Move To Edina!

Both First-Time and Current Home Buyers in Edina Qualify for Extended Tax Credit

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Thu, 12 Nov 2009 15:21:39 -0600

Many people in Edina and the greater Minneapolis-St. Paul area took advantage of the first-time home buyer tax credit this year. There were many others who weren’t quite ready to make that jump into home owners, as well as many current home owners who wished they could participate in the credit. Well, if you were one who delayed or didn’t qualify, your chance may have arrived! An expansion and extension of the credit was approved and it’s yours for the taking.

Last week, the credit was extended for another 6 months and expanded to include first-time home buyers with higher incomes. The Worker, Homeownership, and Business Assistance Act of 2009 opens the up-to-$8000 tax credit to almost all first-time home buyers by increasing the maximum annual income. The income cap for single home buyers has increased from $75,000 to $125,000. The cap for married buyers jumps from $150,000 to $225,000.

Home owners looking to purchase a different home shouldn’t feel left out anymore, the new credit covers them as well! Homeowners who lived in their home for at least 5 consecutive years in the past 8 are eligible for a tax credit of up to $6,500 on their next primary residence purchase. The income limits are the same as for first-time home buyers.

The purchased home must be a primary residence costing less than $800,000. Live in it for at least three years after purchase and the $8000 will not have to be paid back.

In order to fight tax fraud, the new law requires anyone claiming the credit to provide documentation that the sale has closed and only adults can claim the credit.

Anxious for your money? Even if you purchase the home in 2010, you can claim it on your 2009 taxes and get an almost instant credit back. Ask your tax professional for details!

Sales contracts must be signed by May 1, 2010, with closing by the end of June. Don’t waste time, let’s start looking! Call me today and I’ll show you what’s available.

If you are a home owner wishing to sell, call me and let’s get your house on the market in time for your next home purchase to qualify you for the credit!

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Looking for a home in the Edina area? Visit my website. When you are ready to visit any of these homes, or if you would like to list your home, contact me, Chris Prescott, at (952) 944-1728 or via email.

Planting Spring Bulbs in Minnesota

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 06 Nov 2009 11:45:45 -0600

If you have delayed planting your spring bulbs, delay no more. The University of Minnesota Extension Service recommends planting of most spring bulbs in Minnesota by the end of October. Early November may not be too late though, especially for tulips which can be planted as long as the ground isn’t frozen too hard.

Here are some tips to remember:

Bulbs should be firm with a papery skin. If soft or moldy, throw them away.

Bulbs need to be able to grow roots once planted in the fall, and they need the cold winter to break their dormancy cycle in order to bloom in spring.

Bulbs will need warmth and light in the spring to trigger their growth. Choose a site that will not be shaded in early spring.

Bulbs can be planted under trees as long as they will receive enough light before and just after their blooming season. Full shade in summer is acceptable.

Soil near southern and western exposure foundations could start to grow too soon, risking cold damage. It’s better to plant in an area that is sheltered from damaging winds but that will not warm up before other areas.

Bulbs need rich, well-drained soil. Avoid areas that tend to fill with water during rain storms.

New bulb beds should be cleared of rocks and matted roots, and some organic matter should be tilled in to a depth of 10-12 inches. Add some fertilizer in when tilling, but do not add it directly to the bulb holes.

Plan to plant the bulbs in odd numbers or mass plantings. Put the bed where it will be enjoyed from a window or the road.

The basic rule for planting depth is 2 ½ times deeper than the diameter of the bulb. Sandy soils should be a bit deeper, and heavy clay soil should be a bit shallower.

Always plant the bulb with the pointed end facing up, cover with a portion of the soil and water well. Add the rest of the soil, smoothing the surface, water again and add 3-5 inches of mulch. Leaf material, grass clippings and straw work well. (You will remove much of this mulch in the spring.)

Then sit back and wait for spring!

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Edina Minnesota Public Schools: Creek Valley Elementary

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 30 Oct 2009 18:59:53 -0500

Creek Valley Elementary is one of 6 elementary schools in Edina Public School District. The school’s mission is to “educate the mind and heart of each student in a safe and positive environment with shared, active, and meaningful learning through careful planning and an emphasis on community partnership and the practice and application of ethical values.”

Creek Valley Elementary has an active PTA and Site Council, holds regular events for students, and strives to create a fun and educational environment for students while maintaining communication with and participation of parents.

Edina Public Schools have been recognized by publications around the nation as outstanding. One of the most recent was Family Circle magazine, which ranked Edina as one of its top 10 towns, due in large part to the quality of Edina Public Schools.

Creek Valley Elementary is located at 6401 Gleason Road in Edina. For more information on other Edina public schools, visit the Edina Public School District’s website. http://www.edina.k12.mn.us

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Canstruction at Mall of America

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Sat, 24 Oct 2009 13:01:36 -0500

Looking for a unique activity this weekend? Head over to the Mall of America in Bloomington. There is a unique competition going on.

