Mary Jo Quay's Blog

Will someone please talk to Suze Orman?

Mary Jo Quay (Remax Advantage Plus ) — Tue, 08 Mar 2011 11:40:24 -0800

This morning's Today show featured internationally acclaimed financial expert Suze Orman, interviewed by Matt Lauer. Most of us are familiar with Suze's take on the housing market. This morning she was promoting her new book, "The Money Class," How to Create Your New American Dream.

There were three major points to the inverview:

1. Homeownership; many people are upside down in their homes, and losing them. They may have to rethink ownership and rent for the rest of their lives.

2. College Education; because there is no or little equity in homes, college students might consider a two year community college, and postpone the remaining two years.

3. Retirement; work until you are at least 65, and plan for the future.

60 second sound bites make good TV, but rarely good sense. A couple years ago Ms. Orman was advising buyers to offer $100,000 less than the asking price on a home because sellers had to sell. It wasn't a thoughtful strategy, it was a sound bite.

For the thousands of families who have lost their homes to foreclosure or short sale, is renting forever their best option? Is converting a nation of homeowners to a nation of renters a good solution for the US economy? I agree with Ms. Orman that the old American Dream died of tortuous strangulation in 2008. What we need is a new American Dream that is affordable, sustainable, and permanent. The day of the gated 7,000 square foot Garage Majal that served as an ATM is a dusty memory.

Home ownership is a cornerstone of the economy, rentals are not. Renting is a temporary solution. Do we want to tell a young family with small children that their kids will never have a back yard or a family room where they can invite their friends? Countless studies show us that home ownership fosters both financial and emotional stability, not to mention better grades in school. What the economy, and every family who has lost their home desperately needs is guidance to rebuild their finances and credit. Renting forever implies an expectation that families will never repair credit, have stabile income, or a place to put down roots and call their own. That isn't a New American Dream, it is an economic nightmare.

While I'm writing this I can hear Ms. Orman arguing sound bites with me.

"Yes, but they need to get their fiances under control!" she exclaims.

"I agree, but affordable home ownership is still a path to financial stability," I respond. "Renting, contract for deed, sharing housing are all options for the short run. Let's give them options, and a plan."

"Look, I'm the expert and I sell a gazillion books. Let them rent. Maybe I'll change my mind in another year," she retorts.

Will someone please talk with Ms. Orman so we can rebuild communities together?

1378 Wellesly Ave, St. Paul, right in the heart of Mac/Groveland, MLS 4016470

Mary Jo Quay (Remax Advantage Plus ) — Wed, 23 Feb 2011 14:23:26 -0800

Just listed, bright and spacious 3 bedroom plus loft, 2 bedroom transformed 1946 bungalow in St. Paul's popular Mac/Groveland. The second story addition with a huge master bedroom, walk in closets, 2nd bedroom, loft and 3/4 bath was added in 2005.

It's just blocks from all major colleges, pritvate academies, and down the block to Hamline with St. Paul public schools. You love the neighborhood, and sprawling back yard summer garden. We're holding it open on Sunday, 1-3PM, stop by for a chat. MLs 4016470

Who changed my astrological sign?

Mary Jo Quay (Remax Advantage Plus ) — Thu, 13 Jan 2011 23:50:26 -0800

To say that 'Change is in the air,' is a massive understatement. Since the onset of the technology revolution we've been hurtled through a tunnel of evolution. Today, a 13th astrological sign of Ophiuchus (how Do you pronounce that? Ofee u juice?), slid right in between Scorpio and Sagittarius without so much as a "Hi, how ya' doin?" According to a Minneapolis astronomer, the moon is shifting the gravitational pull, and that all of us have shifted backwards into another sign.

We aren't who we thought we were yesterday. Anyone over 50 knows that. We wake up to find a surprise in the mirror more mornings than not. It's not news that it has been going on for thousands of years, but why did old Opi show up now? Why have all the celebrity astrologers missed this detail?

