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

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'?

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

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 . . .’ *

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

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

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

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