Mpls. Ross Kaplan or NY Ross Kaplan

"Will the Real Ross Kaplan Please Stand Up?"

Yes, I work in real estate.

And yes, I used to live on the Upper West side in Manhattan, where this "For Rent" sign appears.

But that's not me co-listing the office space pictured at left (snapped and forwarded to me by my sister).

At least, it's not the Ross Kaplan who lives in Minneapolis and sells real estate for Edina Realty (and writes this blog).

Do a Google search (I have), and it turns out that there are actually 8(!) of us in the U.S. and Canada.

Investing $1,000 in Lehman Bros, AIG -- and Beer

Realtor "Water Cooler" Talk

The water cooler is long gone, of course.

Instead, we Realtors have meetings.

Lots and lots of meetings.

I picked up this nugget -- plus some good market info -- at Edina Realty's Exceptional Properties meeting this morning (anecdote courtesy of downtown Manager Matt Loskota):

"If you invested $1,000 three years ago in AIG, what would you have today?"

"$30."

"If you put that same $1,000 into Lehman Bros. stock, what would it be?"

"$0."

"Now, how much would you have if spent the $1,000 on beer?"

"$235 . . . If you'd kept the aluminum cans."

Disproves (sort of) that line about "you don't buy beer, you rent it."

What's Selling: Hopkins

Days on Market: 12

Where: 301 13th Ave. North, near downtown Hopkins

What: 3 BR/2 Bath stucco bungalow with over 1,800 finished square feet; nicely updated.

When: listed 10/29; off market yesterday (11/10)

How much: asking $250k

Who: listing agents -- Stacy and Christina Cranbrook (Edina Realty); selling agent -- Nancy Bourland (Edina Realty)

"We must all hang together, or assuredly we shall all hang separately."

--Benjamin Franklin

The secret to this sale?

The price, location, condition, and curb appeal all helped.

But my educated guess is that the key was the "mini-Broker tour" on Nov. 2 (a week ago Tuesday).

That's when 20 agents with "Active" Hopkins listings -- myself included -- collaborated to all hold our listings open between 11 a.m. and 1 p.m., complete with drawings and catered lunches at many locations.

All that publicity generated lots of traffic, which raised everyone's exposure and resulted in at least two other deals that I'm aware of.

The home is officially "Pending" until it is scheduled to close Dec. 10.

Negotiating Tips

The Book on First Buyers

The first buyer is the best Buyer.

--Real estate lore

The first offer from the first Buyer is seldom their best offer.

--Corollary; Graham Smith, Edina Realty

I heard the second observation at a seminar led by Edina Realty's Graham Smith yesterday.

From experience, I can endorse both sentiments, with two caveats: 1) first Buyers who overreach or (otherwise) dawdle can actually grease the skids for Buyer #2; and 2) knowing how much a Buyer is likely to sweeten their offer depends on a number of variables, starting with market conditions.

Rising -- and Falling -- Real Estate Bar

Want to Stand Out? Drop > 10%

Want some anecdotal evidence about housing market conditions these days in the Twin Cities?

Higher Bar. Edina Realty, the Twin Cities' largest broker, requires price reductions of 10% or more to qualify for intra-company email distribution (I believe the policy actually dates back to this Summer).

Previously, the requirement was 5%.

The logic?

Five percent drops are now run of the mill; to get Buyers' attention (and qualify for email distribution), the number's got to really be eye-catching (no such threshold exists for circulating price drops within a branch office).

Lower Bar. Meanwhile, the bar for hosting Exceptional Properties meetings in the Southwest Region (the geographic area including my office, City Lakes) continues to drop.

Three years ago, the floor was at least $1 million -- and most homes hosting the meeting were well above that.

Tomorrow's meeting is at a home listed for $589k.

P.S.: many Realtors, including yours truly, have custom email distribution lists to market their listings. The trick is knowing the difference between judicious use of such lists -- and spam.

A "Team" of One

"What You See is What You Get"

I've written previously about real estate teams ("Teaming Up"), and the pro's and con's.

So it was interesting to me, during my most recent listing presentation (they hired me), to hear my now-client express a strong preference not to work with a(nother) real estate team.

Their reason(s)?

On their previous deal, they never seemed to talk to the same person twice, and nobody seemed to know what was going on with their transaction.