In the year 2000, I left a brokerage because they wouldn't give me a second phone line at my desk so I could use my computer and the phone at the same time. "You can use the one in the Resource Room like everyone else," my visionary manager told me. We have evolved.

Real Estate hasn't changed as much as some industries, newspapers for example. It is now common knowledge that 80% of what we knew in 1980 is no longer valid. We no longer research, we google, (the verb) or bing (the verb), for answers with a few key strokes. We gear up like Inspector Gadget to show homes armed with cell phone, digital camera, digital measuring device (dmd), electronic keypad, flashlight, and car keys. We all know it won't stop there. Who knows what changes are in store under the sign of Ophiuchus? Are you ready to accept a new identity?

South Minneapolis DEAL OF THE WEEK, teeny, tiny, adorable, affordable

Mary Jo Quay (Remax Advantage Plus ) — Tue, 11 Jan 2011 21:28:07 -0800

Right there, in South Minneapolis, plunked in the middle of big snow drifts, is an adorable, affordable and totally rehabbed tiny house.

We've become accustomed to seeing 4000 square foot Minneapolis Garagemahals, but what about that single first time buyer who doesn't want to live in a condo? Or the couple who wants a convenient budget saving pad near the airport? We're all looking for a bargain, so here is the SOUTH MINNEAPOLIS DEAL OF THE WEEK!

This is a fabulous 480 square foot, 1 bedroom, completely new kitchen, bathroom, wood flooring for only $64,900. That is a teeny, tiny $300 Principle & Interest per month.* (depending on financing)

Windows, flooring, plumbing, electric, AND a spacious 26'x8' deck are all new. There's a nook just for washer and dryer. The home is built at the back of a full 40'x127' foot lot, so there is room for expansion, east facing garden, or to rebuild. Look quick, or you might miss it.

The only reason it is still on the market, is because you blinked too fast. CAll me, I'll get you in.

Mary Jo Quay

Realtor, GRI, e Pro, CDPE

Keller Williams Integrity

Cell; 612 384 1360

condobee@gmail.com

READY, SET, REHAB! Minneapolis remodel gets worse before it gets better.

Mary Jo Quay (Remax Advantage Plus ) — Mon, 05 Apr 2010 23:33:20 -0700

READY, SET, REAHAB! Minneapolis remodel gets worse before it gets better.

If any of you watch old movies, you might have noticed that in 1940 romances he carries her over the threshold of a dump he has just purchased where they will start their lives together. She is thrilled, and even misty among the rubble. Next morning, after she prepares a stack of waffles, sausage and Maxwell House coffee for her man, she sets to work on the house. By the time he gets home at 5PM, the shack is transformed into a darling cottage that is cleaned, painted with a remodeled kitchen complete with new curtains made by the bride. All this is accomplished with time for her to cook a sumptuous dinner.

Women are wondering who wrote those scripts, and the men are laughing. Rehabs get worse before they get better, and it takes a little more than 8 hours. Rehabbing takes careful planning, a timeline, permits, materials, and some helping hands. The Minneapolis duplex in Uptown is under way, and it looks awful. Rehab is messy. The kitchens have vanished, and bathrooms are a mere shell. Only stubs of plumbing lines remain and most of the old lead tubes lie on the floor waiting copper replacement. Wires dangle everywhere since the whole house is being rewired and replummed. Some walls are stripped to the lathe, the ugly faux wood laminate in the living room is a thing of the past. Underlying lathe and plaster walls are in good shape, but covered with a vintage printed wallpaper. The main floor bathroom is gone completely, it is being moved to another location and the space will be replaced by a sunny second bedroom, although you’d never know from the looks of it today. All the carpets are gone, revealing solid hardwood floors that will eventually gleam again. The second floor bath is pulled apart, its being reconfigured. The third floor bath will also be moved. Right now the tub abuts a low slanted knee wall for a ceiling. Unless you are 4 feet tall you cannot stand in the tub much less take a shower. It is a small space that feels smaller because the slanted roofline only has full height at the center. Clever planning and use of space will give it new life and openness.

