The e-Market Analysis is a free home value estimator in the St Cloud area.  I wish that I could cover a larger area, but I can only manually figure out estimates of home values in areas covered by the St Cloud MLS (Clearwater, Clear Lake, Becker, Foley, Rice, Avon, Albany, Cold Spring, Rockville, Richmond, Kimball, Annandale, St Stephen, St Joseph, Sauk Rapids, Sartell, Waite Park, and St Cloud).  Outside of this 15 mile circle around St Cloud, MN my effective range drops drastically.  I can sometimes get you in touch with someone locally that can help, but I can’t guarantee that they have the resources to pull this off.

How does the e-Market Analysis work?

Every month I scan the MLS to get average prices on specific home amenities for specific areas.  By utilizing these prices, plus the current listing and sold prices of the best comparable properties on the St Cloud MLS, I can get a fairly accurate estimate of value.

What makes this different than other home value estimators?

1) The e-Market Analysis uses only the most current data from the St Cloud MLS for comparisons.  2) The e-Market Analysis is performed by a human to make sure that only the best comparable properties are used.  3) The e-Market Analysis can generally be delivered within a few hours of request (depending on my schedule that day).  4) For an non-viewed property analysis, it is amazingly accurate.  Granted, the specific amenities and condition of a home can move the final market value up or down accordingly.

What have I learned in doing these e-Market Analysis’?

1) I learned that many people do not want to hear the potential sales value of their home.  When I first started doing e-Market Analysis’ in 2006, I had several people tell me that I was crazy and that their homes were worth thousands more.  As it turned out, there have been 8 homes that have been listed for sale with a different real estate agent after an e-Market Analysis was performed.  All ten have sold at or slightly under what the e-Market Analysis said.  They also averaged more than 6 months on the market before they sold.  If you have an e-Market Analysis performed and you feel it is inaccurate, give me a call.  If I stop at your home there might be something that I am missing.  Which brings me to my second point…

2) Some homes don’t fit into boxes.  What I mean by this is that certain properties just cannot receive good numbers without being seen first.  It seems the more unique the property, the bigger the difference between the e-Market Analysis value and the actual value.

If you are interested in finding out what your home might be worth at a time of sale, visit http://www.stcloudedina.com/e-MarketAnalysis.html and I can have an e-Market Analysis out to you within a few hours.  Also, if you know of some other good value estimators available on the market, I would love to check them out.  I have tried Zillow’s Zestimates before and it just doesn’t have enough data to be accurate in Central Minnesota yet.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud, MN

The Tangen Report - St Cloud Area Real Estate Sales in the First Quarter 2008

Above is a copy of the Tangen Report for real estate sales and statistics in North St Cloud, South St Cloud, East St Cloud, West St Cloud, Sartell, Sauk Rapids, and Waite Park Minnesota.  Please note that this file is intended for personal knowledge.  If you are planning on using any of the information contained herein, please acknowledge its author, Jason Tangen, properly.

If you would like to view previous Tangen reports, visit http://stcloudedina.com/blog/the_tangen_report/.

If you would like me to break down the statistics for your specific neighborhood or area in Central MN, please post your request here for everyone to see and use in the future.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.StCloudEdina.com - Search real estate on the St Cloud MLS

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Originally posted at www.stcloudedina.com/blog on Mar. 29th, 2008:

I’m all for the Central Minnesota method of haggling.  I think it comes from the fact that most of us are only a couple generations removed from the true hagglers and wheelers and dealers of the past: the farmers. 

One of the biggest problems facing some of the sellers of real estate in St Cloud, MN is that they feel like they are being taken by the buyers in today’s market.  While it is true that your home is not selling for what it did two short years ago, you have to remember your true goal: selling your home.

Here are some tips to help sellers as they analyze offers coming in from potential buyers:

1) Try to take your heart out of the deal.  The home that you will be leaving was perfect to raise your two kids back in the 80’s, but it might not be perfect for the new couple raising kids in the 10’s (that sounds funny).  Only negotiate with market facts and up to date market values.

2) If you have a fish on the line, reel them in.  You may or may not be having a second offer come in.  Even real estate agents with the best of intentions cannot deliver the purchase agreements that they say they will bring tomorrow.

3) Take all offers seriously.  This is tough when there is that one yahoo out there who wants to offer $90K on your brand new two story home worth at least $250K.  Even though you want to just say go away (with some anger in it), it is best to just politely counter back at full price.  Find out if they are interested in coming to the “dance floor” of negotiations.  Who knows, they might just want to buy the house at full price.

4) Look at the bottom line, not the sales price.  You might actually make more money at a lower sales price depending on what the buyers are asking you to pay.

5) If you decide to not take an offer, you are saying that you would rather stay in your home than sell it for that price.  That could prove costly if you have somewhere else that you need to live.