One vs. Many

Of course, not all real estate teams are chaotic or unwieldy.

But as someone who operates "solo" (kind of -- see next), I can assure my clients, honestly, that if they hire me . . . they get me.

That means I'm the one who walks them through the Seller disclosures; analyzes the Comp's and helps fine-tune the list price; prepares the marketing materials; instructs the photographer; debriefs other Realtors after showings; hosts the Broker Open and most (if not all) of the Sunday open houses, etc., etc.

In brief, I always know what's going on, and my client(s) will have exactly one point of contact.

Not Really Solo

Of course, it's also the case that, through my association with Edina Realty, I actually have a huge organization of professionals supporting me (sort of like the Sprint network, pictured above).

That includes a superb office manager, Josh Kaplan; an outstanding front desk and OA (Office Administrator); Edina's knowledgeable legal department; great tech support, etc.

And although I don't refer to them as "team members," I have also developed a circle of expert stagers, photographers, and desktop publishers that I regularly work with.

Down Time

So don't I ever take a vacation?

Not often enough, but yes, I do take off an average of 2-3 weeks a year, usually a long weekend at a time.

Who covers for me then?

Like other veteran Realtors, I'll typically "trade" coverage with another colleague for those things -- like doing a showing -- that can't be done remotely.

In return for their backstopping me when I'm out of town, I'll do the same for them.

Virtual Real Estate

But the surprise the last several years is, thanks to technology ("Look Ma! No Hands!"), how many modern real estate tasks can be done remotely ("virtually").

Even when I'm out of town, I'll regularly scan MLS for new listings that meet my (Buyer) clients' criteria, and won't hesitate to email them if something promising pops up (I'm actually not such a fan of searches that automatically email clients directly -- I like to weed out the "chaff" first).

It's also the case that, for something critical like fielding or negotiating an offer, my clients know that I'm never more than a phone call away.

P.S.: it's accepted real estate wisdom that the best way to sell a property is to head for the airport on vacation.

What's Selling . . . East Edina

Where: 4617 Tower St.
What: 5 BR/5 Bath new construction by Elevation (division of Streeter)
How much: $1.2 million asking price
When: sold in one day earlier this month (with more buyers reportedly waiting in the wings).
Who: listed by Marian Peterson and Noelle Varecka of Edina Realty

It's not hard to tell what the Buyer liked about this home: an exceptionally open, flowing floor plan; a state-of-the-art Kitchen; and wide halls, tall ceilings and oversize windows that make the actual square footage (just under 4,400 FSF) feel even bigger -- all on a big (.25 acre) lot.

The East Edina location, east of Highway 100 and south of Country Club, is attracting lots of attention from builders and remodelers because of the combination of large lots and older, modestly-sized (and priced) existing housing stock.

Crash!!!*

Make That a 4 Day Weekend

There was a major crash yesterday (Tuesday) morning.

The stock market?

Nope, at Edina Realty.

"ProKit," the proprietary software platform that all 1,800 Edina agents log onto and use day-in, day-out, was out of commission from at least 8 a.m. yesterday, when I first tried to log on, till about 7 p.m. last night (when the predictable avalanche of emails began arriving).

(Note: if you were trying to call my desk line (vs. my cell) or sent me an email yesterday and I didn't respond . . . now you know why.)

Other side effects: counter-offers that will now get delivered this morning instead of yesterday; a listing that will "go live" on MLS this afternoon instead of morning; and for one very understanding client of mine, a showing that she found out about . . . when the agent opened her front door (her contact information was online -- and inaccessible).

All in all, annoying but survivable.

Edina Realty . . . vs. Wall Street

Which underscores the bigger point -- namely, an Edina Realty system crash is: a) extremely rare; and b) promptly fixed.

Try saying either of those things about Wall Street.

In fact, in my almost 9 years with Edina Realty, I can't recall another business day -- scheduled maintenance aside -- when the system was off-line for more than even an hour.

That's against the backdrop of an excellent tech support department that's both accessible and user-friendly.

And that's coming from someone who knows their number by heart.

Now, if only City Lakes' HVAC was as stable as Edina Realty's computer platform.

*My alternative title for this post: 'Who Knew Edina Realty Celebrated Rosh Hashanah??'