The first phase is to take out what isn’t working or outdated,clear it out to make space for the new. The false ceilings on the first floor have been removed, new framing already replaced it. All the original millwork, doors, architectural details, and floors will be preserved and restored. But, that is in upcoming projects. Wiring and plumbing come first. The main sewer line has a crack, and needs to be replaced too. Next, plans for the kitchen and baths. Stay tuned.

MINNEAPOLIS HAS GONE TO THE DOGS

Mary Jo Quay (Remax Advantage Plus ) — Mon, 05 Apr 2010 01:06:13 -0700

Minneapolis Has Gone to the Dogs.

Minneapolis is renowned for its healthy lifestyle, walking trails, parks and lakes. What you don’t notice right away is that it a dog paradise. To most of us, our pets are part of the family, and some treat them like children. One of the easiest ways to get to know the Twin Cities is walking a dog. It doesn’t even have to be your dog, you can borrow one. Even in sub zero weather, when only big dog owners are out on the trail people will talk to the dog.

My girl is a Great Pyrenees who weighs in just under 120 lbs and looks like polar bear. Everyone talks to her. One time I had a neighbor who would hold a whole conversation with my dog as if I weren’t there. When we moved to Southwest Minneapolis we walked a lot, and I got to know not only the neighborhood, but a slew of dog parks, trails, pet stores, and owners. I used to have two cats that would follow us on the walk forming a small parade.

There are five major off leash parks in the city, and a 27,000 sq. ft indoor park, Doggy City, www.dogcitydogpark.com which has a 24/7 doggy gym for the dog who needs exercise. As the saying goes, “If your dog is too fat you need more exercise.” Besides dedicated dog parks and gyms, there are lakes, trails and parks. Minnehaha Parkway stretches all across south Minneapolis and provides miles of perfect trail for many happy dog walkers. Carol Martin, who is Top Dog at Tails of 2 Cities, is a professional pet caregiver and handler, tailsof2cities@gmail.com 612 822 PETZ. Carol specializes in pets that need specific care, like a nurse for dogs. She is a wealth of local information.

There are about 80 boarding kennels in Minneapolis. Downtown Dogs, is for urbanites who work downtown, and don’t want their pet to be left long hours alone, www.downtowndogsminneapolis.com . Stone Mountain is in the suburbs, but they send a doggy taxi that picks up and delivers your pooch for boarding, training, grooming, www.stonemountainpetlodge.com. Now Boarding is near the airport, www.nowboarding.com,where not only can you board your canine, but schedule spa treatments while you are away. They are open 24/7, with a parking facility for $11 a day. You can drop your pet and your car, then hop a shuttle to catch your flight.

When it comes to pet care, there is a wide variety of pet clinics from traditional to holistic and chiropractic. Animals get out of joint too. For high maintenance pets, nothing compares to Lulu and Luigi, www.luluandluigi.com . Technically, it is in St. Louis Park, but it is a very short trot. This pet boutique features high end dog apparel, collars, leashes, snacks and even special order dog birthday cakes for owners with a sense of humor. The full service Grooming Pawlour will have even a mangy critter strutting in high style in no time.

The end of the tail is that we love our critters, urban dogs are a lifestyle. We take care of them so they can take care of us.

READY, SET, REHAB! Uptown Minneapolis, Remodel

Mary Jo Quay (Remax Advantage Plus ) — Wed, 31 Mar 2010 12:42:31 -0700

READY, SET, REHAB! Uptown Minneapolis Remodel

After a long, bitter winter of trudging through frigid vacant Minneapolis foreclosures, we found the jewel that investor’s dream about. It’s a stately 1906 duplex with almost 2400 square feet, in Uptown. The basement is a horror, original boiler and oil tank in a dank block foundation with leaky plumbing lines. But, it was at the right price, and is in a prime rental area just east of Lyndale and a short jog to Lake Calhoun.

