Rock Bottom?

Being a Realtor people are constantly asking me how the Bemidji market is.  Lately, their favorite question is: "Have we hit rock bottom yet?"  My answer: "We won't know until we start going back up."

If you take a look at the chart below you will see a slight decline in the depreciation between 2009 and 2011.  In 2009, depreciation for the Greater Bemidji Area (56601 zip code) was at is all time 10 year high at around -6% per year. Since then depreciation has slowed to around -3.7% for the Bemidji zip code.  So, even though we haven't hit "rock bottom" on home sale prices, it appears that we have as far as the rate prices are falling at.

The chart and statistic information can also be viewed on my website at www.realliving.com/mandy.gazelka Click on local information and you will be able to search any zip code or address to obtain information on housing, people, economy, schools, environment, and quality of life for any given neighborhood or area.

Another great tool that was just released by Beltrami County is http://www.crimereports.com/ .  This website allows you to view all the calls for assistance in any given area in Beltrami County starting this year.  It will hopefully alleviate some of the calls to the local police station inquiring about the crime rates in certain areas or neighborhoods.  It can also assist potential home buyers in choosing an area to live in based on the perceived safety of the neighborhood.  Check it out and let me know what you think!

The Game of Monopoly

When it comes to real estate investing, Monopoly is the name of the game!  The object of the game (as defined by the actual game) is to become the wealthiest player through buying, renting and selling property. If we take the principals of Monopoly and apply them to real life real estate investing here's what we have: He who owns the most little green houses and red hotels WINS! 

If it is your goal to be come wealthy I believe that real estate investing is a great avenue be on.  In the rules of Monopoly it also states that "you may buy and erect at any time as many houses as your judgement and financial standing will allow".  You must exercise caution and use your best judgement, even some of the greatest real estate investors in history have been bankrupt a few times. As with any investment, there is a certain amount risk involved.

Here is my light hearted approach to explain what you need to become a real estate investor using the game of Monopoly as an example:


1. Decide if you have enough money to purchase a property (pay with cash or give a mortgage to the bank)



2. Identify a property

3. Purchase the property

4. Collect rent


5. As time goes on, decide whether it is in your best interest to sell or improve the property

6. Repeat



Believe it or not, I actually use this as a model in real life!  My husband and I often say to each other, "little green houses, BIG red hotel, little green houses, BIG red hotel".  It is our goal to someday own commercial real estate (red hotels) as a passive income generator.  To achieve the goal of being a wealthy real estate investor you need to start somewhere by buying your first little green house.  Once you own one piece of income generating property it makes it easier to buy more by leveraging what you already have.

For most people, getting started by buying that little green house is the hardest step.  Often it takes creativity on the investors part to make it work financially. One great way is to look at the assets you already have and figure out if you can use them as leverage to make your first purchase. 

You always hear people saying, "Man, I wish I would have bought real estate back in the '90s."  Don't make that mistake again by missing out on one of the best buying times in our history, you can hear yourself saying it now, "Man, I wish I would have bought back in 2012!"

For a list of little green houses in the area email me at mandy@firstrealtybemidji.com today!

2011 Year End Review

We've all heard the news about the real estate market around the country and in the metro areas, but I'm sure you've wondered how we are doing up here in Northern Minnesota.  Here are the numbers:

654 Listings Sold (up 5.5% from 2010)

2238 Properties for Sale in 2011

$166,463 Average List Price (down only 3.57% from 2010)

$115,183 Average Sale Price (down 10.6% from 2010)

161 Average Days on Market

Statistics in this post were obtained from the Northwest Minnesota MLS.

What do all these numbers mean?  It's taking longer to sell houses for less these days.  I feel that a big part of the 10.6% depreciation that we experienced in 2011 was due to foreclosed home sales.  Many of the foreclosed homes in 2011 were in poor condition, and therefore brought a low sales price which brings down the average.

The good news for buyers is that there are many homes to choose from, sellers are coming down from their original list price an average of 13%, and interest rates are still at all time lows! Have more questions on Northern Minnesota real estate market conditions?  Don't be shy, just ask!

Preparing to Sell

In Northern Minnesota, real estate tends to have a season.  During the coldest of winter months buyers are less active and homes typically don't "show" as well without the green grass and blue skies.  Most sellers wait to put their homes on the market in the spring, unless they have the need to move quicker.  Which brings me to what you can do if you are a seller while you wait for the spring thaw!

1. De-clutter.  Remove as many personal items, family photos, and kick knacks from your home as possible. You want buyers to be able to look at the house instead of focusing on your stuff.

2. Deep Clean.  Pay special attention to those places that get touched often but most people don't think about.  Light switches, door knobs, walls near doors, windows and baseboards.  A clean house shows a buyer that the home is well cared for.

3. Repair.  Fix any of those little nagging items that have been on your list that you may live with day to day but to a buyer they show neglect.

4. Paint.  Freshen up a room or two or just touch up paint as needed.  Make sure to choose neutral colors to appeal to the largest audience.

4. Call ahead of time.  Call me and I'd be happy to walk through your home with you to let you know what I think you could do to help you sell your home faster and for the best price when the time comes.