(If you weren't aware, Rosh Hashanah, the beginning of the Jewish New Year, begins tomorrow night. More observant Jews spend the day at synagogue instead of working.)

One Sale . . every 5 hours?!?

WSJ/Real Trends
Top 100 Agents

Today's Wall Street Journal is running a list that purports to rank the nation's top 100 Realtors.

Actually, it has four lists -- hence the (slightly confusing) title, "Top 400 Sales Professionals."

The four categories are:

1. Top 100 Agents by transaction sides (representing either a Buyer or Seller)
2. Top 100 Agents by volume
3. Top 100 Teams by transaction sides
4. Top 100 Teams by volume

Background

The distinction between volume and transaction sides is important, because otherwise the top 100 Realtors would all hail from the most expensive markets.

Likewise, it's important to distinguish between individual Realtors and teams.

Also known as "groups," they can encompass as many as a dozen Realtors, and therefore warrant their own category.

So it's especially astounding to see that the top individual agent nationwide by number of deals was someone named Joe Kadaff, who works for RE/MAX in Dearborn, MI.

According to the WSJ, Kadaff closed an astounding 1,743 transaction sides.

That works out to one sale every 5(!) hours, 24 hours a day, 365 days a year.

Phew! (or as the locals would say, "uff-dah!")

(And no, I don't know how it's humanly possible for one Realtor to close that many deals.)

Minnesota Angle

So how did Minnesota Realtors do?

And do the numbers check out?

Minnesota placed three Realtors in the Top 100 agents list: Barry Tanner (#72); Kurt Christensen (#96); and James Onomiya (#98). (Note: Tanner and Onomiya are with Edina Realty.)

They're credited with 135, 109, and 107 transaction sides, respectively.

To double-check those numbers, I searched MLS under each agent's ID, as both listing agent and selling agent, for all deals closed during 2009.

I came up with 126 transaction sides for Tanner (vs. the reported 135), and 114 for Christensen (vs. 109).

Close enough.

However, I could only find 67 transaction sides for Onomiya (vs. the reported 107).

Since the WSJ doesn't report its methodology or even the time span measured, it's hard to know what accounts for the difference.

Other Observations

Virtually all of the transaction sides for Tanner and Christensen -- and the majority for Onomiya -- were as listing agents.

That's because they represented banks selling foreclosed properties.

But what really caught my eye, in small type in the upper right corner of each list, was the disclosure "Special Advertising Section."

Bingo.

Sure enough, a handful of agents on each list had links from their names to their Web sites.

Which would explain why the list was compiled, and who it's being marketed to.

(No doubt the brokers are being solicited to promote their standings on the list, as well.)

My New Favorite Neighborhood

Real Estate Guessing Game

OK, which Twin Cities neighborhood am I describing?

--It's in Edina, east of Highway 100;
--With its blend of rolling hills, wetlands, and manor-like homes on big lots (rules out Country Club), it feels like Minnetonka;
--It's an easy, five minute walk to both the Convention Grill and 50th & France.

Give up?

Edina's White Oaks neighborhood.

With all of 60 homes and its tucked-away location and numerous cul-de-sac's, it can be easy to miss.

However, once you've found it -- it's a revelation.

P.S.: the home pictured above, 4703 Townes Road, is one of the most impressive homes I've seen in White Oaks -- or anywhere else in the Twin Cities.

The listing agent is Edina Realty's Sue Wahman; it will be on the market after Labor Day. Asking price is $2.849 million.

Open Today 12 p.m. - 1:30 p.m.

Dramatic Contemporary Near Cedar Lake

Where: 2812 Sunset Blvd.
What: 4 BR/4Bath Contemporary (built 1981) with almost 4,200 (!) finished square feet just down the street from Cedar Lake; minutes to downtown and uptown
How much: $525k
When: noon to 1:30 p.m.
Who: listed by Ross Kaplan, Edina Realty City Lakes

Please stop by my open house later today at 2812 Sunset Boulevard.

The soaring vaulted ceilings and custom, over-sized windows (pictured above) are just a few of this home's many nice features.

Other highlights includes the home office with built-in's overlooking the Living Room (in foreground in the photo above); the private Owner's Suite with a vaulted ceiling, fireplace, balcony, and walk-in closet; the huge lower level -- perfect for teenage kids or guests; and the terrific location, close to everything.

