Real Estate Snippets

The Beginning of Dinos

Should we have started with the Saint Paulasaurus instead of with the Candyland Dino?  Would it not have been better to talk about our city first?  To let the people see the Capitol, Landmark Center, Grand Ave., Summit Ave., University Ave., Como Park, the Science Museum, the Mississippi, the St. Paul Cathedral and Fort Snelling?  Eeeek!  Each of those areas alone would take several posts!  How could we even begin to describe Saint Paul with just a little dinosaur?  Nevertheless, the Saint Paul RiverCentre Convention and Visitors Authority (now what on earth is that?) did this dino for Saint Paul.  He's standing on a very rough map showing the more generic neighborhoods and just a few of the good things to see are painted on his sides.  His location?  Rice Park which is bounded by the James J. Hill library, the Ordway, the Landmark Center, and the St. Paul Hotel!  A great place for a dino advertising Saint Paul's attractions!

Local Government in St. Paul

This lovely mansion is in MY neighborhood.  Obviously MY house looks like a shack next to this massive creation.  Equally as obvious is that I don't OWN the neighborhood . . . but sometimes it feels like the block club in our neighborhood does!

A perfect example of the power our neighborhood block club has is the last two weeks.  Two weekends ago, the hardworking city employees were laboring in that awful 95+ degree humid heat we were suffering.  They were laboring in our neighborhood!  The eyebrows were raised as the center lines were cut out of the street and new yellow lines were painted about 2 feet over.  What were they doing?  One resident was told a shared road was being created and "No Parking" signs were soon to be installed!

In my old suburban home, that news would have caused a bit of tongue wagging but no action from the local residents.  There was no point in taking action because the city council in my old neighborhood would not have listened to much the residents had to say.  But here in my little neighborhood close to the Capitol, it's a different story.  Here the City officials take notice when our block club raises a ruckus.

Last fall the head of the City street engineers met with us to go over some neighborhood concerns over speed and parking.  A study was done of speeds and number of cars through our neighborhood.  Only 1450 cars a day passed my home on an average day, and our neighborhood knew most of those were State employees looking for short cuts to the highway.  Not only did we find out how many cars passed by, but what speeds they went: 39% traveled 21-25 mph; 36% 26-30 mph; 8% 31-34 mph; and 1% went over 35 mph!   (Mental note:  The next time I pass one of those double rubber hoses, the City is checking my speed!  Big brother is watching for sure!)  The City officials told us an unusual number of cars was in compliance with the speed limit and the parking will be left as it currently is. I came away from that meeting truly impressed with the City's responsiveness to our neighborhood concerns.

But this week, the "No Parking" signs went up with no warning to the residents.  Now, pray tell, where are our guests going to park?  Three blocks away in a State or hospital ramp?  I don't think so!  The hue and cry went out.  Residents have written letters.  Just a few days later a meeting has been arranged with our block club and the City officials to share our gripes, complaints, concerns!  The "No Parking" signs have been taken down temporarily until the issue is resolved!

St. Paul is a "big" city.  It has 200,000+ residents and they care about our neighborhood?  The little suburb we lived in before had less than an eighth of that population and the city never responded like that!  I wonder if I'll ever get over the shock of living in a big city that responds to the little neighborhoods!   

Interviewing a Real Estate Agent

Real estate agents are self-employed.  That means that every time a real estate agent works with a potential client they have to negotiate a contract to represent the client.  It can be like going to an interview for a new job every day or every week.  The "interview" can be emotionally taxing, especially if the agent is young in the business.  The rejection of not being chosen is a hard thing to overcome for new agents.

The consumer, on the other hand, would like to be able to spy on the agent as they do their work.  It would be so much easier to choose if the potential client could be a fly on the wall or peak through the knot holes to see how their potential agent does business.  Prospective clients know that some people are really good at interviews, but that doesn't make them a good professional.  Others get tongue tied in interviews but do an excellent job negotiating a good  transaction for their clients.