The main floor unit has original wainscoting, built in buffet, fireplace with green ceramic surround and mantel, hardwood floors, pocket doors, and original millwork. There will be two bedrooms, and a sparkling new kitchen and bath.

The 2^nd floor was reconfigured from the original, and has a 3^rd level that is a separate living suite. There are really three bedrooms, two spacious living rooms, and two baths.

My buyer is a green rehabber. He conserves the best of the original architecure, and upgrades with green and recycled materials. There is freeze damage to plumbing, most of it needs replacing. The heating system and electric are being updated. The real excitement begins in restoring some of the original detail. There is laminate sheathing over lath and plaster walls in the main living room, it will be ripped out and walls repaired. Drop false ceilings are pulled out to reveal high and airy rooms. Natural wood floors on floors are being sanded and polyurethaned. Original leaded glass windows are preserved, but storms and screens will be changed out.

Smart investing is an art. This investor is a smart investor. He knows that there is a short window of opportunity, and prices are already on the rise. There are several critical factors to making the right investment. Timing is one. It’s always smart to be one of the few hardy souls weathering frozen basements without heat or electricity to get the best terms. Two, know your inventory and neighborhoods. If you don’t know a neighborhood, don’t take anyone’s word for it. Do your research and walk it during different times of the day. In a city like Minneapolis, two to four blocks can make a huge difference in values and accessibility. Three, is do your numbers. Work up a spreadsheet for all your costs that include purchase price, materials, labor, closing costs, carrying costs, so you have control of your budget. Make friends with a couple contractors that you trust to give you advice on what you can do yourself, and what is better left to professionals.

It is exciting to see a home restored to it’s former integrity with green improvements that reveal the charm and character that's been so long supressed by lack of care and maintenance. It’s also exciting that I can share the process with you. In the next blog I’ll share some of the plans to begin rehabbing, and a timeline. At the end, we’ll have an open house, and you’ll be invited. Stay tuned. Ready, set , rehab!

SW Minneapolis Kenny Neighborhood holds family and real estate values.

Mary Jo Quay (Remax Advantage Plus ) — Thu, 25 Mar 2010 23:48:53 -0700

If you’ve dreamed about an idyllic urban neighborhood with a creek, lakes, schools, and shopping within walking distance, you will love Kenny in Southwest Minneapolis.

Kenny is a small neighborhood of about 3,500 bordered on the north by Minnehaha Creek, south to Crosstown 62. Lyndale Ave on the east boasts local shopping and restaurants, the neighborhood is dotted with coffee shops, ice cream parlors, churches, tennis courts, parks, and local services. The park along the Creek offers miles of trails for biking, skating, walking and dogs. If you have a dog to walk, you'll quickly get to know your neighbors who are also out for a 3.5 mile sprint around Lake Harriet just after dawn.

36% of the population is between 25-44, making it a neighborhood of young families served by Kenny Elementary and Anthony Middle School. Small kids with big back packs on their backs scurry to make the first bell before 8 AM as most students walk to school.

Currently, there are 68 active listings on the market priced from $18900 to $1,250,000. Last year 135 properties sold, only 5 were foreclosed, making it one of the more stable neighborhoods in Minneapolis. All of those sold and closed in less than 45 days. Average price point is in the high $200’s, and values have held steady since 2005. Market times are shorter than average as demand is always high. Architectural styles favor charming Tudors, Bungalows, two story Colonials, and a few newly constructed homes. Little red wagons and tricycles populate front steps as new green grass replaces snow banks.

Home Depot is overwhelmed with creative urban gardeners who start planning as soon as the snow melts. Kenny is a great SW Minneapolis neighborhood where both family and real estate values are strong. The coffee is pretty good too.