You won't find a better value near the lakes than this!

Edina Country Club Trivia

Where Are All the Garages??

Guess which of the following statements about the Country Club district in Edina are true:

A. Fruit trees may not be planted on the boulevards
B. Country Club is known for relatively small lots
C. Front-loading garages were originally prohibited (and are still rare).
D. Homes in Country Club cost more than $1 million.

Answers: all true except D.

While the majority of homes do sell for more than $1 million, there are now a few on the market for less than that.

Bonus question:

What was the putative reason for the small lots? (Developers always have an economic incentive to build more house on less land.)

So that residents would congregate at the country club to socialize, not in their backyards.

Thanks to Edina Realty's Andrew Olive for the above.

P.S.: if you are a non-Minnesotan reading this blog, Country Club is one of the Twin Cities' toniest neighborhoods, known for its gorgeous, immaculately kept Colonials, Tudors, and Federal-style homes (like the one pictured above). The historically designated district has about 540 homes in total.

As you may have already guessed, Edina is the Twin Cities suburb where Edina Realty originated . . . in 1955.

Late June Housing Statistics

Post-April 30 Hangover

Here are some late June housing statistics (analysis costs extra). All info is for Edina Realty.

--Drop in showings since expiration of Buyer tax credits April 30: 40%
--Drop in "Pending" sales since expiration of Buyer tax credits: 40%.
--Percentage of Buyers who are first-time: 48%
--Percentage of homes sales under $250k: 80%

The narrative that accompanies the foregoing? Pretty self-evident.

P.S. Statistical averages are just that. For example, the neighborhoods close to Cedar Lake in Minneapolis (Fern Hill, Lake Forest, Sunset Gables) have been bucking the over all trend, with 8-10 pending sales in just the last two weeks.

Listing Presentation Manuevering

Playing the Card(s) You're Dealt

When you have the facts on your side, argue the facts. When you have the law on your side, argue the law. When you have neither, holler.

--Al Gore

Whenever I compete against another Realtor for a listing (as I did earlier this week), I always like to find out as much as I can about my competition.

Not only does that let me tailor my own presentation, but it gives me a chance to rebut any arguments the other Realtor is making.

So what was my competitor touting in their sales pitch?

The value of a broker with national reach, to attract relocation Buyers.

Great Opening

Why emphasize that?

Because that's what their Broker had to offer.

What they omitted -- and I happily filled in -- was the following:

--Relocation sales, perhaps only 3%-4% of all deals normally, are even less in a soft economy because fewer big companies want to spend the money.

--Of that already small slice, the typical relocation sale is usually a more expensive home (think, big companies and senior executives).

--No one relies on brokers -- relo specialists or not -- to check out housing inventory anymore; they go to Google, Edina Realty, Trulia, Zillow and a hundred other Web sites.

Which was a nice segue into Edina Realty vs. the "national broker": if you want to sell your home quickly, for top dollar, you're much better off going with the company with the highest Twin Cities market share (about 20%) and most local Realtors (about 1,700).

And that would be . . . Edina Realty.

Does Networking Really Work?

Instant Access to 1,600 Realtors

Does Realtor-to-Realtor networking really work?

Well, consider this:

With about 20% of the total listings in the Twin Cities housing market, the percentage of Edina Realty listings sold by other Edina Realty agents is 40%.

That could just be because "we" -- all 1,600-plus local Edina Realty agents -- really like one another.

But the truth is, most of us don't even know each other.

What really explains that 40% statistic is the amount of intra-company networking that constantly takes place -- at weekly office meetings, online, via email, etc.

It's always nice to be able to tell a prospective client during a listing presentation (basically, a job interview for Realtors) that, just by pressing "send" on my PC, I can instantly tell 1,600 other Realtors about my hot new listing.

Dual Agency - Two Kinds

When a Buyer represented by an Edina agent sells a home listed by another Edina agent, the resulting relationship is called "dual agency."

That's because both the Buyer and Seller are represented by the same broker, Edina.

While that creates some legal awkwardness, the benefit to clients -- in my opinion -- more than offsets the drawbacks

By contrast, when the same agent represents both the Buyer and Seller, that's called "single agent dual agency."

