Fergus Falls Real Estate Blog by Jon Drews

Understanding the Fergus Falls Real Estate market: a Seller's Perspective

2012-01-22T13:17:00.000-08:00

It is only fair that I provide equal time and guidance for property sellers in today's real estate market. My last post related to buyer opportunities. This time we will focus on opportunities available to sellers.

To put it another way, let's leverage our strengths as sellers to kick the 'Hee Haw' out of the market seesaw. Seller's need to flex their property attributes to balance the seesaw market. Instead of having prospective buyers 'holding sellers up', let's look at what sellers can do to restore a balanced and level playing field.

But before I speak on specific strategies for sellers, we need to be certain we understand our local market and debunk some myths - a.k.a. 'obviate the rubric'.

We have all heard the latest national real estate news. It reminds me of that refrain from the late '60's 'Hee Haw' show with Roy Clark and Buck Owens: 'Gloom, despair, and agony on me.' National housing market news trends often focus on worse-case scenarios, and averages at best. Here is what we need to keep in mind: Local economies and markets may bear no similarity to national trends. In fact, the local market might be far healthier. What sellers need to overcome is the national media mindset that has been embraced by prospective buyers.

For the remainder of this post I am going to highlight some statistics specific to the Fergus Falls market. I believe this information will clearly show our local market is making improvements in key areas and, more importantly, potential sellers need not hang their heads as though they were on their way to the gallows.

This first graph shows a geographical comparison of foreclosure rates as of December 2011. The graph displays, a national rate, a rate for the state of Minnesota, an Otter Tail County Rate, and the rate for Fergus Falls. Please note the marked difference in rates from the National level to those of Otter Tail County and Fergus Falls. (Be sure to see more foreclosure information at my RealtyTrac page.

This second chart shows foreclosure activity and average mortgage rates for Fergus Falls as of December 2011. I'm hoping this information is alleviating some seller heartburn! As we Minnesotan's are prone to say, 'Things could be worse.' Again, this information is provided by RealtyTrac. More RealtyTrac information can be viewed at my RealtyTrac page.

Just a couple more numbers and I'm going to wrap this up. According to our local MLS data, 134 Fergus Falls homes were sold in the last six months of 2011. This compares to only 102 in the same period of 2010 reflecting a gain in unit sales of 31%! Wow!! Here is one catch: the average selling price dropped in 2011 compared to the same period for 2010. Bummer. But all is not lost! What this means is, although sale units were UP, the average selling price of the sold properties dropped. What we observed in this time frame is the bulk of homes sold were in the $60,000 to $115,000 price range.

I'll conclude this discussion for now to allow a little time to digest this information. Be sure to check out my next blog post: What can a seller do to maximize their return if there property is valued above the average range of sold properties? Stay tuned . . .

Jon Drews, Associate Broker with Century 21 Vista, Inc. in Fergus Falls MN.

Looking for a 'Screamin' Deal'?

2012-01-20T17:20:00.000-08:00

Hi there! Today's topic: Screaming Deals. Real Estate buyers are always looking for the best value in property. So let's talk about value - specific to real estate.

In today's real estate market - generally speaking - buyers are receiving a great deal of value with their property purchases. This is because our real estate market has experienced decline over the last couple of years. When prices fall a buyer gets more 'bang for the buck' from their purchase = greater value = screaming deal. Nothing new here - all of us hear about the struggling real estate market in the news - day after day after day after . . . Remember: It is a buyer's market - and opportunities abound!

That brings us to back to screaming deals, and, foreclosures - their presence being a solid indicator all is not well with the housing market. However, purchasing a foreclosure is the greatest kernel of opportunity for a buyer looking to land a 'screaming deal'. Remember this: even though the presence of foreclosed properties in the market are an indication the market is not 100% healthy, foreclosed properties are absolutely 100% opportunity for the knowledgeable and ready buyer.

Unfortunately, not all foreclosures are created equal. To put it another way, a prospective buyer has to be very, very careful and well guided when considering a foreclosed property. Why, you ask? Two words: as is. Foreclosed properties (also called 'bank owned' properties are sold 'as is'. This means if a person purchases a foreclosed property with major plumbing issues, they are the buyer's major plumbing issues. Foundation issues - buyer's problem. If the roof leaks - the buyer owns the leaking roof. 'As is': two very small words that can pack a powerful punch!

To help alleviate some of the 'as is' risk I strongly recommend a potential buyer invest in a home inspection - a contingency to the purchase commitment. Have your target property inspected by a trained professional. If there are problems they need to be identified before a purchase price is finalized. Additionally, find a professional, experienced real estate agent to help guide the process.

Earlier I mentioned a buyer not only needs to be knowledgeable but also ready. A prospective buyer needs to be ready to act quickly when the target property is offered for sale. A prospective buyer should be pre-approved to make the purchase commitment if financing will be a consideration.

Make a plan to be the best prepared buyer in the market - as opportunities can evaporate quickly.

The final item I would like to mention is really exciting: I have joined the Realty Trac Agent Network! You can check out my Realty Trac search tool here.

Realty Trac is a nationally recognized resource for property foreclosures. They provide a powerful, up-to-date search engine that will give serious buyers of foreclosed properties an incredible advantage when trying to secure the somewhat elusive 'screaming deal'. Want to better improve your odds with a foreclosure opportunity? Check out my Realty Trac page now - or call me . . . now!

The clock is ticking - your dream property might be slipping under your nose at this very moment!

Sincerely -

Jon Drews - your real estate partner - and area foreclosure expert.

Market Watch for January

2012-01-18T14:49:00.000-08:00

Greetings! Winter has arrived (sort of) in Minnesota. By that I mean it is colder than blazes! This is making the ice fishing fraternity very happy - but the snowmobiling crowd is still facing some pretty tough sledding (mainly because we have NO SNOW!). Crazy.

Of course we still have the Super Bowl to look forward to - and taxes don't need to be done for a while. All in all it is the PERFECT time to stay inside and start planning for a home upgrade, or downsizing, or the perfect lake spot! (Remember - those perfect lake spots can do wonders for ice fishing as well!!)

Granted, the market is calmer than it was a couple of years ago but nice properties are bringing a respectable price for sellers - and interest rates are ridiculously low for buyers!

And here is one more tidbit I want to share: I have been working hard on putting together a set of websites to serve both the Fergus Falls real estate market as well as the greater Otter Tail County area. In addition, I have a website designed to specifically serve the needs of those interested in lake properties!

Here are the sites: FergusFallsRealEstate.com, OtterTailHomes.com, and OtterTailLakes.com. Check them out. And, please, if you have any suggestions to better serve your needs just drop a line. I would love to hear from you!

In closing, yes, it is cold enough for me - you need not ask! Cheers!!

‘Signs, signs, everywhere there's signs . . .’ *

2011-04-11T18:47:00.000-07:00

Spring has arrived in Minnesota – and ‘everywhere there’s signs’!!

I was listening to my favorite radio station when the commentator asked: ‘What marks the arrival of spring for you?’ I guess some folks had posted comments at the station’s website that varied from hearing Spring Peepers to getting the urge to hunt for Morel Mushrooms. Hmmm . . . mushrooms and toads . . . Not exactly what I had in mind. And so it became my challenge: to frame the ‘arrival of Spring’ in my own mind . . . and my own words.

I turned the radio off. I was focused. I was in search of . . . Spring! In just moments the silence was sliced with the haunting cry of a warp-drive Wood Duck. Truly a sign of Spring!

A short while later - reflecting in our living room and mesmerized by the setting sun – I realized it was getting close to 8:00 PM . . . and the sun was just setting. Another sign of Spring – more daylight!

The next morning – on a pre-dawn road trip – a deer chose to launch itself across the highway not much beyond my front bumper. With my left foot frantically pumping the breaks - and white knuckles - I realized I nearly broadsided this most recent ‘arrival of Spring’.

At sunrise I’m dodging down a township road. The coffee I’m trying to sip splashes up on my nose. It is a typical gravel road - but with an abundance of frost boils. Notes of Spring have struck a chord with the roads - and they are unable to contain themselves. Note to self: make appointment with mechanic. Spring has just sprung . . . my front-end alignment.

Seconds later the adjacent fence line is flickering with the dazzle of electric Blue Birds. Zigzagging Mourning Doves and streaming Wood Ducks cutting through the morning light at the pasture’s edge. On a near, oak-capped hillside is a strutting Tom Turkey. Wow! All these ‘signs of Spring’! How will I possibly frame the ‘arrival of Spring’ when there is no canvas large enough to contain it?

Spring’s arrival is winter’s celebrated departure, life’s renewal, and the resurgence of hope.

As season’s come and go – and winter’s bridge ascends, I again find myself feeling outward beyond that frozen realm. Winter silence, chilled landscapes, ice-blue daylight fleeting – vaporized by the most radiant of seasons. I know – as do all living things – I stand at the garden gate. I recall youthful energies. I reaffirm my dreams. My senses are full and I am delighted. All I see, taste, feel, smell, and hear are consumed and still I am unable to comprehend the marvelous arrival of Spring.

Longing for your own slice of Springtime in Minnesota? Call me today!

* lyrics by The Five Man Electrical Band

History repeats itself

2011-04-04T16:18:00.000-07:00

The hibernation is over! It is time for our senses to be stirred with spring’s much awaited arrival!

Once again we are at the cusp of warmer weather – which, by no great coincidence, will be ushering the way to another year of brisk real estate sales! (Woo-hooo!)

I worked hard this past year with buyers and sellers – and we were able to put together a number of mutually beneficial property transactions. When the season chilled with winter's arrival - and the real estate market drifted into slumber - I managed to ‘invest’ a little time (quite a little) on our frozen Otter Tail County lakes and enjoyed some very good hard water fishing! (Which reminds me: If anyone would be interested in a brief snorkel dive this summer in search of my lost glasses, feel free to drop a line! I know exactly where they are as I marked an ‘X’ on the ice.)

But back to business: Assisting customers and providing quality service to clients is my primary focus in real estate. That said, I was very honored when I received the ‘Century 21 Quality Service Award’ this last year! The recognition is based on the responses and feedback of my clients and customers! Thank you - one and all - for your support and kind comments!! Heading into the 2011 sales season my commitment remains firm: Leading with Service – every day, every transaction, and every individual.

But wait – there is more!! I have just launched three new websites!! Again, I owe thanks to my customers and clients (as well as one of the best web designers in the world). I am always seeking ways to better serve folks with their real estate needs – and the people have spoken – and I have listened! The result is three brand-new custom websites as follows:

www.realestatefergusfalls.com – this website is specifically designed to serve the needs of individuals with buying and selling interests specific to the Fergus Falls community.

www.realestateottertail.com – this website is specifically designed to provide information and property listings within the greater Otter Tail County area.

www.ottertaillakes.com – this is perhaps my favorite new site! This site provides a summary of lakeshore residential properties and waterfront currently available for sale in our area. Plus, I have included links to the Minnesota Department of Natural Resources ‘LakeFinder’ service for all listed lakes located in the greater Otter Tail County region. This website provides not only current lake property listings but also information specific to the lake!!

