When real estate news is reported on television or in the papers, it’s usually told as a national story.  Unfortunately, stories like these aren’t helpful for everyday Americans because real estate is not a national market. 

Real estate is local.

The graph above was used by Fed Chairman Ben Bernanke in a speech to Columbia Business School earlier this week.  Using data from conforming mortgage fundings, it shows the change in home prices from year-to-year on a county level.

Any county not in red increased in value. 

In other words, contrary to what reporters tell us, real estate is retaining its value just fine nationwide.  Aside from a few counties and states, most areas appreciated.

Graphics like this put important real estate issues in perspective.  Home values may falling precipitously in some areas, but those neighborhoods represent just a fraction of the country overall.

In most regions, home values are up.  Furthermore, even in areas where an entire county is highlighted in RED…that still means you need to do more localized research.  Housing values have dropped significantly in certain areas of Hennepin County, such as North Minneapolis or Brooklyn Center.  But, in certain zip codes of South Minneapolis (55410 & 55419) the average price of a home went up 7% from 2006 to 2007.  Eden Prairie had a 12% gain on Single Family Residences from 2006 to 2007, yet the whole county is highlighted in Red.

It is not all doom and gloom…I assure you.

So, be sure to know YOUR area, and be informed.  There are external factors that have an impact on what you can get for your home…but don’t let someone show you general market stats that don’t pertain to your home if you are trying to sell in this market.  And, do your own research.  Make sure that you know what is going on.  That way you can evaluate whether or not the Real Estate Agent sitting across from you at your dining room table knows what he or she is talking about.

According to the FBI’s 2007 Mortgage Fraud Report, more than 46,000 cases of suspected mortgage fraud were reported last year.  This led to bank losses exceeding $813 million.

If you’re looking for reasons why mortgage underwriting is measurably more difficult in 2008 — add “mortgage fraud” to the list.  Lenders now perform extra scrutiny on each home loan application to protect against additional losses on all levels.

Mortgage fraud is a federal crime and exists in two basic varieties:

1. Fraud for Housing — Misrepresentation by a mortgage applicant for purposes of buying a home, usually related to income, assets, or debts.  The applicant intends to repay the loan as agreed.
2. Fraud for Profit — Coordinated misrepresentations by a group of people related to applicants, appraisals, loan documents and relationships between buyer and seller.  The applicant does not intend to repay the loan as agreed.

Although both are illegal, Fraud for Profit is most concerning to law enforcement officials and mortgage lenders.  That’s because Fraud for Profit tends to incorporate multiple loans for multiple homes in a single neighborhood. 

In other words, the bank’s potential loss is larger with Fraud for Profit schemes.

The photo above (from the FBI report) is from a Fraud for Profit home appraisal.  It indicated that the “recently renovated condominium” included Brazilian hardwood, granite countertops, and a value of $275,000. 

Clearly, this is untrue.

Despite increasing 31 percent, mortgage fraud growth slowed in 2007 as law enforcement agencies and mortgage lenders increased their efforts to identify and arrest perpetrators.

(Image courtesy: Federal Bureau of Investigation)

I’m starting to hear the rumble of real estate on the move. And it’s not just some abstract, “I heard from a friend…”. No, my agent, Tom has some real live clients who have been interested in a number of properties that have snapped up.

And get this — they got into multiple offer situation for a house in Richfield. The clients bid $12K over asking — and lost! The listing agent said they had 5 offers and that the $12K over offer was 3rd. 3rd!!

I wonder if the listing agent priced the house low as a catalyst for a bidding war. Bill Effros writes about this in his book, How to Sell Your Home in 5 days. The gist is to advertise your home for far less than market rate starting on Wednesday, offer tours all week and close bidding on Saturday. Jason and I talked about doing this strategy, but just seeing my house on the market for so much less than its worth made my stomach turn.

At any rate, that bidding wars are happening - heck, that BIDDING in itself is happening is encouraging for a seller like me. While I don’t expect to ride the crest of 7 years ago, I’m delighted that the playing field seems to be evening out a bit.

