The Minneapolis Real Estate Blog

Luxury Real Estate Short Sales

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sun, 22 Nov 2009 10:05:42 -0600

Working with Luxury Short Sales in the Twin Cities

While high end homes don't go into distress too often, the current market is causing some home owners to pursue the short sale route when selling their home. With home prices dropping in expensive neighborhoods, and seeing as many were artificially inflated due to the real estate market a few years ago, luxury homes are now seeing a much needed market correction.

Unfortunately, there are not as many buyers out there who can afford an expensive home (not to mention the high property taxes that come with million dollar homes). Currently the most concentrated area in the Twin Cities Metro area for short sales is in and around Lake Minnetonka, including areas like Chanhassen and Medina. But you can find a luxury short sale here and there throughout the Metro area.

Having worked with high-end short sales, I can say that they are quite different than the normal sale. The ones I have worked have almost always involved a higher up...not the average remedial negotiator who could give a rats butt, but someone who understands the potential huge financial loss that a million dollar home would create on their books. A $1.5 million dollar foreclosure is so much worse than writing off a few hundred grand in a short sale.

Case in point, a luxury short sale listing I successfully sold this spring became a success because I got the ear of the Vice President of the bank. He agreed that a $400,000 loss was much better than a $1.4 Million loss. Granted I am sure they would have gotten some money back if sold as a foreclosure, but it would have been much less than that of a short sale, not to mention the court and lawyer fees that would have been tacked on to the net. Working like a team to reach a common goal, the bank and I were able to negotiate very well together, creating a deal that helped the home owner out of a jam, and got the buyer a super deal in an expensive neighborhood.

If I had to give one piece of advice for a home owner looking to sell their expensive real estate as a short sale, than I would recommend finding an agent that not only specializes in luxury homes, but also has experience in short sales. (There are very few of us that do.) For the short sale million dollar homes currently for sale, most of them have an agent that has little to no experience in either. Sadly, this really only hurts the home owner as they don't get what they really need - the successful sale of their home and avoiding foreclosure.

If you have any questions regarding the short sale of your home, please feel free to contact me anytime!

Fall Colors in Minnesota

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sun, 20 Sep 2009 10:14:45 -0500

If you are looking for a place to view fall color around the state of Minnesota, a great place to check out is the Minnesota Department of Natural Resources (DNR) website. They update what is happening around the state, and give a lot of information on how/what causes the leaves to change color. Typical peak color for the Twin Cities area is Late September to Mid October.

Downtown Minneapolis on a Calm Summer Evening

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Fri, 21 Aug 2009 22:22:02 -0500

Taken from Lake of the Isles, just minutes from Downtown Minneapolis.

One of my favorite places in Minneapolis.

Million Dollar Homes should have Million Dollar Photos

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Wed, 12 Aug 2009 18:03:06 -0500

Ok, so I would hope people would know by now that one of my biggest pet peeves is real estate photographs. It really drives me crazy with all the terrible photos I see constantly in the MLS database. I can understand terrible photos for $100,000 homes (but even those tilted photos get under my skin), but when it comes to terrible photographed homes priced in the million dollar range...I just don't get it.

Homeowners - When you hire real estate agents to sell your home, do the agents even tell you about their marketing plan? Better yet, do you even ask? Do you ask them how they will be photographing the home? Do you ask to see the end result?

Why does this matter? Because photos sell a home. Let me tell you something...agents have NO excuse for not paying for a professionally photographer to come into your luxury home. If you are letting them get away with walking into your home with their point and shoot camera, then there is probably a really good reason your home is not selling. Your photographs stink!

Agents - Who do you think you are? Professional is NOT the word that comes to my mind. If you are listing a high-end home, then you better be shelling out the dollars for high-end photos. You are doing a huge disservice to your client and not giving them the proper exposure they need for an expensive home. Either spend the money for a professional, or leave the luxury home market.

In this post you will notice the photos I have used. All were taken from active homes in the MLS system, high end homes currently listed for more than $2.4 Million. See the problem?

the first photo is pretty dark and not too inviting. A professionally photographer would have lit up this room with his equipment, lit the fireplace, and created a photograph that presented a cozy living room space.
the second photo is always the main feature of the home which buyers want to see - the kitchen. This tilted photo makes the room look narrow and small, most likely scaring buyers away. If a wide angle lens was used and the room professionally lit, then the kitchen would look like a gourmet space, without having an ugly flash bouncing off the far cabinet.
the last photo, just makes you want to jump in that tub...I don't think so. The room is dark, and I just "love" the shadow of the agents head taking up a quarter of the photo.

So hopefully, you can now see my points. Professional photography MUST be used when listing an expensive home. I see well known agents in the Twin Cities shooting million dollar homes themselves, and I am amazed that they keep getting hired. Sellers really need to understand that to attract buyers who can afford luxury real estate, you need to present the home as a luxury property. If your home photos stink, then maybe you should think about hiring another agent, one that specializes in selling luxury homes.