Looking for a great Walleye lake? NO problem!! How about great sand and super water clarity? You can do all your research at www.ottertaillakes.com. Check it out! A note to lake property sellers: Are you seeing what this marketing opportunity can do to give your listing greater, real-world exposure? (nudge, nudge, wink, wink)

Take a moment to review the above three websites. They are designed for anyone interested in Otter Tail County and Fergus Falls real estate. If there is information you cannot find at one of my websites . . . it is probably because you don’t need it! (just kidding . . . sort of). As always, if you have suggestions to make these great sites even more amazing feel free to drop a line!! Thanks again!

Now, LET’S GET MOVING – before all the great real estate deals are gone!!

Questions and Answers

2010-08-27T09:15:00.000-07:00

Hi there! It has been too long since my last post but, wow, I have been busy selling houses!!

I didn't really know how busy I had been until my Broker shared with me that I am among Century 21's top ten agents for the state of Minnesota!! I am most grateful for the opportunities - and challenges - that have been set before me. That said, it is not where we are that matters, it is where we are headed! Where am I headed? My goal will be for tomorrow what it is today and has been yesterday. My goal is unwavering: to provide the best possible service to every client and customer I meet.

This is my pledge to you: I will take the time to listen to your real estate needs. I will offer specific suggestions that fit your real estate situation. I live and breath real estate. I stay current on the 'big picture' issues. I do so to better serve my clients and customers.

You know, the news on the housing market - at a national level - is pretty bleak. Our local market has been effected as well, but we are hanging in there! I know plenty of people that have been forced to make major life changes - rough patches. Again, it is not where we are at, it is where we are headed.

For those that are struggling in the housing market: HANG IN THERE!! Can I help? Please contact me right now - I'm betting if we put our heads together, we can find a solution.

As I started mentioning in the introduction of this post - yes, I have been selling homes - making things happen - helping folks chart courses for a brighter future.

Do you have questions regarding your personal housing situation - or general questions related to the housing market? Drop a line!! Over the next few posts I am going to be taking questions - and offering guidance.

Looking forward to hearing from you! I can be reached at: jondrews@century21vista.com

Until then, MAKE IT A GREAT DAY!!

Jon Drews, Associate Broker with Century 21 Vista, Inc. in Fergus Falls MN.

Life After the Tax Credit

2010-05-03T11:26:00.000-07:00

The tax credits offered by the IRS for new and existing home buyers have expired as of April 30, 2010. All I can say is, 'WOW, what a run we had on home sales!!'

The response to this program was simply phenomenal. I have never before witnessed any type of tax incentive that has had so much positive outreach to so many people. The program literally changed lives for the better in countless situations. I am sincerely honored to have been a part of this amazing economic recovery boost. To witness first-hand the elation - the tears of joy - home buyers expressed as they realized their dreams is something that will always remain with me.

What is the future of the home buyer tax credit? The future remains uncertain at this time. It may well be the program has run its course. If there is any breaking news, I will be certain to report it right hear at my blog, my REAL blog, for Fergus Falls REAL Estate.

In the meantime, it appears the economy is starting to move forward in our neck of the woods. There is evidence of home buyer demand. There are some great, great properties on the market, and interest rates are amazing.

Thinking of buying a new home . . . or selling your existing home? We need to talk! Give me a call at your earliest convenience for all the real estate news you can use!!

Stay tuned -

Jon Drews, Associate Broker with Century 21 Vista, Inc. in Fergus Falls and Otter Tail County.
(218) 770 - 3500
www.FergusFallsRealEstate.com

Wild about Minnesota

2010-03-04T17:59:00.000-08:00

I was traveling between Fergus Falls and Elbow Lake the other day and happened upon a fellow parked along the highway. At first I thought it might have been vehicle trouble but as I approached I could see someone leaning on the hood of his truck. He was glassing a distant slope with his binoculars. I was curious.

I slowed down to scan the landscape. A frozen lake sprawled across the foreground with some characteristic bulrush and wooded bank breaking far across the distant shoreline. There are on a secluded hillside I spotted the subject of interest: a mature coyote. This one was a grand animal – full bodied, defiant, wild, free - and on high alert. At that moment it was difficult to determine who had taken the greater interest in this match-up.

Even from across the ice-capped lake I could feel the heated intensity of the untamed dog’s piercing gaze. Coyote have become plentiful in this area and, for the most part, are not greatly appreciated. Coyotes are wild animals, and they can be very ruthless. It is the nature of the wild and coyote are passionately true to their nature. If the ‘wild’ had a face it would be the face of a coyote.

Regardless of how people feel towards coyote, few animals can stir my senses like this rouge predator can. Their wailing cries slash the inky-deep stillness of the Minnesota twilight. Haunting howls from distant corners search for camaraderie. Persistence pays off for the coyote as evidenced by a returning cry. And then another . . . and another. The calls can be heard from all directions and consume the senses with their soulful refrain. If the ‘wild’ had a voice, it would be the coyote’s voice.

Minnesota’s ‘wild’ is many things - and becomes much bigger than life in absence of things. It is as much the isolated timber tracts and unspoiled lakes as it is the absence of concrete, cell phones and traffic noise. There is nowhere else I can be that will heal so deeply as this. It is a re-birth of the senses. It is clarity of thought. My breath draws deeper. Color returns to my vision. I feel calm and connected.

My spirit cries out as if the coyote’s own calling. I understand my place and my purpose – and that of the coyote. Our passions – mine and the coyote – we see the land through one heart. It is here that we are free and defiant. It is here where we struggle and survive. It is here that we live and know peace.

Ramblings by Jon Drews, Broker Associate with Century 21 Vista, Inc.
Get connected with Minnesota - call me today. (218) 770-3500
www.FergusFallsRealEstate.com

Tickity-tockity: Let's Beat the Clockity . . .

2010-03-04T10:25:00.000-08:00

Home sales have been brisk the last couple of weeks as folks rush to take advantage of the tremendous home buyer tax credits that are presently available. This is an amazing opportunity but it is ending soon! As the deadline draws near it is great to see so many people able to act on the opportunity.

If you haven't already done so - and a home purchase is in your future - Let's Get Movin'!!

Call Now -

Jon Drews, Broker Associate with Century 21 Vista, Inc.
www.FergusFallsRealEstate.com
(218) 770-3500

Thinking about home financing?

2010-02-23T14:30:00.001-08:00

Check out the article below from CNNMoney.com. Basically, the article is suggesting home financing interest rates are going to be on the rise. Are you considering financing a new home purchase and still on the fence? I can't afford a decent crystal ball so I just have to make decisions on the best informaiton available just like anyone else would but I have to believe interest rates are going to be rising soon. FYI

Here is the the article:

NEW YORK (CNNMoney.com) -- Even though signs of a housing recovery are uneven at best, the Federal Reserve is about to take off the training wheels it has had in place for more than a year to help the battered market.

The Fed has been buying mortgage-backed securities, the bundling of home loans that are used to fund mortgage lending, since late 2008. But next month it plans to complete its purchase of $1.25 trillion in mortgages

That could be bad news. There is wide agreement that the removal of this support will mean higher mortgage rates, which could hit housing prices and sales hard. Some even worry that this could cause the broader economic recovery to stall.

The program was the largest single injection of cash into the economy by the Fed during the financial crisis, and it will be the longest-lasting source of funds as well. Even though the Fed intends to stop buying mortgages, few expect the central bank will start selling them to private investors any time in the next few years.

Higher rates on the way. But even if the Fed holds onto the mortgages it has already purchased, the act of no longer buying additional mortgages is likely to raise mortgage rates in the coming weeks. Experts say a jump of at least a quarter to a half percentage point is likely.

San Francisco Federal Reserve President Janet Yellen warned of higher rates in a speech Monday. Fed Chairman Ben Bernanke is likely to take questions about the Fed's mortgage program when he testifies about economic conditions on Capitol Hill Wednesday and Thursday.

The spread between the interest on 30-year fixed rate mortgages and the benchmark 10-year Treasury note now stands at about 1.2 percentage points. Before the financial crisis, this spread was typically closer to 1.5 percentage points.
0:00 /4:36Why we missed the housing crisis

The worry is that high foreclosure rates and a still struggling economy will make investors demand a bigger spread than "normal", since mortgages carry far greater risk in the current market.

Before the Fed started buying mortgages, the spread had climbed to about 2.5 percentage points. A return to that spread is unlikely, but there is uncertainty about how high it could go.

Paul Kasriel, director of economic research at Northern Trust, said he "wouldn't be surprised" if the spread widened by half a percentage point from current levels.

That can have a significant impact on prices by limiting what a buyer can pay for a home. Take the $178,000 median home price of existing homes sold in January. A buyer with a 20% down payment will pay just over $750 a month in mortgage payments for a 30-year fixed loan at today's rate.

Raise that rate by a half point, and the same buyer will only be able to afford a home worth $170,000 to keep payments near the $750 a month level.

The other concern is that even if the spread doesn't increase that much, mortgage rates could still shoot up simply if Treasury yields start to rise. That's possible if the debt problems in Greece and other weaker European countries is resolved in the new few months and investors who moved to U.S. government debt in a flight to quality move out of Treasurys.

End of tax credit to add to problems. The worries about the Fed pulling back support for housing are compounded by the end of up to $8,000 in tax credits for home buyers. To qualify, buyers face an April 30 deadline to sign a sales contract.

Dean Baker, co-director of the Center for Economic and Policy Research, argues that the Fed's program and tax credit for home buyers "ended the free fall in home prices."

But he thinks that the removal of this support could mean that home prices could start to drop by as much as 1% a month again. He also thinks mortgage rates could climb by as much as a percentage point in the coming months.

Jay Brinkman, chief economist for the Mortgage Bankers Association, said even if there isn't a big impact on home sales and prices, higher rates will lead to a plunge in mortgage refinancings.

The MBA now forecasts refinancings will fall to a range of $500 billion to $600 billion this year from $1.4 trillion last year. That will mean even less cash available for homeowners to spend on other goods or to reduce debt.

But Brinkman said the Fed is right to do what it is doing, even if the housing market is still in tenuous condition.

"It's kind of like a pain killer. If you stay on it too long, the withdrawal pains may be worse than the pain you were trying to deal with," he said.

But David Wyss, chief economist with Standard & Poor's, said he isn't sure that the Fed will even follow through and stop buying mortgages. If home sales and prices start to tumble sharply once again, the central bank could be back buying mortgages fairly quickly.

"It's like the parent who is teaching a child to ride a bike who carefully lets go while running along side," he said. "The Fed thinks the child is able to balance by himself at this point, but it's still going to be running alongside the bike, just in case."
_____________________________________

Jon Drews, Broker Associate with Century 21 Vista, Inc.

The Warmth of a Minnesota Winter

2010-02-14T17:54:00.000-08:00

One of my favorite Minnesota winter events is witnessing the first whisper of spring! The moment looks, feels, smells, and sounds like 'hope'. It is at that moment I begin to believe the ice and snow will eventually yield to a glorious refrain of seasonal civility. Yesterday offered this hope. I sensed the whisper. Additionally, my good friend, Paul, arrived from Colorado. It was the perfect combination of events.

Paul and I met yesterday morning at the Viking Cafe in downtown Fergus Falls to 'recap and assess' current happenings. After filling ourselves with coffee, bacon, and hash browns (uff da), we decided a drive through the country would be the perfect sedentary activity to promote some much needed digestion. Besides, I had an itch to view a nice piece of lakefront property south of Battle Lake and was looking for an excuse. (Yes, a person can look at lake property in the winter - you just need a bit more imagination to absorb the full potential!)

