Real Estate Snippets

Vacant House Smells

When buyers enter a vacant house and wrinkle their noses,  "Ewwww, what's that smell?" is a kiss of death to the sale.  An experienced buyer's agent will explain that vacant houses are shut up and the smell will dissipate when a new family starts coming and going from the house.  The space is what's important, not the stale smell.

All houses smell, not just the dirty ones!  If we had the ability to sniff out odors like a dog, we would be more aware of the individual house smells when they're occupied, but frequently we remain unaware until a house is closed up tight for a period of time with no opening of doors or windows, no use of exhaust fans, or any other means of circulating the air.  Under those circumstances the inside air becomes stale and the house reveals its unique odors.  Sometimes the odor originates from favorite cooking spices; sometimes its a frequently used perfume; sometimes its because of smoking; occasionally its from lack of regular cleaning or pet odors.  Some of the worst are foreclosed homes which lay vacant for months before ever being marketed.  My moniker for the particular smell that frequently strikes at the front door of repossessed homes that are dirty is "HUD house smell".

The challenge to marketing a vacant house is in keeping the house smell from becoming apparent.  In temperate climates, windows can be left slightly open on upper levels with fans to circulate the fresh air, but most climates do not allow this solution.  Some agents suggest air fresheners or sprays.  My experience has been that clients can sort out the stale smell from the freshener and find the combination distasteful.  Better Homes and Gardens suggests putting a bowl of vinegar in each room.  Others suggest using air purifiers.  If they work, that'd be a great idea.  Baking bread or cooking cinnamon isn't practical for the vacant house either.

So, what's a seller to do?

• Make sure your house is left sparkling clean.  Windows, walls, carpets, lightbulbs, appliances, etc., all need to be spotless.
• Ask your agent to go into the house regularly (maybe once a week) to open doors, run fans, flush toilets, pour water down drains, and run a lemon through the garbage disposal.
• Have professional cleaners come into the house at least once a month to dust, vacuum, and clean the bathrooms with pine scented or bleach scented cleaners.  Even though no one is living there, dust still settles and makes the house dirty and water in the toilet still leaves a ring.
• Keep a dehumidifier running in the basement.
• Have an air purifier run on a night scheduled timer.
• If pet odors are left behind from "accidents", they have to be dealt with aggressively either through replacing badly soiled carpet or by using bleach on hard surface floors and subflooring.
• If the refrigerator is turned off, place a box of baking soda in each compartment and tape a spacer over the appliance door opening to keep it open.  Even clean refrigerators smell awful when opened after being shut off a while.
• Check with a stager to see what suggestions they might have.

Minnesota: A Good Place to Live

The Minneapolis Federal Reserve Bank has issued a recent study on poverty which Chris Galler of the Minnesota Association of Realtors has nicely summarized.  The study shows Minnesota having a very low poverty rate (8.1%) compared to other states.  The national poverty figure is 12.6%.  Poverty measures have only been done since 1959, but today's figures make Minnesota look like a pretty good place to live.   

Minnesota's 8.1% poverty rate places our state fourth lowest in the nation compared to Mississippi's highest poverty level of 20.1%.  The other midwestern states of Wisconsin, North Dakota, South Dakota and Iowa are at 10.2, 11.2, 11.8, and 11.3 respectively.   Louisiana and New Mexico follow Mississippi at 18.3% and 17.9%.  The absolute highest level of poverty in the nation is the District of Columbia at 21.3%.  (I wonder if the dignitaries who visit our White House and legislative offices notice the impoverished people as they tour our capitol.  I know I did!).

The two most important factors which impact the level of poverty include education and household formation, followed by location, rural vs. urban (rural is poorer), age (18-24 are poorest), birth place (foreign born are more likely to be living in poverty), and working status (part-time workers are less well off).

Statistics like these are probably why so many consider Minnesota to be the land of opportunity.  Regardless of whether you're looking for opportunity or not, Minnesota is a nice place to live!

Update Your Homeowner's Insurance

The goal of buyers is to get to the closing and purchase the house.  Once that goal is accomplished, insurance and other protections in case of disaster tend to go by the wayside.  Some home owners purchase just enough insurance to satisfy the mortgage company and don't seriously discuss what coverage is best for their individual circumstances.  IF a disaster strikes, however, it's best to be prepared.