Seller’s Diary - taking staging outside

And as far as keeping you informed with our sale, we have a second showing tonight which means I have several hours of tidying and staging ahead of me. And we spent a good 15 hours on yardwork this weekend and it’s looking pretty spiffy. We planted annuals on our berm.

Our berm with young plantings. In a few years the plants will take over and make the berm blend seemlessly into the landscape.

What’s a berm? It’s just a mound of earth that’s covered with landscaping fabric, mulch and plants. It’s been a popular topic in recent years on shows like HGTV. It’s a way to get a little height variance in a yard and if you grow tall plants, it can provide some privacy around a patio. That’s partially what we were after, but mostly I didn’t want to pay someone to haul dirt away when we had our stamped-concrete patio poured. For the price of the clean-up, I could purchase the materials to create the berm.

Another thing we did this weekend was visit Mulch Mountain. That’s the mulch set out by communities created from their tree maintenance programs. While it’s not the beautiful clear cyprus mulch that we used on the berm, it has a lovely variegated look to it that works well in garden beds.

Tulips with free mulch and I see I need to weed more.

The kids love playing on Mulch Mountain and did I mention it’s free? Compared to the $2 bucks plus a bag I pay for the stuff at the home center, that’s worth digging little sticks out of my kids’ sneakers.

The one we went to was at the north side of Columbia Park at the playground parking lot in northeast Minneapolis. Call your city office to find out where free mulch lives in your area.

Lucie Amundsen is a contributor to the magazine, BackYard Living and others. She hopes to sell her home in enough time to start a garden at a new one.

Caution: This box EATS fliers.

“Buyers are NOT the Enemy, Buyers are NOT the Enemy…,” this is my new mantra.

My home has been on the market a few weeks now and I’m getting to that disenchanted point that sellers get to. It’s where staging the house for the 30th showing lacks the appeal that it did for the 3rd. You start out baking cookies for each one, then stuffing cinnamon bread into a toaster ’til around the 22nd showing when you leave your deodorant open on the counter and call it good.

While I wouldn’t classify it as seller’s fatigue just yet, the bloom is off the rose.

My first few days on the market I happily stuffed my brochure box with spendy color fliers. At the rate they flew out, I might as well been shoving Andrew Jacksons in there. 140 fliers later, I let it go empty for a few days - you know, to punish the brochure box. Right before my husband left for his out of town job this week, he printed out some black and white versions. He sensed I had stopped playing Stepford Seller Wife.

Honestly, I would have thought I was above taking the liquidation of my largest asset so personally - I mean, at the end of the day this is a business transaction, right? Well, turns out I’m no better than the rest of ‘em.

That a parade of people have come through my house and not SEEN the love and effort we’ve poured into it - well, kinda hurts. Their anonymous comments have been taramount to “Ya missed a spot!” and it makes you just want to grab them by the shoulders and shake. Note: Never never shake a buyer.

A friend whose house is also on the market read the blog and said he cheered out loud when I denied a Realtor entry to my house due to a scheduling mix-up. And after talking for a while, we figured it’s the feeling of powerless in this real estate game and loss of control over our lives that’s driving us to the edge.

The friend even talked about putting his home up for rent just so he could deny potential renters and make himself feel better, “Sorry, you’re credit rating didn’t quite work out..NEXT!” (Of course, he would never really do that, we were just commiserating. But selling and apparently buying does not bring out the best in people - myself included.)

Thankfully though word is starting to seep out that the housing market isn’t nearly as bad as the media says. I just read a report co-authored by Jeff Allen and Aaron Dickinson called, “Foreclosures and Short Sales in the Twin Cities Housing Market.” I think a more fun title would be, “The Sky isn’t Falling,” but you know…

The gist of this 5-page report is that if you were to take all the foreclosure and short-sale properties out of the equation, then plain vanilla sellers like me aren’t facing the 10% price thrashing that is being crowed out there. Instead it’s closer to 4% - a much more stomachable deal. I encourage you to read the whole report available HERE.