The vast majority of consumers work with the first agent that contacts them, but a few actually do interview agents before making their choice.  This week I was interviewed by a seller.  The fear of rejection is an ancient memory after so many years in the business, but there's always a surprise  at every meeting.  This one had several surprises.  First, the house had been listed before and showed pictures of an outdated kitchen and baths.  Imagine my surprise when I entered a kitchen that had brand new appliances, cabinets, and countertops and the baths had new ceramic floors.  What a shock.

Experienced agents had challenged me years ago to prepare an answer for the question finally asked by this couple:  "How do your services compare to that of a big company's?"  The same question can be rephrased to "Why should we choose you?  What makes you different?"  This is the same question that marketing specialists ask. 

So what was my answer?  In my opinion, the size of the company does not make an agent more competent or "better".  The individual agent will be competent and proficient or not.  That standard of quality is not dependent on the size of the company the agent is affiliated with.  Agents that are less professional in a large company will not service the listing better than would a good agent from a small company.  The marketing expertise depends on the expertise and commitment of the individual agent. 

In addition, a good agent from a small company has a high level of quality control for the transaction.  That same standard of professionalism will be demonstrated in the network of professionals the small company agent refers to their client.  The large company may pressure their agents to use affiliated businesses just because they are sister companies.  The affiliation with the big company does not make the sister companies the best choice for the transaction.

The final analysis was that the quality of service for the listing depends on the agent and not on the size of the company.  My standards are pretty high even though I work from a small company.  As a result my listings will get personal attention that they might not get from an agent with lower standards.
 

One Out of Seven

I just checked my listing inventory.  There are seven listings in my sidebar. . . seven.  Rumor has it that there is one buyer for every seven listings currently on the market.  So, that means I only get to move one of my listings?  No, I don't think so.  Personally, I'd just as soon sell all of mine and let another couple agents have to sit on their inventory! 

Tomorrow an agent's dream job comes to fruition for me.  I get to be the "second" agent.  That means the property whose owner called me today, has been listed with a different agent before, a "starter" agent.  That's kind of like a starter wife!  The second or third agent has an easier time convincing the sellers to do whatever it takes to sell the house.  The first listing period causes discouragement and a reality check for the seller.  Often the second agent affirms the first agent's suggestions  for staging or pricing.  The second agent gets the listing because their opinion concurs with the first agent's.  The first agent could have sold the house if the seller made the changes the first agent suggested, but usually the seller is too embarrassed to go back to the first agent.  It's truly a catch 22 for the agents.

So tomorrow my job will be to give similar advice to what the first agent gave.  That will make me look smart.  Then I will once again have seven active listings. Not very many for our market, but enough to keep me busy!  The marketing is in place.  The job is being done.  The only problem is finding the actual buyer! 

Diggin' Dinos

Meet Dylan, the Diggin' Dino, created by Dan Wheeler for its sponsor McNally Smith College of Music USA (formerly MusicTech) located at 19 Exchange St., St. Paul.   Although McNally Smith was not originally of St. Paul, they saw the "error of their ways"   and moved when the Science Museum vacated their old site.  It's fitting that they would participate in the Science Museum's Diggin Dinos anniversary celebration with this historical connection.

One of the college owners, Jack, of the McNally name, was a former neighbor when my husband and I lived on the other side of the river.  The vision of teaching music to others was always foremost in Jack's heart.  Today that vision has expanded from the St. Paul campus to include a site in Germany as well.  Check out their website for the Music in the Parks schedule and other opportunities for music lovers.

St. Paul Coffee

St. Paul is a mecca for independence and that independence filters into the business community.  If you're looking for coffee in St. Paul, you might pass several independent coffee shops like A Fine Grind, Brewberry's, Old Man River Cafe, or Ginkgo's, before finding a Caribou or Starbuck's.   