Shooting Fireworks in Minneapolis

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sun, 26 Jul 2009 23:01:19 -0500

Last night I took the chance to photograph the fireworks show in downtown Minneapolis for the annual Aquatennial celebration. It was my first time shooting fireworks so it was actually pretty fun trying to time the bursts. Out of 100 shots, I probably have five photos that are worthy of keeping.

Yes Virginia, There Really are Multiple Offers Out There

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Tue, 14 Jul 2009 05:07:16 -0500

I know many of you won't believe this, but the dirty little secret that the local media isn't reporting is that homes in the lower price range are flying off the racks. Yep...just like a bridal store having a super cheap sale on gowns with women knocking each other out of the way as they try to snatch up the latest deal, so too are investors and first time home buyers trying their best to win that little cottage home, out doing each other with above list price offers.

Like I said, you don't believe me, do you?

Last month I experienced this phenomenon first hand with a duplex I listed. With-in five days, I had five offers, all above asking price. There must have been some telepathy in the air because almost all of them were around the same price. I actually had to tell them to resubmit their "highest and best" offer. Who ever did the best, gets the house. Let me tell you, it was competitive bidding and I was truly surprised at how high some of the offers got.

Even better, I know an investor couple who are snatching up dilapidated foreclosures and rehabbing them to flip. Not only do they have to bid against other offers each time they find a home, but when it comes time to sell the property, they have to deal with multiple offers from first time home buyers. (They do fantastic rehab work by the way!)

So yes Virginia, there are some segments of the real estate market that are doing quite well. Multiple offers do exist and are getting more common.

It makes is hard to explain to a buyer why they need to offer above listing price if they want to get a home, especially when all they hear about is how cheap homes are. But if you want to purchase a home in decent shape and at a great price, be prepared to pay for it because in this market you'll be just like those brides you see on television...pushing and yelling your way to that perfect find.

Pick up the Phone and Call Your Agent Back

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sat, 04 Jul 2009 23:07:38 -0500

I can't tell you the number of times that I have called clients, only to have my phone calls either returned two days later, or sometimes never. I hear plenty of excuses, the most common being "I am too busy". But nothing irks me more than contacting a client regarding an important item, or better yet, a looming deadline, only to hear crickets as my messages go unanswered.

See, real estate is its own beast. Things can fall apart in a hurry if people don't communicate. Sometimes I feel us real estate agents earn our money best by chasing people around for signatures and approvals. Why is it that if a client leaves me a message or email, they expect me to call them back with-in 30 seconds, but for me, some clients feel no need to hurry up and do the same. I believe the door should swing both ways. Oh, but that's just my opinion.

No I am no saint, and have had my moments when I have failed to reply quickly. But I tell all those that know me that I usually respond the same day, if not in 24 hours.

I guess the moral of the story is to pick up the phone, or tippy tap away on the keyboard, and at least acknowledge your agent's existence. If you fail to, please don't ask them why the deal has fallen apart and the other party is walking away, or better yet, why you must follow through with the home purchase or forgeit your deposit.

Realtor.com is Getting Pushy to Sell Their Product

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Thu, 18 Jun 2009 13:42:02 -0500

I just got a phone call from a very pushy salesman at Realtor.com. It got to the point where he was getting very upset with me because I was questioning his statistics and his reasoning. A civil conversation at the least, but an interesting one at that.

See, I refuse to sign up with their website to feature my listings. I used there "showcase listings" system when I lived in Florida a few years ago, and honestly didn't see any return on my investment. When it was time for me to move to Minnesota, I obviously had to start my business from the ground up. It had been a year since I had been using them with six listings, so my subscription was up for renewal. I had sold all my Florida listings save one, but Realtor.com told me that to continue the featured listing service, I would now have to pay $1300 for the next year. What?! But I only have one listing. Talk about highway robbery. My current rate was $200. I quickly decided to NOT renew.

For me, it comes down to principle. I personally do not agree with the pricing structure that Realtor.com has chosen to implement. To tell me that this year, if I signed up, I would pay $345 for 10 featured listings, but next year, the new price would be $710, is ridiculous. They should have a flat rate system, and it would be better for business.

But no, THEY are the "largest real estate website" out there and they can charge what they want. THEY control the buyers, yada, yada, yada....or so they think. While talking to the rep today, he gave me all kinds of statiscics and data to prove his point. Even going to the length to tell me that I did not know what I was talking about when it came to my local market and how buyers find homes.

He even said that I should go with a year subscription, then cancel so as not to incur the higher fee with renewal. To me, if I am going to invest time and energy into such a service, I am not going to spend a year featuring these listings, to dump them in a year.

