Real Estate Blog for the North & East Twin Cities

A foreclosed home is not the proverbial money-pit! Many bank owned properties --especially Minnesota lakeshore and acreage homes--are priced to sell and do not sit on the market forever!  People are snapping up deals all over Anoka County on homes that are in great condition and priced right! Some are bank-owned foreclosures but regular traditional sellers are also pricing their homes properly to sell in this changed real estate market. As a buyer, you have to be ready as the good homes are selling FAST even in the WINTER!

Here are a few north Twin Cities metro homes that I noted that sold in DAYS over the holidays:

• East Bethel 1999 built 5BR Rambler on 3.5 acres with an additional garage located on Devils Lake. Sold in 20 days for $236K.
• Lino Lakes home 4BR/4BA/5Car garage built in 1995 on 1 acre Renaushau Lake lot. Previously sold for $675K, bank accepted $535K. Sold in 20 days.
• Linwood vintage 3BR/2BA lakehome built in 1916 on 4.3 Acres  with 220ft shoreline. Bank sold for $170K in 7 days.
• Forest Lake/Columbus 1977 built, 2BR/1BA/2 car plus pole barn on 10 acres. Sold AS-IS for $104K sold in 7 days. 
•  Ham Lake 3BR/2BA/3 Car multi-level built in 1995 on 2.5 Acres  with in-ground pool. Bank sold for $189K in 13 days.

This economy has builders and responsible homeowners alike to let amazing properties go back to the bank. Many are still in pristine condition. Some may require a bit of cleanup or a few cosmetic changes but there are many in move in condition too.

There are more deals out there too…Here are a few of the treasures I noted on the Twin Cities MLS in Anoka County today:

• Executive 3BR/5BA 2 Story in Ham Lake on 10 ACRES with 12 Car garage! 4200+ Finished with all bells & whistles. Sold in 2008 for $1.1 million...Bank Listed for $495K
• Lender-owned Linwood 3BR/2BA/2Car for $140,900 on 2 ACRES w/Polebarn…Sold in 2006 for $240K.
• 3BR/3BA/3Car Brick front Rambler on 1/2 acre in East Bethel on Coon Lake needs rehab but bank asking $234K.
• Bankowned 2BR/1BA/2 Car  on south side of Coon Lake in Columbus. Tax value at $207K…Bank priced at $124K.

If you are in the market for a great deal on a foreclosed home, get your ducks in a row because homes are being offered at rock bottom prices. Here are a few tips for those considering offering on a foreclosed home.

• Banks LOVE clean offers. Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won’t be considered.
• Banks will reject lowball offers…no negotiation. They are a business and know the value of the asset they are selling.
• Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first and quickly.
• Banks sell homes AS-IS. What you see is what you get. In most cases repairs will not be made.
• In most cases a banks will not pay for inspecting the septic system or well. Those will be the buyer’s responsibility along with all other inspections. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500.
• Personal property is not included as part of the sale. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don’t guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace.
• Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank. In many cases, the bank will not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the bank…the listing agent is required to tell the bank everything that you say about your financing and the amount you are able or willing to pay. But the agent is not required to tell you anything in return. The agent works only for the bank.

What a crazy and wimpy Minnesota winter we are having this year! We have been blessed this winter with a lack of snow (or cursed if you are into snowmobiling and/or cross country skiing). Our roughly 15 inches of snow has meant that roofs are not sporting 3 foot icicles and there is parking on both sides of city streets. People aren’t breaking their backs shoveling or wallets paying for a new snow blower if the old one stops running. Yes, this wimpy winter is a blessing in many regards.

A less though of perk of the lack of snow cover means that it will be easier to trim your oak trees this winter. Oak wilt is devastating to trees in Anoka and Chisago counties as massive oaks are destroyed when this disease spreads. Smart landscaping and maintenance requires you trim oaks in the winter months—before April in Minnesota. Now is the perfect time to avoid exposure to this tree-killing disease and without the normal ice and snow of a Minnesota winter it will be much easier to maneuver ladders and equipment to reach trees on acreage properties.

Oak Wilt Devastates Acreage A few years ago I shared photos of a property in a Ham Lake community where the owners had dealt with oak wilt on their acreage property for several years. Or, more accurately, they chose not to deal with it.  In one summer alone, this property lost nearly a dozen trees. (Read Oak Wilt—A Minnesota Tragedy) While the beautiful thicket of mature oak trees is now a memory, new  property owners took the initiative to save the remaining oaks. I am happy to report that with treatment and proper care, they have lost only one small tree in the past five years.

Oak wilt is not just a problem in Ham Lake and Anoka County. It is prevalent in communities from Columbus to Lino Lakes and Forest Lake to Scandia. Whether you live in Anoka, Chisago or Washington County, if you have oaks on your property, you need to take precautions to protect them from this deadly tree-killing disease.

What is Oak Wilt?

Oak wilt is a disease caused by a fungus which attacks the central system of the tree from the roots to leaves.  When the tree attempts to block the fungus, it also blocks all water and nutrients to the branches and leaves. The leaves then wilt, brown and eventually, the tree dies.

Oak wilt spreads through the root systems of near by infected trees and by fungus beetles that carry the oak wilt spores from tree to tree. For additional information on oak wilt from the University of MN Extention Service CLICK HERE.

Protect Your Trees

Keep oaks trimmed and healthy. Trim large mature oaks now as January/February are excellent months to prune oak trees.  If you have your large oaks trimmed now it is a preventative to spring storm damage when heavy, dead branches can fall during tornados or straight line winds.

The fungus beetles infect trees that have been recently injured or trimmed. These beetles are very active in the spring and summer months but not active at all during the winter. Oaks should be protected from damage and not trimmed from April through July.

Tree trimming of mature oaks is best left to professionals especially near the power lines. The trimmer should use a bucket truck or a line/pulley system, NOT spiked climbing boots which can damage the tree.

Selling a Home with Oak Wilt?

Be honest and disclose!  A seller might be tempted to cut down a diseased tree and not say a word to a new buyer. This is not only unethical it could cause expensive legal problems after the sale. Even if a seller doesn’t say anything about oak wilt infected trees that were removed prior to listing the home, most neighbors will. Cutting a tree diseased tree does not prevent the spread of oak wilt. It is likely other trees are infected. If more trees die and the buyers were not properly informed, the seller could be in a legal battle with an irate buyer. Bottom line: There is a question regarding diseased trees on the Minnesota Sellers’ Disclosure Form. Fill it out honestly and be prepared to remove the diseased trees properly and safely, if asked. It is never a good idea to not tell the whole truth on the property disclosure form.

In 2011, homes continued to sell at a rate equal to in in Ham Lake, Minnesota; an area well known for its acreage properties. In this north and eastern Anoka County city, home sales were down just a few percent but with new listings down nearly 25% the absorption rate did not suffer. The average days on the market dropped by over 5% this year, from 176 to 166, which continues to level the playing field between buyers and sellers. The average price of a home sold did drop this year by roughly 8% from Just over $240K to $221,367. This also had a major affect on the price per square footage as it dropped from $100/sq ft to $88/sq ft which is similar to other areas in the north metro. Sellers seem to be negotiating more on acreage making this an opportunity for buyers to get out to an area where there is a bit more elbow room at an affordable price.

For additional details on the inventory levels in Ham Lake MN at the end of 2011, Click HERE.