A periodic meeting with your agent to discuss your coverage can be important.  When the sewer backed up in our custom built home, it never occurred to me that the insurance might not cover the damage because it was a "flood".  One has to have special coverage for "flood" insurance!  Luckily the City took the responsibility and our losses were covered through their insurance because it was their lift station which malfunctioned.

Some things to ask your agent:

• What "acts of God" are, or are not, covered.
• Is your house covered for replacement value and what does "replacement value" entail?  If you live in an 1884 Victorian will the fancy woodwork, stained glass windows, antique lights be replaced with like antiques or will they be replaced with modern substitutes?
• If your home is burglarized, what is the process to file a claim?  Do you have to have proof of ownership in the form of receipts, appraisals of jewelry, pictures, inventory?  We found this process out the hard way and had to find proofs of ownership for gold necklaces, diamond engagement ring, camera, stereo equipment, and cash!  He bought me the ring 35 years ago.  Who has receipts after that long?  We had to find a picture which was really difficult!
• Do you need a separate policy for some items?  Aunt Agnes' antique armoire, fur coats, recreational vehicles or jewelry all may require a separate policy.
• What is the process when there is damage to the house itself?  Do you get contractor bids or does the insurance company send an adjuster (who by the way works for the insurance company!).  Sometimes hiring a public adjuster will benefit you, the homeowner.  Does payment for the repairs come to you, to the contractor directly, or to you and the mortgage company?
• What is your liability coverage as a homeowner and what scenarios are you liable for?  If a delivery person falls on your front steps, who is responsible?  What about children who come to visit?
• Check on pet coverage.  Is your Doberman or Rottie an issue?  What about the 6 foot long boa constrictor?   Do you need extra coverage?
• If you have a swimming pool, what are the insurance requirements?
• Does your coverage have an inflation or appreciation clause to cover the home's future value?
• Ask what the criteria is for insurance being cancelled.  Some companies allow only so many claims and then they drop your insurance.
• Are there discounts for being near a fire hydrant, fire station, having newer wiring, roof, furnace or other mechanicals.
• Is a fireplace an issue?

This is by no means a complete list.  Every homeowner's personal situation is different, but each needs to determine that they have the best coverage for their circumstances.  If you shop prices make sure you're comparing apples to apples.  One company's coverage may look cheaper but the coverage may be lacking some of the coverage that a higher priced bid has.  Also, check on the claims service.  Ask for references.  See if the company pays for what they cover when needed!

Hmong New Year

While the rest of America was busy with Black Friday shopping, the St. Paul River Centre's Roy Wilkins' Auditorium was bursting with the three day Hmong New Year celebration.  My first awareness of the Hmong New Year came about when I was circling City Hall downtown.  Crowds of Hmong women, young and old, were making their way to the River Centre garbed in ornately decorated traditional dress.  The men were not so ornately attired but obviously has spit shined their hair for a special occasion.  It was very apparent, even to the uninitiate (me), that something wonderful was going on at the River Centre.  I promised to check it out when I got home.

Sure enough, the Minnesota Hmong population (I was told the Twin Cities is home to the largest Hmong population in the US but could not verify that today), was celebrating their most important holiday, the New Year.  The history of the Hmong New Year celebration is superficially described on websites, but it was enough for me to fill in the lines and realize this is a big deal, a really big deal.  In the various lands of origin, this was not only a deeply spiritual celebration connected with shedding the old and putting on the new, but it also was a time when new marriages were arranged and the agricultural community took a rest from their long months of labor in the fields.   

The tinkling of silver decorations as the women walked was fun to hear and as I reviewed the websites, I wondered if the silver "bell" sounds came from the silver coins used in the traditional ball toss.  The celebration fascinated me and I wondered if outsiders would be welcome to come and observe.  Maybe  by next year's celebration I will have done a little more research to find if visiting would be respectful or not!