The funny thing about the website that is "looking out for its members", is that our MLS idx feed supplies them with all the information they need, additional photos, contact info, etc. So if they are already getting this information, which I pay to have sent to them via my Realtor Association dues and fees, why should I pay them more to release the information? There are plenty of sites that my listings are syndicated to that do this for free.

When I mentioned Trulia and Zillow, the rep got defensive. He asked me how many sales I have generated via Trulia, and I told him two in the last six months. I then told him I have received more listings and sales via my blogs and website, than I have with Realtor.com (which is zero). His answer was that I could do more with their enhancements.

Sorry, but I don't think so.

I told him that Realtor.com is rarely used by the buyers I speak with here in Minnesota. They use other sites that have more market exposure. He didn't believe me, and spewed more stats and data. Talk about pushy! I told him he doesn't know my market, being that he is in Los Angeles. Hasn't he ever heard the phrase "Real Estate is Local"?

So once again, I have shot down Realtor.com. I have better places to put my money that will get me more local market exposure and better ROI. I didn't mention that I am on Active Rain and would be writing about this...that might have been the straw to break the camel's back.

Oh, and by the way, when searching 'minneapolis real estate', my website comes up second, Realtor.com comes up sixth. Hmmmm.....

Minnehaha Falls in Minneapolis

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Tue, 16 Jun 2009 13:41:32 -0500

One of my favorite spots to visit in Minneapolis is Minnehaha Falls. A few weeks ago, I took the camera out on a cloudy day and was able to capture this silky effect of the waterfall.

Copyright for All My Blogs, including Active Rain

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Wed, 20 May 2009 22:13:20 -0500

(I placed this post originally on my Historic Home Blog today, and thought it best to bring it on over to my other blogs, as an FYI about copyright and not stealing my photos and content.)

A recent incident that is now recurring is forcing me to write this post about copyright of photos used on this site. (Notice the "Do not Copy" notice on the leftside of this blog.) To some people, it is ok to go onto the Internet and lift photos of other peoples work. They then use these photos on their websites without permission. They either do not care or don't know the law, but either way, what they are doing is stealing....oh, and Copyright infringement.

As a visitor to this blog, I am sure you can easily see that I travel around the area taking photos of historic homes (and other places around the Twin Cities), then post them to my blog with a story about the home. It's what I do, and the whole reason for this blog, which is to educate locals and others about the great historic resource we have in Minnesota through our homes and buildings. Taking these photos takes time, energy, patience, and creative thought.

What many people fail to realize is that even though the Internet is public domain, the content is not free for all to use. The general rule of thumb (in this instance) is that once a photo hits a hard drive, it is considered copywritten. The photo does not have to have a copyright notice on the photo, nor a big C. In order to use a photo, one must obtain permission from the source. So for those people out there that "right click and save" and then use the photo, you are committing copyright infringement.

Any excuse you give does not matter. Taking something created by another without permission is wrong.

I could go into greater detail, but I don't want to clutter up my nice blog with a post such as this. I just want you to know, that I work hard to write this blog, so please do not steal my stuff. Simple as that.

If you want to learn more about Copyright law as it pertains to blogs and websites, please visit a great lady's blog regarding copyright law, Lenn Harley, for in depth articles on the subject.

Minnesota House of Representatives aims a Deadly Blow to Minnesota Homeowners

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Tue, 21 Apr 2009 10:19:07 -0500

Recently the Minnesota Association of Realtors has made its members aware of current legislation being proposed by the Minnesota House of Representatives that will greatly affect Minnesota homeowners in a negative way. On Monday, the Tax Committee "released a "delete all amendment" to HF2323 and added provisions that are negative for real estate in the Omnibus Tax Bill. Authored by DFL Representative Ann Lenczewski, it contains a number of tax law modifications that hurt all Minnesota home owners."

We all know that the state of Minnesota, as well as numerous states across the country, are hurting financially. They find themselves with a growing budget, but no way to fund the increased expenses. Instead of finding ways to cut within the government, many politicians choose to look to the tax payer for "relief". The only solution in their eyes is raise taxes or take away tax incentives. Minnesota State spending, for the record, has gone from $14.5 billion in 1992/93 to $34.6 billion in 2008/09 - a 138% increase.

(As an FYI: Governor Pawlenty has proposed a plan focused on reducing spending and raising revenue without raising taxes.)

No big surprise to those of us in real estate, but the house tax bill hurts real estatein the state of Minnesota. The DFL (Democrat) House Tax Plan raises revenue by cutting a number of income tax deductions. Of significant concern to Minnesota REALTORS® and homeowners, the DFL House plan eliminates two major real estate tax deductions: the Mortgage Interest Deduction and Real Estate Property Taxes. The bill also eliminates provisions of the Relative Homestead Tax.