I will hear a story about once a year that rehashes the philosophy that the first offer is always the best offer.  In this case the sellers had an offer in the Spring of 2007 for $200,000.  They wanted just a little bit more because their original listing agent priced them a tad too high and now they are feeling gypped.  The sellers decide to counter offer back at $204,000 and the buyers decide to leave.  The desire to feel like you are the winner in negotiations can make you the loser.  Fast forward to the Spring of 2008.  With no other offers and the market slowing down over the winter months the sellers price reductions to create activity now have them priced at $175,000.  Here is where they get another offer.  Disgusted but needing to sell, the sellers take the offer.  Ouch.

Before you even look at the offer someone has written to purchase your home, take some time to look at your true goals.  In most situations, selling the home is the most important goal.  Making a specified amount of equity is usually lower on the list.  From there, arm yourself with the market data you need to make the best decision for you.

Jason Tangen - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.jasontangen.com - Search Real Estate in St Cloud, MN and surrounding areas

www.jasontangen.point2agent.com

Originally posted at www.stcloudedina.com/blog on April 14th, 2008:

I would like to say “Thanks” to Cheri Carlson, PhD at StillPointe Natural Health Center in Sartell, MN.

For any of you who know what it feels like to have your back go “out,” you know what type of pain and discomfort a person can be stuck dealing with on a daily basis.

Dr. Carlson started me on a program to help develop the muscles in my back and also scheduled some regular visits to adjust my back and neck properly.

I am happy to say that it has now been over two months since I last tweaked my back.  Most of the stiffness surrounding my trouble areas has been disappearing as well.  I have never been a big believer in chiropractors, but I do feel that this program has been a great benefit to my well being.

If you would like to learn more about Cheri Calson or the staff at Still Pointe Natural Health Center, visit their website at http://www.stillpointe.net/index1.html or give them a call at (320) 203-8266.  I know that I am just touching on the tip of the iceberg of what the entire staff at StillPointe Natural Health Center can do for you.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud MN

www.StCloudEdina.com - Search Real Estate in St Cloud MN

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

Originally posted at www.stcloudedina.com/blog on April 16th, 2008:

I am happy to say that on Monday, the mayor of Sauk Rapids (Mark Campbell) appointed me (Jason Tangen) to the Sauk Rapids Building/Housing Appeals Board.  I look forward to serving with Art Buhs, Spencer Buerkle, Randy Klug, and Kurt Schimnich on this board in the near future.

Visit the following link if have questions about the Sauk Rapids Building/Housing Appeals Board.

I encourage everyone to help/volunteer with their local government and/or civic organizations.  It is only what we do as individuals that make up our communities as a whole.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud

Originally posted at www.StCloudEdina.com.blog on March 31st, 2008:

For those of you in the St Cloud area who were planning on purchasing a home with 0% down, your loan options are disappearing fast.  It sounds like as of April 7th, 2008 Freddie Mac will follow Fannie Mae’s lead in declaring the majority of the areas covered by the St Cloud MLS declining markets.  This means that as a minimum for a conventional loan in these areas buyers will need 5% of the sales price.  Gone are the 80/20 conventional loans that were so prevalent just last year.

So what does a home buyer with no money do? 

How can you get into a home with 0% down?

The answer: Get creative.

I know the most common program being used today is theFederal Housing Administration’s (FHA) loan with 6% seller paid closing costs and down payment.  As long as the home appraises, a buyer can ask the seller to pay the minimum 3% required down payment and up to 3% in closing costs.  I have seen about 12 local lenders in the St Cloud area utilizing this new product.

What does this mean to you as a buyer?

Answer:  You are basically pulling out the equity on a home purchase (assuming that you purchase a home with some instant equity) to pay for your closing costs and down payment.  This will make it so that it takes a few years before you can even think about re-selling a home.  It’s perfect if you plan on staying in the area for many years to come, but not if you aren’t sure.

Numbers for reference:

List Price = $141,000

Offer = $150,000

Seller Pays = $9000 ($4500 for minimum 3% down, 3% for closing costs)

Effect = Seller gets $141,000   /   Buyer mortgages $150,000

As long as the home appraises for at least $150,000 this deal works.

If you have heard of some other creative financing options, and you are afraid about their implications, post them here for everyone to see.  If they are good, I would love to be able to tell my buyers about them.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud MN

http://jptangen.featuredblog.com - Blog postings on www.REALTOR.com

With the way that the laws are currently written for real estate, I propose this thought for people to digest.

The only person who is truly hurt by a foreclosed property (to view foreclosures listed on the St Cloud MLS visit http://www.stcloudedina.com/Foreclosures.html) is the neighbor.