On the way Paul and I talked about fly fishing, the 'Viking Regulars', and Colorado. (We may have also covered gas mileage, road salt, the band members of 'Cream', and the current price of an oil change.) Through it all we had some fun taxing our respective memories with things mostly mundane.

Traveling passed Clitherall Lake I noted all the fish houses dotting the otherwise barren lake surface. I recalled my last trip out on the ice: great coffee, great conversation, great fishing! (And is there anything tastier than fresh walleye taken from ice water?) At the same time I couldn't help but think how odd it must seem for folks less familiar to consider such outings as 'high' entertainment during a Minnesota winter.

Winter in Minnesota can be a fascinating study. At first glance one only views a barren, monochrome landscape. A person might initially sense the rush of nothing except an expansive, calming stillness. Closer examination, however, reveals tracks - evidence of life, bustling organisms, and much activity. There are cross-country skiing tracks, deer tracks, and 'alfalfa-flaking-off-hay-bale tracks' (as farmers haul behemoth bales of fodder for their livestock). Along the highway right-of-ways we find snowmobile tracks. We can discover the hurried tracks of turkey and coyote as they course open breaks of pasture. Rumbling snow plows leave 'tracks' everywhere. Chickadee tracks and empty sunflower hulls are scattered at our doorsteps. Tracks of smoke are pluming up from the newly established fish-house villages. And there are still more tracks to the fish houses. Winter in Minnesota: It bustles with the many varied signatures of life. It is vital. I would miss it.

The drive continues and Paul and I speak less. (Good digestion requires focus and silence.) The passing farm yards, timber tracts, and fields dull the senses like Novocaine. And what was once only suspected is now confirmed: I ate way too much at The Viking.

This particular drive is a favorite of mine. I know the destination as well as the journey (and we have nearly arrived). Just ahead is 'the curve'. Passing through 'the curve' is like passing into another time. The view transforms. In an instant the perspective changes from driving 'through' the country to one of 'overlooking' the country. The road's shoulder falls out of site. The southern horizon opens beyond a deep, oak-rimmed bowl of bramble and willow. The colors in the sky wash across the snow. It is a stunning view that is measured in miles. The distant skyline is beaded with pronounced hilltops, gnarled oak, and draws. Paul comments, "This is like 'Currier & Ives'."

Are you looking for a place to live that gives back more than it takes? A place that passes time with great conversation, meals of winter walleye, and peace-of-mind? Why not invest yourself in all four seasons of Otter Tail County? You may discover there is no finer place on earth for you to find yourself. Far too few people take occasion to experience - and appreciate - Minnesota's winter season. Looks just like 'Currier & Ives'. Feels just like home.

Jon Drews - Broker Associate with Century 21 Vista, Inc.

Jon is a fourth-generation resident of Otter Tail County and looks forward to serving all your Otter Tail County real estate needs.

You get what you pay for

2010-02-09T11:23:00.000-08:00

I read a not-so-interesting article yesterday regarding the purchase of a foreclosed property. The title was something along the lines of 'Foreclosure money pit ends up costing much more.' What a shocker (insert eye-roll here).

During a typical month as a real estate agent I visit with many buyers that are looking to purchase a foreclosed property for 'pennies on the dollar'. Some of these buyers think they will be purchasing a 'move-in ready home' or something they can flip for a 100% return on their investment with little or no effort/cost. Time for a 'realty' reality check.

Granted, there are foreclosed properties available that are 'move-in ready' but there are many more that are not. Equally, if you are thinking you are going to purchase a property that can be flipped for big bucks with just a 'Swiffer' and a can of 'Carpet Fresh', think again.

'You get what you pay for.' How true. Here is the secret to save you BIG headaches when purchasing a foreclosed property: SEE the existing property condition with your eyes wide open; UNDERSTAND what it will cost to bring the property up to condition; have the necessary RESOURCES to get the job done; JUMP when you find what you are looking for. (Look, I did an acronym! 'SURJ' - See, understand, resources, jump. OK, so it is not a great acronym. . . [ahem].)

Virtually all foreclosure properties are being sold 'as-is'. What that means is there is no warranty, there are no refunds. You bought it, you own it. The buck did not stop here, it stopped elsewhere - and it is not coming back. If there is a 'surprise' problem that needs to be addressed after the sale your only real option is to find a mirror and have a nice heart-to-heart talk with the new owner - you.

Please understand: There are many good values in the foreclosure market - and occasionally, there is a real steal. But if you are going to capitalize on such a deal you need to SURJ! Know what you are looking for and be positioned to act quickly when you find what you are looking for - because good deals do not wait around!

If you are the type of person that can't tolerate a little risk exposure, the foreclosure may not be for you. In that case there are probably better options - such as properties that are not being sold 'as-is'. I think it is worth noting when a foreclosed property is sold, the owner (often times a bank) requires the buyer(s) to accept and sign multiple documents that basically repeat the same statement over and over, "Mr./Mrs. Buyer(s), do you understand you are purchasing this property 'AS-IS'?" Hmmm. I wonder if they are trying to make a point?

Questions on foreclosed properties? Call me.

Jon Drews, Broker Associate with Century 21 Vista.

Visit my website at www.RealEstateFergusFalls.com to view foreclosed properties plus much, much more!

The ‘Short’ in Short Sales

2010-02-04T10:15:00.000-08:00

Hi there! I just stumbled across in interesting article today and feel the need to share. The article relates to a very real risk for individuals that have been – or are considering – a short sale of their home. We’ll get to a brief summary of definitions and risks in just a moment but for those who wish to dive right into the CNN Money.com article, it can be viewed here: Mortgage lenders pursue homeowners even after foreclosure

Basically, a short sale is an arrangement – an agreement – between a homeowner and their lender. Let’s say a homeowner needs to sell their property and they have not been able to do so for an amount that would satisfy their mortgage balance on the property. That homeowner may be able to negotiate with the mortgage holder for the sale of the property at a price less than the mortgage. For most people in this situation this would appear to be the end of their problem: they sold their home and their mortgage has been satisfied. WRONG!

Please understand 'short sale' transactions are quite common these days and, when properly negotiated, can lend themselves very well in certain situations. There is nothing wrong with a properly negotiated short sale.

If you are thinking a ‘short sale’ type of arrangement is the right approach for your situation you absolutely must be talking to an attorney that deals with short sale transactions!

Here it is in a nutshell: There are two basic ‘commitments’ made by a homeowner when securing a mortgage. The first is the homeowner agreeing to offer the home as collateral for the loan. The second is a promise by the borrower to repay the mortgage. BOTH elements need to be addressed when negotiating a short sale. If a homeowner only addresses the first element and agrees with the mortgage holder to release the property as collateral so that it can be sold, there is still the second element that states the borrower agrees to repay the loan.

Some folks that have gone through the short sale process are getting a nasty surprise after the fact. Banks are contacting these people and informing them they still owe the difference in what the home ultimately sold for and the mortgage balance! Ouch.

Read the linked article from CNN Money.com for all the details. And, again, if you are considering a short sale be absolutely certain you do so with the assistance of a legal professional.

Until next time -

Jon Drews, Broker Associate with Century 21 Vista, Inc.

www.C21Vista.com

Is looking at homes a bit confusing?

2010-01-30T18:49:00.000-08:00

I can help simplify the process! Yes, there are many factors to consider when preparing to buy or sell a property. This is why you need to seek the guidance of a professional.

Speaking of professionals, what type of credentials should a person seek out when considering the selection of a real estate sales agent to assist with the purchase or sale of your home? Great question! Here is my advice: Look for an agent that has earned the CRS (Certified Residential Specialist) designation. A CRS agent has committed to additional training and has demonstrated their ability to represent both home buyers and sellers at the highest level of professional care.

Here is another valuable tidbit: Fewer than 4% of all REALTORS go on to earn the CRS designation.

When it comes to buying and selling, is there anything more important than the purchase or sale of your own home? Life is tough enough - you owe yourself some peace of mind. Retain the services of a Certified Residential Specialist and know you are in good hands!

Jon Drews, Broker Associate with Century 21 Vista, Inc.
www.C21Vista.com

What are you waiting for?

2010-01-30T07:47:00.000-08:00

Looking to buy a new home? Need more room, less room, or just different room? NOW is the time to make your move! The opportunity to purchase a new home has never been greater than it is right now! In fact, as one of my very good banker friends shared the other day: I am guessing we will never again see all the advantages home buyers have RIGHT NOW.

(Home Sellers: Are you paying attention? You MUST be part of this market right now. You need to be properly positioned and competitively marketed right now. Call me . . . right now!)

Just think about it. We have TAX CREDITS for First-time Home Buyers. We have TAX CREDITS for Existing Home Buyers. HISTORICALLY LOW INTEREST RATES will literally save home buyers thousands of dollars! And how about the current inventory of great, great properties – the time is NOW! Again, I ask: What are you waiting for!?!

These are exciting times – times of life-changing opportunities – for savvy and discerning buyers - and sellers. Will we ever again see all the advantages home buyers have right now? Think about it – but think about it QUICKLY as the clock is ticking. (You can see ‘the clock’ at my website: www.C21Vista.com)

A note to home buyers: Call me today – Let’s Get Moving!! Let’s take advantage of this amazing opportunity to BUY your home.

A note to home sellers: Call me today – Let’s Get Moving!! Let’s take advantage of this amazing opportunity to SELL your home.

Call me today: Jon Drews, Broker Associate with Century 21 Vista, Inc. (218) 770-3500

Get the Facts on the Extended Homebuyer Credit

2010-01-24T09:03:00.000-08:00

In November 2009, the first-time homebuyer tax credit was expanded and extended. It could be the boost you’ve been waiting for to get you on the path to your new or next home. Here are some answers to questions and facts to consider.

First-time home buyers – 10% of the purchase price up to $8,000

This tax credit is available to buyers who have not owned a principal residence during the prior three year period, and enter into a contract to purchase a new primary residence on or before April 30, 2010.

Current home owners – 10% of the purchase price up to $6,500

This tax credit is available to current home owners who have lived in their principal residence for at least five consecutive years during the past eight years, and enter into a contract to purchase a new primary residence on or before April 30, 2010.

What is a Homebuyer Tax Credit?*

It is a reduction in what a taxpayer owes in income taxes. To qualify, the homebuyer must meet the annual income requirements and enter into a binding contract for a home purchase between November 7, 2009 and April 30, 2010, and close on the purchase by June 30, 2010.

What are the income requirements?

For single tax payers, the income limit is $125,000 for married taxpayers filing a joint return, the limit is $225,000. Consult your tax professional to determine your eligibility.

Does the tax credit need to be repaid?

No. This is not a loan, but a tax reduction, provided you live in the home for a minimum of three years. Military families are exempt from this stipulation.

Are there other allowances available?

Yes. For some FHA-insured mortgages, the tax credit may be used as a down payment to offset closing costs. To learn more about this and other details, talk to a CENTURY 21® Agent.

Are there any caps on the value of the home?

Yes. The tax credit is only applicable to homes that are purchased at $800,000 or less.