Lastly, I want to do a shout out of THANKS to blog readers. We got the Google stats for last month and it seems that actual humans are checking in - if only to witness my mental collapse during this relocation process. That’s okay, I totally get I’m a train wreck.

But I’m asking that you let me know what you like, what we could lose and generally not to be shy about leaving comments. I get lots of comments, but mainly from folks who are concerned about my sexual health. I check the comment area several times a day and promise to put up your comments even they tell me to get over myself.

Lucie Amundsen is a writer selling her home and feels her yard sign brochure box should have come with a flask inside.

It’s springtime. And now that the snow has receded and the lawn is growing in that’s when “dog spots” are most apparent.

What are dog spots? That’s your puppy’s favorite area to go do her business - and it shows. The acids and salts in the urine cause the area to die out in the middle and be encircled by a darker green grass. It’s more lush around the spot because the urine has been diluted by rain and has a lot of nitrogen it in.

If you see your dog favoring an area you can prevent full on dog spots by soaking it throughly. That will push the salts out of the grass’s root zone before it kills the grass.

But if you have spots now the only remedy is to replant that area. Don’t worry, it’s easy. Soak the patch to push down those harmful acids, then using a little hand rake, scrape up the dead grass and loosen the soil. Then sprinkle on a 1/2in.- thick layer of topsoil and pepper with grass seeds. Sprinkle on a little more topsoil and press it in a bit. Now your task is to keep the area moist - but not too wet - until the grass has grown to the height of 3 inches.
. . .

Credits: The photo is from here at drsfostersmith.com which sells a nutritional supplement they claim helps with dog spots; I have no idea if this works. If it does, let me know. I also want to tip my hat to The Family Handyman magazine where I first wrote about lawn care in their April 2006 issue.

Family Handyman freelance photograher Bill Zuehlke took this great picture at my house. You may recognize my dog, Scottie the Rottie. His thought bubble reads, “I don’t want to talk about it.”

Poor guy, he didn’t even make that dog spot. I poured pee on my lawn for two weeks to get that look - yeah, I know. What I won’t do for a writing gig.

Lucie Amundsen is a housing writer, contributing editor to The Family Handyman magazine and happy Webdig’s client.

I was talking to our preschool teacher about my son’s recent crazed behavior at home. “Is it because of the move? All the showings? Stress about his father living away?” I asked anxiously.

She smiled and said, “Naw, he’s just twitterpated.”

We’ve had such a long, extended dance version winter that I had completely forgotten about the physical affects of spring. Do you remember “twintterpated” from the Disney movie, Bambi?

Flower: [speaking about two birds fluttering around] Well! What’s the matter with them?
Thumper: Why are they acting that way?
Friend Owl: Why, don’t you know? They’re twitterpated.
Flower, Bambi, Thumper: Twitterpated?
Friend Owl: Yes. Nearly everybody gets twitterpated in the springtime. For example: You’re walking along, minding your own business. You’re looking neither to the left, nor to the right, when all of a sudden you run smack into a pretty face. Woo-woo! You begin to get weak in the knees. Your head’s in a whirl. And then you feel light as a feather, and before you know it, you’re walking on air. And then you know what? You’re knocked for a loop, and you completely lose your head!

I’m thinking this recent rash of twitterpation is not just good for woodland creatures, but real estate, too. And nationally recognized real estate blogger Teresa Boardman of St. Paul agrees. In a recent number crushing post (which you can read HERE) Teresa says that a balance is being achieved between the number of homes on the market and the number of buyers out there laying out offers. In essence that it isn’t a buyer’s market or a seller’s market - but an equilibrium in the market. She also says it will take 4 months for the media to pick up this trend.

Personally, there’s been a couple houses I was hoping to get into that were snapped up in a day. Webdigs has been even hiring new agents to keep up with demand. Hiring anywhere these days is unusual, but in real estate it’s cause for celebration. Perhaps it’s finally spring.