I don’t want to sound mean or insensitive to the home owner who has just been thrown out of their homestead, but I don’t think they have it the worst. With the current laws, the only damage to a person who has had a foreclosure in their past is a lower FICO score (credit score that can be cured in a very short period of time) and a little bit of public embarrassment. That’s it.

As for the bank’s losses, they have insurance to cover them to a certain extent in most foreclosure situations. Oops, I just found another person affected by foreclosures. The insurance companies that cover the bank’s losses.

What we are left with is the neighbors who are faced with a depressed home in their neighborhood bringing down the local values. Most of these homes are stripped of anything of value (appliances, A/C, sometimes plumbing fixtures, lights, etc.) and left in a condition that only a mother could love. I’ve walked into properties that are available because of foreclosure and been amazed at how filthy a home can become in just a year or so. Brand new homes that appear to have 30 years worth of wear and tear.

Something to think about, what are your thoughts on this topic?

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Home of the e-Market Analysis (Free Home Value Estimator)

Originally posted at www.stcloudedina.com/blog on Sept. 23rd, 2007:

I thought that it might be helpful for home sellers to know some basic tips on how or what to do in staging your home for sale.  Most of us have seen one of those “Sell My House” type of television shows that take a home and stage it for sale.  Listed below are some of the most basic ideas that every seller needs to know when preparing to sell their home.

1)  Clean up the exterior.  Some of the greatest buys on the market aren’t shown because the yard looks too horrible.  If you’ve had some landscaping ideas, or if your lawn needs edging and a trim, do it!  Your home’s curb appeal is what invites a buyer inside and sparks their interest in buying.

2)  The first 10 seconds mean everything.  As you are preparing your home for sale, take the time to walk in the front door (where potential buyers will enter from) and take a hard look around.  Take special notes of the smell, color scheme, cleanliness, and overall impression given.  You want your entry to be inviting to a potential buyer.  The more open and clean the better the impression.

3)  Make the kitchen spectacular.  The kitchen is arguably the most important room when preparing your home for sale.  Besides sleeping, we tend to spend the majority of our time in the kitchen.  First rule of thumb - make your kitchen as BIG in appearance as possible.  You should only have a maximum of two items on your counter tops (neither should be a microwave or toaster).  You must maximize your counter top square footage and also cabinetry if possible.  Second - dress up your table.  This is especially true if you are using some cheesy little card table to get by.  A nice table cloth and some tasteful table settings can make all the difference.  Above all your kitchen needs to be spotless from top to bottom.  Think of it as a Marine Corps white glove inspection.  Clean the inside and out of all appliances, sinks, counter tops, cupboards, and anything contained inside.  You might even go so far as to organize all of your groceries inside the fridge and cabinetry.

4)  Put those scrubbing bubbles to work in the bathroom.  There is nothing worse than touring a house that has a dirty bathroom.  Everyone, and I mean everyone, gets a little queezy when the bathroom either stinks, is grimey, or is in need of some repair.  Redo the caulk around the shower, tub, and toilet.  Clean out the grout if you have tile.  Scrub the toilet both inside and out.  Also, clean all of any plumbing fixtures that are present.  If anything looks subpar, think about replacing it.  Faucets are fairly inexpensive in the grand scheme of things.

5)  Maximize the spaces.  Try to not have over sized furniture in a small room.  Some sectional couches are better served in storage while the selling process is taking place.  Sure they are cozy, but they do your living room a huge disservice.  Also, if you have some tough traffic areas where walking through is kind of tough, try moving around your furniture to maximize the space.  Maybe you need to remove a chair, loveseat, or (he’s going to say it) that huge T.V. set up that you have to free up a room’s true potential. 

6)  Remove the clutter.  In selling real estate, I am constantly telling everyone to remove the clutter throughout their home.  The best way to look at it is like this - You’re going to move, right?  Then start packing now.  Get some boxes and go from room to room.  If there is something there that isn’t a necessity, pack it up.  Go to your bookshelves and remove 1/2 of everything on them.  Go through your entire house and you will be suprised how much “stuff” you can pack in advance.

7)  De-personalize your home.  You have a beautiful family and have created a beautiful home together.  Now that you have decided that you are going to sell your home it’s time to start moving out.  You don’t want potential buyers envisioning your family in the family room watching T.V.;  You want them to envision their family eating popcorn and watching their favorite movie in their new house.  I recommend that all pictures of the family be taken down and replaced with something else (or maybe no picture is needed there at all).

8)  Clean, Clean, CLEAN.  Once again I will use the concept of a Marine Corps white glove inspection.  Clean every place in the home like it has never been cleaned before.  For some of you that are thinking about selling your homes, this won’t be too much of a problem.  For others, well let’s just say you need a little help.  Make the beds every morning.  You never know when you might get a showing.  Do the dishes as needed.  I’m not saying to do the dishes when the sink gets full, more like clean them as you use them.  Make sure your vents, window sills, walls, artwork… actually how about if we put it this way - make sure everything in your home is simply beyond clean.