Called “Canstruction”, architect students are competing to see who can build the best structure. But these aren’t just any structures. They are made out of cans. Regular cans of corn, fruit cocktail, SpaghettiO’s, and everything else you can think of!

Beginning today, the competitors have 12 hours to create the most creative and intricate designs they can. Judging of the competition will be Sunday afternoon.

Here is a quick video I found on YouTube showing an entry in a similar Canstruction competition in Canada. Enjoy!

The designs will be deconstructed on Monday and the food donated to the Second Harvest Heartland food bank in St. Paul. Last year the competition raised nearly 20,000 pounds of food!

Want to contribute to the competition and the food drive? Be sure to bring along some canned goods with you when come. These can be delivered to the Sears Court stage throughout the event.

For more information on this competition, visit the Canstruction website.

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Save for more than your down payment

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 16 Oct 2009 22:07:33 -0500

When purchasing a house, having a sizable down-payment has always been good advice, and with today’s tighter credit guidelines it is essential. However you need to keep in mind that you will need savings beyond the down payment of your home. Here is a list of the things that usually come up during a home purchase and subsequent move that will require some cash.

Appraisal fee
Professional home inspection
Extra closing costs
Homeowner’s association fees
Repairs, upgrades, renovations. There are the obvious and the not-so-obvious. Your inspection may have suggested upgrading some of the electrical outlets, and you may already know you don’t like the paint color, but after you move in there are little things you will probably notice that will you’ll need some cash to rectify immediately.
Moving van rental fees, boxes, bubble wrap, and mover’s fees. Even if you enlist the help of friends or family, you will need to feed them or at least provide them with refreshments. And don’t forget the gas for the moving vehicle!
Termination fees for current services, deposits and connection fees for new services.
Appliances. If your new home already has a full set of appliances, then you can scratch this off your list! If not, be sure to remember the extra costs involved with warranties, installation, etc.
Household items. Invariably you will find that the stuff you filled your last home with are not quite right for the new one. This can turn into hundreds or thousands of dollars from runs to the home furnishings store and home-improvement store.
Lawn-care equipment. If this is your first home with a yard you will be surprised at how much equipment you will decide you need. An alternative is to hire someone to do your lawn care for you, which will still incur a cost, although it will be spread out over the coming months.
If you are relocating a great distance you might have air fare or other transportation costs for your entire family (pets included), a night or two in a hotel, and all the other expenses that can creep up.
And don’t forget that for at least a few days you might be eating out while you search for that box of dishes!

Once you have that downpayment and the extra savings accumulated, be sure to give me a call so we can find the perfect Edina home for you!

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Halloween fun in Minneapolis

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Sat, 10 Oct 2009 22:36:24 -0500

There is some spook-tacular fun to be had around Minneapolis and St. Paul this Halloween season. Get your little goblins and head out to some of these fun activities over the next few weeks.

ZooBoo at Como Park Zoo. Oct. 17, 18, 23, 24, 25, 4:30-7:30 pm. $7 at the gate.

Apple Jack Orchard Corn Maze. Saturdays & Sundays through Halloween. Saturday nights are flashlight night until 10 pm. $6 adults, $5 ages 6-11, free ages 0-5.

Minnetonka Orchards. Lots to do! Open daily 9 am-7 pm. October theme days:

CiderFest, Oct 17 & 18
Bonfires and Hayrides, Oct. 24 & 25
Dog Days of Fall, Oct. 31-Nov. 1

Autumn Unplugged at the Arboretum. All month! 3675 Arboretum Drive, Chaska. Admission is $9 for adults, free for members and children 15 and under. Activities include:

Weekend Family Fun every Saturday and Sunday, noon-4 pm.
Pumpkin Palooza, ongoing through Nov. 1.
Pumpkin Palooza Weekend, Saturday and Sunday, Oct. 24 & 25, noon-4 pm.
Ar-Boo-return Halloween, Saturday, Oct. 31.

Halloween Happenings. Three Rivers Park District Halloween events. Find one near you!

Special events at the Minnesota Children’s Museum. 10 West Seventh Street, St. Paul.

Spooky Woods, Oct. 20-Nov. 1
Halloween Spooktacular Parties, Saturday, Oct. 24, Sunday, Oct. 25, 6-8:30 pm; Monday, Oct. 26, 10 am-12:30 pm; Saturday, Oct. 31, 6-8:30 pm.

Pumpkin Patches and More. A comprehensive list of pumpkin patches, corn mazes, safe trick-or-treating, hayrides, etc throughout the state of Minnesota.

That’s a lot to do! But I’m sure there is more. Have you seen anything fun to do out there is goblin land?

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Extreme Makeover Home Edition in the Twin Cities

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Sat, 03 Oct 2009 09:16:15 -0500

There’s an Extreme Home Makeover going on in the Twin Cities this weekend. The TV show’s crew and an army of local volunteers has demolished the crumbling home of St. Paul’s Sandy Morris and is building a new home that could house her family for another 100 years.

