Lisa Dunn www.TwinCitySeller.com

I've tried to duck under tables, hide behind closed doors, and cower in dark corners. No matter where I've tried to hide myself, the foreclosures and short sales have found me. I've done my best to conquer the demon and have gone to classes, and studied under agents who specialize in these kinds of transactions so I can represent my clients to the best of my ability. That doesn't mean I like them. I don't. These transactions are difficult, and often take a toll on the sellers (in short sales) and buyers. It takes a bank months to do what a good real estate agent can do in a week.

One of my clients, a first time home buyer, is looking for a foreclosure. He needs to keep his monthly payments down and doesn't mind doing some work on the house. He commented to me "It seems there are more houses coming on the market now." My response was "Yes, the suits are back from their holiday hiatus and are now ready to go to work to unload the inventory they've gathered up over the holidays."

An article this morning in inman news is predicting even more foreclosures to hit the market (again, remember this is a national newsletter and may not reflect what's happening in the twin cities metro). Even though my clients are not economists, nor do they have crystal balls, they are noticing the trend here in the Twin Cities.

I met a first time home buyer over the weekend who was looking in Minneapolis for a foreclosure. He was shocked to find out there were offers on two of the homes we looked at. If you're going to be in the market for a foreclosure this spring put on your running shoes. You're going to need an agent who watches the market very closely for you, prepares you for the ups and downs of dealing with these difficult transactions, and you HAVE to be ready to write the offer as soon as you see the house.

If Inman News' prediction is correct, the foreclosures we'll see come on the market will be listed at fire sale prices. There will be buyers who will think they can get the house at clearance prices, and a few will. The majority will sell at fair market value, because they'll end up with multiple offers that will drive up the price.

The buyers who will win in this market have a great agent, are pre-approved with a NON-fha loan, have reasonable expections for how long the negotiation process will take, and aim to get the house at a fair market price.

Source: Minneapolis Longfellow and Nokomis Real Estate Guide

The last couple of days it's been like watching an exciting auctioneer. Except he's counting backwards and no one knows when he'll stop. 6.75%...6.5%...6%....6.5%...5.0%...6.5%....4.5%...and on and on we go.

Monica Tucker told me rates were so volatile yesterday that Wells Fargo wasn't even willing to quote a rate until yesterday afternoon (Edina Realty Mortgage and Wells Fargo are affiliates).

About 5 months ago I was certain when we hit 5% on mortgage rates we just weren't going to see them that low again. This was a delicious little morsel I got to pull out of my pocket and use to taunt my husband. You see, I am in the real estate business and I am a professional. I told him it was time to look at refinancing. Our loan is currently at 6%, and it needed to be around 5% before it made sense for us to pull the trigger. He drug his feet, and it started to creep up to 5.375. Then, it continued to go up. I was convinced we missed our opportunity. I was convinced it was going to cost us an extra $30,000 over the life of our loan because he didn't act fast enough. So, for the last few months, I've taken every opportunity given to me to kindly "remind" him that his cautiousness had "cost" us money. I've used the "I told you so" and the "remember that 5%" and the "haven't you learned your lesson about listening to me?"

Finally, we've locked in on a refinance deal at 4.75%. We're going to float this lock for the next 60 days to be sure the rate doesn't go any lower. Rest assured, we'll both be watching them closely.

For each eighth of a point they go lower, this wife and real estate agent will be eating crow! Now he get's to say "Aren't you glad you listened to me?", and "the tortoise wins the race", and "told you so."

Last night he finally said to me, "You know, I was worried we lost our opportunity to jump in on a lower rate."

We both learned a few valuable lessons:

1) When the opportunity comes along, grab it. Although we're at 4.75% now, we could have been at 5% 6 months ago. It doesn't make sense to gamble the market because even if you're a real estate professional, no one can predict what will happen. It's a shame to pass up a good deal to wait for a great deal, and miss out on both.
2) Be careful about the I told you so's.
3) Always listen to your wife.
4) Crow doesn't taste too bad as long as your laughing about it.

Source: Minneapolis Nokomis and Longfellow Real Estate