The extended tax credit program is designed to help make home buying possible for a wider number of buyers. CENTURY 21 Sales Professionals can help you understand how to take advantage of this temporary incentive. It’s important to also consult with a tax professional and a mortgage specialist. A CENTURY 21 Agent will guide you through the process.

To learn more, visit C21Vista.com or call 218.770.3500

Source: Unemployment Compensation Extension Act of 2009.
*Consult a tax professional to determine eligibility. To qualify, homebuyer must meet the annual income requirements and enter into a binding contract by April 30, 2010 and close on the purchase by June 30, 2010. CENTURY 21® is a registered trademark licensed to Century 21 Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each office is independently owned and operated.

Existing Home Owner $6500 Tax Credit!

2010-01-22T15:54:00.000-08:00

Current home owners: Did you know you can receive a tax credit up to 10% of the purchase price when you purchase a new home! WOW!! ($6500 maximum credit.)

This tax credit is available to current home owners who have lived in their principal residence for at least five consecutive years during the past eight years, and enter into a contract to purchase a new primary residence on or before April 30, 2010.

First-time & Existing Home Buyer Tax Credit!!

2010-01-22T15:18:00.000-08:00

Your opportunity is ticking away . . . to qualify for an $8000 tax credit (First-time Home Buyer) OR a $6500 tax credit for Existing Home Buyers!

I have the details. Call Now!

Jon Drews
Associate Broker
Century 21 Vista, Inc.
(218) 770 - 3500

First Time Home Buyers

2009-06-15T19:00:00.000-07:00

Ah, to be a 'first-time' home buyer in 2009!! What a wonderful, wonderful opportunity. Did you know any person that has not owned a home in the last three years may qualify for a tax refund up to $8,000? It is true!

There are certain income limits and rules related to home occupancy but - in a nutshell - a qualified buyer could get a 10% tax refund on the purchase of a primary residence - not to exceed $8,000 maximum.

To illustrate: Purchase a $50,000 home and get $5,000 back. Purchase an $80,000 home and get the maximum of $8,000 back. Purchase a $125,000 home and receive the maximum - $8,000.

This is a great, great deal! Not certain if you qualify? Call me and we'll find out!

Take care -

Jon Drews
Associate Broker with Century 21 Vista
(218) 770 35000

A Minnesota Evening

2009-06-06T19:03:00.000-07:00

I always enjoy visiting with folks from around the country regarding my living in Minnesota. People usually ask, 'How can you stand the winters?' It is true; winters can be a little tough sometimes. After nearly 50 years I still haven't gotten quite used to the -100 degree wind chills . . .

But seriously, one Minnesota, moon-lit evening whilst drawing warmth from a lake-side camp fire - loon-song drifting through the stillness . . . Trust me, enduring a little winter chill is WELL worth the exchange.

Minnesota summers are like nothing else - they explode on the senses. You can feel them, you can see them, you can hear them, you can taste them, and you can smell them.

Breathe deep the sweet, fragrant bouquet of fresh-cut hay whisping through a June evening. Witness the healing glow of a lake-view sunset. Nibble some fresh-picked strawberries, feel the sugar sand between your toes, and hear your own restful sigh as you discover this place - YOUR place - in the land of 10,000 lakes.

Take care –

Jon
Associate Broker, Century 21 Vista, Inc.
www.C21Vista.com

The 'REAL' in REAL ESTATE

2009-05-27T18:39:00.000-07:00

I have lost track of the times a friend has shared with me, 'Buying this property was the smartest thing I ever did!' I believe my father-in-law says it best when he observes, 'Buying land is smart because they are not making anymore.' For whatever reason I can relate to that.

Indeed, there is nothing more 'REAL' than real estate. Our homes - they are where we live and where we gather and share with family and friends. Lake homes and vacation homes represent escapes from our fast-paced lives. Hunting woods! Ah, for the memories and friendships. And what about the 'family farm'? I am from a farming background. I can understand the bond that develops between individuals and families and generations . . . and land.

Are you considering purchasing your first 'home' in the near future? Do you need to find a new 'home' that best serves your current needs? Are you thinking about selling your 'home' or the 'family farm' and desire the matter to be handled with the respect it deserves? Call me today. I'd like to visit with you regarding your plans!

Jon Drews
Associate Broker
Century 21 Vista, Inc.
Fergus Falls MN
(218) 770 - 3500

Memorial Day 2009

2009-05-23T00:18:00.000-07:00

THIS IS IT!! Memorial Day Weekend 2009! This weekend is typically hailed as the start of summer. Graduations, sunshine, fishing, golfing, boating - and a host of fabulous outdoor activities. Otter Tail County explodes with life - typically on this weekend. There is probably no finer place to be than in Minnesota on Memorial Day Weekend.

But as we are roaring into high gear for a summer of endless adventure let's also pause to reflect on the true heart and soul of Memorial Day. My hope is for each of us to pay tribute to our nation's freedom and resolve by remembering those who have died in service to our great country.

This is Memorial Day Weekend - the 'unofficial' start of summer, a rite of passage for area graduates, it is a time for walleye fishing and sharing stories around camp fires and, most importantly, a time to remember.

Stay safe, live well, and always . . . remember.

Jon Drews, Associate Broker with Century 21 Vista, Inc.

Property Bargains?

2009-01-30T15:34:00.001-08:00

Yes, indeed! There are bargains to be had for property buyers in our current market - and NOW is the prime opportunity to explore what is available. ESPECIALLY with the amazingly low interest rates being offered on financing.

To assist real estate shoppers, I have designed my primary website, www.SearchFergusFalls.com, so that foreclosed property searches can be conducted from the main page.

In addition, I have included a number of customized searches that are drawn straight from our regional MLS (multiple listing service) data base. The information is ALWAYS current and ALWAYS available.

Check it out - it is a GREAT way to become informed in the both the Fergus Falls and Otter Tail County regional real estate markets.

Have a super weekend!

Jon Drews - Associate Broker for Century 21 Vista, Inc.

Cabin Fever?

2009-01-25T07:48:00.000-08:00

It happens every year to most folks up here in Minnesota: Cabin Fever. It is marked in part by the absence of friends and neighbors as they make their annual break for sunshine and sandy beaches. Upon returning, these people are tanned and content - knowing there are places on the planet that still offer warmth. Additionally, they know - once we get to February - winter WILL be coming to an end eventually. The longer periods of daily sunlight and the warmth of sunshine entering our homes, they both bring hope.

In addition to taking vacations to escape the cold, another past-time includes dreaming - and planning - for great summer adventures. There is not another place on the planet that can exceed the beauty and splendor of our Minnesota lakes in their summer glory. If there are thoughts of a new lake home or get-away in your future, NOW is the time to start doing your dreaming - and research!

On-line real estate information is very much available. Grab a cup of coffee and surf some properties - all from the comfort of your home. I offer a website to do just that: http://www.searchfergusfalls.com/. It is a very easy site to use - with no hassles. You can search all properties listed in our area - and I don't ask for names or emails to do so.

Just use the site and search - relax and have fun dreaming. In addition, I have created custom searches if you only want to look for lake homes or lake lots or hunting land. Check it out - enjoy! If you find something you like, drop a line. I'm here to help you when you are ready.

Jon Drews - Associate Broker, Century 21 Vista, Inc.

The time is now

2009-01-10T13:17:00.000-08:00

Things are looking up!

Greetings! Do you know what my first piece of advice is for folks interested in buying or selling real estate in Otter Tail County? Just this: Turn off the TV, stop reading the newspaper.

Thankfully, our local economy is doing much, much better than what we see nationally. Yes, we have some challenges. Yes, a person needs to be careful with spending.

However, the purchase of a new home – with energy-efficient features – or a downsizing from a current home might be exactly what is needed to bring about greater financial security in your own situation.

The REAL PLUS is interest rates are ridiculously low. Combined with the fantastic selection of properties currently available I can only ask: What are you waiting for!?!

The opportunities available in the current real estate market are not going to last. If ever there was a time to make a wise real estate move, the time is NOW!

Until next time –

Jon Drews
Associate Broker with Century 21 Vista, Inc.

Diary of a Fergus Falls Snow Shoveler

2009-01-06T07:18:00.000-08:00

December 8: 6:00 PM. It started to snow. The first snow of the season and the wife and I took our coffee and sat for hours by the window watching the huge soft flakes drift down from heaven. It looked like a Grandma Moses print. So romantic we felt like newlyweds again. I love snow - covering every inch of the landscape. What a fantastic sight! Can there be a lovelier place in the whole world? Moving here from Arizona was the best idea I've ever had. Shoveled for the first time in years and felt like a kid again. I did both our driveway and the sidewalks. This afternoon the snow plow came along and covered up the sidewalks and closed in the driveway, so I got to shovel again. What a perfect life.

December 12: The sun has melted all our lovely snow. Such a disappointment. My neighbor tells me not to worry; we'll definitely have a white Christmas. No snow on Christmas would be awful! Bob says we'll have so much snow by the end of winter, that I'll never want to see snow again. I don't think that's possible. Bob is such a nice man. I'm glad he's our neighbor.

December 14: Snow, lovely snow! 8" last night. The temperature dropped to -20. The cold makes everything sparkle. The wind took my breath away, but I warmed up by shoveling the driveway and sidewalks. This is the life! The snowplow came back this afternoon and buried everything again. I didn't realize I would have to do quite this much shoveling, but I'll certainly get back in shape this way. I wish I wouldn't huff and puff so.

December 15: 20 inches forecast. Sold my van and bought an SUV. Bought snow tires for the wife's car and 2 extra shovels. Stocked the freezer. The wife wants a wood stove in case the electricity goes out. I think that's silly. We aren't in Alaska, after all.

December 16: Ice storm this morning. Fell on my butt in the driveway putting down salt. Hurt like sin. The wife laughed for an hour, which I think was very cruel.

December 17: Still way below freezing. Roads are too icy to go anywhere. Electricity was off for 5 hours. I had to pile the blankets on to stay warm. Nothing to do but stare at the wife and try not to irritate her. Guess I should've bought a wood stove, but won't admit it to her. I hate it when she's right. I can't believe I'm freezing to death in my own living room.

December 20: Electricity's back on, but had another 14" of this flaky crud last night. More shoveling. Took all day. Wretched snowplow came by twice. Tried to find a neighbor kid to shovel, but they said they're too busy playing hockey. I think they're lying. Called the only hardware store around to see about buying a snow blower and they're sold out. Might have another shipment in March. I think they're lying. Bob says I have to shovel or the city will have it done and bill me. I think he's lying.

December 22: Bob was right about a white Christmas because 13 more inches of the miserable crap fell today, and it's so cold it probably won't melt till August. Took me 45 minutes to get all dressed up to go out to shovel and then I had to pee. By the time I got undressed, peed and dressed again I was too tired to shovel. Tried to hire Bob who has a plow on his truck for the rest of the winter; but he says he's too busy. I think the jerk is lying.

December 23: Only 2" of snow today but the blowing wind made 4 foot drifts in the driveway. I can’t stand it. The city sent me a bill for $150 to remove my snow. They must be nuts. And it warmed up to 0. The wife wanted me to decorate the front of the house this morning. What is she...nuts??? Why didn't she tell me to do that a month ago? She says she did but I think she's lying.