Elimination of Mortgage Interest Deduction (MID)- a feature of the tax code since 1933, the MID has helped numerous generations achieve the American Dream of owning a home. A significant public policy objective for decades, homeownership stabilizes families, neighborhoods and communities. The House DFL Tax Bill eliminates the MID for homeowners and replaces it with a "housing credit" for qualified homeowners. The maximum credit is $420, which is equal to 7 percent (7%) of up to $6,000 of mortgage interest paid during the taxable year. However, no credit is applied to the first $4,000 of interest paid. Therefore, a homeowner must pay at least $10,000 in MID in order to receive the full $420 credit. As an example, if a homeowner has mortgage interest of $8,000 in the tax year, the credit equals $280. ($8,000 - $4,000 = $4,000 x 7% = $280).

This provision hurts young families disproportionately because mortgage debt loads are highest when people are establishing their households. This provision changes the financial plans numerous families have made when purchasing a home and increases the financial difficulties many are facing during this economic downturn. At a time when housing is finally getting a financial foothold why eliminate a tax provision that has helped millions of families achieve the "American Dream?"

Real Estate Property Tax Deductibility -This public policy provision has been included in the tax code since 1933 and allows taxpayers to deduct property taxes paid from their income. The House DFL Tax Bill eliminates the deductibility of real estate property taxes at a time when local property taxes continue to increase faster than Minnesotan's income.
Relative Homestead- If you own identical houses, with identical values, with identical tax rates you would assume you would pay identical taxes - Right? Not if the House DFL Tax Bill becomes law. In a provision of the bill, authored by a DFL legislator, families that provide housing to other family members will pay more taxes on the second home. The goal of the provision, as stated by the legislator, is to stop parents from buying homes for their college students. MNAR pointed out that this is a small piece of the overall program and instead the proposal will be hurting families trying to assist other family members who may have gone through job loss, divorce or other financial difficulties. Isn't it better to have families provide for families instead of government?

WE NEED YOUR HELP

ACTION REQUEST: To fight this unbelievable proposal we are asking that you take three steps:

Please contact your legislator and let them know how you feel about this proposal. Please find attached a list with legislator contact information or use this link: http://www.leg.state.mn.us/leg/Districtfinder.asp
Forward this email to your clients, customers and friends. Let them know what is being proposed and give them the web address above to review the bill.
Go the extra mile and CALL your legislator about this tax bill. Let him/her know your concerns and how it will impact your clients, your family and your business. Let your Representative know that it is time for our elected officials to "LIVE WITHIN YOUR MEANS" by prioritizing spending and not raising taxes.
You can access the bill summary (48 pages) at: http://www.house.leg.state.mn.us/hrd/bs/86/HF2323.html

Taking the Easy Way Out of Personal Responsibility

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Wed, 04 Mar 2009 16:35:57 -0600

Every now and then I answer questions submitted by buyers and sellers on Trulia, an online real estate search site, which allows people to connect with knowledgeable local real estate agents. Lately I have seen an alarming trend with a few sellers out there who think they can take advantage of the current mortgage and economic mess. That trend is called bailing on your mortgage when you can readily pay.

A few weeks ago, one home seller admitted he was able to keep current with the mortgage he has on a rental property. The rent covers the mortgage, but the house is worth less that what he owes. So he wanted to know if it would be OK for him to stop paying on his rental and just let it slip into foreclosure....all because it is worth less. Now, his home is not even for sale, so there is no need to talk about a short sale. He just wants to jump into the "poor me" foreclosure pool and use the foreclosure mess as an excuse. Heaven forbid a home be worth less.

Just today, another gentleman wants to refinance his first mortgage so it is less, but bail on the second mortgage and stop paying, because he feels they won't try and foreclose on him. It seems he just wants to take advantage of the system and save a few bucks.

See, this is what is wrong in America today, lack of personal responsibility. People want to have it all, but when the time comes to pay the piper, they whine and cry and try to make everyone feel sorry for them. Look folks, if you take out a mortgage and you agree to pay it back, then do everything in your power to live up to that agreement. Not only did you sign the "promissory note" (meaning you promise to pay it back), but you have a moral obligation to live up to your word.

I recall a scene in "Jerry McGuire", when the football stars dad promises Jerry with a handshake, that they will sign with him for representation. He says something to the effect, "my word is stronger than oak". Not surprisingly, later we find his word is worthless, as he signs his son up with another agent.

It used to be that no one signed documents to make a deal...a handshake was all you needed and the word of honor. But today, we have pages and pages of legal papers that must be signed when any deal involves money.

It used to be, that ones signature, and the word of honor, was all one needed to rest assured he would be paid back. But today, a signature means nothing. Personal responsibility is a thought of the past. Society no longer applies moral code to itself. It is an "everyone for himself" world now.

When are we, as a society, going to say enough is enough? When are we going to stop this madness of looking to the government for bailouts? When are we, as Americans, going to bring back a moral code that stresses personal responsibility? Until we turn the tide and do this, expect more questions from home owners on Trulia, asking if it is all right to bail on a commitment they know they can fulfill.

