The Twin Cities housing marke is entering the dog days of summer, and with that comes a bit more stagnant air revolving around new inventory. The 1,637 new listings for the week ending August 1 are 12.2 percent below last year’s numbers. Over the past few weeks, pending sales have been flat, but in year-over-year comparisons they are still 20.9 percent above 2008 numbers.

Two new stats for the week:

Days on Market Until Sale:

Dropped by 6.6 percent over last year, from 146 to 137. Inventory is being swept up.

Percent of Original List Price:

94 percent. On a steady increase the past few months as is usually the case during the summer months.

Stats are provided by the Minneapolis Area Association of Realtors.

Not a foreclosure, but it is a good deal! 8718 Oregon Ave N Brooklyn Park MN

http://www.epropertysites.com/fprop.htm?id=1239899379&p=1243877158&s=s&l=v&kc=FFFFFF&bc=CCCCCC&fc=4F493B&t=Featured^Property“

There’s been lots of press about the Twin Cities Real Estate Market and falling home prices.  Even the New York Times had something to say.  Check out these links:

• New York Times: Home Prices Continued Their Decline in March.
• Star Tribune: Twin Cities-area home price drop was nation’s largest.
• MinnPost: Case-Shiller drop reflects glut of distressed sales. MAAR CEO Mark Allen drops science.
• Finance and Commerce: The big Twin Cities foreclosure flood.
• Pioneer Press: Home prices dive — with an asterisk.

Things to keep in mind about these reports:

1) They’re talking about a month-over-month change, not a year-over-year. Real estate is highly seasonal and median sales prices go up and down from month to month with regularity. There’s too much statistical noise in that kind of monthly comparison to get bent out of shape over a 6.1 percent drop.

2) It’s not that shocking when you consider that almost half of the homes selling are foreclosures and short sales.

The big takeaway…yes, Twin Cities home prices are down, but this is due in large part to heavy sales of discounted lender-mediated properties.

Foreclosures and short sales are showing early signs of slowing. During the fourth quarter of 2008, there were 4.3 percent fewer new lender-mediated listings than in the third quarter. That’s the first quarter-to-quarter decrease since 2003.

As a result of this reduction in new supply and continued buyer interest in these properties, the total number of lender-mediated homes for sale dropped 600 units over the course of the quarter. This is only one quarter of downward movement, so time will tell whether the trend continues. Regardless, we are encouraged by this hopeful sign.

Foreclosures are properties in which the financial institution has repossessed the home from the owner due to nonpayment of mortgage obligations. Short sales are unique arrangements where the financial institution and in-default homeowner work together in an attempt to sell the home before it is foreclosed upon.

For all the details, click here.

I wanted to tell you about my new listing from the bank at the above address.  This townhome right in the heart of Maple Grove is a great deal…it sold in 2005 for $275,ooo and the tax value is $269,900.  Current asking price is $205,900!!

Here are a few pictures to give you an idea:    

12377 82nd Ave N Maple Grove

What I think a buyer will really appreciate about this townhome is its location, right in the heart of downtown Maple Grove.  Walk to Lifetime, Main Street shops, the Community Center.  It has two large bedrooms, both with walk in closets, 3 baths including a master bath, two car garage, formal dining, living and family rooms, soaring vaults.

It does need appliances and a good cleaning, but I think it’s a great deal for a nice home.

For more information, contact me at lmartin@smartmovemn.com or call 763-494-5545, ext. 101.  Also check out our websites, www.smartmovemn.com and www.bankforeclosuremn.com.

According to the Minneapolis Area Association of Realtors, the recent plunge downward in mortgage rates to a decades-low level is spurring Twin Cities home sales, despite shorter days and holiday interruptions. For the week ending December 20, there were 553 purchase agreements signed (pending sales), which is an increase of 20.0 percent from the same week last year. Since rates dropped three weeks ago, there have been 368 more pending sales than there were during the same period in 2007, an increase of 27.5 percent. During this period, 57.6 percent of sales have been lender-mediated foreclosures and short sales and 45.8 percent are below $150,000.

Listing supply is relatively flat with last year at this time over the past few weeks, with an increasing share of new listings being lender-mediated. Traditionally, sellers often pull back at this time of year to wait out the holidays, but banks continue to list no matter what time of year it is.

Project: Reclaim

Project: Reclaim is a homeownership tool to equip and support households to successfully own quality revitalized homes. If you are considering a purchase but think you can’t becuase of credit issues, check this out….