December 24: 6". Snow packed so hard by snowplow that I broke the shovel. Thought I was having a heart attack. If I ever catch the bugger who drives that snowplow, I'll drag him through the snow by his nose. I know he hides around the corner and waits for me to finish shoveling and then he comes down the street at 100 miles an hour and throws snow all over where I've just been! Tonight the wife wanted me to sing Christmas carols with her and open our presents, but I was too busy standing on the front steps watching for the snowplow.

December 25: Merry Christmas. 20 more inches fell tonight. Snowed in - again. The idea of shoveling makes my blood boil. I hate snow! The snowplow driver came by asking for a donation and I whacked him over the head with my shovel. The wife says I have a bad attitude. I think she's insane. If I have to watch "It's a Wonderful Life" one more time, I'm going to commit myself.

December 26: Still snowed in. Why did I ever move here? It was all HER idea. She's really getting on my nerves.

December 27: Temperature dropped to -30 and the pipes froze.

December 28: Warmed up to above -25. Still snowed in. The wife is driving me crazy!!!

December 29: 10 more inches. Bob says I have to shovel the roof or it could cave in. That's the dumbest thing I ever heard. How stupid does he think I am?

December 30: Roof caved in. The SUV is buried. The snow plow driver is suing me for the bump on his head. The wife took a flight home to her mother. Another 9" predicted.

December 31: Set fire to what's left of the house. Burned the shovel too. No more shoveling. Started walking back to Arizona – in my slippers and robe.

January 8: Where am I? I feel so good. There is a picture of a tropical island hanging over my window. I just love those little white pills they keep giving me. Why am I tied to the bed?

New Year's Resolution

2008-12-29T07:25:00.000-08:00

Greetings! It has been too long - way too long - since I last entered a post at Fergus Falls REAL Estate. We are rapidly approaching the beginning of 2009 - a great time to reform habits gone awry.

Please visit my blog site regularly as I am commiting myself to frequent postings of all things real estate in the Otter Tail County area - and, of course, Fergus Falls. I am always looking for a topic so, if you have one, just post a comment - or email me. If I don't have great comment for the day, I will make something up - and I will make it FUN!

Let's do it!

2009 - BRING IT ON!!

Jon Drews, Associate Broker
jondrews@century21vista.com

First-time Home Buyer Tax Credit!

2008-09-03T09:23:00.000-07:00

Hi there! I need to share this because it is a really, really great deal for first-time home buyers! In a nutshell, we have never seen a program like this before for qualified, first-time home buyers. If you are considering the purchase of your first home, NOW is the time to make the move and break out of the rental food chain.

The following is a summary I received from one of my good friends over at Bremer Bank. With her permission, I am providing this GREAT news for your review:

"The single largest provision in the $15.1 billion package of housing tax incentives in the recently enacted Housing Assistance Tax Act of 2008 (the “Housing Act”) is a measure allowing individuals buying their first home to take a tax credit of up to $7,500 of the purchase price. Qualified homebuyers can subtract the credit amount from their federal income tax when they buy a home and even get a refund if the credit exceeds the tax. However, they are then required to pay the credit back over 15 years. The result is that the credit resembles an interest-free loan that must be repaid to the government. Here are the details of the new credit:

The home must be located in the U.S. and must be the taxpayer’s principal residence (main home). The taxpayer (and the taxpayer’s spouse if married) must not have owned another principal residence in the U.S. in the three-year period before purchasing the new home. Thus, the home doesn’t literally have to be the taxpayer’s first home.
The home must have been purchased from April 9, 2008 through June 30, 2009, inclusive. Purchases from certain related persons and acquisitions by gift or inheritance don’t qualify. A home constructed by the taxpayer does qualify if the taxpayer moves in from April 9, 2008 through June 30, 2009.
A special rule allows taxpayers who purchase a principal residence in the first six months of 2009 to treat the purchase as if made on Dec. 31, 2008. This allows the taxpayer to claim the credit for 2008 rather than 2009.
The credit is equal to 10% of the price paid for the home, up to a maximum of $7,500. The $7,500 maximum credit applies both to individuals and married couples filing a joint return. A married individual filing separately can claim a maximum credit of $3,750.
The credit is phased out for individual taxpayers with modified adjusted gross income (AGI) between $75,000 and $95,000 ($150,000 and $170,000 for joint filers) for the year of purchase. Taxpayers with modified AGI over $95,000 ($170,000 for joint filers) can’t claim the credit.
The credit is refundable, meaning that households with incomes too low to owe income tax can benefit from it.
In the second year after purchase, taxpayers who took the credit must start paying back the credit in equal installments over 15 years, with no interest charge. This works as follows. Suppose a first-time homebuyer purchases a home for $100,000 this coming December and claims the maximum credit of $7,500 on his 2008 tax return. He would then be required to pay back $500 (one-fifteenth of the credit) on his tax return for 2010 and for each of the following 14 years, through 2024.
If the taxpayer sells the home (or the home ceases to be the principal residence of the taxpayer or the taxpayer’s spouse) before complete repayment of the credit, any remaining credit is due on the tax return for the year in which the home is sold (or ceases to be the principal residence). If the home was sold at a loss to an unrelated person, repayment of the remaining credit is forgiven to the extent of the loss.
No credit is allowed if: the taxpayer was ever entitled to a D.C. homebuyer credit; the home purchase was financed through tax-exempt mortgage revenue bonds; the taxpayer is a nonresident alien; or the taxpayer disposes of the residence (or it ceases to be a principal residence) in the year of purchase."

First-time home buyers really need to check this out - what a great deal!

Until next time,

Jon Drews
Associate Broker with Century 21 Vista in Fergus Falls, MN
http://www.searchfergusfalls.com/

Making a Grand Entrance

2008-07-29T18:02:00.000-07:00

Whether you think 'Belle of the Ball' or making a big SPLASH or simply standing out in the crowd, it all comes down to getting noticed. Effective marketing is all about creating the positive first impression. You might think this post is intended to provide guidance for a job interview - and it could as it certainly applies! But my topic title today is about how important it is for folks selling real estate to have their property in 'show ready' condition. In the next few moments I hope to illustrate to sellers how important it is to 'make the grand entrance' into the real estate market.

Property in today's market has to reach out and capture the emotions of potential buyers. This is especially critical when sellers have multiple properties to consider as the competition for qualified and willing buyers becomes much stiffer. Sellers should not kid themselves. Purchase decisions - ALL purchase decisions - are driven off emotions. It is a fact. And it is critical for the motivated seller to recognize this fact in how they present their property to the market. Seller's cannot control the economy any more than they can control the location of their existing property. However, sellers do control the marketing strategy and they absolutely do control the condition of their property as it is prepared for introduction to the market. Capture the emotions and you've captured the buyer.

Just remember this: ALL purchase decisions, and especially the purchase of homes, are emotion-based decisions. I'll illustrate this key point with one question: Are residential property buyers shopping for 'houses' or are they shopping for 'homes'? The answer is they are shopping for 'homes'. Houses are structures. Homes are those places where people get together and create all types of warm, fuzzy memories. Homes are where the chocolate-chip cookies are baked and where families gather for celebrations and holidays.

A buyer's first impression of your property is the most critical moment in that potential transaction. Is the property neat and clean or does it look like 'work'? Is the yard picked up or will a prospective buyer feel like they are invading someone else's space? Is there a light on at the front steps, are the windows sparkly, is the siding clean and free of blemishes, does the house role out the red-carpet in 'grand entrance' fashion and say 'Welcome Home!'?

I've sold real estate long enough to recognize the look on a buyer's face when they have found 'the one'. And very, very often that 'look' appears before the buyer has even entered the property. They become captured in the moment - their thoughts swirling with emotions of relief and joy in having found their home. Just like in job interviews, homes need to create the positive first impression. If they do not succeed in doing so, the game may already be over.

Are you serious about selling a property soon? Make it SPLASH! Create the grand entrance.

Until next time . . .

Jon Drews
Associate Real Estate Broker
www.SearchFergusFalls.com

A few random thoughts . . .

2008-07-18T10:11:00.000-07:00

Greetings to all! All signs suggest we have most certainly locked into our Minnesota summer groove. Roadscapes throughout our lake-splashed county are views of lush green woods and waves of maturing corn, beans, and wheat. Blue skies and glistening water treat travelers with unrivaled splendor.

Another sign I notice of summer's advance is the staggering number of raccoons found 'sleeping' along our roadways. (As parents are prone to do, we used to shield our kids from the crushing realities of road-killed critters with this 'sleeping' reference.) In any event, raccoons do not fair as well in road-crossing as do chickens. But in the raccoon's defense, I have never, ever observed a chicken crossing the road - nor have I ever wondered why a chicken would want to cross a road . . .

Along with sleeping raccoons, I have noticed a good many turtles smacked prone on the asphalt. I ask myself, 'How is it that turtles are forever being hit on our roads?' It is not like they are able to jump out in front of speeding vehicles. It is only a theory of mine but if there is some evolutionary process at play enabling creatures to become more adaptive it has certainly overlooked the turtle. If turtles were evolving to their environment their upper shells would have taken on the form and color of blaze-orange safety cones long ago.

So, what does any of this ramble have to do with real estate? Not a darn thing! I'm just settled back on my patio pondering random thoughts whilst I enjoy some of the most alluring weather and fixating waterscapes on the planet. Minnesota - land of 10,000 lakes . . . and inspiration for my finest dreaming. Till next time -

Jon Drews, Associate Broker with Century 21 Vista
www.SearchFergusFalls.com

Minnesota Summer Dreams . . .

2008-07-09T20:33:00.000-07:00

Hello, Folks - It has been too long since my last post. The summer in Otter Tail County is in full swing. Lake activities are the place to be! Swimming, boating, and fishing are where you will find the 'tanned and sassy' crowd.

Real estate sales, despite what is being touted by national media, remain very healthy for quality lake front - and Otter Tail County has some of the most 'qualitiest' (I just made that word up this very moment.)

Yours truly has also made time for some high-end water recreation. Except, instead of becoming tanned and sassy, I wound up turning 'red and crispy'. Guess who spent 11 hours out on the water and forgot their sun screen . . . Would somebody plesase flip me over, I'm starting to stick!!

There is no better place on earth than Minnesota in the summer time. If you haven't experienced it, you need to. And what better way to experience a Minnesota Summer Dream than to own your own slice of it. Talk to an area real estate agent today and ask about available properties in Otter Tail County - the Land of 1,000 (and forty-eight) Lakes!! Oh, yes, and be SURE to remember the sun screen.

Take care,

Jon Drews
Associate Broker with Century 21 Vista, Inc.

www.SearchFergusFalls.com

A Primer for First-time Home Buyers

2008-03-31T11:24:00.000-07:00

Now is the perfect time to purchase your first home!

Interest rates remain historically low and property selection is excellent. By taking just a few basic steps you will be soon standing at the door of your first home. But before you get to that point there are a few things we should discuss.

First home buyers are some of my absolute favorite clients! I think it has to do with their energy level and how I become a part of that energy. It seems first homes are the most memorable – there is a lot of emotion and energy that moves in along with that couch and kitchen table.

There are a couple of steps first-time home buyers can take that will greatly simplify the process of purchasing their first home. Preparing for your first home purchase starts well ahead of moving your stuff - or picking out paint and decorating schemes.

