Isanti - Sherburne - Wright - Anoka County Minnesota Real Estate Blog: October 2009

Each day I look through the new listings and run several saved search updates for buyers I am working with, and it surprises me to see almost NOTHING is getting listed. Some of the REO listing agents that I pay attention to have nearly sold out of all of there listings. Most of the sales I am putting together now for my buyers are short sale listings because that is about all that are out there that are priced correctly.

For months we have been hearing about the 2ND WAVE OF FORECLOSURES that are coming. I look in the paper and see a lot of notices, but where are all the listings?  Are people getting loan modifications?  Did a lot of those foreclosures sell as short sales thus reducing the bank owned listings?

There are still a lot of good buyers looking for homes, but they need something worthwhile to purchase otherwise they will stay put.  So if BANKS are withholding any listings its time to get what they can on the market...NOW! Seriously!

Chuck Carstensen - RE/MAX Associates Plus Inc. - 612-290-3809

I keep reading about the possibility of the $8000 tax credit being extended and different pushes to open it up to more people.  Of course I hear the naysayers who think it will be throwing money away and only temporarily keep market prices up.

They say that most of the people will buy a home anyway so why give them the tax credit. I know that I have probably gotten 7-10 more sales in the recent 3-4 months because buyer wanted the tax credit. That was there motivation.  These are people who would have stayed on the fence and perhaps waited until next spring if it weren't for the tax credit. I know it has helped!

However, I like to come up with ideas that work for all people involved.  How about this:

EXTEND THE $8000 TAX CREDIT TO BUYERS WHO BUY A 'MARKET WORN' HOUSE!

What I mean by 'market worn' is a house that has been on the market a defined amount of days without selling.  That could be 50 or more, 100 or more, maybe 150 or more days.  We know many house are coming on the market and selling right away and tax credit or not they will sell, so why throw $8000 at those.

The houses that are 'market worn' are a big part of the problem. They sit on the market and people do a search and say, "wow there are so many houses out there."  The truth is there are many that sell fast and then a large number that linger on the market. 

Guess what?  A lot of buyers would search this market and go after the 'market worn" houses and at least consider them and even throw some offer at them.  Perhaps eventually the seller would come to reality on the price and the buyer would be happy because they would get a tax credit for buying the house.

We all probably have 1 or 2 listings that are right on the fringe of selling if only there was a there was motivation that pointed the buyer to the house over some others that are out there.  I am not suggesting people over pay for bad houses.  I do believe that most sellers will look at reasonable offers.  As days on the market increases sellers can become more flexible. And a TAX CREDIT for the buyers taking one of these homes of the market is something worth extending!

Chuck Carstensen - RE/MAX Associates Plus Inc. - Elk River, MN - 612-290-3809 - chuck@thediscoveryteam.com

Open House on Saturday, Oct 17, 2009 1:00 PM - 3:00 PM (Open Home Info) (Close Open Home Info)

Directions: Hwy 75 in Waite Park to 28th Ave (across from Fleet Farm) go North to Frontage Rd and home on L

Remarks: Great Location, Nice sized lot w/ this Waite Park Home. Home is daycare ready w/ recent updates. New Water Heater '09- Roof '07 Flooring in most rooms. Tax assesments will be paid at closing. Lg LL Family Room-Open Layout w/vault ceilings Lg deck & more

view all photos (10)		2601 FRONTAGE RD N WAITE PARK, MN 56387 $125,000 3 Bedrooms 1 Bathrooms 1,728 Est. Sq. Ft. Listing # 3689525
Great Location, Nice sized lot w/ this Waite Park Home. Home is daycare ready w/ recent updates. New Water Heater '09- Roof '07 Flooring in most rooms. Tax assesments will be paid at closing. Lg LL Family Room-Open Layout w/vault ceilings Lg deck & more

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At this point in the year it seems the best way to get an offer accepted is by finding a short sale that is priced well enough and making a solid offer that a seller will sign off on so the BANK can review it for acceptance.

My end of the year is looking like its going to depend on buyers getting their short sales approved.  I have one closing tomorrow with a buyer who is purchasing a short sale and at least 7 other offers that are waiting bank approval. 

The BANK OWNED homes have been selling so fast and so much over the asking price that the short sales have been the way to go for most buyers. The pressure is on for some of these to close by November 30th for the first time buyer tax credit, but then again I am feeling an extension coming on anyway.

To get a short sale offer accepted you want to write a clean offer NOT asking for repairs, and normally offering the asking price (assuming that is fair market price) with no more then 3% seller paid closing costs.  It also helps to have an approval from a trusted mortgage person.

Some short sale homes are getting multiple offers so you may have to go slightly above asking price in some instances.  Also, you will have to be patient because it might take 60-90 days for the bank to approve your offer and then another 30 days to close.

Chuck Carstensen - RE/MAX Associates Plus Inc - 612-290-3809

The $8000 tax credit has been successful getting more buyers into the market.  Its been so successful in the lower price range that most homes are getting multiple offers and bid up.  So should it get extended?

A loan officer I work with suggested to me yesterday that it might get extended to those who are under contract by November 30th. I LOVE this idea for a couple reasons:

1) There are a few late arrivers to the incentive that have just now decided to buy a house. Its not likely though to actually secure a home right now and close by November 30th.  So their motivation may be a bid waste of time for ALL involved unless they extend the credit a bit.

2)  A potentially more explosive situation:  What about those who go around contract now or are currently under contract and expecting to close by Nov. 30. But  thanks to various scenarios that are out of their control like title issues, short sales taking too long, underwriting changes to their loan. All the sudden get their closing bumped back a few days into December.  Imagine the frustration, the lawsuits, the stress this will cause?!?!

Just based on those two points I think the tax credit should be for fully executed purchase agreements by November 30 or even October 30th if they want to limited a bit to those who were proactive enough to potentially close by November 30th.

Chuck Carstensen - RE/MAX ASSOCIATES PLUS Inc.

Serving: Isanti, Sherburne, Wright, Washington, Hennepin, Chisago, Anoka, Mille Lacs, and Kanabec Counties in Minnesota.  612-290-3809

You can buy a HUD home in Minnesota for as low as $100 down! The FHA loan options even allows you to use the FHA 203k loan to get the "fix ups" needed financed in the home.  Or you can simply escrow smaller repairs as part of the FHA 203e loan.

I am noticing Minnesota HUD listings starting to hit the market in heavier amounts now.  There are good options for HUD home purchases for both first time buyers and investors in Sherburne, Washington, Hennepin, Anoka, Isanti, Wright, Ramsey and Mille Lacs county.

Remember you must use a HUD Registered agent for a purchase of a Minnesota HUD home.  There is still time for the $8000 tax credit but you would need to get a bid accepted in the next few days for that! 

If you want a list of Minnesota HUD homes in your area just email me at chuck@thediscoveryteam.com or call 612-290-3809.

Chuck Carstensen - RE/MAX Associates Plus Ins.