We need to cut off the life line of taking the easy way out.

Some Legal Advice for Realtors when it comes to Short Sales

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Thu, 26 Feb 2009 15:56:42 -0600

The Minnesota Association of Realtors put out a couple of videos this week regarding some short sale practices and the legal implications that could go along with them. It is really informative on what to be careful of, should you decide to be the buyer of a clients home, and then assign the contract to a third party. The process is common in short sales, but the problem arises when the Realtor is also the listing agent, and could be putting his interests ahead of his clients. Like always, transparancy is the keyword in these types of transaction.

First Time Home Buyers Tax Credit Revisions Finally Revealed

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sun, 15 Feb 2009 13:40:52 -0600

I dove into the Stimulus Plan on the House Appropriations website to try and find out what kind of agreement the Senate and House of Representatives came to regarding the First Time Home Buyers Tax Credit. Not the most fun reading, but extremely important to know about for any serious real estate professional.

Currently, a taxpayer who is a first time home buyer (someone who has not owned a home within the previous three years) was allowed a refundable tax credit of the lessor values of $7500 or 10% of the purchase price of the home. The credit was allowed for homes purchased between April 9, 2008 to July 1, 2009. However it would have to be repaid, interest free, over a period of 15 years, or recaptured at the time of sale.

The stimulus package modifies the current rules, but also keeps the following in place:

the tax credit phases out for individual tax payers you have a modified gross income of $75,000 to $95,000 ($150,000-$170,000 for joint filers)

tax payers can claim the purchase of a home on their 2008 tax return (thus the reason for the credit beginning on December 31, 2008), even if they buy their home, for example in January of 2009

The new agreed to provisions that go into effect December 31, 2008 and are:

extends the current home buyer tax credit for qualifying home purchases to December 1, 2009

increases the maximum credit to $8000 ($4000 for a married person, filing separately)

waives the recapture of this tax credit for homes bought between December 31, 2008 to December 1, 2009

if the home is sold, or ceases to be the primary residence, within 36 months of the closed date, then the rules of recapturing the tax credit apply (currently over a time period of 15 years)

The part that really stinks about the revisions is for the first time home buyers who closed on their home between April 9, 2008 -December 30, 2008. It appears they will still need to repay the tax credit of $7500 over a period of 15 years, just as originally written, and none of the new revisions will apply to them.

Don't worry though, at least you get a tax credit. We closed on your new home in March 2008, and even though we are only 30 days out for qualifying, no soup for us!

Wake Up America!

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Tue, 10 Feb 2009 09:13:45 -0600

Ok, I just cannot take it anymore.

I have sat on the sidelines, fuming, but keeping my mouth shut here on the web.But after last nights "show" from Mr. Obama, I have had enough. (by the way, I have given this guy two weeks to show me some true leadership, and since I lost all respect for him last night, I no longer will call him Mr. President...he doesn't deserve the title).

Wake up America!

Can you not see what is happening to our country?

When someone tells you that government is the only solution to your problems and when fear is invoked to get you to go along with policy, don't be surprised when you wake up in a few years and find yourself living in a socialist society.

Remember Stalin? He ruled by FEAR. Hitler ruled by FEAR. Mao ruled by FEAR. Now I am not saying that Obama is any of these guys, but you have to wonder what in the hell is going on, when in two weeks, we have seen more social policy crammed down our throats than I have seen in my lifetime. And every time I hear Obama speak, he tells us that all hope is lost if we don't follow him. If you hadn't noticed, he is ruling by fear, folks.

Are we so willing to roll over and bury our heads into the sand, let someone else deal with our problems? Have we become a nation of so much laziness that we won't take the time to voice our objection to bills that make no sense? Are we so willing to put this burden on our children and grandchildren...paying for the sins of the father? I look at my two toddlers and seriously want to cry at what they are going to have to face in 20 years.

Washington is committing the ultimate sin right now, going against everything this country was founded on. The founding fathers are probably rolling over in their graves.

Now I have to hear that the Dems are trying to sneak in a health care provision that will drastically change the way health care is treated in the United States! Talk about sneaky politics. Or how about moving the Census under the wing of the White House so that the Dems can redistrict states for more favorable outcomes in their elections. Does any of this scare you at all?

The fact is this, it is all happening before our very eyes, and if we allow our country to move to a more socialist state, the only person to blame is the one that looks you back in the mirror everyday.

Stop listening to the fear, and decide for YOURSELF what is the truth, not what someone tells you is the truth.

Maybe our Salvation was Already Written, but we Failed to See It?

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Mon, 09 Feb 2009 11:00:53 -0600

I just read an interesting article which predicts the next 15 companies that could likely fail in 2009. While some of them are no big surprise, like Chrysler, who should have failed decades ago, or Blockbuster, who has been struggling ever since online video rentals have taken off (I am an avid Netflix fan), some are rather surprising.

