Kim Melin

Buyers who are still waiting for the residential real estate market to hit bottom may have waited too long. The first week in May is signaling changes and while there will still be bargains to be had, they might become harder to find.

Housing sales were up for the second month and after five months of declines. At the end of March, there were 3.74 million existing homes on the market, taking an average of nearly ten months to sell. But foreclosures, short sales and bank-owned properties are suddenly selling briskly.

At the beginning of 2009, it was not uncommon to see foreclosed homes sit on the market for a year or more. Suddenly, starting at the end of April, real estate agents who specialize in foreclosed and bank-owned homes are reporting getting multiple offers after only a few days. Many of these homes need work. Some need a lot of work. Many of these buyers are investors, bringing in professional crews to fix and resell the homes in a couple of months. But, first-time buyers account for more than half of recent home purchases.

For those planning on living in their newly bought homes, low interest rates and the $8,000 tax credit/rebate for first-time buyers can help pay for needed repairs. Before clinching the deal, buyers need to have an eye for potential and an ability to look beyond bad paint jobs, ugly carpet and dirt. They also need to hire a professional inspector take a look at the house. It’s best to find hidden problems and be able to walk away before the final papers are signed than to discover that the ‘cosmetic only’ fixer-upper needs all new plumbing or major electrical work.

Handymen and women have an advantage, but whether new home buyers plan to do the work themselves or have experts do it for them, they need to factor in the costs of repairs. Real estate experts recommend that buyers come armed with a sharp pencil and knowledge what they can afford. If there are multiple offers, buyers should avoid getting caught up in a bidding war and paying more than the home is worth or more than they can afford. There are always more homes coming on the market from which to choose.

The price of foreclosed properties have also driven down the price of other non-foreclosed homes nearby and sometimes these homes are even better deals. They are usually in good shape and buyers have more bargaining power than with a foreclosure home, when every negotiation has to go through a bank.

The warmer weather and longer days are also a factor bringing out the buyers, especially in colder climates like Minnesota. Will this summer see an end to cheap homes prices in the Minneapolis area? Maybe and maybe not. No one knows for sure, but what is certain is that right now is a good time – especially for first-time buyers – to buy a home.

If you are interested in searching for a home in or near Edina please go to www.kimmelin.listingbook.com. You can also call (612) 201-4758 or email Kim@KimMelin.com.

December 9, 2008

RE: 2009 Street Reconstruction Projects - Resident Questionnaire

Dear Resident:

The City of Edina has initiated the process of roadway and utility improvements for the

summer of 2009 for your neighborhood. The first step was to hold an open house on

October 9, 2008, for you to become familiar with the process.

The next step is to get feedback from you regarding a number of key components of the

project. The information you share with us is essential in determining certain aspects of

the project that may be constructed.

The following information explains the questionnaire that is enclosed. An approximate

construction area map is also included. After reading this letter completely, please

complete the questionnaire and return by December 19, 2008, in the self-addressed

stamped envelope.

Sump Pump Discharge Service Line

Do you use a sump pump or have you considered installing one? Do you currently have

a footing drain?

The project could include a drain tile system in some streets to collect

not only groundwater and storm water runoff but also discharges from private sump

pumps.

If the Council chooses to proceed with this project and you have a sump pump or

footing drain, a service connection pipe could be extended to the right-of-way (ROW)

line in front of your home. From the pipe end at the ROW line to your house, you would

be responsible for installing an underground pipe and any plumbing modifications

needed to connect it to your sump pump at your own cost, using your own contractor.

Using the service line can help mitigate the following problems:

• Water re-entering your basement when discharged onto your yard. This

water can also cause problems for adjacent yards and basements.

Discharging into the street causes erosion of the street surface and icing in

cold weather.

• Discharging this water into the sanitary sewer system is prohibited by City

ordinance and State Statute. You are subject to a fine.

• These discharges increase the fees the City is charged to treat its sewage

and the higher cost is reflected back to you in your sewage bill.

2009 Street Reconstruction Projects - Resident Questionnaire

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If you currently have a sump pump, footing drain or are considering adding a sump

pump someday, please complete the sump pump discharge service line section of the

enclosed questionnaire.

It is important that you indicate this now so a service connection pipe can be planned

with the project.

A drain tile system may not be available on all streets, depending on

final street design and topographic features.

