We're Having a Real Estate Sale!

I my area of Owatonna, Minnesota we have homes on sale! Prices are down 10 -20% from the more robust real estate market of 2005. If every item in the store at Target and Wal Mart went on sale for 10-20% off the most recent price don’t you think they’d see sales increase? I doubt people would say, “No thanks, I’d rather wait and buy when prices go up.”

Just like Warren Buffet pointed out “When Wall Street has a sale (prices down 10-20%) no one shows up.”

It’s too bad that home buyers are inundated with negative news that hold them back from buying while homes are on sale. I don’t think they really want to wait until prices go up, but that’s the wisdom that the media is passing along to them. As many other agents have stated, it’s time to change the perception that buyers have. Don’t wait until everyone else is buying and prices go up. Buy now – it’s on sale!

Lynn Johnson, Broker

I had a little fun putting this image together. I thought the snow-filled background was appropriate for our current weather. If spring ever gets here I'll be sure to change it. Have a great weekend.

Saturday Open Houses in Owatonna

Address:534 Dunkirk Pl SW,

Owatonna, MN 55060
Price: 149,900
Property Type: Residential MLSArea: Owatonna Bedrooms: 4

Total Bathrooms: 2

Total SqFt: 1787

Garage Type: Attached
List #2929880

New Lower Price! Delightful split with great decor ready for you to move right in, 4 bedrooms, 2 baths, nice yard with deck on a quiet cul-de-sac, many updates, maintenance free exterior--just what you are looking for!

Open House on Saturday, February 16th from 9:00 until 10:30 a.m.
Call Lynn Johnson, CRS, GRI for more information at 507-390-6109
Or view listings at http://www.myowatonnarealestate.com/ or
http://www.cbhomeconnection.com/

Owatonna, MN Market Update

Well, we're off to a good start in 2008. We noticed a nice trend in showing activity during January - there were more buyers out looking. That's a good sign, especially for as cold as it's been.

As of 2/12/08, YTD there have been 23 closings on properties in Owatonna. The average sale price of those properties was $169,506. The average days on market for the sold properties were 180 days. As of 2/12/08 there are 5 properties pending sale. The average list price for those homes is $151,940 with the average days on market at 200.

There are currently 211 homes for sale in Owatonna, which is down nearly 100 homes from the high mark about 6 months ago.

We still have a terrific inventory of well-priced homes for buyers to choose from.

We also have a great selection of lots for buyers to choose from. Keep in mind the North Country Addition off of east Rose (by Turtle Creek Nursery). The lots start at $38,500 and offer daylight window and walk out possibilities. Building your dream home is a wonderful option for buyers.

Real Estate Tax Values, Fact or Fiction?

In our recent office newsletter we devoted a full page on the gap we’re finding in taxable market values as determined by the county assessor versus actual market value. I recently worked with a buyer who was contacted by our local assessor’s office about his home purchase. They were questioning the purchase price because it was $17,000 less (9%) than the taxable value.

He was really caught off guard by their questions and he called me right away to find out why they had contacted him. After a conversation with the county assessor’s office I was able to explain to him why they were asking the questions they did, and his concerns were relaxed.
Unfortunately, I think the county valuations are continuing an upward trend, whereas our values are flat or decreasing. Historically, the tax basis market values were typically 5-10% lower than the actual home value. That’s definitely changed and we’re finding that the taxable value is now exceeding the actual home sale value by the same margin (or higher).

In our newsletter we provided, what I hope will be helpful info for homeowners who may want to argue the county’s tax valuation. We received the information from the Minnesota Association of Realtors. It’s a step-by-step process that tax payers can use to dispute the value as determined by the county.

Last year I was contacted by three clients who wanted my help in determining a realistic current market valuation of their home just so they could go to the county with comparables to challenge their tax valuations. I suspect that number will at least triple this year as the market has continued its trend.

Are these trends common in your market? Have homeowners been successful in challenging the tax valuation? It’ll be interesting to see how this unfolds, as more sellers are selling short, or under distressed circumstances.

Life Changes, Doesn't It?

I’ve been thinking recently about life changes that most of us experience. My oldest is in her first of year of college. She occasionally comes home to visit on breaks, and throughout the year I’ve evolved from missing her constantly to now feeling so good about where she is and what she’s doing.

Our business is also affected by so many of life’s changes. We’ve all been able to experience wonderful milestones with our clients as they marry, buy their first home, buy a bigger home and sell the first home when kids arrive, and sell their homes when they relocate for a new job. These are great times to be a part of our clients’ lives. We truly experience their joy and excitement.

On the down side we’ve also been able to be a part of their lives when they face difficulty and sadness. Homes are sold due to divorce, the loss of job, and the death of a loved one. We also work with adult children in selling their parents’ home when Mom and Dad are no longer able to take care of the family home where they may have lived for 30 or more years. The compassion that we show our clients during these traumatic life events will remain with them, and hopefully can ease some of the burdens they’re faced with.

In good times and bad real estate professionals are privileged to be part of our clients’ lives, even if it is for a relatively brief time.

This is one of my favorite winter views. This bridge was newly installed and serves as a footbridge which connects one of many walking/biking trails through the Owatonna parks.

We're so fortunate to have so many enjoyable places to use year round. There are several skating ponds near this bridge, and the cross country ski trail is just to the south of the bridge. This winter I rented snow shoes at the park chalet, and snow shoed with a friend through the beautiful wooded park.

It's amazing what you can see in the woods this time of year without all the leaves on the trees. It's beautiful.