FREE Credit Repair Workshop in Minneapolis

Mary Jo Quay (Remax Advantage Plus ) — Sat, 20 Mar 2010 17:09:10 -0700

FREE Credit Repair Workshop

The economic crisis and housing market has taken its toll on thousands of families, causing stress and heartache. For far too long, easy credit seduced us to outspend our incomes, rely on credit cards, and use our homes as a personal ATM. Debt has become a four letter word to Mr. and Mrs. Mastercharge. Many people become paralyzed by fear or embarrassment, and feel that they are being held hostage by the system that encouraged them to spend. Minnesotans carry an extra burden of shame imposed by our history of frugal Lutheran settlers. You are a good person if you pay your bills, keep your floors clean, and don't gossip about your neighbors. It helps if you make good doughnuts. Money is a taboo subject, you never tell anyone if you do or don't have any. And don't go makin' airs. If you, or someone you know is suffering financial hardship, understand that you are not alone.

Counselor Realty is committed to help rebuild the economy one home at a time providing options, and resources for families to dig out. We are sponsoring a FREE CREDIT REPAIR workship with attorney Michelle Perrige Heine, of Morris Law on March 25, 6:00-7:00PM at 7250 France Ave S, Edina, conference room Level A. There is nothing to buy, just good advice.

The biggest problem that we face is not knowing what to do, where to go, and who will protect our interest in total confidence. There is nomagic bullet.

The 800 numbers or online help too often turns out to be either misleading, or downright fraud. This is a seminar with a real attorney for Mr. & Mrs. Mastercharge who want to get their life back without high fees or false promises. If you are facing either a short sale or foreclosure you will get the facts on what your options are, how it affects your credit, and what you can do right now. You will get learn:

• Little known facts about credit

• Good debt/bad debt

• Short sales/ foreclosures

• What you can do

• Where you can go for help

There will be time for questions and answers, and to talk with us privately. Please join us, on March 25, 6:00PM-7:00PM at 7250 France Ave S., Edina, Conference Rm Level A for our FREE credit repair workshop. Seating is limited. Please RSVP mjquay@mm.com or call Mary Jo Quay at 612 384 1360.

Minneapolis/St.Paul Market Update

Mary Jo Quay (Remax Advantage Plus ) — Wed, 24 Feb 2010 17:48:46 -0800

Do Statistics Lie???

We all believe that statistics give us a true overview of the marketplace. They can give us a broad understanding, but when we drill down there are stories that numbers don't address. Statistics chill the heat of the marketplace into cold numbers, pulling all emotion out of the process.

Minneapolis/St. Paul Market Update as of February 24, 2010

Over the last three months there were 7, 189 Purchase Agreements signed, and last year during the same period there were 7,186 PA's written. So, are conditions last year the same as this year? Not by a long shot.

Average days on market is down by -7.9%, 135 days.

Percentile of original price to sold is +1.3% to 92.8% of list price

Housing supply is 6.9 properties for every buyer, -28%.

Affordability index is +7.4% to 217.

We have to drill a lot deeper to find that 50% of the market for 2009 was dominated by bank mitigated properties, but those numbers dwindle as small inexpensive foreclosures are scooped as soon as they hit the market. Nowhere in those numbers do we have any idea how many offers were entered, but we do have the difference between list price and sold price. A multifamily property listed at $55K that sold for $100K skews the numbers of list to sale ratios. What do averages mean in a unique opportunity?

This year is a very different story than last. Minnesota is famous for our bitter winters, and last year there were few warriors plowing through snow banks, flashlights in hand, in searching bone chilling basements for investment opportunities. Winter of 2010 started early, first snows started in October and have been relentless. More aggressive warriors are out in force shoveling their path to foreclosure ownership before opportunity melts away.

First time buyers make up 51% of the market, and the median age has dropped from 32 to 28. They are all desperatley seeking the sweetheart deal and take advantage of the $8000 tax credit. Many find themselves beaten to the punch by investers with cash in deeper pockets.

Multiple offers on foreclosures are common. Buyers will ask, "How much lower do you think I can offer?"