Private Underground Utilities

Some residents install private underground utilities in the City owned boulevards. These

utilities are usually lawn irrigation or pet containment systems. Utility and roadway

reconstruction can damage these utilities. If they are damaged, they will be repaired as

part of the project. However, if the reconstruction contractor knows the location of these

private utilities, they can attempt to avoid damaging them.

If you have an underground private utility, please tell us in the private underground

utilities section of the questionnaire.

Resident Street Lights

As part of all reconstruction projects, staff typically asks if residents favor upgrading

their street light system. In some cases, the street light system is at the end of its useful

life and requires upgrading. We do not know yet the condition of your specific street light

system; an evaluation will be done later on. Funding for street lights are currently

through special assessments. The typical cost is approximately $2,000 to $3,000 per

residential equivalent unit (REU).

In the street light option section of the questionnaire are examples of the different styles

of street lighting that could be installed in your neighborhood. Please rank your style

preferences.

Pedestrian Issues

As part of all reconstruction projects, staff typically asks if residents see a need to add

public sidewalks to the neighborhood. Funding for sidewalks is split between special

assessments, City of Edina and the Edina School District (if the sidewalk falls within a

school walking zone). The typical cost to partially add sidewalks to a neighborhood is

$300-$600 per REU (i.e. to add a couple blocks of sidewalk to a multi-block area).

If you know of a problem at a pedestrian crossing, missing sidewalk or other pedestrian

issues please tell us about it in that section of the questionnaire.

Local Drainage Problems

Does storm water run-off stand in the street or sidewalk in front of your house? As part

of the storm sewer and drain tile design process, we would like to know if this or similar

situations are occurring in your locality. If so, please describe it in the local drainage

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problems section of the questionnaire. We will review them for possible corrective

action.

Questions

If after reading this letter you have additional questions, please contact me at 952-826-

0445.

Sincerely,

Jack D. Sullivan

Assistant City Engineer

Enclosed: Property Owners Questionnaire

Neighborhood Reconstruction Map

A new tax provision is offering capitol gains relief for widows and widowers who want to sell their houses after a spouse has died. While married couples can exclude a profit of up to $500,000 when they sell their home, single people are limited to a $250,000 tax break. Until recently, a widow or widower was considered a single person in the eyes of the IRS. But now, a surviving spouse can take the full $500,000 deduction if they sell the home within two years of their partner’s death instead of the previous one-year limit. The home must have been used as a principal residence for two out of the last five years and the spouse must remain unmarried until the home sells. Surviving spouses can subtract any money put into the home for repair and improvements. The new provision reflects the slower housing market and perhaps, a small amount of compassion that was forcing people who had just lost a life partner to make other difficult decisions too soon.

 

There's been a significant increase in home sales in the Twin Cities area. Pending sales are up 21 percent over last year. On the other hand, the median sales price is down about 23 percent since a year ago and over half of all pending sales are distressed properties. For a home seller that may be bad news, but for a home buyer, it is a signal to take action!

If you have been thinking of buying a home, you should take some serious steps toward your home purchase. There are many incentives, in addition to the lowered prices and availability of houses. Interest rates are incredibly low, there is an $8000 tax credit for qualified buyers, and there are plenty of motivated sellers.

And time to get a bargain may be running out. In a quote to the Star Tribune, Scott Anderson, of Wells Fargo & Co., suggested that we are "tantalizingly close" to the bottom of the housing market. Combine that with a reduction in the number of homes on the market, which is down by 14.8 percent, and signs of improvement in other areas of the economy, and it certainly appears that the bottom is near.

So it sounds like its time to jump on these fantastic bargains. If you wait too much longer, the bottom may be a thing of the past! Contact me today to find the house of your dreams at a price you once could only dream about!

If you are interested in searching for a home please go to www.kimmelin.listingbook.com. You can also call (612) 201-4758 or email Kim@KimMelin.com.

EPS Information Release: Police Make an Arrest in Possible Kidnapping

Edina Public Schools was informed by the Edina Police Department of a possible kidnapping involving elementary age students in the Concord neighborhood the afternoon of April 14^th. The involved students are all safe. The police did arrest and placed a 21 year old male in custody soon after the incident occurred. He remains in custody pending charges.

The district continues to work with the police department on this matter and will share more information as it becomes available. Families are reminded again to make their children aware of the importance of knowing how to respond to strangers and staying safe.

On a personal note...we know the child that was approached. She did an amazing job at handling the situation! It reminded my family and I that although we feel safe, and in the bubble....we are still very vulnerable to the world! Heads up to all us parents and care givers!

Kim