Local Stager

There is another blog in my life which is my "playtime" blog.  My other blog, "Houses and More" is on the Active Rain network which is a place I go to share coffee with friends.  I call it "playtime", but it's actually serious networking conducted by real estate professionals across the nation.  We often write for "members only" when we want some insight from others in the field.  The "members only" entries are not viewable by the public.  Professionals find it a great resource for new technology ideas, "interviewing" agents from across the nation, and generally working together to support one another.

I've been star struck by Craig Schiller from Chicago who is a stager, a person who helps a listed house get dressed for sale.  Craig came onto Active Rain with energy and was outgoing and likeable.  I wished for a stager in the Twin Cities area that showed the talent Craig had in examples on his website.  Today I found a local answer in Sonja Hauter who is a St. Paul stager and also a member of Active Rain!  I haven't checked her prices but her website shows the difference a professional can make in presenting a home in its best light.  Check out her samples here.

Government Holiday?

I thought yesterday was Thanksgiving . . . or at least that's when I celebrated it!  Today was Black Friday for all the stores, the day when they officially begin the Christmas shopping season.  So all the stores were open and crowded, many of them as early as 5:00 AM to attract buyers with tons of specials.  The flat screen TV I've had my eye on was half what it priced at in January.  I didn't go to the stores today, however.  I had business to transact so I trekked off to the bank and the government center.  After circling the block several times and finally finding a parking place, I got to the door and found it closed, locked up tighter than a drum and dark as can be.  Did I miss a government holiday?  The bank was open, the mail was delivered, and everyone else seemed to be working. . . except the government offices!  I guess I'll file my homestead next week instead!

Happy Thanksgiving

My wish for each of you is that you get the big side of the wish bone and that you have a

HAPPY THANKSGIVING!

Thanksgiving Eve

The Presidential pardon was issued today for "Flyer" and "Fryer", the two White House Thanksgiving turkeys.  It was not clear whether other birds will make their way to the President's table for Thanksgiving or not, but Flyer and Fryer have permanently been pardoned to a life of ease!

Most Thanksgiving preparations are well underway by now.  The groceries have been purchased.  Pie crusts are awaiting the goods.  The turkey is waiting to be stuffed.  Preparations have been discussed nationwide.  How does one defrost a turkey safely?  You certainly don't leave it out on the counter.  Experts say to defrost in the refrigerator (which takes a loooong time for a good sized bird) or submerged in cold water.  I used to do mine in the laundry tub, but I don't have a laundry tub anymore.  I'll have to improvise!

To stuff or not to stuff, fry or bake, are the questions of the day.  The variations probably depend on your family traditions and the cooks of generations past.  Suggestions for preparing the turkey have surprised me.  A Chicago agent says she likes a "drunk" bird for baking!  She submerges the turkey overnight in wine and then bakes the next day!  I've never heard of such a thing.  Another says she stuffs her turkey cavity with a peeled grapefruit or orange instead of stuffing.  The cooking fruit provides moisture and flavor to the turkey.  My friend tells me she has done this for years.  I never attended her Thanksgiving so had no idea.  Soaking the bird in a brine bath overnight is suggested by an agent from the Seattle area.  Butter, baste with butter and spices decries another. 

The final suggestion is to deep fry the turkey.  An average 12-14 pound bird cooks in about one hour if deep fried.  This has been tried in our household and they are unbelievably good.  The flesh is moist and not oily as the oil is retained in the skin which becomes quite crispy.  The down side of deep frying the turkey is the loss of juices for homemade gravy or turkey noodle soup later and the inability to stuff the bird.

This year I'm doing Cornish hens because my gathering is small.  I may try stuffing one with an orange to see if it really does flavor the bird.  Stuffing is made; homemade cranberry sauce is chilling; pie shells are ready for filling; fresh vegetables are stemmed ready for steaming.  The potatoes will be mashed; the yams will be baked.

This year's new recipe will be brussels sprouts with apple.  The recipe says to steam the brussel sprout halves until crisp tender.  Fry diced bacon (just a couple strips) until crisp, drain.  Remove the bacon and add apple in 1 inch pieces, the brussel sprouts and thyme to the skillet.  Cook uncovered until heated through.  Add the diced bacon and serve.  Sounds interesting.  I'll keep you posted as to its success!  Considering I'm the only one who will eat brussels sprouts, that means I'll let you know if I thought they were good!