St. Paul has chain stores, but finding them is a bit harder than in some communities.  We believe in retrofitting old buildings to house current business.  As a result McDonald's on University and Rice is in an old bank building hardly resembling the golden arches of the suburbs.

If a  business associate suggests meeting at Caribou, you know they're not local.  They're probably from the other side of the river where our sister city sports more brand names than independents. 

Eclectic is de rigueur in St. Paul coffee shops.  The themes will vary.  The decorating will vary.  Even the menu will vary.  One thing is certain,  the toilet will have special flushing instructions.  One may have to hold the handle for 10 seconds or jiggle (the handle or the body?) when flushing, but they're guaranteed to be quirky just like the coffee shop itself!  Shown below is the Artists' Grind at 2399 University Ave. W. in St. Paul.

Minnesota Mortgage Fraud

It never fails that a little research will change one's opinion.  After ranting about the witch hunt being conducted to catch real estate professionals in fraud,  a little research has given me a heads up.   According to MSN Money, Minnesota is the second highest ranked state in the nation for credit scores with an average score of 708, only one point less than our neighbor South Dakota which ranks first.  Experian ranks Minneapolis in first place and Boston in second.

However, Alex Stenbeck, a Minneapolis St. Paul mortgage broker quotes some disturbing information on his blog.  The MARI (Mortgage Asset Research Institute) has published a report that ranks Minnesota as 8th in reported mortgage fraud in the nation and 4th in sub-prime mortgage fraud!  If we have such good credit scores why would we need mortgage fraud and why would we need that many sub-prime mortgages?  Since we have such high scores, it would seem no one would need to commit fraud to get a mortgage.   Obviously, these reports are why the Department of Commerce, HUD and the FBI are investigating the behaviors of real estate professionals in Minneapolis and St. Paul.  Even though it feels like a witch hunt, there must be some basis for the allegations if that many people are reporting mortgage fraud in our towns!

Sham Companies

First American Title was hit by a wrecking ball recently and many small companies affiliated with 1st American imploded.  I'm not going to stand in judgment of each little company and declare that every one of them was a sham or that they were all crooks. 

What has been rattling around in my brain recently is that regulators in the St. Paul area are looking for someone to take the fall for the recent crash in the housing market.  Of course the scapegoats won't be the big guys or the big companies.  The target has become all the little shops in the real estate business:  small lenders deemed as predators; real estate agents labeled as greedy; and the little title companies found to be shams.

I don't pretend to know all the nuances of what happened with the 1st American debacle, but the information meeting set up by the Minnesota chapter of the National Association of REALTORS® to enlighten agents on the issue was enough to make me consider changing careers.  It feels like a witch hunt is being conducted in St. Paul and Minneapolis by the Minnesota Department of Commerce, HUD (Housing and Urban Development), and the FBI to ferret out any, and all, real estate agents who ever conducted a transaction using one of the "sham" title companies under the 1st American umbrella.  As the presenter at the MNAR meeting stated, "The investigations are starting from the premise that there is widespread violation."

The last time I checked, St. Paul real estate agents are a bunch of working stiffs trying to make a living doing the thing they love to do:  help people find and sell houses.  A very, very small minority might be considered crooks, but that is true of every profession including the Department of Commerce, the FBI, and HUD.  A certain percentage of every profession is dishonest and out to make a buck.  It's not specific to real estate.  To assume widespread violation is a slam to a profession which I proudly identify with.

In this meeting, the term "sham" seemed to have a legal meaning.  There are 10 criteria used to determine if an affiliated business is a sham or legitimate.  Some of those 10 criteria include things like a separate facility, separate phones, separate mailing address, separate services completely.  So a small company that chose to capitalize on the market by building sister companies to originate mortgages (mortgage company) and complete closings (title company), but shared a section of the same office is considered a sham.  They might truly be legitimate but by definition if they don't meet all 10 of the criteria they are considered a shell company established to bilk the consumer of their money. 

