Buying as a BUBBA is down in 2007 though still higher than FSBO. What is a BUBBA you say? It is a Buyer Unrepresented by a Buyer's Agent. In 2006, almost a quarter of all buyers' were BUBBAs. In 2007, according to the National Association of REALTORS® 2007 Profile of Home Buyers and Sellers, that percentage has dropped to 16%. Is this possibly due to all of the short sales and foreclosures that started appearing across the country at that time and buyers felt a NEED for the services of a knowledgeable professional? Maybe...I wonder if the number will drop again when NAR's 2008 survey comes out in November.
At any rate...Buying as a BUBBA is still happening at a higher rate than FSBO (16% vs. 10%). As the real estate market becomes more complicated, professional assistance is more critical than ever when buying a home. Here's my original post from back in March 2007, where I explained the BUBBA acronym in detail....Enjoy!
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BUBBA-The Flipside of FSBO
Originally posted 3/9/07 by Teri L. Eckholm
Most people, whether in the real estate industry or not, have heard of the FSBO--A For Sale By Owner seller. The acronym has been used for quite awhile as there has always been a segment of the market that chose to sell their home directly to a new buyer. But, there's a new acronym being used by REALTORS® 
these days--BUBBA or Buyers Unrepresented By a Buyer's Agent. It is making it's way into the real estate agent vocabulary because this market segment is growing. In 2006, according to the National Association of REALTORS® 2006 Profile of Home Buyers and Sellers, nearly a quarter of all sales (23%) were BUBBAs. Although many of these home buyers did work directly with a builder or at a sheriff's foreclosure sale, 9% purchased directly from the home seller.
The internet is probably the most contributing factor to the growth of this buying segment. Buyers are certainly more educated--shopping on-line for as many as 6 months prior to making their house purchase. The homes are listed on the web. There are guides as to how to purchase a home. The whole process is less mysterious and seemingly simple that many self-educated buyers are foregoing working with a REALTOR®.
Are You Considering BUBBA? Before you move forward unrepresented, here are a few things to consider.
BUBBA can cost more. Buyer's representation does NOT cost anything. But being represented can save thousands. When you sign a contract for buyer representation, your agent owes specific fiduciary duties to you to work in YOUR best interest. They are required to keep your information confidential. A REALTOR® does this as a profession, not once every 10 years like most buyers. They are experienced in negotiating a deal on a home that is in your best interest.
So how does a buyer's agent get paid? Every home listed in the MLS states a commission agreed upon by the seller with his agent to be paid to the buyer's agent of the particular home. Yes, the seller pays the fee for you to your agent.
But this does raise the question, "If I buy directly from the seller and he doesn't pay a commission, won't I get a better price?"
Probably not. Think about it this way, the seller set the price in the first place. If he is not working with an agent, how can you be certain that you received a good price on the home? And why would a seller, who doesn't know you, give you the savings he intended to pocket by not hiring an agent.
In this buyer's market, with so many different homes to choose from, it is easy to be overwhelmed in the purchasing process. So you just wander into a FSBO open house and the seller has an amazing charismatic personality. He is very slick and used a three year old refinancing appraisal to set his price. Is it a good deal?--Probably not.
Buying a home is not as simple as walking into a discount store for a new computer...And that process can be overwhelming. There are details to a purchase that many home buyers just don't anticipate. How old is the roof? When can we take possession after closing? Is the septic system in compliance with current state and local statues or does it require replacement? Are there encroachments, like a neighboring fence or driveway sharing issues? Are there assessments pending and who will pay for them?
All of these are situations an experienced Realtor will try to anticipate and resolve in writing as the transaction moves toward the closing.
Some people are accidental BUBBAS. They start out in a "learning" stage...That time period of six months to years where they are "dreaming" of a new home but don't want to commit to a REALTOR® or be pressured into a contract. They wander into an open house and it "is" their dream home. Since they didn't have an agent when they first came in, they feel uncomfortable informing the seller that they want representation and just move forward without one.
As a REALTOR®, I try to coach potential clients into developing a relationship with an agent early in the process. If you want to see a home, contact that agent and sign a contract for a specific house. That way your interests would be represented, if the house is perfect for your family. But you would not be locked into a 6 month contract, if you are not ready to make a decision.
Before becoming part of this growing trend in home purchasing, do research and carefully consider your options. You may be giving up more than you think to when making the one of the most important financial decisions of your life.