Staging a House For Sale

I have a little quiz for you.  If you were going to buy a house based solely on the condition of the bathroom, which of the following bathrooms would you choose?  Remember you can click on the picture to see an enlarged view.

 

     A       or        B

Should we take a poll and get the results tomorrow or would you like to know immediately?  I'm guessing everybody would choose bathroom B.  Why?  because it looks fresh and clean.  The yellowed vinyl flooring in A makes it feel creepy and the walls by the toilet paper holder look grimy as well.  It might help if the clutter was gone, but it feels kind of icky the way it is.  Was I right?  Did you all choose B?

What I didn't tell you is that this is a trick question.  The two pictures are one and the same bathroom.  They are the before and after of a bathroom I personally prepared for rent.  The picture on the left was after an 18 year lease to one tenant who chain smoked (I'm not making a political statement about smokers, just the reality of what smoke does to the walls of a house.).  The vinyl had never been changed or the walls painted in that time.  The debris was the way he left it when he vacated his unit.

The picture on the right is the same bathroom with a fresh coat of paint and a $20 remnant of new vinyl flooring installed by a handyman.  Total cost to upgrade the bathroom was $135 which included a new wax ring and a new shut off valve on the toilet because it dripped when it was turned off to install the vinyl.

Even though the bathroom is the same bathroom, the difference is why staging a house for sale is so important.  People live in their homes on a day to day basis and don't realize how yellowed walls, flooring or drapes have become.  We all have a list of repairs that we're planning to do someday.  It's nothing to be embarrassed about, but it is time to do the list when you want to sell your house.  Things wear out gradually and we aren't always aware of the change.  A stager will take a hard look at your home with all its comfortableness and help you to see how to make it sparkle for its time on the market like it sparkled when you first bought it.  Remember you want your house to be like bathroom B in all its shiny splendor!

Why Does a REALTOR . . . ?

Consumers often ask, "Why does a REALTOR . . .

• Insist I get a pre-approval letter before we look at houses?  It's important that buyers be qualified to buy the house they are viewing rather than being "looky-Lous" which is an inconvenience to both sellers and the agent taking you on showings.
• Get paid so much?  The commission on a listing is shared four ways: listing company, listing agent, buyer's company, and buyer's agent.  When the full commission is split in four parts, each party is not getting such a huge portion.  Plus, real estate agents have a wealth of knowledge and expertise that is a protection for you, the client, who may be well versed but is not as experienced as the professional agent.
• Suggest I make changes to my house before listing it?  This goes back to the real estate agent's knowledge and experience.  An agent's experience has taught him/her that buyers look for certain things in a home.  Having those things in your home will mean the house will get a higher price and sell in a shorter time than if they don't exist.
• Require I listen to a disclosure about agency before we go looking at houses?  The agent is required to disclose how an agent can represent you early in your relationship with that agent.  It is Minnesota state law.  Also, it is to your benefit to hear how an agent can represent you so you can make an informed choice.
• Make me sign a contract before looking at houses?  IF you want an agent to represent you or work in your behalf, the contract is what forms the agent/client relationship.  If you don't sign the contract, your buyer agent may actually represent the seller on some listings.
• Get all skittish when I want to use my own loan officer or an Internet loan company?  Experience is the answer to this question once again.  The real estate agent's experience is that unknown lenders sometimes do not get the mortgage done on time or sometimes change fees at the last minute.  Working with a professional that the agent has used before is a "known" entity.
• Tell me to kennel my friendly pet during showings?  Here comes that experience reason again.  Your real estate agent is protecting you from liability.  Your dog or cat may be friendly when you are home, but they may be vicious when a stranger enters their territory.  You agent has heard the war stories.
• Tell me not to let someone show my house without an appointment?  Because it's not safe!  You have no way of verifying the authenticity of the person (If they proclaim to be an agent, are they?) nor of knowing if that person is safe.  Allowing an agent to make an appointment to bring clients through your house protects you and your belongings as their clients are pre-approved for a loan and have been verified by their agent.

These are just a few of the questions clients may ask.  Do you have others to add to the list?