Well, OK. Krispy Kreme is really not that surprising. They over expanded in the United States and stretched themselves too thin. Sometimes, staying small is the best plan for long term survival. But one that I was surprised to see is Realogy, the largest real estate brokerage in the country:

"Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room."

It will be no surprise to me if some real estate brokerages go out of business in 2009 and 2010. Many just over expanded and overspent during the fat years, and left nothing for the lean years. I believe that the local Realtor association has said about 15% of the agents in town have left the business. While driving around town, I have seen many real estate offices up for sale, as they rush to downsize and save themselves.

The funny thing about this, to me at least, is it seems many people and businesses should have reread the Biblical story of Joseph. See Joseph could interpret dreams and when Pharaoh had one he couldn't decipher, Joseph came to the rescue and predicted that Egypt would see 7 years of famine after 7 years of feast. Their solution? Put some food aside during the seven years of plenty, so they would not suffer from hunger during the famine. Hmmm...there's a novel idea.

But so many businesses, including our local governments, saw the money flooding in and decided to build larger buildings, expand, grow, grow, grow, and were so blinded by the wealth they violated history, and are now paying for it. Cities in Minnesota are right now debating on whether to cut school funding and after school programs...because they are facing a budget deficit. You've got to be kidding me. I don't see them proposing to cut a few of those high paying government jobs instead.

Please, can someone answer how governments survived 5+ years ago, before the boom, on a budget, but cannot do it today?

Down the Wintery Lane in Minnesota

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Fri, 06 Feb 2009 18:26:19 -0600

The other day we got a misty snow early in the morning which coated the trees with glimmering snow. As the sun was rising, I decided to turn down a rural lane on the way from dropping my son off at pre-school and take some shots.

Minneapolis and Saint Paul Luxury Home Market Update

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Fri, 16 Jan 2009 11:49:45 -0600

Twin Cities Luxury Market stats compared to the National Luxury Home Market

New data is out for the Twin Cities Luxury Home Market and it looks like the upper tier of homes is inching toward the national average. While it is still a buyer's market, buyer's are beginning to come out of the woodwork, getting over the fear seen across the national market, and are starting to purchase high priced homes again.

From speaking with some local buyers, they feel now is a great time to buy as luxury home prices have come down drastically in the last two years. While some are still wary, many are looking to negotiate with sellers, and sellers are now willing to listen to their wants and needs. Here are some local numbers for the luxury home market in the Twin Cities.

Average Price: $850,615
Average Square Feet: 3739
Number of Homes for Sale : 781
New Listings: 24
Sold Homes: 39
Average Days on the Market (DOM) : 153

Below are some market graphs, illustrating luxury home trends over the last year for the Twin Cities. Of course, the huge dip at the end is for December, a month which typically always produces a slower market. Stay tuned over the next few months as winter draws to an end, and the Spring buying frenzy begins, to see how the market will change for 2009.

Average prices for the upper tier having been inching up since May 2008

As soon as Fall hit the Twin Cities, available Inventory has declined

Over the last five months, the average days it takes a home to sell has increased by 40 days

Fantasy Footall? Try Fantasy Luxury Real Estate

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Wed, 07 Jan 2009 19:39:41 -0600

A few weeks ago, Forbes came out with their best picks for the Most Expensive Fictional Homes ever written about. That's right, fictional homes that don't exist.

Love the historic mansion that Lora Croft owned in Tomb Raider? It could be yours for $46.1 Million, should secret corridors, elaborate pulley systems, and puzzle gardens be up your alley.

Or you could put an offer in on the spooky mansion featured in 101 Dalmatians for $24.6 Million. The house features plenty of cobwebs, dark clouds, and kennel space.

My favorite by far would be to purchase the Tara Plantation in Gone with the Wind. Call me a romantic but I just love those big old homes in the south. It will only cost me $17.2 Million, green drapes excluded of course. But then again, Pemberly, from the book Pride and Prejudice, might beat it out, if I could afford $110 Million. (Guess I will have to stay in the States.)

The most expensive home is listed as "Xanadu, the home of newspaper baron Charles Foster Kane in Citizen Kane. Modeled on Hearst Castle, the real life San Simeon, Calif., estate of media mogul William Randolf Hearst, Xanadu was supposed to have been built on a private mountain from 20,000 tons of marble and 100,000 trees. It contained enough art for 10 museums, and the grounds were home to the world's largest private zoo"...yours for $160 Million.

Have fun looking at the 20 luxury homes featured. Which home would you choose to purchase, if you had the money, and if, the home really existed?