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Don't be a BUBBA! If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2008 Teri Eckholm http://www.terieckholm.com/
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With all of the seemingly continuous changes in the mortgage industry recently, Minnesota Public Radio (MPR) is asking the question, "Are home loans harder to get?" As part of their Public Insight Network, MPR wants real answers from real people like you. It is an opportunity to share what yo
u know with others about this important financial topic.
I find this question extremely interesting as I am certain other professional REALTORS® will as well. I will be even more interested in tuning in to hear the stories and subsequent discussions that arise from the survey. I want to hear stories from first time buyers and those attempting to buy a second home or investment property. I would love to hear examples from loan officers as to what has changed when qualifying a new client. As home prices have dropped considerably, there are deals out there, but can interested buyers get the loans? This is a very timely topic and a great opportunity for the average person to share their personal view. LIKE MY BLOG? Subscribe and let me email you an update!
Have you or someone you know recently applied for a home loan or tried to refinance?
Whether you are a homeowner, buyer, loan officer or real estate agent, MPR wants your story. Here is a forum to share your experience good or bad.
CLICK HERE to Visit MPR Public Insight Network to complete the form and share your experience. Your opinion and story could be used in an upcoming show and/or you could be contacted to provide additional information and opinions on your experiences. It is a way for the individual to have to have a voice by sharing real world experiences in regard to home loans and mortgages. Rest assured that your opinion and information will be confidential. MPR will not quote you on the radio or web without your permission.
Not familiar with Minnesota Public Radio? Minnesota Public Radio® is a non profit public radio organization. Headquartered in the heart of downtown St. Paul, Minnesota Public Radio is a premier organization operating a regional network of 37 stations, from Minnesota to areas in Wisconsin, North Dakota, South Dakota, Michigan, Iowa and Idaho.
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If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR ®, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2008 Teri Eckholm http://www.terieckholm.com/
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It's Coming! We are just a week away from the GREAT Minnesota get together...better known as the Minnesota State Fair! Preparations for this fabulous event were well underway early this week. Though it looks a bit of a ghost town as of Monday when I dropped off a few entries at the education building, there were signs of the frantic activity soon to come.
Trailers were parked strategically near displays and buildings still without signage.
Crews of hard working men were pulling up tents and working on other displays.
Though only a solitary piece of red farm equipment adorned Machinery Hill, there will no doubt be several more tractors on display soon. And likewise. soon a rainbow of cars will be hanging from the skyride brackets above.
The roads were clear of the bustling, ever changing mass of humanity that blocks every street and corner on a busy day in the last week of summer. In a remote corner of my mind I was certain I heard the echo of a long ago requests for a Prontopup with ketchup and Tom Thumb Mini Donuts...Or was that a voice of the future? Probably both.
The 2008 Minnesota State Fair starts Thursday, August 21 and runs through Labor Day, September 2. For additional information and schedules, CLICK HERE to visit the MN State Fair website.
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If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2008 Teri Eckholm http://www.terieckholm.com/
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In spite of the real estate slow down Coon Rapids continues to evolve as it has for over 150 years. It has changed from the community's humble beginnings of a dirt road farm community to the 9th largest city and 5th largest suburb in the state of Minnesota. The affects of the real estate market change on Coon Rapids is tempered by its convenient location to downtown Minneapolis and its easy access to Interstate 35, Hwy 65 and Hwy 47/10 for a commute to a lakeside cabin. Coon Rapids is a community with something for everyone: encompassing 23 square miles it boasts several neighborhood and regional parks, indoor and outdoor ice skating rinks, softball and baseball fields, tennis courts, hiking and biking trails, swimming pools, a golf course, and two major regional shopping developments.
Like its neighbors Blaine and Andover, the residential real estate construction boom in Coon Rapids during the past decade has slowed but not stopped making new and existing home purchase opportunities very affordable. Conveniently between Anoka and Blaine, it is connected by Highway 10 just north of the Twin Cities, Coon Rapids is an attractive location for both business and residential development. The entire community of Coon Rapids is served by one school district; Anoka Hennepin District #11.
Real estate in Coon Rapids, MN in Anoka County is affordable and selling-though admittedly at a slower pace than most sellers would like. In the first five months of 2008 numbers show single family homes are staying on the market an average of 148 cumulative days. This is very similar to the neighboring community of Blaine with an average of 150 CDOM for the first quarter.
But when broken down to single family homes versus townhomes/ condos, the single family homes have a 132 average CDOM while townhomes/condos are selling nearly a month slower with a 168 CDOM. In Blaine, condos/townhomes were selling faster than their higher priced single family homes. This could be do to builder incentives on the abundance of new construction properties in Blaine and the many executive homes that are asking well over $500,000. There are extremely high priced homes in Coon Rapids and few new construction townhomes.