The old house had a crumbling foundation, sinking roof, buckling walls, and a mold problem. It is a much needed rebuild, but since Sandy grew up in the house it is a bittersweet blessing. In an interview with the Star Tribune, Sandy said “It’s going to be quite emotional.”

Sandy runs a successful and very popular day care center in her home, and the new house will accommodate an expansion of her day care as well.

As in many of the Extreme Makeover Home Edition shows, the mission is to improve the neighborhood as well as the family’s home. In this case, there is a food drive, a blood bank, and a neighborhood cleanup going on which will provide benefits to everyone in the vicinity.

The crew can use all the volunteers they can get to complete all the projects in their designated 96 hour time frame. They need qualified carpenters of course, but also anyone who can help with painting, cleanup, minor repairs, etc. According to their website, they “need 100-200 volunteers a day that will be used in traffic control, clean-up, catering, shipping, and other misc. duties.”

Volunteer shifts are running every 4 hours, beginning at midnight. They request check-in to be 20 minutes prior to the start of a shift. Volunteers are especially needed in the overnight hours.

While they might end up turning people away, if you want a chance to help improve the lives of a deserving area family and improve an entire neighborhood in the process, put on your steel toed boots, grab your hammer and head on over to the site! Well, first you need to head over to their website and read all the rules and find out just how to volunteer.

Oh, and don’t forget to donate blood at the associated blood drive. You can find more information on the Red Cross website.

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Bicycling in Edina Minnesota

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Sat, 26 Sep 2009 21:45:39 -0500

Bicycling is a popular sport in Minnesota. So popular that we have more bike trails than any other state in the country! Hennepin County has an extensive list of trails available for leisure, exercise, and basic transportation. While many of these are on-road routes, the number of off-road trails are growing as well.

The Minnesota River Bluffs Regional Trail follows the path of an old railway and runs from Hopkins through Chanhassen. There are plenty of entry points and stop-offs, beautiful views, and notes of history along the way.

One of the best treasures of nearby Eden Prarie is Birch Island Woods. It is 36 acres of protected sanctuary in its natural state with trees and wetland. Bike trails, along with hiking, ski, and nature trails, snake through it and are linked to the Minnesota River Bluffs Regional Trail.

Within the city of Edina, there is progress on improving the bike trail system with a comprehensive plan that is being implemented. The goal is to create a bike-friendly community conducive and safe to all kinds of bicycling. Follow the latest improvements, view the whole plan, and find upcoming bicycle events at Bike Edina.

Check out the list of frequently updated Edina bicycling events, maps, and comments from MapMyRide.

Want some more to do? There is lots of general info and social bicycle events on the Twin Cities Bicycling Club website.

On a final note, before you jump on your bike, help keep our bike trails safer by reviewing the rules of The Minnesota Share the Road Bicycle Safety Education Program.

Enjoy your ride!

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To begin your search homes in Edina, visit my website. When you are ready to visit any of these homes, or if you would like to list your home, contact me, Chris Prescott, at (952) 944-1728 or via email.

Move To Edina – 6025 Wooddale Ave – Charming!!

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Sat, 29 Aug 2009 09:22:51 -0500

Listed at $409,000, this charming home at 6025 Wooddale Avenue in Edina has been updated throughout.

A beautifully landscaped lawn, front and back, graces the exterior of this home. The kitchen opens with French doors to the backyard patio area creating the perfect space for grilling and entertaining.

This Edina home features a family room in the finished basement next to an in-law suite complete with a second kitchen!

This 2120 sq foot home has 4 bedrooms, 3 bathrooms, all appliances, a wood burning fireplace, and a detached garage.

Within the top-ranked Edina School District!

Click here for more information on this great home at 6025 Wooddale Ave in Edina, Minnesota.

See all the hottest listings in Edina!

Presented by Coldwell Banker Burnett.

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Under Construction: Orthopedic Center of Excellence in Edina, Minnesota

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Thu, 06 Aug 2009 23:17:21 -0500

Construction cranes are operating in Edina at the site of the new Orthopedic Center of Excellence. The building is designed to bring together all the offices and services of Twin Cities Orthopedics (TCO), an independent physician’s group specializing in all areas of orthopedic care.

The 75,000-square-foot building is a year-long building project which will provide the ‘perfect’ facilities for the medical group while also providing some great construction jobs in this year of few new building projects.

The site of the new center is a full two acres and is located on 65th Street between Valley View Road and France Avenue. There is easy access from the freeway (Highway 62) and is next to Fairview Southdale Hospital.

During two years of planning and difficult decisions, including the scrutiny of 18 pieces of real estate, the 65th Street location was selected…and it wasn’t even on the market. The site was known by the developers and they approached the owners when it seemed the property’s strength’s outweighed those of the other locations.

Construction began on the new facility in April and is expected to be completed Summer, 2010. You can read more about the project on the website of Finance And Commerce, “Minnesota’s only business daily,” or at the TCO Press Room.