Probably one of the most important considerations is how the home will be purchased. Rich uncles can come in very handy at this point but if you do not have the luxury of a 'rich uncle' now may be a good time to consider the various financing options that are available to first-time buyers.

There are a number of great programs available to new home buyers but before you do anything else, I recommend you take a moment to talk with a REALTOR® - and I would whole-heartedly encourage that individual be affiliated with the CRS (Council of Residential Specialists) for added assurance of receiving the utmost in guidance.

A CRS designee must complete specialized, residential real estate focused, training PLUS have verifiable sales and listing volumes to be eligible for this designation. CRS designees provide better service because they want to – they are driven to. Their personal goals to provide best-practice services become the basis for the demonstrated sales performance. The bottom line is first-time home buyers can have assurance their CRS affiliated REALTOR® will provide them with the best service possible!

The value of this initial guidance is immeasurable and will do more to ensure a successful, smooth transaction than any other step in the process. In fact, once you are connected with a CRS affiliate, everything - including the search for financing - will become much easier.

Please note this as well: It is important to consider shopping for financing much in the same way as buying a pair of sneakers. You may need to shop around to find the best 'fit'. (This particular analogy has real meaning for me because I have webbed toes and a ‘bad fit’ means pain down the path. OK, that was probably too much personal information . . .)

In any event, your CRS-affiliated REALTOR® can offer the necessary guidance regarding locating qualified and capable lenders that offer programs especially designed for that perfect ‘first-step’ home buyer ‘fit’!

Have fun - and stay safe!

Jon
www.SearchFergusFalls.com
www.MNFirstHomeBuyer.com

The Splendor of Land Ownership!

2008-03-30T15:51:00.001-07:00

Minnesota offers a rich year-round heritage for people longing to spend time outdoors. Our land, our woods, and our lakes create the backdrop for countless memories of family gatherings and ventures. Be it ice fishing on one of our countless ‘No-Name' lakes or traveling trails - by foot or sled or hoof or ATV - Minnesota offers a bounty of outdoor recreation opportunities.

Much of this heritage began with the family farms of yesterday. Those farms became - and still remain - the primary gathering points for some of our best upland bird hunting, waterfowl hunting, deer hunting, and fishing. It would be difficult for me to imagine an existence devoid of these memories.

Speaking from personal experience, the most-cherished of all my memories of outdoor excursion and adventure have taken place on my family's home farm. A property we have been so privileged to have resided on and managed for over 100 years and five generations. This, in a nutshell, illustrates the allure of property ownership. It is the preservation of history and a link to both past and future generations.

If you are seriously considering the dream of owning your personal duck pass or deer woods or ‘Lake No-Name', there are countless opportunities available. And now, with the bonus of low interest rates, we have not just countless opportunities - but perfect opportunities - to turn those dreams into reality.

Real estate has historically been a great investment for three reasons. First, there is a limited supply (no more is being made). Second, we are seeing an ever-increasing demand as Baby Boomers seek to enter a major chapter in their lives: Retirement in Minnesota's Lake Country. And, third, it is an investment you can walk on, you can point to it on a map, and you can build all your dreams and memories on it. Try doing that on a day-by-day basis with a money market account!

Take care - and stay safe,

Jon
www.SearchFergusFalls.com

He was Tough, but Never Hardened

2008-03-25T18:24:00.000-07:00

I had intended to provide a brief overview of the CRS (Certified Residential Specialist) designation today but, instead, will postpone that bit of information for another day.

I paid a visit to the Minnesota Veteran's Home located in Fergus Falls yesterday and had the opportunity to share some time with a resident. Until that moment he was unknown to me, but our conversation managed to awaken a flood of memories related to many dear friends now since departed. Without exception, the passing of each has made my life both richer with the lessons they shared . . . and less full in the profound absence of their physical presence.

Each friendship has been a journey laden with joy as immense as sorrow's depth. These men and women understood not just the concept of allegiance, but the cost. Through it all, I believe their strengths have shared a common thread. As difficult as times were - with hardships I can't even fathom - these great humans were never hardened in their hearts. In fact, that alone - their tenacious grasp on human kindness and patience, an unwavering hope for greater good - is likely what allowed them to survive these gravest of moments in our Nation's recent history.

And with the passing of each - as we pay final tribute - the same question taunts my confidence: Could we ever be as strong as these? (I pray that we should never find out.)

Not long ago I was driving through town and noticed an elderly gentlemen waiting to cross the street. I slowed to a stop so that he could cross and when I did, I recognized him - a WWII Veteran and close friend of the family. I had not seen him in some time but had heard he was engaged in yet another trying battle - a battle with dementia. As I watched him pass before me, I saw in his stride the pride he held for our Nation. Here walked a man of Honor. My throat tightened with each step he took. His journey - his life - had become an endless confrontation with forces that first sought to debilitate governments with the same callous ravage as he was now facing in his own mind.

And then, just as he stood directly in front of my paused vehicle, in a moment that will never escape my memory, he turned towards me. He was no longer able to recognize who I was, but it did not matter. From the depths of his being, he straightened his worn frame, stood at attention, and saluted. There was no point in trying to fight the tears that ran down my cheeks. He would remain unwaivering and steadfast - to God and Country - until his final step.

He turned and proceeded to the other side of the street to continue his, by all appearances, carefree journey - distracted by little, or nothing at all.

So, what does this story have to do with real estate? Absolutely nothing . . . and absolutely everything. The story is all about service to others. For each of us - you and I - in all we do, regardless of what we do, we should do our very best in service to those around us.

Today, Veteran's Day is nearly half-way around the calendar. I would hope we should not wait so long to take a moment to thank a Veteran - or 'future' Veteran - for their service to our Nation and also, through a handshake or a pat on the back, we might feel the immeasurable strength of those tough hearts that were never hardened. May God continue to bless America with hearts such as these.

Jon

Buying or Selling a Property? Pay Attention!

2008-03-24T21:13:00.000-07:00

I was hoping to walk away with some inspirational material today after a visit with our Miniature Donkeys, Amber Rose and Benjamin. Well, I certainly did walk away with some ‘material’ but, being located on the bottom of my overshoe, it did little to inspire me.

In a near-vain effort to ‘walk off’ my new-found ‘inspiration’ I paced about near our barn in one of the few remaining drifts of snow. In that moment of dreadful futility, Amber and Ben’s message dawned on me: PAY ATTENTION!

I looked back over my shoulder to see Ben’s cheesy grin as he mused on my struggle. I thanked him for the guidance and he replied with a snort of approval while trotting back into the barn.

Indeed, it is very important to pay attention – especially when buying or selling property.

For sellers, it is absolutely vital that thought be given to the most effective marketing efforts available. Today, that means using the services of a professional agent – one that understands how to effectively market property with the goal of maximizing seller proceeds. This will likely require an understanding of broad-brush marketing techniques utilizing the latest technologies as well as an eye for the fine points of property presentation – or ‘staging’. Staging is basically a seller’s stepping back to identify and best remedy property conditions they may have grown accustomed to in their day-to-day living that might interfere with a buyer’s ability to see a seller’s home as their home.

Obviously a buyer needs to pay attention as well to find a property that best meets the buyer’s needs. Similarly, a service professional – spelled ‘REALTOR®’ - can provide equal value to a buyer. A house does not become a home unless it meets the needs of the owners. People occupy houses but they live in homes. By paying attention, a REALTOR® can hear what is most important to a buyer and help identify properties that meet the rational needs and thereby empower the buyer to make the emotional connection.

In summary, buying and selling in the real estate market should be a pleasant experience. To ensure your next transaction does not leave you feeling like you ‘stepped in something’, pay attention and hire a REALTOR®.

My next post will review a designation held by fewer than 4% of REALTORS® and how that designation adds exceptional value for both buyers and sellers. The designation is offered by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of REALTORS®. Stay tuned to the REAL Blog For Real People!

Will Mortgage Rates Drop Any Lower?

2008-03-20T19:58:00.000-07:00

Greetings! I have had opportunity to visit with several of our area lenders over the last couple of days and I would like to take a moment to summarize some of the things I have both read and heard. What I have been told - and supported with what I have reviewed - is that interest rates continue to fluctuate almost daily but are probably at the bottom of the range right now and are remaining very attractive with 15-year money at 4.75 and 30-year money settling around 5.5. The opinion of many people - based on my conversations and readings - is that rates are not likely to drop much beyond their present levels - if at all - and it might be a good time to consider locking in if that is in keeping with your plans. As always, your mileage may vary.

That reminds me, I was speaking with a lawyer-friend of mine the other day and he suggested I include a disclaimer with anything I might state in this blog that could be construed as 'advice'.

Here it is:

FINAL DISCLAIMER on the contents of My REAL Blog

The statements expressed herein do not reflect the thoughts or opinions of either myself, my company, my friends, or my donkeys: don't quote me on that; don't quote me on anything; this disclaimer is subject to change without notice; text is slightly enlarged to show detail; resemblance to actual persons, living or dead, is unintentional and coincidental; dry clean only; do not bend, fold, or mutilate; anchovies or jalapenos added to this disclaimer upon request; your mileage may vary; no substitutions are allowed; for a limited time only while supplies last; offer void where prohibited; this disclaimer is provided "as is" without any warranties expressed or implied; Do not remove this tag under penalty of law; Confined Space - Do Not Enter; user assumes full liabilities; not liable for damages due to use or misuse; equal opportunity disclaimer; no shoes, no shirt, no blogging; caveat emptor; read at your own risk; this disclaimer may contain material some readers find objectionable; parental advisory: explicit lyrics; keep away from pets and small children; limit one-per-family please; no money down; no purchase necessary; ask us about our non-guns-trade-in plan; you need not be present to win; some assembly required; batteries not included; action figures sold separately; this disclaimer was packed full, contents may have settled during transmitting; sanitized and sealed for your protection; do not read if safety seal is broken; do not read while operating a motor vehicle or heavy equipment; safety reading goggles may be required during use; call before you use this disclaimer; use only with proper ventilation; for external use only; if a swelling, redness, rash, or irritation develops, discontinue reading; do not place near a flammable or magnetic source; keep away from open flames; avoid inhaling fumes or contact with nasal membranes; disclaimer contents under pressure, may explode if incinerated (joke – really); smoking this disclaimer may be hazardous to your health; the best safeguard, second only to abstinence, is the use of this disclaimer; text is made from 100% recycled electrons and magnetic particles; no electrons were injured in preparing this disclaimer; no animals were used to test this disclaimer; no salt, MSG, preservatives, artificial colour or flavour added; if ingested, do not induce vomiting, if symptoms persist, consult a medicinal blogger; possible penalties for early withdrawal; one size fits all; this disclaimer is valid only at participating blog sites; slightly higher north of Brisbane; allow four to six weeks for delivery; if defects are found, do not try to fix them yourself, but return to an authorized disclaimer writer; please remain seated until the disclaimer has come to a complete stop; reading in the mirror may be more complicated than it appears; this disclaimer does not cover hurricanes, floods, earthquakes, and other Acts of God, sonic boom vibrations, electromagnetic radiation from nuclear blasts, unauthorized repair, improper installation, misuse, typos, misspelled words, missing or altered signatures, and incidents owing to computer or disk failure, accidental file deletions, or milk coming out of your nose due to laughing while drinking; other restrictions may apply; in the event a disclaimer should be found necessary for this disclaimer, this disclaimer shall serve as the official disclaimer disclaiming anything that may necessitate a disclaimer thereby disclaiming any claimable act and declaring as disclaimable any allegation stemming from claims made by the original or any subsequent author of this disclaimer.