Like Blaine, the cumulative days on market numbers for Coon Rapids is better than in other areas of the north metro like Forest Lake, Lino Lakes and Ham Lake where homes have a cumulative days-on-market rate (CDOM) of well over 200 days. (Links to statistical reports for these communities are listed below.)
Inventory levels of single family homes under $200,000 in Coon Rapids have remain quite manageable with approximately 6-7 months of inventory. Town homes and condos are going quite a bit slower; with nearly 18 months of inventory. As Coon Rapids' real estate is for the most part moderately priced, it should adjust to the changed market relatively quickly but it's significant condo/townhome market will take time to recover as it will have to compete with new townhome developments in the neighboring community of Blaine.
Jan-May 2008 Coon Rapids residential real estate statistics for single family homes:
Under $200,000~ 137Active Listings, 26 Pending Listings, 102 Sold Listings, CDOM 124
$200,000-$300,000~ 130 Active Listings, 10 Pending Listings, 43 Sold Listings, CDOM 134
$300,000-$400,000~ 30 Active Listings, 2 Pending Listings, 11 Sold Listings, CDOM 185
$400,000 and up~ 13 Active Listings, 2 Pending Listings, 1 Sold Listings, CDOM 233
Jan-May 2008 Coon Rapids residential real estate statistics for townhomes and condos:
Under $200,000~ 228 Active Listings, 12 Pending Listings, 73 Sold Listings, CDOM 166
$200,000-$300,000~ 36 Active Listings, 1 Pending Listings, 6 Sold Listings, CDOM 340
$300,000-$400,000~ 9 Active Listings, 0 Pending Listings, 0Sold Listings, CDOM N/A
**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/08 through 5/31/08.
Featured Townhome Listing in Anoka County (pictured above)
601 86th Lane NW, Coon Rapids, MN
For additional information on this home or any current Coon Rapids real estate listing contact Teri Eckholm directly at 651-336-7073.
Other Real Estate Articles that might be of interest:
· Does "Minnesota Nice" Affect the Real Estate Market? "Yah, You Betcha!"
· Understanding Risk of Loss-How Severe Weather Affects Real Estate
· First Time Home Buyer in Anoka County, MN? Low Interest Loans Available!
· Lino Lakes, MN Real Estate Market Statistics 1st Quarter 2008
· Forest Lake, MN Real Estate Market Statistics 1st Quarter 2008
· Ham Lake, MN Real Estate Market Statistics 1st Quarter 2008
· Blaine, MN Real Estate Market Statistics 1st Quarter 2008
If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2008 Teri Eckholm http://www.terieckholm.com/
Attention East Bethel, Ham Lake and Wyoming residents interested in the Hwy 65/Cty 22 intersection development!
The Community of East Bethel adopted the comprehensive plan in August 2007 that was submitted to the Met Council. Included in the plan is a city sewer and water proposal centered on the development of a town center at Hwy 65 and Viking Blvd. (County 22).
Now the real work is beginning! The proposed development of this intersection is on the agenda at this week's city council meeting-June 4 at East Bethel City Hall, 7:30 PM. As always these meetings are open to the public. Residents of East Bethel should plan to attend as community growth always brings up questions...City council meetings are one forum where you can to get your answers!
If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2008 Teri Eckholm http://www.terieckholm.com/
Dedication to customer service has made Teri Eckholm/Keller Williams Premier the Realtor® of choice for families in Blaine, Forest Lake, Ham Lake, Lino Lakes and Wyoming areas. Licensed in MN.
"Exceptional service is always in style."
Considering Lakeshore? Acreage? A Single Family Home?
A Townhome or Condo?
Need to downsize? Need more space? Just need a change?
As a real estate sales professional and a parent of two teenaged boys, I know how important a home is to your family. It is more than just a place to live, it is a place to create memories with the people that matter the most.
I grew up and lived most of my life in North St. Paul. As a North St. Paul resident, I know the ins and outs of the North St. Paul, Oakdale, Maplewood and White Bear Lake areas. Over 10 years ago, our family moved north to Ham Lake. We love living just outside of Forest Lake and Columbus Township.
Now, I work and sell homes from East St. Paul to East Bethel--Specializing in Anoka County and homes in the Centennial, Blaine and Forest Lake School Districts! My 20+ years of experience in sales and marketing allow me to provide my clients with the BEST service available.
I have sold homes throughout the Northeast Metro area. As a Realtor®, Mpls/St.Paul Magazine and Twin Cities Business Monthly have included me twice on their annual listing of Super Agents. With my skills, experience and dedication, I am ready to assist your family in finding the perfect home to create your memories.