How did these things become so highly regulated?  When our society originated, didn't the blacksmith live in the same place he had his shop?  And the grocer, baker, and banker also lived behind or above their place of business.  Today different denomination churches (and we all know how they can fight! ☺) share the same facilities.  It makes good economic sense. 

Two of the big companies in our area (Edina and Coldwell Banker) both have title companies.  Their title companies are not in separate buildings.  They are in the same building, but a wall separates them from their sister real estate company.  One can literally walk across the lobby into the affiliated business office.  The physical wall creates a legal wall of protection from being considered sham.  Because a small company needs to economize and share the same fax and the same commercial printer, are they deemed a sham?   If I innocently do business with any one of those "sham" companies, can my livelihood be in jeopardy?

This is one of the things that make me go, "Hmmmm".

      

 

Museum Adventure Pass

Minnesota's beloved department store, Dayton's, has long since passed from existence being replaced first by Marshall Field's and now by Macy's.  Never again will we see the Dayton's "Daisy Sale".  Eyebrows have risen and questions been asked about other Dayton's traditions as well.  Will the eighth floor auditorium Christmas displays and the flower show (which has already been modified) be maintained?  Those questions have not been answered, but Macy's is sponsoring a new event that should go over with a bang, the Museum Adventure Pass.

The Museum Adventure Pass can be "checked out" from any of the MELSA libraries in town.  MELSA libraries include Anoka, Carver, Dakota, Hennepin, Minneapolis, Ramsey, Scott, St. Paul, and Washington county libraries.  Take your valid library card into one of the participating county or city libraries and ask for your Museum Adventure Pass.  The pass will admit up to 4 people into the following museums about town:

• American Swedish Institute
• The Bakken Museum
• Bell Museum of Natural History
• Como Park Zoo and Conservatory
• Gibbs Museum of Pioneer and Dakotah Life
• Historic Murphy’s Landing (Three Rivers Park District)
• Mill City Museum
• Minneapolis Institute of Arts
• Minnesota History Center
• Minnesota Landscape Arboretum
• Minnesota Museum of American Art
• Minnesota Zoo
• The Museum of Russian Art
• Science Museum of Minnesota
• Twin Cities Historic Sites:  Alexander Ramsey House, Historic Fort Snelling, James J. Hill House, Oliver H. Kelley Farm, Sibley House
• Walker Art Center
• Weisman Art Museum

There aren't enough weeks in my summer to visit all of these places, but what a great opportunity for young families on a budget or those who want to economically entertain out of town guests.  I've not visited a few of the museums and WANT to revisit the beautiful Alexander Ramsey House and the James J. Hill House here in St. Paul.   

So Macy's stole our store, but may earn absolution if they keep up good ideas like this one.  Along with Kare 11 and the Star Tribune, they've come up with a way to expose everyone to the wonderful opportunities we have right here in town.

Diggin' Dinos

The plasticene dinosaur statues scattered about downtown St. Paul are not an original idea to the Minnesota Science Museum. The first plasticene statues were of the Peanuts characters and were found on street corners throughout St. Paul for several years in a row commemorating the origin of Charles Schulz's Peanuts characters right here in St. Paul.  Each statue started as a blank slate awaiting an artist's inspiration.  One year Charlie Brown was scattered about.  Other years were devoted to Linus, Snoopy, and Lucy.

This year the Peanuts characters have all but disappeared and in their place are 100 dinosaur statues commemorating the 100th anniversary of the Minnesota Science Museum.   They will be displayed between Memorial Day and Labor Day.  Sponsoring companies and talented artists have transformed these plain figures into amazing representations of the places that sponsor them.  One of my favorites is the "dino" dragon pictured here.  Click on the images to see the full size picture and to read the placard that tells who the creators are!

There aren't enough Saturdays through the summer to post all 100 dinos but I'll see how many I really can find!