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Bigger Barns--The Quest and the Need for More Storage

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 24 Jul 2009 12:43:40 -0500

Did you know that the average home in America averages 2,521 square feet, about 150% the size of the average home in 1977. (We crowded into tiny 1,720 square foot dwellings back then!) Though recent economic trends may lead to smaller homes in the futures, the stereotypical family of two adults and two children (rounded up from the statistical child parts statisticians account for) has enjoyed an increasing amount of space for themselves and their “stuff.”

All of this “stuff” complicates plans to move, do a major remodel, or even free up an area of the home for more efficient use. What happens to the stuff? For some people, the old adage “if you haven’t used it in a year, get rid of it!” is a hard and fast rule; for most people the answer is “store it.” A walk through any Wal-mart, Target, or Junkorama of your choice will lead you to a big area devoted to storage containers in all colors, sizes, and shapes. These containers are a nice way to organize either often-used or seasonal items; they also allow people the chance to add a colorful touch to the basement, attic, or garage where items will linger for years in corrosion-resistant plastic rather than in deteriorating cardboard boxes.

What doesn’t fit at home is often stored in one of the nations 52,000 self-storage facilities. One of 11 American households rents outside space, for an average of 15 months. A whole industry has emerged from a few garages rented out for storage in Texas in the late 1960’s. Current facilities still often resemble garages, though some boast that the units are “climate-controlled,” and may have special storage configurations for boats and RVs.

While consumerism may be at the root of the American Manifest Destiny-like quest for storage space, part also has to do with home construction practices. Many homes have closets and rooms that are too small to accommodate what people own (i.e, home exercise equipment, camping equipment), and Homeowners Associations seldom like to see a big boat in the drive all winter. In areas of the country with more ranch homes and bungalows and their limited storage, the self-storage rates are much higher than in the Northeast. Housing in most areas does not feature attics, as home builders use trusses, rather than rafters to frame the roof, so little space is left under the roof.

Blame it on builders if you like but this trend toward storing unused personal goods brings to mind the rich man in the Bible (Luke 12:18) who preferred to tear down his old barns and build bigger ones to store his extra crops. Americans are great consumers, who at least until the current recession, outspent the rest of the world 2-to-1 on personal consumption expenditures (often on credit, another topic!) That Biblical hoarder died before he could even move his corn. No doomsday parallels are intended here but the storage bins, the mini-storage units, and even the rise of stores selling “home organization” aids are the Twenty First Century equivalent of bigger barns!

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Need a larger home for your stuff? Visit my website. When you are ready to visit any of these homes, or if you would like to list your home, contact me, Chris Prescott, at (952) 944-1728 or via email.

Fence Sitting? It's Time to Buy in Minnesota!

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Wed, 08 Jul 2009 13:08:41 -0500

If you’ve been sitting “on the fence” waiting for conditions to improve before you purchase a home, fence sit no more! The Twin Cities housing market offers incredible opportunities for first-time buyers as well as move-up buyers.

In the Twin Cities, we’re seeing lower home prices than in previous years and historically low interest rates. In early July, 30-year fixed-rate loans were available in the low 5 percent range, and 15-year fixed-rate loans in the high 4 percent range. These rates are amazing, especially when you compare them to previous years such as the ‘80s when interest rates were in the double digits. This wonderful combination of low interest rates and moderating prices is resulting in excellent affordability. Home prices are well within the means of the average Minneapolis or St. Paul resident.

The Twin Cities also has an excellent supply of homes for sale in all price ranges, styles, and communities. Buyers can choose from new construction, existing homes, starter homes, luxury properties, condominiums, co-ops, townhomes, and lofts.

Also, if you’re a first-time home buyer, don’t forget the tax credit authorized by the American Recovery and Reinvestment Act of 2009. Under this act, first-time home buyers can receive a tax credit for 10 percent of the value of a home, up to $8,000. This is a great incentive, especially since you don’t need to repay the tax credit unless you sell your home within three years. But, you only have until Dec. 1, 2009 to take advantage of this credit.

So, start looking for your next home now. Enjoy our beautiful summer weather and the benefits of the Minnesota housing market.

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You may be eligible for a refund…

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Thu, 25 Jun 2009 13:33:43 -0500

Those are words that perk your ears up! And if you have ever had an FHA-insured mortgage then you should pay attention. While the refund process should be automatic, sometimes a refund gets missed or the payee can’t be located. First check the HUD website to see if you are owed a refund. You will need to enter your name or your FHA case number.

To be eligible for an insurance premium refund, you must meet these requirements:

acquired your loan after September 1, 1983
paid an up-front mortgage insurance premium at closing and
did not default on your mortgage payments

To be eligible for a distributive share from the Mutual Mortgage Insurance Fund you must meet the following:

originated your loan before September 1, 1983
paid on your loan for more than seven years and
had your FHA insurance terminated before November 5, 1990.

The HUD site encourages people who need help with their refund to contact them directly and not to hire someone to assist in collecting the refund. Often the collectors are scam artists. The direct number to the HUD support center is 1-800-697-6967.

For more details, directions on requesting your refund, and a list of the exceptions, read the FHA Homeowners Fact Sheet.