As they say, "that's a horse of a different color."

While single agent dual agency is permissible with sufficient disclosure and both parties' assent, I personally think it's not worth the risk.

In my opinion, the only way to be on both sides of a deal is ultimately . . . to be on neither.

BIG Edina Discount

Great Value Overlooking Lake Edina

Where: 4904 Poppy Lane in Edina

What: 4 BR/3BA walkout rambler with 4,200 FSF and pool overlooking Lake Edina

How (much): $699k

Who: listed by Steve Stewart; broker is Edina Realty

Historically, homes in Edina enjoyed some of the best appreciation in the Twin Cities -- and weathered economic downturns much better.

Not this recession -- especially for upper bracket Edina homes (and true of upper bracket homes throughout the area).

Exhibit A would be this sprawling rambler overlooking Lake Edina.

Originally listed at $1.1 million a year ago, the price was just reduced Monday from $825k to $699k -- now a whopping $180k below the tax assessed value ($880k).

I saw the home earlier this Spring, and thought it was a value $100k higher!

What is "Evangelistic Foods"?

. . . and What is it Doing in a Minneapolis "Walk Score?"

If you are looking for a home in the Twin Cities, and use Edina Realty's market-leading Web site, you'll notice a new feature: each home now has a "Walk Score."

Calculated from 1-100, the Walk Score is supposed to show how pedestrian-friendly the immediate neighborhood is, and map nearby landmarks and commercial establishments (groceries, restaurants, various services).

So, does it work as advertised?

Kind of.

However, when I ran a search on my own neighborhood, under "grocery stores" the first name to pop up was something called "Evangelistic Foods," at 2729 France Ave. South.

That is very much a single family residence -- not a grocery store; I drive by it every day! (if I'm wrong about that, Minneapolis zoning would sure like to know).

Mystery #2: how on earth did they end up so prominently displayed on Walk Score? (I've got a guess).

Just a hunch, but as Walk Score works the kinks out, you'd guess "Evangelistic Foods" goes away.

Fern Hill Extreme Makeover

Playing Housing "Leapfrog" on Huntington

Where: 28xx Huntington Ave. South, in St. Louis Park's Fern Hill neighborhood

What: whole house renovation

Who: Mike Sward, agent; Edina Realty, broker

When: due back on market late Summer

How much: projected selling price = low $800's

No, you won't recognize this home driving by -- it won't look like this for a few more months, when the new dormers are added.

For now, it's a hive of dumpsters and contractors, who are busy remaking this 1949 Fern Hill Cape Cod.

When it's complete, the home will go from the runt of the block (1,949 FSF; sold price $390k this March) to the "Charles Atlas," complete with all the bells & whistles.

It's Listed for HOW MUCH??

Now THAT's Curb Appeal

Pop quiz: guess the listing price of this estate-like property (with a setting to go with) in Hopkins' Knollwood neighborhood (just northwest of highways 169 and 7) :

A. $1.29M
B. $2.45M
C. $949k
D. $1.89M

Answer: C

What's the explanation?

A rough market for upper bracket homes in the Twin Cities; and the fact that the home needs some cosmetic updating (some, not a ton).

Bonus question: what's missing in the shot above?

No garage.

It's actually on right side of the home, but what you see from the street is the back of the garage, not the front.

Nice.

Dramatic Price Cut! Open Today

Deceptive Curb Appeal

Where: 1340 Fairlawn Way in Golden Valley's South Tyrol Hills
What: 4 BR/3BA '50's split level with almost 3,600 FSF; rock-solid, nicely updated!
Who: listed (and hosted) by . . . yours truly
When: 12:30 p.m to 2:30 p.m. this Sunday (4/18)
How much: list price -- $411,500 (just reduced from $434,900)

This is a lot of house, in a great neighborhood. And for anyone stuck in the maw of the Crosstown Project's daily gridlock -- a blissfully short commute to downtown Minneapolis (about 7 minutes, tops).

I hate to use the term, "not a drive by," but . . . it isn't. (Realtors use the term when the curb appeal doesn't do the interior justice.)

In particular, the almost-600 square foot Great Room (pictured above) features a Fireplace with granite surround, skylights, and a vaulted ceiling.

Hope to see you!