Photo & Quote Source: www.imbd.com

In case you missed the front page of today’s Star Tribune business section, you can read the article about Webdigs HERE. I’m glad that this Webdig’s concept is getting some play - I’ve long said that the traditional real estate model is broken.

Why on Earth should someone get a hefty percent of my largest asset just for providing a service (albeit an important one)? I’m all for people getting paid for the work they do. But I’m guessing that the Realtor I grabbed to buy my house 5 years ago - which I found all on my own - got more than a $1000 an hour. That’s an amazing rate for using her nimble fingers to open the lock box and help me write an offer.

A few years ago I wrote an article in the Star Tribune about selling FSBO (for sale by owner) - and honestly, throughout the story I pointed out that it was quite a bit of work to sell on your own, but potentially well-compensated work if one was willing to put the time in. This story prompted some very mean emails from Realtors. Truly, it was a bit disconcerting.

So I’m happy that Webdigs is getting some well-deserved attention for paving a new way. There’s a few things that was mentioned in the story I’d like to address as a Webdigs customer.

The story says that the Seller is responsible for showings: Well, the Webdigs website didn’t explain it very well. In fact, the website was plain wrong.

Here’s the real scoop: Webdigs coordinates all home tours - including showing requests from other agents and buyers who may not have a Realtor. The showing request appointment line makes it easy for other Real Estate Agents to get instant confirmations for showing requests. And for after-hours requests, Webdigs has an “on-call” agent who will handle inquiries.

Your Webdigs agent will also help you with tips on everything from how to increase curb appeal to staging your home. They can also recommend cleaners, contractors, stagers and landscapers.

Open Houses are handled on a case-by-case basis. Not every home benefits from these events. Typically only 2% of home sales are from an open house, but typically agents use them as a tool to meet new clients.

However, Webdigs Agents are happy to host open houses for listings where it makes sense. Sellers are encouraged to host their own open houses as this may provide them the opportunity to find an unrepresented buyer. Sellers could then avoid paying the buyer broker commission, which typically ranges from 2.7% to 3.25%.

Also a Realtor in the story said buyers should ask themselves how much marketing Webdigs will do for you. My house is on the MLS and I’m pretty sure that has brought the majority, if not all, of my nearly 30 showings. I also know that Webdigs regularly throws it on Craig’s List and my Realtor, Tom, has offered to do an open house.

When we sold our duplex 5 years ago, my 6% Realtor did offer to list it in the Star Tribune - at my expense. So I’m not seeing a really big difference. Webdigs will even do a professional flyer, too.

Lucie Amundsen is a housing writer and Webdig’s customer surviving the sale of her St. Anthony Village home.

The Midtown Farmer’s Market at Lake Street & Hiawatha (by the YWCA) is open every Saturday 8:00 a.m. - 1:00 am. In addition to offering local products, shoppers enjoy live music, library story time and demonstrations.

Let the Farmer’s Market begin! Markets are extremely popular in the city. I think because it combines our rabid passion for festivals, gardening and going green into one package.

The Midtown Market is a particularly deep shade of green given that it is the most accessible one in the city. It’s just steps from light rail and bus transit, the Green Way bicycle trail - and has a sizable parking lot for your Prius. And unlike many of the larger markets, the Midtown Market prides itself in offering truly local foods directly from growers - not wholesalers.

Responding to America’s cash-free society, this is the first twin city farmer’s market to take CREDIT CARDS and public assistance cards. It works by purchasing wooden tokens on your plastic at the info booth. These tokens work like cash throughout the market. Fun, huh?

I think my children would love paying with produce with wooden tokens, not to mention watching the sheep shearing and holding the piglets- and this is a good market to bring them to. It’s big enough to have what I need, but still intimate enough keep track of everyone. (My little guy has gotten lost in a crowd before and although it had a happy ending, it was frightening. He did exactly as we had role played. He found a mother with a lot of children -because no one is less likely to take a child than an overwhelmed parent- and he said, “My name is Mi-whoa and I’m loss-ed.”)

