I've tried to duck under tables, hide behind closed doors, and cower in dark corners. No matter where I've tried to hide myself, the foreclosures and short sales have found me. I've done my best to conquer the demon and have gone to classes, and studied under agents who specialize in these kinds of transactions so I can represent my clients to the best of my ability. That doesn't mean I like them. I don't. These transactions are difficult, and often take a toll on the sellers (in short sales) and buyers. It takes a bank months to do what a good real estate agent can do in a week.

One of my clients, a first time home buyer, is looking for a foreclosure. He needs to keep his monthly payments down and doesn't mind doing some work on the house. He commented to me "It seems there are more houses coming on the market now." My response was "Yes, the suits are back from their holiday hiatus and are now ready to go to work to unload the inventory they've gathered up over the holidays."

An article this morning in inman news is predicting even more foreclosures to hit the market (again, remember this is a national newsletter and may not reflect what's happening in the twin cities metro). Even though my clients are not economists, nor do they have crystal balls, they are noticing the trend here in the Twin Cities.

I met a first time home buyer over the weekend who was looking in Minneapolis for a foreclosure. He was shocked to find out there were offers on two of the homes we looked at. If you're going to be in the market for a foreclosure this spring put on your running shoes. You're going to need an agent who watches the market very closely for you, prepares you for the ups and downs of dealing with these difficult transactions, and you HAVE to be ready to write the offer as soon as you see the house.

If Inman News' prediction is correct, the foreclosures we'll see come on the market will be listed at fire sale prices. There will be buyers who will think they can get the house at clearance prices, and a few will. The majority will sell at fair market value, because they'll end up with multiple offers that will drive up the price.

The buyers who will win in this market have a great agent, are pre-approved with a NON-fha loan, have reasonable expections for how long the negotiation process will take, and aim to get the house at a fair market price.

Source: Minneapolis Longfellow and Nokomis Real Estate Guide

The last couple of days it's been like watching an exciting auctioneer. Except he's counting backwards and no one knows when he'll stop. 6.75%...6.5%...6%....6.5%...5.0%...6.5%....4.5%...and on and on we go.

Monica Tucker told me rates were so volatile yesterday that Wells Fargo wasn't even willing to quote a rate until yesterday afternoon (Edina Realty Mortgage and Wells Fargo are affiliates).

About 5 months ago I was certain when we hit 5% on mortgage rates we just weren't going to see them that low again. This was a delicious little morsel I got to pull out of my pocket and use to taunt my husband. You see, I am in the real estate business and I am a professional.  I told him it was time to look at refinancing. Our loan is  currently at 6%, and it needed to be around 5% before it made sense for us to pull the trigger. He drug his feet, and it started to creep up to 5.375. Then, it continued to go up. I was convinced we missed our opportunity. I was convinced it was going to cost us an extra $30,000 over the life of our loan because he didn't act fast enough. So, for the last few months, I've taken every opportunity given to me to kindly "remind" him that his cautiousness had "cost" us money. I've used the "I told you so" and the "remember that 5%" and the "haven't you learned your lesson about listening to me?"

Finally, we've locked in on a refinance deal at 4.75%. We're going to float this lock for the next 60 days to be sure the rate doesn't go any lower. Rest assured, we'll both be watching them closely.

For each eighth of a point they go lower, this wife and real estate agent will be eating crow! Now he get's to say "Aren't you glad you listened to me?", and "the tortoise wins the race", and "told you so."

Last night he finally said to me, "You know, I was worried we lost our opportunity to jump in on a lower rate."

We both learned a few valuable lessons:

1) When the opportunity comes along, grab it. Although we're at 4.75% now, we could have been at 5% 6 months ago. It doesn't make sense to gamble the market because even if you're a real estate professional, no one can predict what will happen. It's a shame to pass up a good deal to wait for a great deal, and miss out on both.
2) Be careful about the I told you so's.
3) Always listen to your wife.
4) Crow doesn't taste too bad as long as your laughing about it.

