There's so much hype right now with the tax credit deadline nearing.  I'm curious if (A) you think the first time home buyer tax credit should be extended, and (B), Why?  Also, does anybody know when we will find out if there is going to be an extension?

The home is new construction, however, has been vacant and closed up for 3 years.  Buyers rarely request radon inspections in this area because of the sand soil.  EPA Guideline is 4 and below in order to pass inspection.

The inspector mentioned an air exchanger would most likely get the radon level under the desired reading of 4.  Most people I've talked with feel the reading is going to be higher because the home has sat vacant for 3+ years.  There was also a pipe in the ground which was meant to be used for laundry hook-up in the lower level and had not been capped.

Any opinions or similar situations you may have are appreciated!

We haven't seen much of this strategy, until recently.  This particular property is being marketed at 1/2 of "market value".  The traffic is steady and offers are coming in.  It will be very interesting to see what this property actually sells for.  This is "bank owned".

All inspections have been satisfied and completed, contingencies have been removed.  We have the "clear to close" from Mortgage.

At the closing table, the call comes in that Underwriting has now rejected the mortgage due to one of the buyers giving two weeks notice at their place of employment.  Her salary could no longer be used on the application and they no longer qualified for the loan.

In this transaction, I represented the seller.  We may assume buyers know better than to do something like this, however, in this market we cannot assume anything.  The house is back on the market, and the buyers lost the home they fell in love with.

Deer Ticks are already out in the Brainerd Lakes Area!

Today I was walking some acreage along the Whitefish Chain and it didn't take long to realize the deer ticks were out.  If you're walking the woods during deer tick season, there are some simple "dress" tips to help from getting the tiny ticks  (potentially carrying lymes disease) to attach to your skin.

Wear light-colored long pants, long sleeves and white closely knitted socks when outside.  Tuck in your shirt and tuck your pants into your socks.  This will help prevent a tick from crawling under your clothing and getting to your skin.  Wear light colored gloves.  The light color makes it easier to see a tick crawling on your clothing or gloves.

I can't stand the little ticks.

Business is picking up in the Brainerd Lakes Area.  Three of the seven contracts I've been negotiating have come together, sellers are coming to the market, and buyers have a higher level of confidence and are taking advantage of this once in a lifetime opportunity to purchase a property at a low price AND at an excellent interest rate.  This opportunity will not last forever!

This fire happened yesterday, early evening.  It happens to be near and dear to my heart, because it is my niece's first house.

Have you ever shown a house that had candles burning?  Ironically, just the other day, I learned my Seller had "several candles burning, in fact they were in every room" the agent said.  The Buyer's Agent also told me she blew them out before she left the home.  Needless to say, I called my Seller immediately and we had a chat about safety.

I'm guilty as the next guy/gal and happen to love candles.  The call I received yesterday, however, has changed my perspective.  Please take caution when burning candles, and make sure your clients and loved ones do as well.  I don't know the exact percentage, but I heard from a local firefighter that many house fires are caused by candles.

Do you tell them there is an unpleasant odor in their house, and you're not sure what it is.  But it isn't good.  Let's find out what it is, and get rid of it before we list.

Do you tell them the hardware on the cabinetry gives the kitchen an outdated look, and for a few hundred dollars or less they could update the room?

Do you tell them the colors on the walls need to be changed.  Neutral earthy tones will completely change the look and feel of the room.

Do you tell them where they need to be priced to sell?

Sellers are looking for guidance.  They do not know what color their walls should be, or that they can get an updated look for as little as a few hundred dollars, or where they need to be priced to sell in this market.

Be brutally honest with your Sellers, because they are counting on you.

Definition of Market Value

Here's the definition of market value used by the International Association of Assessing Officers (IAAO).

Market value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined. A current economic definition agreed upon by agencies that regulate federal financial institutions in the United States of America is: 

The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 

The buyer and seller are typically motivated; 

Both parties are well informed or well advised, and acting in what they consider their best interests; 

A reasonable time is allowed for exposure in the open market; 

Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; 

The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Above is the IAAO's definition of market value.  Do you educate your Buyers and Sellers of your area's true market value?  In my opinion, the media has played a significant role in Sellers pricing their homes too high, and Buyers choosing to make low-ball offers (and missing the window of opportunity).  Professional Real Estate Agents must educate Buyers and Sellers on the true market value in their  local area.  Buyers and Sellers are counting on us to be the expert in pricing, whether they are buying or selling.

After some discussion, my Seller finally agreed to list with me at my price.   His property had expired after being on the market with another broker for 1 1/2 years.  He was reluctant to drop his price, however, I wasn't willing to take the listing unless he was willing to compete in this market.

Today we have a contract!  :)      My Seller is happy and the Buyers are happy.  It was a fair deal and we are closing before the end of the year!