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Edina High School: One of the nation's best!

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 19 Jun 2009 11:27:47 -0500

This shouldn’t surprise any locals, but Edina High School ranks as one of the top 110 high schools in the nation! Newsweek magazine released a list last week of the top 1500 high schools and Edina ranks at 108! Among the Minnesota schools on the list, Edina High School ranks at number 2.

According to Newsweek:

Public schools are ranked according to a ratio devised by Jay Mathews: the number of Advanced Placement, Intl. Baccalaureate and/or Cambridge tests taken by all students at a scEhool in 2008 divided by the number of graduating seniors. All of the schools on the list have an index of at least 1.000; they are in the top 6 percent of public schools measured this way.

The Twin Cities area has 11 schools appearing on the list and Minnesota has 27 overall. This simply confirms what we have known all along. Minnesotans are a smart bunch!

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Home Decor when the World is Watching!

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 12 Jun 2009 08:20:54 -0500

The old Shakespeare-based adage “all the world’s a stage” is nowhere so true as in the world of modern real estate. Staging, the art of preparing a home for sale by de-cluttering, depersonalizing, cleaning, repainting, rearranging, landscaping, and cosmetically improving a home to make it more saleable, has become the norm. The theory is that when a home is properly staged, it will appeal to the largest number of buyers, sell more quickly, and sell for more. While “staging” has always been a normal part of getting a home ready to sell, since the 1990’s, staging has become an industry of its own that has emphasized home presentation.

This theory is backed up with data from HomeGain.com. For a modest investment, staging efforts bring three to six times their value increased prices, as noted in the chart below.

Part of staging is repainting dingy walls before moving, preferably in neutral shades. While there may be a few potential buyers in the world that hate eggshell-colored walls, statistically, there are more who would reject a home because it had a fuschia living room. Even when paint is in good condition, it tends to yellow with age, so a fresh coat brightens up a room and makes it inviting.

Buyers typically do not want to buy other people’s dirt, even if they are not good housekeepers themselves. It’s really important that the house be clean and free of clutter. If a house is clean but cluttered, the clutter is so distracting to buyers that it makes it harder for them to visualize how their things will look there. Clutter also makes the buyer wonder if the seller is covering up a flaw. Ideally, sellers should prepare for the upcoming sale of their home by selling or donating what they won’t be taking to the new home and by neatly organizing the rest. Since it’s fair game for home seekers to open every closet, purging is a better technique than relocating clutter.

Because the yard is what potential buyers will see when first approaching the property, improving the exterior landscaping will add curb appeal. (Some real estate professionals say people are attracted to a home within 8 seconds of seeing it!) At the minimum, lawn and gardens should be neat and appear well tended to. A plant on the porch might be nice touch accomplished by a $10 visit to Home Depot. The rest of the exterior should look pleasing too. A truck full of Home Depot geraniums won’t incite house-love if the siding is falling off or the steps are cracked.

The next level of staging, often done by professional decorators, designers, and real estate agents, concentrates on furniture rearrangement, accessorizing, and depersonalizing the space. The idea is to make the home look more like a new model home. Extra furniture might be put in storage so that a few pieces might be arranged to maximize the space. Family mementos are often tucked away so potential buyers can more easily see their bowling trophies on the mantel in the family room or their mother’s picture in the living room.

This last phase of staging is often replicated in vacant homes by renting furniture, as having furniture in the room gives a better perspective on room size. Furniture also makes a home look more “wanted” and tends to make the home sell more quickly than an empty home.

Some of the staging effort may seem like common sense and some may seem contrived. It’s best to remember that, especially in the current market, few homes sell themselves. Proactive marketing effort is necessary to make a nice home an outstanding one on the real estate stage. These days, there is so much competition among homes on the market that proper staging will give your home the applause and the curtain call you want – a sale!

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To begin your search for some beautifully staged (and non-staged) homes in Edina, visit my website. When you are ready to visit any of these homes, or if you would like to list your home, contact me, Chris Prescott, at (952) 944-1728 or via email.

Fabulous Contemporary Townhome

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Wed, 03 Jun 2009 12:31:28 -0500

Finding an Angel Might be the Answer to finding a Mortgage

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Thu, 28 May 2009 18:48:41 -0500

People are saying that mortgage loans are hard to come by, but that’s not true in all cases. Those with excellent credit and a reasonable income can still get a loan from a mortgage company or a bank. People with not-so-good credit are discovering that finding mortgage money can be a problem.

For those with less than stellar credit but with average or higher incomes who want to take advantage of the lower priced properties that have flooded the housing market, the answer may be finding an Angel. An Angel is an individual investor, usually with cash to lend to home buyers or someone who has a preferred rate with a bank. Sometimes the Angel is a friend or relative, but there are professional Angels as well. This is how the angel system works:

Let’s say that a distressed property is selling for $60,000 but the estimated worth, once fixed up, is $150,000. The needed repairs cost $20,000. Add the cost of the house to the repairs and you’ll need $80,000, an amount which comes out of the Angel’s pocket when he buys and fixes up the house.