Source: Minneapolis Nokomis and Longfellow Real Estate

Open a paper, turn on the TV, or while you're surfing the internet you'll see an article about real estate. Everyone has a prediction about when the real estate market will turn around and no one seems to agree. Let me introduce you to my simple math: In areas of Minneapolis and St. Paul we have about 11 months of inventory on the market. I suspect it will take at least 8 months before we start to see home prices begin normal appreciation (3-7% per year) again.

This conversation bores me. It's like hearing the same song on the radio over and over again. It's much more interesting to talk about what will happen to the housing inventory with the demand baby boomers will place on the market. Perhaps I think this conversation is so much more interesting because there isn't really anyone talking about it. It's a good thing I don't mind talking to myself!

The real estate market today is the result of a number of historical events that developed into the perfect storm. I'm starting to wonder if there is something parallel happening with the senior housing industry. There is a widening gap between what my baby boomer clients say they want, and what is available on the market.

Disclaimer: My observations about baby boomers are in no way meant to apply to the entire baby boomer cohort. These are my observations of working with elder clients and their adult children with their housing needs. Perhaps the clients I work with are the exception (they are exceptional) to the large scale, expensive market research studies the senior housing industry has conducted. Whether my clients are the exception or representative of a larger segment of boomers there is a segment of boomers clamering for something "different" than what the senior housing builders are providing.

Nursing Homes-We don't want you, but we need you
We all dream of a day nursing homes disappear. The paradoxical truth will remain that as medicine advances and keeps us alive longer, we will outlive the capabilities of our bodies, and many of us will need 24 hour nursing care. While it may look much less institutional than today, they will still exist in one form or another.

I don't want to live with old people
Baby boomers are saying they aren't too keen on age-segregated housing. Yet, I look around at the new construction of the large senior housing companies and they are flooding the market with 55+ housing and assisted living communities with more amenities that a gold crown resort.

I don't want to be put out to pasture
Baby boomers want to stay viable and active in their communities. They have a second half of life filled with new opportunities that won't center around shuffle-board. If baby boomers continue to live full active busy lives, will they have time to use the indoor putting green, wave pool and party room in the age segregated housing they don't want to live in?

I want to live in "MY" community
If builders can figure out a way to package and sell a community instead of a brick and mortar senior housing structure bloated with amentities boomers won't use, they'll make a mint!

We are already seeing the first grass-root efforts to define age friendly communities. In Minnesota, St. Louis Park has the Naturally Occurring Retirement Communities (NORCs), and Monterey is the first co-housing community in the Twin Cities and there are others underway.

I'm just a real estate agent who specializes in helping elders with senior housing options. I'm not an economist. But I'd like to know...what will happen with all of the new assisted living structures that are being built, if boomers don't want to live in them?

Other Articles:

Real Estate Investors, Give Those Baby Boomers What They Want

5 Pitfalls of Looking for Elder Care and Senior Housing on the Internet

Senior Condominium vs. Senior Cooperative, What's the Difference?

Seniors Stay at Home with NORCs

I have a quick quiz for you to take and I hope you'll leave some feedback.  Here's the dilemma:

Let's say you go to Target to buy a shirt. The sales tag says the price is $50. You hand the clerk behind the register $50. When the sales clerk scans the sales tag, the price comes up as $25. There the clerk stands with your 50 dollars in hand. Should the clerk tell you the real price and refund $25 to you, or pocket the profit with no mention of what the shirt truly costs? Is $25 that big of a deal?

That's exactly the position Hennepin and Ramsey county are in, and THEY AIN'T TELLIN!

To see the rest of the article and to join the conversation, join us at the Nokomis Longfellow Real Estate Guide

I continue to have opportunities opening up to me thanks to first learning how to blog at ActiveRain in November of 2006.  