This whole Midtown neighborhood certainly deserves a post of its own. But I’ll mention that Light Rail has made the once idle areas of Greater Longfellow, Powderhorn and Midtown hot property again. This happens just as local investment on the west side of Hiawatha is starting to pay off.

If you haven’t been to Lake Street lately you may be surprised how fresh it’s looking thanks, in part, to the Lake Street renewal project. The decorative lighting, sidewalk trees, bike racks and places like the Midtown Exchange Building (think old Sears) and their Global Market have really spiffied up the area.

So check out the market, bring your own coffee mug for a discount (I used my shiny new Webdigs mug for a cool quarter off) and get yourself some wooden nickels. It’ll be summer before we know it.

Photos credits: I took the picture at the market myself. You get extra points if you find the light rain train on the bridge. But the cool image of the wooden coins is from the Midtown Market site which you can visit HERE.

This 50’s house is for sale in St. Anthony Park for $399,900. More info HERE

This home built in 1924 is on the market for $239,900. Click HERE for the skinny.

Before jumping into the 411 of St. Anthony Park, let’s address a nagging issue.What’s the deal with all the St. Anthonys? St. Anthony Park, St. Anthony Village, St. Anthony Main and the city of St. Anthony in Stearns County. Was the Vatican being stingy here and wouldn’t issue us any more saints?

I happen to know the answer - not because I live in the Twin Cities - but because I’m not from the Twin Cities. It sounds counterintuitive; however, transplants like myself host out-of-town guests. In accommodating the various interests of visiting friends and family members for over a decade, I’ve learned much about my adopted city.

And here’s the scoop.

One of the first Europeans to “discover” Minneapolis’s Saint Anthony Falls in the late 1600’s was a Catholic missionary named Father Louis Hennepin. He named the falls after his order’s patron saint, Saint Anthony of Padua and apparently the rest of state followed his lead. (It’s Friday, now go impress your friends at Happy Hour.)

Onto our feature presentation, St. Anthony Park.

Located with Hwy 280 to the west, the cities of Lauderdale and Falcon Heights to the north and University Avenue to the south, this area is tucked away from the normal hustle of the metro. Like Highland Park, it’s like a small town in the city, only on charm steroids.

The main street, Como Avenue, has a European-style village feel with small (mostly local) businesses and restaurants like Muffaletta’s which has fabulous outdoor dining. It has a quiet, urban romance where shops are within walking distance of most houses and streets have been around since the first Roosevelt administration. Honestly, it’s so darn cute you see why people routinely leave notes on house doors indicating an interest in buying the property. It’s that kind of neighborhood.

The St. Anthony Park library was built by Carnegie in 1917 and is on the National Register of Historic Places.

I used to work in St. Anthony Park and really enjoyed walking under the mature trees by the historic library and the expanse of green space on the Luther Seminary campus. Up the hill is the University of Minnesota St. Paul campus which shouldn’t be confused with the zoo in Dinky Town. This is the other U - the laid back Ag school with acres of working fields lacking like the craziness of the main campus.

But the U has had its influence. Many of the homes were built by professors throughout the years and among the 20’s Tudor-style homes and bungalows will be the occasional 70’s modern housing experiment, which somehow makes the housing stock all the stronger.

Go take a walk over in St. Anthony Park yourself, you’re sure to enjoy it.

Sharing the Love, Sharing the Credit:

Library Photo: http://www.sppl.org/locations/stanthony.html

Portions of the post were gleaned with permission from the Star Tribune article about the neighborhood written by Jason Amundsen.

The Star Tribune kindly invited me to whine write about our house selling process for their parenting blog, Crib Sheet. They posted it today along with this recent photo (so you may readily pick me out of a line-up should the occasion present itself).

You can read it HERE.

Although Lucie Amundsen pays her mortgage (and daughter’s dance lessons) by writing about housing, she loves to type out the humiliating tales of everyday family life. These published works can be found at Lucie’s site: www.twowordy.com.