Areas Served:
Andover, Blaine, Chisago, Circle Pines, East Bethel, Forest Lake, Ham Lake, Hugo, Lexington, Lindstrom, Lino Lakes, Mahtomedi, Maplewood, New Brighton, North Oaks, North Branch, North St. Paul, Oakdale, Scandia, St. Anthony, St. Paul, Shoreview, White Bear Lake,Woodbury,Wyoming, and surrounding areas.
Homes Sold: 1988 North Robin LN, Centerville; 2335 Cedar Ave., White Bear Lake; 1728 Leone Ave., St. Paul; 15065 E Vermillion Circle NE, Ham Lake;1517 128th Ave NE, Blaine; 20404 Everton Tr., Forest Lake; 6418 83rd Ct. N., Brooklyn Park; 5671 370th St., North Branch; 23661 Japura St,. Linwood; 8655A Quarry Ridge Ln., Woodbury; 5683 409th Ct., North Branch; 39064 4th Ave., North Branch; 116XX 20th St., St. Michael; 2706 Galtier St., Roseville; 669 Arlington Ave., St. Paul; 608 Wells St., St. Paul; 1834 9th St., White Bear Lake; 25797 Freeport Ave., Wyoming; 40560 Finley Rd., North Branch; 9145 Yancy St., Blaine; 1482 Albemarle St., St. Paul; 25797 Freeport Ave., Wyoming; 5499 264th St., Wyoming; 5900 Oxford St., Shoreview; 694 Mariner Way, Woodbury; 12800 Johnson St., Blaine; 24375 Moody Lane, Chisago City; 2501 Long Lake Rd., New Brighton; 1123 Pecks Woods, New Brighton; 13155 St. Croix Ave., Lindstrom; 38474 Coventry Dr., North Branch; 40113 Greenlawn Ave., North Branch; 9472 Flanders St., Blaine; 2119 Highland Pl., Columbia Heights; 23840 Lofton Ave., Chisago City; 2335 Cedar Ave., White Bear Lake; 6876 262nd St., Wyoming; 11224 Magnolia St., Coon Rapids; 2512 16th Ave E., North St. Paul; 26411 Freeport Ave., Wyoming; 2715 184th Ln., East Bethel; 3401 Croft Dr., St. Anthony; 4586 245th St., Forest Lake; 5950 264th St., Wyoming; 26405 Glen Oak Dr., Wyoming; 2830 Hillvale Tr. N., Oakdale; 874 Main St., Lino Lakes; 6723 Foley Rd., Finlayson; 10400 Holly St., Coon Rapids; 32865 Redwing Ave., Shafer
Teri made buying our 1st town home a breeze! When we moved out of state 6 months later, Teri handled all of the details of the sale to assist us in a smooth transaction. We truly appreciated her assistance!
- Carl and Maria W.
We just wanted to say again, Thanks! You worked so hard to sell our home and did a great job- despite the market. You were always very patient with us and our constant questions and "eagerness" to sell. It was such a relief to have the house SOLD! Thank you, thank you, thank you!!! We will absolutely (and already have been) recommending you to all our friends and family!
- Joe and Theresa B.
We were told by a discount broker the only way to sell our lake home was to lower the price below the appraised value. Teri's marketing plan and advertising brought in several potential buyers. We were able to sell our home at our price and couldn't have done it without her!
- Joe and Jamie C.
Teri, We love our new house! You did a great job! Thank you for all your hard work.
- The Hansons
Thank you so much for all your hard work and the effort you put into selling my house. The brochures you put out were excellent! I enjoyed working with you and hope to again in the future. Again, thanks for going the extra mile.
- Terri/White Pine Homes
Teri, After I decided to sell, selecting the right person to represent ALL MY interests was imperative. Your experience, knowledge and consistent communication helped guide me through this whole 1st time process. The expedient sale can only be attributed to your efforts and hard work. Thank you so much!
- Suzanne A.
Disclaimer This is a personal web site, reflecting the opinions of its author. It is not a production of my broker. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not recommendations for real estate purchases. Nothing in this website shall be construed as an offer to purchase a home, sell a home or take any action whatsoever. Due to the nature of this blog/website, typographical errors and unintentional misstatements of fact may occur. In no event shall the publisher of this website and any affiliates be liable for any direct, indirect, punitive, incidental, special or consequential damages arising out of or in any way connected with the use of this blog/website, whether based on contract, tort, strict liability or otherwise.
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