I've been working hard on my other blog (Real Sage Advice) where I address senior housing and aging issues.  Because of those efforts I've just recently been given my own little corner of the Gilbert Guide blog.  Gilbert Guide has a panel of experts that address aging issues; from long term care insurance, financial planning, cancer treatment, and geriatric care management. NOW they have a Senior Real Estate Specialist to add to their knowledge base. 

I'd love to give you a list of "what I've learned by contributing to a group blog" or "what you should know about copyright when you post on someone else's blog" but today, I'm just keepin it simple, appreciating the opportunity, and feeling grateful for this community and the people I've met because of it.

This is completely off topic, but I just have to share it. You can see the original post at RealSageAdvice-my other blog where I talk about senior housing and aging issues. Jay Leno featured The Zimmers on the Tonight Show last night.  Here they are in all their glory, the oldest rock band in the world.

Henry Wadsworth Longfellow wrote "The Song of Hiawatha" which is where many of the nomenclatures of the East Nokomis Neighborhood come from. I learned about this while snooping around on the Nokomis Neighborhood website.  It referenced the poem, but didn't tell me much about it.

You can see the original post at www.minneapolisnokomis.com.

The following table references the meaning of some of the names we find in the Nokomis and Longfellow neighborhoods in South Minneapolis.

Being a REALTOR who blogs somehow seems to force me out of my shell. I've started to carry my camera with me everywhere so I can make a point to grab pictures of the amenities of my neighborhood in Minneapolis. I love the Longfellow Nokomis area. There's SO much to write about!

I've driven by the Longfellow Gardens a million times and never stopped to look at them...until today. It seems there are always a million things to do and not enough time to do them in. Today I made it a point to spare 15 minutes to stop, and literally, smell the roses. What a great way to start the day.

If you're selling or buying a home it's so easy to get caught up in the emotions of it all.  I encourage you to take a 15 minute break today and find a way to rejuvinate yourself. Your mind, body and spirit will thank you for it!

Get more information about the Minneapolis Longfellow and Nokomis Real Estate Market at the Longfellow Nokomis Real Estate Guide

It's very common in the Twin Cities market for first time home buyers to ask sellers to pay for some of the buyer's closing costs. Today's buyers may have "A" credit, have a good job, and a good lender, but they have trouble coming up with enough money to pay all of the closing fees to get into the house.

Sellers who are wanting to negotiate in good faith with a potential buyer often raise the sale price of the home to compensate for contributing to the buyer's closing costs.

When the sale price of the home goes up, so does the commission. As a result, we are seeing these kinds of comments in the MLS more often:

• "Commission not paid on seller concessions", or 
• "Commission based on net."

This statement was just released by our regional MLS:

There is nothing to prevent these kinds of changes to the compensation being negotiated between the parties before a deal is concluded. However, the listing broker may not require (through statement on the MLS) the cooperating broker to accept a commission based on the net sales price (or other deviations from the rule). Compensation offered strictly according to the rule of flat dollar amount or percent of gross selling price is essential to preserve the contractual relationship between brokers that is created by participation in the MLS.

Why should a seller have to pay a real estate agent's commission on a sale price that's been adjusted to include buyer's closing costs?  It doesn't seem fair that a seller would be penalized and charged more commission simply because they are trying to negotiate a sale with a buyer.

I love gadgets and technology. I enjoy spending time on my website, blogging and producing my own virtual tours. I enjoy going to listing presentations and telling prospective clients I have an internet marketing STRATEGY not just a website. Our regional MLS in the Twin Cities allows 10 pictures on the internet, Edina Realty allows up to 30 pictures, but my website, www.TwinCitySeller.com has the maximum amount of customization with unlimited pictures, a customizable brochure and virtual tour...and it's where I spend a lot of my marketing time.

I'm always looking for ways to get people to my website because it's one of the best ways I have to show off my clients home. 

Despite all of the technology, I still get calls off of yard signs. A lot of them. People are still intriqued by the big white post and the "for sale" banner that hangs from it.

So, I thought I'd try this yard sign that will go next to the big for sale sign:

Are you using some old fashioned marketing to drive traffic to your listings?