Meanwhile, the hopeful buyer (we’ll call him ‘Bob’) rents the home from the Angel for $800 per month (1% of the cost of the house) for six months to a year as he cleans up his credit. (Remember this won’t work unless Bob has a good income and is willing to work to raise his credit score.)

After the six months (or more) have passed, Bob the Renter can become Bob the Homeowner with his improved credit score and a mortgage loan from a bank or mortgage lending company. The house is now fixed up and worth about $150,000, but Bob buys it for $100,000 from the Angel. The Angel now has $100,000 in cash from the home sale (a 20% profit on his investment) and Bob has a $150,000 home for which he paid only $100,000.

While not everyone has a friend or a relative who can help in this way, many mortgage brokers have contacts with Angels. Of course, any buyer who decides to use an Angel should be sure to understand how this system works, be willing to sign a promise to buy the home even while still a renter and must work to improve his credit score so that when the time comes, he can get a mortgage.

As with everything, there are risks, but for some, an Angel may be the answer to how to afford to buy a home. This scenario is only an example and every situation is different. Before making a commitment, talk to your real estate agent , loan officer or a real estate attorney to decide if an Angel is right for you and your circumstances.

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If you would like to see any of the homes listed in the Minneapolis area, contact me, Chris Prescott, at (952) 944-1728 or email me .

Click here to start your search for a new home.

Are first-time home buyers fueling a housing market rally?

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 15 May 2009 11:01:38 -0500

Buyers who are still waiting for the residential real estate market to hit bottom may have waited too long. The first week in May signaled changes and while there will still be bargains to be had, they might become harder to find.

Housing sales were up for the second month and after five months of declines. At the end of March, there were 3.74 million existing homes on the market, taking an average of nearly ten months to sell. But foreclosures, short sales and bank-owned properties are suddenly selling briskly.

At the beginning of 2009, it was not uncommon to see foreclosed homes sit on the market for a year or more. Suddenly, starting at the end of April, real estate agents who specialize in foreclosed and bank-owned homes are reporting getting multiple offers after only a few days. Many of these homes need work. Some need a lot of work. Many of these buyers are investors, bringing in professional crews to fix and resell the homes in a couple of months. But, first-time buyers account for more than half of recent home purchases.

For those planning on living in their newly bought homes, low interest rates and the $8,000 tax credit/rebate for first-time buyers can help pay for needed repairs. Before clinching the deal, buyers need to have an eye for potential and an ability to look beyond bad paint jobs, ugly carpet and dirt. They also need to hire a professional inspector take a look at the house. It’s best to find hidden problems and be able to walk away before the final papers are signed than to discover that the ‘cosmetic only’ fixer-upper needs all new plumbing or major electrical work.

Handymen and women have an advantage, but whether new home buyers plan to do the work themselves or have experts do it for them, they need to factor in the costs of repairs. Real estate experts recommend that buyers come armed with a sharp pencil and knowledge what they can afford. If there are multiple offers, buyers should avoid getting caught up in a bidding war and paying more than the home is worth or more than they can afford. There are always more homes coming on the market from which to choose.

The price of foreclosed properties have also driven down the price of other non-foreclosed homes nearby and sometimes these homes are even better deals. They are usually in good shape and buyers have more bargaining power than with a foreclosure home, when every negotiation has to go through a bank.

The warmer weather and longer days are also a factor bringing out the buyers, especially in colder climates. Will this summer see an end to cheap homes prices? Maybe and maybe not. No one knows for sure, but what is certain is that right now is a good time – especially for first-time buyers – to buy a home.

If you are ready to take the leap into purchasing or selling your home, contact me, Chris Prescott, at (952) 944-1728 or email me.

Click here to start your search for a new home.

Charming West St Paul Two-Story Home!

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 15 May 2009 08:28:05 -0500

Fantastic multi-level home has great flow with open spaces. Gleaming hardwood floors and natural woodwork. Enjoy the cozy 3-season porch and balcony overlooking a large backyard with mature trees. Close to schools, parks, shopping and freeways. A must see!

The Good and The Bad: Bank Owned Properties

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Thu, 07 May 2009 15:02:10 -0500

There are a lot of people who are beginning to take advantage of the post-bubble home prices of bank owned properties to make a housing purchase before the chance is gone. If you are one of them, there are some things you should know before you make an offer.

Banks have no emotional ties to influence their side of the negotiation. The only thing banks care about is the amount of money in the offer. They often won’t accept that low-low-ball offer, but will accept some offers below the listing price. If your offer is too low, the bank will simply reject it. If the offer is within the amount the bank will accept, they will counter with changes, probably the only counter they will make. If there are multiple offers, banks favor the buyer who plans to make the house their home as opposed to the investor who will not.

Quite often, banks will have their own dense and legalistic forms that are unlike the usual purchase agreement forms used by real estate companies. Read these carefully, having your agent explain things you don’t understand, before you sign.