The goal of Project: Reclaim is to facilitate successful homeownership that helps create a healthy and vibrant community. It is designated for households that have been declined a regular mortgage due to credit challenges. This program creates an opportunity for people to affordably own a home and participate in a credit enhancement program and debt reduction. Project: Reclaim minimizes the homebuyers exposure to financial risks and real estate speculation.

Highlights of Project: Reclaim
• 3% interest rate
• Monthly payment will be approximately equal to a 6.5% conventional mortgage
• Home values range between $100,000 and $150,000
• 2% Reserve account established for the homeowner to use for approved purposes
• Rehabilitated home with great attention to detail and stringent construction standards
• Buyer support through mandatory credit enhancement program
• Contract for Deed with an initial term up to 24 months

Determine your eligibility for Project: Reclaim
• You plan to purchase a home in Minneapolis
• Household income greater than $36,000 annually
• Household income is less than the following amounts based on

• 1 Person $43,050
• 2 People $49,200
• 3 People $55,350
• 4 People $61,500
• 5 People $66,400
• 6 People $71,350
• 7 People $76,250
• 8 People $81,200

• You do not qualify for a conventional mortgage
• You need a credit enhancement program to minimize debt and increase credit score within the terms of the contract period

If you’re interested in learning more about the possibility of purchasing a home under this program, give us a call at 763-494-5545 or email info@smartmovemn.com.

Source: Urban Homeworks

Listed At $143,900!

MLS# 3612074 - 3 Bedrooms - 2 Bathrooms - 3 Car Garage – FSF 2200 - Built 1994 - Carver County MN

In the heart of New Germany! Landscaping includes pond and sprinkler system. Nice property but needs some TLC and updating.

See photos and more info at: www.BankForeclosureMn.com or www.SmartMoveMn.com

If you’re paying any attention to the real estate market in your area, you know there are some really good deals out there, especially on homes that have what I’ll call “deferred maintenance”.  You may be tempted to jump in with both feet and take on a rehab project, with the hope of a significant profit for your time and investment. 

Before you buy that “fixer-upper”, here’s some mistakes to avoid.

Mistake #1 – Buying a property in an area you’re unfamiliar with.

It’s important to pick a property close enough to your home that you are able to be on-site regularly to manage the work being completed. Strong leadership at the project is the key to meeting deadlines and coming in on budget.

The additional benefit of having a project close to home is the ability to better determine value, especially after repaired value, in an area familiar to you.

Mistake #2 – Failure to do the Proper Inspections

Get familiar with the “majors of rehab.” These are the items that can cost you big dollars on a deal, things that will make or break a deal, and things that can take you right out of the real estate game. The majors of rehab fall into these five categories:

1. Roof

2. Structure (foundation)

3. Electrical

4. Plumbing

5. HVAC (heating, ventilation, and air conditioner)

Work closely with a qualified home inspector to sort out what the deficiencies are in the home, determine if the necessary repairs and/or replacements fit within your profit goals.  Quailfied contractors are also a great resource to understand the full scopt of a project.  Find a contractor who is willing to work with you as you look at potential opportunities.  Treat this person well.  They are one of the keys to your success.

Mistake #3 – Failing to Negotiate for Maximum Profit

 At a minimum, consider these four things when negotiating your contracts:

 1. Price – Remember to ask “Is that the best you can do?” Never give sellers what they ask in the first negotiation.

2. Deposits – Always give the deposits to a third party or escrow company. Never give funds directly to the seller.

3. Closing – When is the closing? Set a firm date

4. Occupancy – Live by the rule called “cash for keys.” That means never, ever give sellers a single penny until they have left the house and you have taken over occupancy. 

With the proper planning and strategic relationships, rehabbing can be extremely rewarding and lucrative.

Smart Move Realty is a real estate brokerage located in Maple Grove Minnesota.We specialize in both residential and investment real estate. Our website, BankForeclosureMN.com is a cutting edge tool used by investors throughout the Twin Cities metro to locate, research, and make offers on bank owned properties in the Twin Cities. Whether you are looking for rental property, fix and flip solutions, or just a great deal on your next home, Smart Move Realty and BankForeclosureMN.com are your one stop source for Creating Wealth through Real Estate Investing. For more information, call us at 763-494-5545 or email us.

MLS# 3607091 - 4 Bedrooms - 3 Bathrooms - 3 Car Garage – FSF 2092 - Built 2002 - Sherburne County MN

Nice 2 story in desirable neighborhood. 4bedrooms on upper level, large spacious kitchen, family room with fireplace, oweners suite with sitting area, and 3 car garage! Bank response time NO MORE THAN 72hours!!!

For more information on this property and more foreclosures in the Twin Cities area please visit www.bankforeclosuremn.com