Start with , "Ten thousand over list price, then be prepared for highest and best."

Confession

Mary Jo Quay (Remax Advantage Plus ) — Sat, 14 Nov 2009 23:00:45 -0800

I confess, it isn't pretty and almost ruined my career. A friend asked me to help her daughter to sell her home. Sounds good so far. The daughter is bright, savvy, with marketing background. She was planning to be married and wanted to sell her home.

As I prepared my market analysis of the home, I felt that she would be satisfied because I knew what she paid, and how much she put into it. We cheerfully sat down to review the analysis, and marketing strategy. My cheer drained to dismay as she listed the debts she intended to pay off with the expected proceeds from the sale. We were $50,000 apart on where each of us thought the sale price should be. She and her mom had predetermined the price. My friendship was on the line, and I let her talk me into taking a listing that was way over priced. We talked about price reductions, but I saw in her eyes that she wasn't hearing me.

Despite open houses, online promos, umpteen brochures, and a virtual tour, it lingered with fewer and fewer showings. She inched down in price, and we got an offer. It was $30,000 under asking price, and just about where my market landed. They were both frustrated, and we waited for a second offer. That was even lower, they were not happy.

The bottom line is that months after I listed the property there was no sale. The part about price reductions fell on deaf ears. But it was I who was deaf. I wasn't hearing my friend's daughter shouting at me that she had unrealistic expectations. I heard that I couldn't disappoint them, and had to give them the price they wanted even though she had already stripped out her equity.

They had strong opinions based on hope, the media, and their friends at work. Once I had a buyer who wanted to make a low offer on a property with multiple offers already on the table. I asked him, "So, you want to offer $20,000 less than the asking price when there are two other offers because............?"

"The guys at the factory told me I have to start low." Four offers later, he did what I told him he needed to do to get the house he wanted. We all go through this scenario with clients, friends and family. I struggle for the magic words to tell them that their friends at the factory or the university do not have the pulse of the housing market. I am acutely aware that family from 200 miles outside an urban area has different price expectations than urban dwellers. We are all searching for a way to tell our clients and be heard, that the market is what it is.

In utter frustration with a fussy client I blurted out, "Last month I put 3,000 miles on my car, showed 120 homes. I know what's on the market at what price. I know what you want, how much you can spend, and I that's what I will find for you. Get in the car and bring your check book." I felt I earned it. She wrote an offer on the second showing. If you have magic words, and the courage to stand behind them, let me know.

Media Madness

Mary Jo Quay (Remax Advantage Plus ) — Fri, 21 Mar 2008 23:18:58 -0700

I'm new to Active Rain, but I'm surprised that no one mentions all the negative media hammering on real estate. Anyone who reads runs into articles punctured with words like 'meltdown,' 'deflated,' 'collapse,' referring to either the mortgage or real estate market. It's also an election year, so panic headlines add fodder to the already ignited campaign.

One snappy young reporter from Smart Money tells readers not to buy real estate because prices are down, and it's risky. Our local reporters are quoting brokers who whine about how bad the market is. Every day headlines are screaming that foreclosures are skyrocketing. Buyers are clinign to the very fence that they're sitting on bcasue media is scaring the heck out of them. We have to let our local media know that now is a terrific time to buy.

If Toyota held a sale at 20% off, would media rant about not buying now and tell people to wait until the sale is over and prices went up again? During the boom too many people overpayed for properties they had barely seen in the heat of multiple offers. This market favors buyers and investors, and offers real bargains.

At least CNN Money is running articles like, "Time to Look for That Vacation Home, and "Discount Dreams." They ran a story with the following illustration from the National Association of Home Builders, that show how much a new home will cost now as opposed to a year ago. Those articles point out that new construction can be had at discounted prices. Materials are down because of a lack of demand. The same builder that told consumers to take it or leave it three years ago is now inviting buyers in to ask what they can do to make it happen. Some are even taking the back up house in partial payment for the new one. If media doesn't get the word out, we need to.