove that odor.”
9. “Lack of lighting does not ’set the mood.’”
10. “Crotch-sniffing dogs rarely make good hosts.”

There is a lot of work that goes into properly preparing a house for the real estate market.  This task is made easier by getting a professional evaluation from a trained home stager.   Stagers will identify the “red flags” that could hinder a sale as well as develop a plan that will make your listing stand out from the competition. 

The photos below show a “before and after” example of a KFM Staging consultation. 

Home staging has been a secret weapon in the real estate wars, and it continues to win victories in the current makret.  Even though some Realtors may not want to deliver the bad news to their clients; they can rely on professional stagers who will respectfully help sellers through the staging process.

KFM Staging & Design is a Minnesota home staging company that creates “First Impressions that Sell” in the Twin Cites and Western Wisconsin.  KFM specializes in vacant staging and staging consultations.  Visit our website for staging tips or to schedule your in-home or online consultation.