Once an offer is submitted, be patient. The purchase agreement you sweated over will go to the bottom of a pile of offers on the dozens of foreclosed properties assigned to the over-worked loss-mitigation worker you’ve been assigned. It can take two to three weeks to get an answer and nothing you or your real estate agent can do will speed up this process. However, once the bank either counters or accepts your offer, things will move quickly.

Banks want rock solid proof that you can pay for the home you want. Don’t delay seeing a mortgage lender to find out exactly how much home and what kind of loan you can afford. Do this before you start looking at homes.

Some banks will allow a small amount of seller-paid closing costs, but not always. Don’t ask for this unless you have no choice. While quick closes are often possible, banks discourage closing dates over 30-days past acceptance and can charge a daily fee for every day over their 30-day deadline.

Personal property like appliances have often been removed from the property by the seller or by the bank and shouldn’t be included in your offer. Former homeowners who have had their houses taken away by the bank may cause revenge damage or have simply deferred needed repairs because they didn’t have the money. Some need a few cosmetic repairs but others need thousands in professional repairs and replacements. The bank isn’t going to tell you about these problems. Pay the extra money for a professional home inspector so you’ll know just what you’re buying.

A bank-owned property can be a wise purchase, but it takes more work to buy than a regular sale. Keep your eyes open so that the decisions you make are the right one.

Contact me, Chris Prescott, today to see the selection of bank owned properties available in the Minneapolis area. Visit my website, MoveToEdina.com, to search local listings and view my Listingbook.

New Tax Provision Helps Widows and Widowers

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 01 May 2009 09:55:38 -0500

A new tax provision is offering capitol gains relief for widows and widowers who want to sell their houses after a spouse has died. While married couples can exclude a profit of up to $500,000 when they sell their home, single people are limited to a $250,000 tax break. Until recently, a widow or widower was considered a single person in the eyes of the IRS. But now, a surviving spouse can take the full $500,000 deduction if they sell the home within two years of their partner’s death instead of the previous one-year limit. The home must have been used as a principal residence for two out of the last five years and the spouse must remain unmarried until the home sells. Surviving spouses can subtract any money put into the home for repair and improvements. The new provision reflects the slower housing market and perhaps, a small amount of compassion that was forcing people who had just lost a life partner to make other difficult decisions too soon.

ACT NOW to Prevent Elimination of Minnesota Real Estate Tax Deductions

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Fri, 24 Apr 2009 00:58:45 -0500

I received a call-to-action email from another Minnesota agent yesterday. I wanted to share portions of that email with my readers. Its troubling, segments of the Minnesota government appear to be trying to solve their financial problems by harming the housing market just as it is getting a foothold again. We may be able to stop this disaster from passing by contacting our legislators. Read on:

On Monday, the Minnesota House of Representatives 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.

Since 1992, even with all of the Budget Shortfalls Minnesota has faced, the government spending has increased each and every year. In fact, Minnesota State spending has gone from $14.5 billion in 1992/93 to $34.6 billion in 2008/09 - that's a whopping 138 percent increase.

To resolve the budget shortfall, the House/Senate DFL plans focus on raising taxes and reduce spending. Governor Pawlenty has proposed a plan focused on reducing spending and raising revenue without raising taxes.

HOUSE TAX BILL HURTS REAL ESTATE. The DFL 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.

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?

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.
Forward this email to your clients, customers and friends. Let them know what is being proposed and give them the web address to review the bill. www.house.leg.state.mn.us/hrd/bs/86/HF2323.html
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) here.

Market Showing Signs of Hitting Bottom

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Thu, 23 Apr 2009 00:46:04 -0500

There's been a significant increase in home sales in the Twin Cities area. Pending sales are up 21 percent over last year. On the other hand, the median sales price is down about 23 percent since a year ago and over half of all pending sales are distressed properties. For a home seller that may be bad news, but for a home buyer, it is a signal to take action!

If you have been thinking of buying a home, you should take some serious steps toward your home purchase. There are many incentives, in addition to the lowered prices and availability of houses. Interest rates are incredibly low, there is an $8000 tax credit for qualified buyers, and there are plenty of motivated sellers.

And time to get a bargain may be running out. In a quote to the Star Tribune, Scott Anderson, of Wells Fargo & Co., suggested that we are "tantalizingly close" to the bottom of the housing market. Combine that with a reduction in the number of homes on the market, which is down by 14.8 percent, and signs of improvement in other areas of the economy, and it certainly appears that the bottom is near.

So it sounds like its time to jump on these fantastic bargains. If you wait too much longer, the bottom may be a thing of the past! Contact me today to see what I can do to help you find the house of your dreams at a price you once could only dream about!

If you are interested in searching for a home please go to www.chrisprescott.listingbook.com. You can also call (952) 944-1728 or email Chris@MoveToEdina.com.