Rich Manor - Richie Rich cartoon
Xanadu - Citizen Kane
Burns Manor - the Simpsons
Vault 101 - Fallout videogame
Pemberly - Pride and Prejudice
Wayne Manor - Batman
Toad Hall - the Wind in the Willows
Corleone Compound - the Godfather
House on Boardwalk - Monopoloy
Tony Stark's House - Iron Man
Southfork Ranch - Dallas
Drummond Apartment - Different Strokes
Croft Manor - Tomb Raider
Jay Gatsby's Mansion - the Great Gatsby
Tony Montana's Mansion - Scarface
Beverly Hillbillies Mansion - Beverly Hillbillies
Hell Hall - 101 Dalmations
Tara Plantation - Gone with the Wind
Barbie's Dream House - Mattel
House of Usher - Fall of the House of Usher (not the singer)

Note to Buyers - Get on the Same Page Before Buying a Home

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Mon, 05 Jan 2009 09:49:32 -0600

When shopping for a new home, especially if you are a new home buyer, it is important for you think about what you want before you buy. One thing I have my clients do before we go house hunting is to sit down and make a list of the things they MUST have in the new home, and the things that would be nice to have, but don't really need if it came down to a hard decision. By going through the action of putting something on paper, a home buyer is forced into reality.

One reality often discovered is the fact that two home buyers may not want the same things. Take for instance a couple I worked with recently. The husband was happy with a home that needed a little work because the home was in a good location and would hold its value in the future. Any updating they did would only add more future value to the home. The wife however would rather buy a completely updated home and pay more for it now. Every home we entered was picked apart by one or the other. Needless to say, they were not on the same page.

It came to a point when I stopped the process and asked them to sit down at a meeting. I told them it seemed they were not ready to buy a home because they didn't really know what would work for the BOTH of them. If they cannot agree or compromise on the amenities they want, then what was the point of wasting everyone's time. Funny enough, they both agreed that a huge talk was in order. One week later, they came back to me with a revised list of "have and have-nots"...we found a home with-in a few days that both loved. Once they faced the reality of the decision making process, they found something both could live with.

In other cases, I have shown buyers what they think they wanted, only to find out it was the exact opposite. In instances like this, it works out really well if I show them two extremes in their price range, and then they can tell me which better suits them...kind of like telling them to rate a home between 1-10.
Here are some things to consider when buying your next home:

Location - many people just can't compromise on this, but if you can't afford the neighborhood or town you want to live in, then go further out to a neighborhood you like and can afford

Price Range - make sure you can afford the homes you view. Don't even think about looking at homes outside your price range that you could only afford with a low ball offer. It wastes every one's time.

Lot - think about if you want a large lot, small lot, trees, etc. Do you love to work in the yard? Do you hate to mow grass? Figure this out and you can greatly narrow down the homes to view.

Wood - do you hate oak cabinets? Now a days, many home buyers do and want different types of wood in the home. You will have to think about replacement costs for any wood you hate, or if you even want to go through the hassle. I know I hate oak and wouldn't even consider a home with these types of cabinets...unless it was for the right price.

New vs. Old - This is a big decision factor. In today's real estate market, new construction home builders are giving some pretty good incentives that rival resale homes. It could be a good way to go, especially if you would like help with closing costs as some builders are offering up to $7500 toward these costs.

So the bottom line is this, KNOW what you want BEFORE you go house hunting. And if there are two or more people involved in the decision making process, take a look at the reality of your situation and find a happy medium in which all of you can live with.

Saint Paul Historic Home # 32 - Slowly, the Neglect Shows

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Fri, 02 Jan 2009 22:40:48 -0600

* I orginally featured this home on my luxury blog, last April. Since then, the home even looks worse when you drive by it, which is what I did today. Sparkly winter snow doesn't even help.

This weeks featured historic home is located at 475 Summit Avenue in Saint Paul, MN.

Why is it that I am always saddened when I walk by this home? Probably because it looks to be slowly deteriorating, but I could be wrong. Originally built somewhere between 1880-1883, this simple Queen Anne was commissioned by James Gamble, and designed by George Wirth. Mr. Wirth built six homes on Summit Avenue.

The exterior is constructed of stone, the home has most of its original features. The front bay window on the second floor has been altered, but the most significant change came to the front porch, only a decade after it was built. The Victorian styled lattice porch was changed to a more Richardson Romanesque style porch made of stone, which can be seen in the photos below.

Here are some photos of the home as it appeared in 1888, 1890, 1900. According to public records, the home has over 7000 square feet with 10 bedrooms. It is currently used as apartments.

Here's to the Mysterious Pink Elephant That Waits for You in 2009!

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Thu, 01 Jan 2009 20:12:57 -0600

Don't we all wish for the next year to be better than the last? I know I always do...and I make goals, both business and personal, to help keep me on track to having a better year. I think the real estate market will do better than last, though it will still be "sluggish" compared to years past. But keep your chins up...unless we strive to make our lives better, they never will be.

