We Tell it Like It Is

Happy Hanukkah & Merry Christmas & Happy Kwanzaa -- wow all three in the same week this year -- am I an idiot or does that not happen every year?

I celebrate Christmas and its one of my favorite holidays. But, its a holiday that brings on mixed emotions. This is how I feel this time of year:

1) Grateful. Incredibly grateful. I married a man that I love unconditionally and who loves me unconditionally. I am the most important person in his life (and vice versa) and he lets me know that every day. I married into a family that has become everything to me. I am so lucky!

2) Melancholy & Empathy. I have had some very sad Christmases in my life. Its not fair to feel sad, scared and hopeless during such a wonderful time of year, especially as a child. I know there are people every year that experience this and I hurt for them and I pray for them.

3) Loneliness. Although I have married into the best family in the world, I do miss having my own family around. The holidays remind us oftentimes of those that we have lost and I can't help but think about my mom, dad, aunt and brother and all of the Christmases we spent together and how strange it is to be celebrating without them now.

4) Hope & Strength. Each Christmas gets better and better for me. God uses this time of year to remind me of where I came from, where I'm at now, and where I can be headed. And who I can pick up & dust off on my way.

Happiness to all of my clients who are enjoying their first Christmas in their new home. To those of you having a difficult time this holiday season: I am praying for you. And to those of you I am still working with: let's get it sold man! :)

1)  Right now, an FHA loan requires a 3% downpayment. As of January, it will be increasing to 3.5%.

2) Interest rates on mortgages have significantly decreased recently to 4.8%-5.2% roughly.

You are INSANE if you think its not a great time to buy right now.

I was showing a home to a client & her family member 2 wks ago. The home was a mess and something really odd was cooking on the stove that made the whole place reek. The meat of who knows what. It was a bit uncomfortable for us to be there because the homeowners chose to remain in the house during the showing, but the home had a lot of potential and both my buyer & I could see that. We gingerly walked through the home under the watchful eye of its owners.

We noticed that the mechanics of the home (furnace, water heater) were tucked away in this crawl space alongside the stairs. There was only a few feet of room to access the space, but I wanted to check it out to see the condition of everything. So, to prove my knowledge & real estate prowess, I sat down on the stairs, swung my feet around & into the space, slid down until my feet touched the floor and slowly let the rest of my body follow suit.

While I was poking around, the buyer's family member noticed a small door inside the crawl space while he was standing on the stairs watching me.  He reached down, opened it and pointed it out to me. Beyond the small door, there appeared to be space about 3 ft high in between the foundation and the ground that was under part of the house. It was cold & dark, had a bit of a rotting odor, and there appeared to be some containers, bags, and large pots/kettles spread around. I paused and let the scene before my eyes sink in. There were footprints in the dirt floor of the space that lead me to believe it was an area that was used often. I grabbed my cell phone hoping that the light from it could allow me to see more. The meager glow only revealed what appeared to be a propane tank hooked up to a line that went back into the house.

Out of sight of the unsuspecting homeowners, I panicked. My heart started to pound and I began to feel nauseous. Could we have stumbled upon the mother of all evils? The stuff you only hear about in stories from teachers in real estate school? Will I be on the 10:00 news? In the newspaper the next morning? Will I be awarded a gold metal for uncovering what could be the biggest bust in the Twin Cities? Accidentally stumbling over what the FBI painstakingly searches for on a daily basis? It all added up so quickly in my head..the secret space, the propane, the pots, the empty containers...it was a meth lab. I just knew it. Adrenaline rushed through my veins.

I calmly but sternly told my clients to remain on the stairs. I was going to run out to my car and pretend to get a tape measure, but will return w/a flashlight hidden in my pocket instead. I did just that in a mere 45 seconds after wildly pulling myself out of the confined space as if a bomb was about to explode. My clients innocently stood and watched, not knowing what the heck was going through my mind or what my motivation was. I returned and slid back into the space like Bo & Luke Duke into the General Lee. My heart continued to pump to the point where I could hear it throbbing in my head. My sweaty hands gripped the flashlight. My clients' eyes widened as I gave them one last determined glance before I reopened the secret door.

I clicked the flashlight on and slowly drew it upward into the darkness. I held my breath. I slowly panned the light across the area and zeroed in on the suspicious propane tank. It was connected to something else besides the house...I carefully moved the light across the tubes that lead to another large cylinder. What...on...earth?

It was a tank. With a label. A label that read: "Water Softener". My eyes narrowed. I pulled the flashlight away and began to scan the rest of the area. The empty containers read "Water Softener Salt Pellets". The empty pots...well, they were empty pots that weren't cleaned very well after they were used for cooking. Hence, the rotting smell of leftover crusty food.

"Well, looks good. No mold, solid foundation...no cracks. Good extra storage space for the homeowners," I told my clients, "Water softener looks to be in good shape too".

We left the home and I wiped my brow. I got into my car and stared at the gaping hole in the knee of my dress pants. All in a day's work. All in a day's work my friends.

Thought I'd tell you what's been going on in the daily life of real estate today. I've had a lot of trials and tribulations with work these past few weeks. Definitely working hard for my money.

I finally sold a listing in Maplewood that I've had since the summer. It was a home owned by 5 siblings; it was given to them by their mom who had purchased it years ago w/their step dad. It was a tough job from the beginning as some of the siblings did not get along and every time a decision had to be made, I had to call all 5 kids separately and try and get everyone to agree. Luckily, it could've been worse and we got through that part without too much damage. The tough part came when we sold the home and we were getting ready to close. Our title company found out that the mom & step dad were not registered as joint tenants, but instead, tenants in common. This meant that if one owner dies, the other does not automatically get that share of the property. It must instead go to probate. This never occurred and so the mom only owned 50% of the home and did not have the legal right to pass title onto her children. Talk about a mess to clean up. 2 months worth of legal work is ahead...we were still able to close, but the net proceeds are being held until the clear title can be passed. In other words, my sellers will not get their money until they can give a clean title to the buyers.

In other news...after some pretty grueling negotiations, my buyers finally got this house they wanted. Really nice tutor style home with beautiful hardwood floors, finished basement, 3 bathrooms (one with heated marble floors). Would've sold for $350k a few yrs ago. Got it for $245k. We were supposed to close on it today...but the appraisal came back at $226. Unbelievable. There's no way that house is worth so little, but the appraiser is God in this situation and either the sellers must agree to sell at this appraised value or the deal is dead. Well, the deal died. This market of foreclosures has brought the values down on nice homes and appraisers can't find comps that support anything above a certain value in certain areas.

Lastly, I was out w/buyers this wkend looking for townhomes. Hit the JACKPOT. Wow. Hugo is a haven for good deals right now I realized. Brand new townhomes -- never been lived in-- for under $150,000. Granite countertops, stainless appliances...not talking cheap construction. They are a dime a dozen right now and such easy access to St. Paul and its suburbs. Single family homes are also selling for next to nothing up there too...but you have to tolerate the "cookie cutter" neighborhoods.

One last note...I had offers on 2 of my listings this past week. Both were good offers. One of my sellers decided to turn down the offer and cancel the listing--fearful of the job market and making any changes right now. The other seller decided to work with the offer we received by counteroffering at a price $6,000 over what it was listed for. Convinced the list price was what it should sell for and not willing to go much below that. In 12 days, that listing expires and you will see the smoke behind me due to the rate of my speed as I let that one go.