9)  If it’s broken, FIX IT!  If there is anything in the house that is in need of repair, now is the time to put those handyman skills of yours to work.  Everything from the loose cabinet handle to the leaky faucet needs to be addressed.  I know that you have been putting off these little projects for quite some time and they aren’t a necessity to have finished.  Just remember that potential buyers will find these little defects and judge how you maintain a home by them.

10)  Paint it and replace it.  Some of the greatest fixes that you can do to maximize the amount of money that you receive when your house sells are also the least expensive.  A fresh coat of paint can do wonders to the look and feel of a home.  Sure it takes a little time and you have to be patient and do your corners correctly, but it give you great benefits.  Things to consider when picking out your paint colors:  Lighter colors tend to brighten up a room and give it a larger feel.  Bold colors can be very pleasing to your eye, but will they please the potential buyer?  If your color palet is challenged (and you know who you are), seek help from a professional.  As for the replace it part of this paragraph, your house will shine with new carpets.  If your carpets aren’t that old and are in decent shape you can just have them shampooed.  If they are torn or tattered, get them replaced.  You will recoup the cost of flooring in your main living spaces 99% of the time.

Do you have some questions, comments, or concerns about what I have proposed to you here?  Post them here for answers and review.  Selling real estate can be a much less stressful proposition if you have taken the time to make sure that your home is ready to be sold.  If you would like some recommendations of local professionals in the St Cloud area that can stage your home, feel free to post here.

Jason Tangen

www.stcloudedina.com

www.stcloudedina.com/blog - REAL ANSWERS for REAL ESTATE in St. Cloud, MN

I have a lot of people ask me if it is ok to pull the equity out of their homes.

I tell everyone the same thing - Don’t pull the equity out of your home unless you are going to do one of the following three things with it:

1) Buy another home.

2) Start a business.  I know it’s risky, but it is also part of the American Dream.  If you think you have a good idea and you are willing to take the risk, go for it.

3) Invest in other opportunities that you are well versed (stocks, mutual funds, etc.).  PLEASE NOTE - there are inherent risks in all forms of investing.  I only recommend this one for people who are professionals or have professionals working on their behalf.  The costs involved in these investments sometimes outweigh any monetary gain.

Did you notice what I didn’t put on this list?  Paying off credit cards.  Why?  Because it isn’t worth it in my opinion.  First off, budget yourself properly and you won’t need to worry about credit card debt.  Second, your equity in your homestead is safeguarded against many creditors.  Everything on your credit card is free game.  Say for example you cannot pay some unexpected medical expenses.  Medical companies cannot put a lien against your property and take your equity in your house (see homestead law post).  They can however take the other stuff.

Got some other reasons to pull your equity?  I’d love to hear them.  Post them here for everyone to review.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud MN

www.JasonTangen.EdinaRealty.com - Search Open Houses in Minnesota

Edina Realty’s New Lakeshore & Outdoors Property Search - 10,000 Lakes, Only 1 Place to Search Real Estate.  Find all of your lake properties, hunting and recreational land, and more.

Originally posted at www.StCloudEdina.com/blog:

With the end of the first quarter fast approaching, I am a little curious to find out how the numbers are going to stack up for real estate sales in ‘08 vs. ‘07.  I’ve heard that the number crunchers nationally and statewide are seeing a 2% increase in residential sales over the same time frame last year.

My hunch is that we will see an increase in the total number of homes sold but a decrease in the average and median prices in the St Cloud market.  My reasoning for this is the broken chain in home purchases that is caused by the increased number of foreclosed properties available on the St Cloud MLS

As a region in whole, we are selling through the foreclosure inventory at a very good pace.  The problem is that these distressed sales are generally of homes that are not in “Grade A” condition.  Therefore, these home price averages will reflect these smaller values. 

The positive turn on this topic is that in selling these foreclosures at a good pace, the end of this lull in the real estate market comes closer into view.  I wouldn’t be surprised if by early next year we don’t see some appreciation in the real estate market once again (around Central Minnesota).  It won’t be anything like what we saw in the past five years, but 1-1.5% isn’t out of the question (*Hint, if you are waiting for the bottom, it’s probably coming if it isn’t already here).

Be sure to keep an eye out for the Tangen Report which will come out in the St Cloud Area Chamber of Commerce’s Chamber Pack in early May and will also be posted here by mid April.  Every quarter I break down the sales statistics for each local region on the St Cloud MLS (West St Cloud, North St Cloud, East St Cloud, South St Cloud, Waite Park, Sartell, and Sauk Rapids).  If you would like to see the past reports, click on the Tangen Report link on this website.

Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud

www.StCloudEdina.com - Home of the e-Market Analysis (Free Home Value Estimator)

www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN

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