I look at my kids and wonder how they are going to change, how much they are going to learn and grow in 2009. Call me silly, but I find the unknown exciting. If I knew exactly what was going to happen to the real estate market in the next year or two, the challenge of furthering my experience would cease to exist and I would grow bored. Some things turn out the way we hope, and many others don't. But we pick ourselves up, keep living and learning.

And of course you still need the humor and fun that goes along with life. I guess that is why, even though I like the unknown, I will still keep my magic 8-Ball around for those emergency, want-to-know, future questions.

Happy New Year!

Getting Over the Two Year Itch

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Sun, 21 Dec 2008 10:15:07 -0600

Wow, it has now been two years that I have been on Active Rain, and a little over two years that I have been blogging in general. Things have changed over this time. I used to write everyday, sometimes staying up past midnight to get my post in. However, the last six months I haven't written more than three posts a month, sometimes less. I seem to be having a combination of things happening:

Writer's Block - for the love of God, content just doesn't flow from me like it used to. Many times I sit down to write a post, and I just don't like anything that comes out.
Boredom with Blogging - yes, it is possible. I read through many blogs when I get the time and it is the same old same old. I don't want my blog to be the same as everyone else's, so I write less. But if you write less, than readers tend to stop reading. A catch 22 so to speak.
No time - I have been busy with business, or should I say, trying to save my business deals from falling through. The last three months I have been consumed with a few short sales and foreclosures, trying to keep them alive...it takes ALOT of work, and blogging has suffered because of it.
Kids - the kids have been sick a lot the last four months because my oldest started pre-school. He brings everything home, and in the end, I end up with it....not my husband, he gets away clean every time! Sick and blogging don't work well together.
More Business - I have been growing my high-end niche and it takes more time to keep clients happy. By the end of the day, I am just too tired to sit down and make my brain think. Many of my current clients found me through my blog, so the question is, will my lack of blogging equate to less business as well?

I am sure I am not alone. Even here on Active Rain, I see many once prominent bloggers are no longer so. I see alot of junk posts. with so many members, it is even more difficult to get noticed. Sometimes I wonder what the point of all this is....and then I realize that I have a really bad itch. The two year itch is seems.

How does one get over it?

I guess I can make a New Years Resolution, but most of the time, I never follow through with them. Do you? I am up for suggestions, or stories of how you got over your itch. I love to blog, and hate to give it up. I doubt I will, but I do want to get over this...become inspired again. What is your inspiration?

And on the sixth day...

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Wed, 10 Dec 2008 21:11:04 -0600

...the rain gods created auto-save. And all the agents in the land gave much thanks, for no longer would they risk losing their hard written blog to a computer error, or accidental key stroke, and it worked, and it was good.

I haven't been around as much on the rain, but it was very nice to see this new feature when I came back today. Thank you rain gods.

Is it Unprofessional to Pull Your Hair Out in Front of a Client? My Aggravation with a Short Sale

Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) — Wed, 10 Dec 2008 20:37:11 -0600

Let me tell you, working with a bank on a short sale sucks.

There, I said it.

Whew, I feel better...but I am sure it won't last long.

For the past three weeks, I have been trying to keep a deal together with a client of mine. We finally had an offer submitted and quickly sent it off to the bank. Unfortunately, it was the same week of Thanksgiving, and as you can imagine, the bank got nothing done.

First, we had to wait for the property to be assigned to a short sale rep in the loss mitigation department. (Some banks will not do this until an offer comes in). Sadly, this delays the process.
Next, we have to wait for a BPO (broker's price opinion) to be completed on the home. It follows the line of a CMA (comparative market analysis) and falls short of an appraisal.
Once we here from the bank regarding the offer, two weeks after the initial submission, the short sale rep decides to counter offer, reducing the buyer's requests and slashing the real estate commission. (Don't get me started on that part)
Next we have to negotiate back to the bank and tell them the deal will walk out the door unless they give the buyer such and such for closing costs. Not too mention that if they try and make the seller sign a promissory note at closing, the owner will just let the property go into foreclosure and the bank will lose everything.

Now, I call the bank at least two times a day, trying to push the transaction along. Christmas is just weeks away and both parties want to be in and out before then. Today I find out I have to wait until end of the week for the final approval because some other person at the bank has to sign off on the deal. Geez!

Needless to say, but the whole thing has been more aggravating than I can put in words.

People say real estate agents don't do anything and are not worth the money, but I tell you this, if you had any idea of the "behind the scenes" things we do to keep a deal from falling apart, you would change your mind. Someone once told me that real estate agents earn their money best, by keeping the deal out of trouble, and that when the deal does go south, buyers and sellers really see our true value. You can kind of equate it with insurance. You pay into it for years, and nothing happens. But finally when something does happen, you thank God for having the safety net there, even while the whole time, you didn't think you needed it.