Do-It-Yourself Home Staging

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Thu, 09 Apr 2009 12:00:11 -0500

Little things can make a big difference in selling your home

If your real estate agent suggests that you spend a little time staging your home, you should listen to this advice. While you may love your home as it is, a buyer is looking at your house through entirely different eyes. Staging your home emphasizes your home’s best features while deemphasizing any weaknesses. Staging need not be expensive – there are a lot of little things a home owner can to make a good impression without spending a lot of money.

First, repair anything that needs fixing. It’s easy to live with minor problems for years, but a buyer seeing your home for the first time will notice small imperfections. Let your real estate agent help you do a survey of your home and don’t feel slighted if problems are pointed out to you.

Once everything is repaired, clean your house from top to bottom, even in places you think people will never look. (They will.) Windows, mirrors and hard surface floors should gleam. Clean the grout, not just the tile. If the walls are dingy, refresh them with new paint. Sweep the garage and considering painting the garage floor. Don’t scrimp on lighting. A bright home makes a good impression while a dark home will seem smaller and dingy. Avoid overhead lighting except in work areas. Table and floor lamps give softer shadows.

If a room is crowded with furniture, get rid of some pieces, even if you just move them to the garage. Pack up personal items and knickknacks (you have to pack them to move anyway) including family photos, awards and religious items. Remove fridge magnets and notes. A good rule of thumb is that there should not be more than four items on any flat surface, including floors and walls. Your goal is a home that’s attractive but impersonal, so the buyers can picture themselves living there.

In neutral colored rooms, add a spot or two of bright color (a throw pillow, a vase with fresh flowers, a brightly colored tea pot, perhaps.) Move furniture away from walls into cozy groups, which will make the room seem larger and friendlier.

Your front door is the first thing a buyer sees, so consider painting it a bright, welcoming color. Currently, deep red is popular, but other colors can also work. Avoid primary colors, but chose colors that are in style and that are found in nature. The paint expert at your local hardware store can help you choose. In warm weather, bright flowers outside the front door will increase the ‘welcome’ effect.

Once a buyer makes an appointment to see the house, do a quick cleaning and straightening job. Hang up clothes, put away dishes, toothbrushes and cleaning supplies. Make the beds with matching linens. Dishes shouldn’t be left drying in a rack. Even the bathroom cup should shine. Wipe out all sinks and, for heaven’s sake, put the toilet lid into the down position (unless you think buyers are in love with exposed plumbing.)

The result of a well staged home is a house that should sell for more money and in a shorter time. The time and money you put in to staging will be worth it at closing.

Contact Chris Prescott for some quick staging tips specific to your home.

The Value, or Lack Of Value, of Home Improvements

Chris Prescott - Minnesota (Coldwell Banker Burnet) — Thu, 02 Apr 2009 12:04:51 -0500

Many sellers think that spending money on expensive and extensive home improvement projects before they put their home on the market is a good investment. But, remodeling in order to sell for a significantly higher price isn’t always realistic. In most cases, while a big project will probably help you sell your home faster and will somewhat increase the asking price, don’t expect a dollar for dollar return on your investment.

If you are thinking of making expensive changes, talk to your real estate agent before you call the contractor and ask whether your home needs a big remodeling project or just some minor changes.

Home buyers expect a house to be fully up to code, with a working furnace, air conditioner, hot water heater, electrical system, plumbing and a good roof. If there are any problems with these, you’ll need to have them repaired or replaced, unless you’re selling a fixer-upper. This won’t bring you more money, but, improvements such as better insulation and high-efficiency furnaces pay for themselves in long-term cost savings. Buyers know this and will spend extra for a home with these upgrades.

If you decide to redo your kitchen or bath, you can expect to recoup only about 75 percent of the cost. There are some exceptions; If your home has only one or two bathrooms, consider adding another to create a master bed/bath combination.

Basement remodels can be expensive and usually bring in only about 50 to 80 percent of the cost, but a newly redone basement living space is a good place for that extra bathroom or an additional bedroom adding to the square footage – and the price – of your home.

If you are considering expanding living space with an add-on, don’t do it at the expense of outdoor space or that garage. People want a yard for relaxing and socializing and a garage for storage and for their vehicles. Consider instead adding a deck, which is a good investment and one of the few that will often payback more than it costs.

A sunny and efficient kitchen can be a big selling point. Sometimes, replacing the old and worn-out appliances, refacing the cabinets and putting in new countertops may be all you need to do. When redoing a kitchen, putting hand-painted Italian tile backsplash in a $200,000 home won’t increase the price, while expensive touches are expected in a $500,000 house. When you sell, offer to leave the new dishwasher, refrigerator and stove with the home and look for Energy Star appliances when you buy.

If your windows are old and leak heat, consider replacing them with new high-quality energy efficient windows. Don’t bother putting in cheap windows – buyers can tell the difference and you’ll just be wasting your money.

Today, home buyers are looking for bargains. Having a beautiful home will help sell it quicker and for more money. But, don’t put time and money into projects that won’t help sell your home. Some projects are worthwhile and others are not. Know the difference.

Contact Chris Prescott for more information and a home analysis, to see what, if any, improvements would increase your home's saleabilty.