I think that should about cover it. Until next time - stay safe.

Jon
http://www.fergusfallsproperties.com/
http://www.searchfergusfalls.com/

Are We There Yet?

2008-03-18T09:48:00.000-07:00

As kids, do you remember asking this question when on a trip, ‘Are we there yet?’ I’m actually hearing a good number of adults asking this same question today – but they are referring to the current real estate ‘road trip’. Are we there yet? Have we hit the ‘bottom’ in the real estate market?

It is a good question – and a fair question. The challenge in answering the question is the ‘bottom’ is a relative point. It is relative to the pre-existing downturn and also to the identifiable, and sustained, uptick. To put it another way, it is only possible to identify the bottom in hindsight. I’ve had people recently share with me that we will hit the ‘bottom’ in June of 2008. The truth of the matter is we won’t know for certain if the bottom occurs in June until November – or even later.

As I had shared in an earlier post, I believe the region of West Central Minnesota was largely insulated from the brunt of the national downturn in the housing market. We were fortunate. There are probably a number of reasons for this but here are three that seem to make sense to me. First, a significant component of our local economy is based on agriculture and farming and this segment had a good year. Second, our property values are attractive in comparison to other areas of the country. Third, the ‘Baby Boomers’ are coming. They are very interested in our area lakes and communities as they plan and prepare for their retirement dreams. Without a doubt, the counties of Otter Tail and Douglas are on their radar!

There has been some very encouraging news in recent days that would suggest the local housing market is making positive movement. Recent statistics on foreclosures in Otter Tail County are suggesting an improvement over the last two years. Otter Tail county reported three fewer foreclosures in 2007 than were reported in 2006. This is great news!

In addition, interest rates remain historically low. This, in combination with a very favorable inventory and selection of properties currently on the market, and with new offerings arriving daily, is generating excitement amongst buyers. In fact, the last couple of weeks have shown increased buyer activity and interest.

So, are we there yet? I think we are very close, but here is the point that begs consideration: If we are just in front of the ‘bottom’, or just beyond it, the market will basically be priced at the same level. However, now may still be the best time to make the purchase because now there is both certainty in interest rates and the established pricing levels as many currently listed properties have been priced to reflect little market appreciation. Rest assured, current inventory holds a number of very, very attractive values.

As future properties are priced in a market of greater confidence, sellers may be more likely to reflect a measure of sustainable market appreciation in their pricing. As for interest rates, only time will tell. The latest information I have from one of our local lenders is mortgage rates have been on a mini-rollercoaster – but remaining in a very favorable range.

There you have it - perhaps some of the best free advice out there. As always, your actual mileage may vary. I hope you stop again to review the latest posts on My REAL Blog – REAL Information for REAL People!

Jon Drews

Website: http://www.searchfergusfalls.com/
Website: http://www.fergusfallsproperties.com/
BLOG: My REAL Blog

Has Anyone Seen My Shillelagh?

2008-03-17T10:08:00.000-07:00

Welcome back! I think it is time to have a little fun. Today is St. Patrick’s Day and I’m Irish. If that were not reason enough, we have been hitting the books pretty hard in the last few posts. It is time to take a break and talk about fun stuff. With that said, let’s get a proper start to the day:

Top o' ye mornin' ter ya! Dust aff yisser shillelagh, be wearin’ somethin' green, an' dance ter a 'appy Oirish jig for a bit. Jist mind de wee people are aboyt an' 'ill be up ter mischief. That is why yer 'av de shillelagh 'andy in case any shud git close enoof dat yer might git a craic at dem wee buggers! Dare nigh, oi fale better already!

Well now, I hope you enjoyed that as much as I did . . . . .

I was out driving one of my favorite routes this last weekend - traveling up Highway 78 from Ashby and then across Highway 38 over to Highway 5 leading to Clitherall. It was mid-afternoon and the blue skies made for a spectacular backdrop as I traveled this especially hilly blend of fields and woods. The air temp was still a little cool – probably in the teens but the warmth of the sun was so great it caused bare-dirt fields to steam heavily.

Traveling north on Highway 5 I spotted six or seven Whitetail Deer comfortably grazing in an alfalfa field. They were probably a little more than a half-mile distant and were enjoying the exposed alfalfa that had – until this last week – been buried under a deep blanket of snow.

Later in the afternoon I went for a walk with Nikita, my Golden Retriever, just east of Fergus Falls. We were on a tract of land purchased by the Fergus Falls Fish & Game Club. The property includes benches along the way for a rest – if needed – and also has a very fine shelter located in the parking area. As we walked across the native prairie grass geese flew low overhead – trumpeting the arrival of our dear, old friend – SPRING!

Nikita and I just took it all in. I stopped for a moment to watch the continuous succession of small goose flocks passing overhead in waves. Then I turned slightly to better view the setting sun melt into a fiery display of red and golden hews. I thought to myself, ‘What a wonderful world.’ This is West Central Minnesota. A place where Canadian Geese and Trumpeter Swans gather on the open water of the Otter Tail River, a land glittered with literally 1,000’s of lakes, and a land where friendships grow strong. It is the place I am so privileged to call ‘home’.

Well, that is about all I have for now. I hope you enjoyed this read a bit more than the last post on 'Dual Agency' but, all things have their time and place on my REAL blog. Today it is snowing again. Spring feels a bit more distant. I need to remember it is only March and, as she is so prone to, Mother Nature is about her own form of Minnesota 'March Madness.'

In closing:

'May the road rise up to meet you,
May the wind be ever at your back
May the sun shine warm upon your face
And the rain fall softly on your fields
And until we meet again, May God hold
you in the hollow of his hand.'
- Traditional Irish Blessing

Thanks for stopping by.

Jon

P.S. - Would you like to be notified of future postings? It is as simple as subscribing to my blog. A link is at the very bottom of this thread and it is FREE!

Web: http://www.searchfergusfalls.com/
Web: http://www.fergusfallsproperties.com/
Blog: http://www.fergusfalls-realestate.com/

What's So Great About Dual Agency?

2008-03-16T11:59:00.000-07:00

Greetings! We continue to be teased with signs of spring in West Central Minnesota. Yesterday I noticed a scruff of bright green moss defying winter's hold - clinging to the base of a 150-year old oak tree - in our back yard. What a glorious sight - and reminder of hope!

My last post made reference to a couple of related concepts that Minnesota real estate agents are required to present to customers early in the customer-agent relationship. Both terms fall under the umbrella of agency law and disclosure. Basically it is establishing the framework of any relationship between the agent (of the Broker*) and the customer. The following is only a generic illustration - for further clarification I recommend speaking directly to a real estate agent and ask any specific questions you may have.

Let's say a seller has listed their home with a real estate agent. The agent, acting on behalf of their Broker, is representing the seller. Let's continue on with this scenario and bring in a buyer. The buyer has contacted the agent with this listing and is interested in purchasing the property. Before the agent proceeds with discussing the purchase of this property there are several points that need to be clarified by the agent. First, according to law, the agent needs to discuss agency relationship. Putting it another way, the agent needs to present the various relationship-types available to the buyer. The agent also needs to inform the buyer that the agent is representing the seller regarding this property in question. Also, the agent needs to know if the buyer has been working with another agent prior to this contact - regarding the purchase of this - or any other - property.

If the buyer (up to this point also referred to as a 'customer') desires to be formally represented by the agent, the buyer and agent would sign a Buyer-Broker Agreement and the buyer would become a 'client'. This agreement assures the buyer of certain specific fiduciary responsibilities and, in exchange, the buyer agrees the agent will receive compensation in the event the buyer purchases a property of a specific type within a specific time period. The disclosure also indicates what amount of that compensation will come from the commission charged to the seller. As I indicated in an earlier post, it is most typical for the buyer to contribute zero commission to the agent as the commission charged the seller is generally designed to compensate the agent for securing the buyer.

OK, now we have the agent representing both a buyer and a seller. Both buyer and seller are clients. Is this possible!?! Yes it is - and it is called 'dual agency'. Under dual agency, an agent represents the interests of both buyer and seller. In fairness to both parties, the agent cannot discuss matters related to a party's price, terms, or motivation with the other party.

At first this might sound like the makings for a messy stalemate but it actually works very well. The reason it works so well is the agent - even though he cannot discuss 'price, terms, or motivation' with the other party - understands the positions of both parties and is optimally positioned to effectively negotiate on behalf of both parties. As in any relationship, open communication and trust are foundational. This is why violations in agency law are treated very seriously - an agent can lose their license in a heart beat if they fail to properly disclose and represent agency law.

Dual agency is a very positive arrangement and serves to benefit both buyers and sellers because having only one agent involved in the relationship creates the opportunity to establish solid matches between buyers and sellers. A good agent will be paying attention to both clients - and is committed to representing both in their best interests. Dual agency helps reduce the potential for conflict that can result from having yet another party thrown into the mix. Instead of having two separate agents - one representing buyer and one representing seller - there is only one agent representing both.

Now, must a buyer or seller agree to dual agency in order to be served by an agent? No, they do not. But that understanding needs to be made upfront and the agent is responsible to explain the benefits and consequences of any relationship to buyers and sellers at the onset of any potential relationship with the agent.

Just one more illustration: A buyer meets with an agent and states their desire to be represented by the agent but will not agree to dual-agency. This is a workable arrangement but it has potential downside for the buyer in that the buyer would not be able to have that agent provide representation with the agent's own listings because the agent is also representing the seller (the listing). A similar downside could be realized by a seller that does not agree to dual agency if a qualified buyer happens to insist on representation by the same agent (broker).

Agency relationship is one of the most critical parts of the relationship with a real estate agent. I wanted to attempt to explain it and hopefully I have not left anyone more confused after reading the post than they were before. As always, if there are questions - or a need for further clarification - please drop a line. I am here to serve you and always welcome that opportunity. Cheers!

*Minnesota real estate agents are licensed through the MN Department of Commerce. A real estate agent has to be formally associated with a real estate broker before being permitted to serve the public in the capacity of a real estate agent. In a nutshell, all services provided by the agent are on behalf of the broker. In that context, to be represented by an agent is to be represented by the agent's broker (or simply 'broker').

Jon
Web: www.SearchFergusFalls.com
Web: www.FergusFallsProperties.com
Blog: www.FergusFalls-RealEstate.com

P.S. - Would you like to be notified of future postings? It is as simple as subscribing to my blog. A link is at the very bottom of this thread and it is FREE!

Buyers Need a REALTOR® Too

2008-03-14T08:20:00.000-07:00

I have spent the last couple days touching on a few key points that illustrate the value a REALTOR® can add to a seller's goals in the current real estate market. Today I will speak on the importance of selecting a REALTOR® when buying real estate. First, I am going to clarify the same key point I brought to the attention of sellers: Not all real estate sales agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS® (NAR) and, as such, is bound by a professional code of conduct and ethical handling of all real estate transactions. Being a member of the NAR is a commitment and speaks volumes concerning what you can and should expect from an NAR member. Bottom line: Be certain your real estate agent is a REALTOR®!

