The Case for Pricing Conservatively Quick: which is more, 80% of “X” or 95% of “Y?” The answer: it depends on what “X” and “Y” are. So, let me fill in some numbers, straight from today’s real estate market: make “X” equal to $325k, and “Y” equal to $289.9k. Now, it’s possible to calculate the...Read More
The Fannie and Freddie Sideshow What do you call two companies that have cumulatively lost tens of billions, are now wards of the state, and continue to receive multi-billion dollar government subsidies? If their names are “Fannie” and “Freddie,” the answer is: the world’s two biggest red herrings. Or, if you prefer, a sideshow to...Read More
How do you show off a home’s proximity to the Midtown Greenway in South Minneapolis? This photo (left) is a pretty good start. In particular, the angle captures the Greenway’s physical setting: a 5.5-mile long former railroad corridor that connects to 100-plus miles of Twin City bike paths (and yes, it’s actually green now!). The listing also includes photos of various...Read More
Keeping the “Pipeline” Full I’m sure I’m not the only Realtor scratching their head (at least a little) about why their recent MLS statistics belie their crazy work weeks (I’ve been going 70-80 hours a week virtually since February). The explanation? MLS statistics are a lagging indicator. They’re also incomplete. Examples What does MLS track by...Read More
Jumbo Mortgages for 4.75% The Federal Reserve anticipates that very low interest rates will be needed for an extended period. –Fed Reserve Chairman Ben Bernanke Mortgage interest rates have been so low for so long (2 years? 5 years?) that it’s no longer perceived as “new news” — but actually, it is. Namely, jumbo mortgages (over...Read More
Disabled Veteran’s Property Tax Exemption Sellers don’t usually have to discuss their property taxes in the Seller’s Disclosure required by Minnesota law. For one thing, the current amount is plainly stated right on the MLS listing (and links to the county record). For another, how are sellers supposed to know what the future taxes will be? Going ...Read More