Most buyers are very comfortable - and, in fact, generally welcome, having a REALTOR® involved with their real estate purchases. This is especially true in this area because buyers do not typically pay fees directly to a real estate agents in exchange for their services. Most often if a property has been offered for sale through a REALTOR®'s service, that seller is paying a commission in exchange for the service provided. To the buyer's benefit, the seller's commission generally covers the cost of bringing that buyer to the seller.

Speaking about commissions, this is typically the sole basis of income for most real estate sales agents. What this means is if a buyer makes a property purchase using a real estate sales agent, that agent is compensated for their efforts as part of the transaction with the seller. If, for whatever reason, a buyer uses the services of several sales agents - and does not sign an Exclusive Buyer-Broker Agreement (more on this later) with any agent, the whole matter of which agent is compensated becomes garbled.

This is important for buyers on several levels. The first and primary consideration is the buyer, in effect, is 'hiring' a sales agent when the buyer agrees (either formally or informally) to enlist the agent's services. Sales agents basically compete with one another for this opportunity to provide services to a buyer. My recommendation to buyers, in exchange for the loyalty and service a sales agent will be providing, is to work with and through only one sales agent (ideally read 'REALTOR®'). This is not to say a buyer should not take some time in interviewing and selecting a REALTOR® that is a good match. Neither is it suggesting a sales agent should not be 'fired' if they are not performing as expected but it would encourage a buyer to take into consideration how a buyer's actions may impact who 'gets paid' if buyer happens to have more than one agent involved without clarifying who 'the one' agent is. For greatest harmony, loyalty needs to be a two-way path.

A buyer needs to understand the market sufficiently to be able to make good decisions. A buyer should expect a REALTOR® to provide the guidance, insights, and information necessary to facilitate making those good decisions. A full-time REALTOR® with the ability to listen, a passion for research, and a desire to take the time to treat your transaction with the high level of seriousness it deserves will be your best bet. Ask about credentials, ask about the market, take some time to determine if you would be comfortable working together. Selecting the right REALTOR® is much like picking the perfect puppy: you don't necessarily go with the first one to jump up and down at your feet.

Over the next couple of posts I will address the Exclusive Buyer-Broker Agreement I had referred to earlier in this post. I will also talk about something very important - call 'dual agency' and how it can benefit both buyers and sellers.

I hope you stay tuned! Please note, you can subscribe to this blog at the bottom of the page. Doing so will ensure you receive my new posts as they are published.

Make it a great day!

Jon
http://www.searchfergusfalls.com/
http://www.fergusfallsproperties.com/
Blog: http://www.fergusfalls-realestate.com/

Selling Real Estate in Today's Market (continued)

2008-03-12T15:33:00.000-07:00

Yesterday I offered a few points of guidance for folks considering the prospect of selling their home - and how to select the right REALTOR® for the job. As I indicated, I believe one of the greatest contributions a REALTOR® can make to sellers in our current, local market (in addition to providing far more effective marketing than most individuals are capable of generating) is the ability to be involved with buyers and help to educate today's buyers on fair value in today's market. Let me clarify with the following illustration:

I'm out shopping and a friend approaches with this almost pained expression on his face. My first thought is, 'Who died?!' As they step towards me they typically say, 'So, Jon, how are you doing?' and then proceed to give me an extended pat on the shoulder. I feel like I'm being comforted at the funeral of a loved one. Then they conitinue with, 'Boy, this real estate business must be really, really, REALLY bad, huh?' Another shoulder squeeze.

Here comes the part I love. I say, 'Actually, the market is very active and I couldn't be happier!' At this point most people give me this drop-jaw gasp like they were just splattered with fallout from a goose 'passing' overhead. I am finding a big part of my job in the current real estate market has been educating people so they have the information necessary to establish more realisitc perceptions and expectations. This applies to buyers as well as sellers.

Now I'm not suggesting the national real estate market hasn't gone through some downward adjustment over the last year. It has and it is a fact. And, sadly, a lot of people have been adversely effected. What I am saying is the local market has not been nearly so impacted. Unfortunately, people read and hear the national news headlines and, on first impression, could be lead to believe local properties can be purchased for pennies on the dollar. This is not true. Most local property owners have been fortunate.

For sellers serious about selling there are only a couple of questions: First, are you going to sell, or are you going to stay in your current home? Second, if you need to sell, what will you do if your property has not sold in three months - or six months - or a year? If you know you need to sell in a certain time-frame, you need to be using the services of a real estate professional - a REALTOR®. But not just any REALTOR®; you need a proactive REALTOR® that has a realistic understanding of local property values and a solid web-based marketing strategy!

Here is another factor for sellers to consider: Today's buyers have access to more real estate marketing information then ever before - and many have done their homework. Bargain shoppers aside, today's serious buyers are comparing the value of properties on the internet long before they are speaking with a real estate sales agent. The properties that are selling first are the properties that are properly priced - and effectively marketed. If a property is priced too high, or if a property's best features are not adequately presented, the sales effort will be compromised.

In a nutshell my guidance in today's post for those selling real estate in today's market is as follows: Using a REALTOR® is a smart move. REALTORS® are in the best position to educate buying prospects on the value of local properties. This can spare sellers from the misery of dealing directly with bargain hunters. In addition, as I stated yesterday, a well-positioned, web-based marketing campaign brings the greatest number of serious buyers and, and more importantly, serious offers.

Tomorrow I am going to share a few thoughts that should be helpful to prospective buyers. See you then!

Jon
http://www.searchfergusfalls.com/
http://www.fergusfallsproperties.com/

Selecting a REALTOR® when selling

2008-03-11T05:42:00.000-07:00

Over the next couple of days I would like to share a few tips regarding the selection of a REALTOR® - whether buying or selling. Today I will speak on selecting a REALTOR® when selling. I should clarify a point right away. Not all real estate sales agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS® (NAR) and, as such, is bound by a professional code of conduct and ethical handling of all real estate transactions. Being a member of the NAR is a commitment and speaks volumes concerning what you can and should expect from an NAR member. Bottom line: Be certain your real estate sales agent is a REALTOR®!

As in most situations, people are generally attracted to someone who they enjoy associating with and also instills confidence. This is the 'comfort' factor and, as important as it is, there should be a little more included in the equation. Let's take a quick look at some of the other considerations next.

First, I believe it is important to step back to assess the situation and understand there are really 5 key factors involved in placing a piece of real estate on the market. The first 3 factors are controlled by the seller and the final two are not. The factors controlled by the seller include the condition of the property, the listing price, and the selection of a marketing strategy (choosing a REALTOR®). The factors beyond the control of the seller are the property location and the market response.

All too often sellers will select a sales agent based on the outcome of a 'bidding war.' Basically, two or more agents review the property and the seller picks the agent who suggests the highest list price. These situations are generally destined to become a bad experience for a number of reasons. Typically what happens is the seller now has artificially high expectations regarding the market value of their property, the property doesn't sell in a timely manner (in fact, all it does is help sell other realistically priced properties), and, in the end, the listing price is reduced one or more times until buyers will take a serious look.

The misfortune for the sellers is that a great deal of time was lost in the process and the property becomes 'shelf worn' until the sellers realize they need to reduce their asking price. Very often, because the property does not sell in a timely manner, buyers become suspicious that there might be something wrong with the property because it hasn't sold and end up offering even LESS for the property than what it would have sold for if it had been properly priced at the onset. The lesson here is to not list a property with the highest bidder.

So what should you look for when listing a property with a REALTOR®? Look for results! Ask questions about the market strategy. Be absolutely certain your agent has a strong web presence. Why? Over 80% of home buyers turn to the internet when considering a purchase. If your agent does not have an effective web presence, your property is not going to receive the exposure it deserves. More buyers mean more competition and more competition ultimately means more dollars in the seller's pocket at closing. This is a good thing.

This is probably enough information for now. I plan to continue this discussion over the next few days. By the way, if there are any questions, I would love to hear from you! Talk to you later.

Jon
www.SearchFergusFalls.com
www.FergusFallsProperties.com

Good Listeners

2008-03-10T16:16:00.000-07:00

Some people may wonder why I have a photo of a newborn Miniature Donkey included with my profile information. The fact of the matter is this youngster is one of the residents of our household. Her name is Amber Rose and she, along with her stable mate, Benjamin (pictured above), reside on our hobby farm in Otter Tail County.

The first question people ask me - when they discover I have Miniature Donkeys - is, 'What do you do with them?' I suppose this is a fair question but it had not really occurred to me until I was asked. My response is always the same, 'I talk to them.' Donkeys are very good listeners.

Having lived with Donkeys, I have come to appreciate the importance of being a good listener. And being a good listener is something my clients and customers often compliment when we are discussing real estate.

I suppose it is because I have never lived anywhere else - only in Otter Tail County - that I sometimes need to be reminded how very wonderful this area of our counrtry is - especially for people seeking to step out of the rat race. Fergus Falls is the county seat of Otter Tail County - and Otter Tail County has 1048 of the finest lakes in the state of Minnesota.

So this is where I live - amongst a belt of lakes that runs across West Central Minnesota. I spend my days assisting individuals with real estate transactions and, at days end, I go home to talk with Amber Rose and Benjamin. As always, they remind me it is important to take time to relax, and that I shouldn't take myself too seriously, and . . . to be a good listener.

Jon Drews

http://www.searchfergusfalls.com/

http://www.fergusfallsproperties.com/

First Post: REAL information for REAL people

2008-03-09T18:50:00.000-07:00

It is a simple truth: Real estate is BIG business - and it is SMART business. Typically real estate investments have been a fantastic opportunity. Real estate is foundational to our entire economy. Housing activity is generally a very good indicator of our economic health - or, at least, a good indicator for our perceptions of said health.

I would like to open this blog with a simple introduction to myself and to my personal mission statement. I am Jon Drews, a licensed full-time real estate sales agent in the state of Minnesota. My mission statement is as follows: 'Lead with Service.' It is to the point, it is clear, and it is sincere.

With my mission statement in mind, I would only add one additional bit of clarification: First and foremost I consider myself to be a customer service specialist - that specializes in real estate transactions. This is what I do. I provide assistance - my services - to individuals - clients and customers - involved with real estate transactions. For those unfamiliar with the process, it does not take long to become aware of the complexities associated with real estate.

One of those 'complexities' can best be referred to as 'the paperwork'. Another underlying complexity is being able to interpret the market, the jargon, and a keen ability to identify and remain focused on strategies that serve the best interests of clients. This is a job for a full-time, real estate professional with the necessary time and resources available to understand and act upon what is truly important in every transaction.

This is where it all begins - and where it all ends: customer service. Regardless if you are buying real estate or selling real estate - or still on the fence, you really only need one thing to 'un-complicate' your venture: outstanding customer service.

Thank you for your time. If a real estate transaction is in your future, please contact me at your earliest convenience. I would be very pleased to provide my assistance to you regarding any real estate transactions being considered in the greater Fergus Falls area of Otter Tail County or the Alexandria region of Douglas County.

Sincerely,

Jon
Jon@FergusFallsProperties.com
http://www.searchfergusfalls.com/