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  • What will the generations do?

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    The real estate industry is obsessed with the millennial generation. I work with people of all ages including first time home buyers and people in older generations who are also buy and sell homes.  We are also obsessed with older generations because they currently control most of this countries wealth and real estate.

    “The decisions the nation’s baby boomers and other older home owners make will have an enormous impact on the demand for housing and new mortgage credit for the foreseeable future,” says Dave Lowman, executive vice president of Single-Family Business at Freddie Mac. “Whether they buy new homes or decide to refinance and renovate their current ones, the size of this generation and the fact that they hold close to two-thirds, approximately $8 trillion, of the nation’s home equity makes it very important that we watch what they do.

    The baby boom and millennial generations are both huge, partly because they both include a couple of decades of births. Baby boomer births span 18 years and millennial generation births span 20 years. I feel pretty confident pointing out that the needs of someone born in 1964 and the needs of someone born in 1946 who will be turning 70 this year are not the same. It is also very possible that the people who were born in 1946 may follow different trends than those who were born 18 years later.

    With the millennial generation I don’t think we really know what the housing preferences of the youngest millennials who are still in high school will be, where as we are starting to see multiple trends among the oldest millennials. Trends toward living in urban areas and in the suburbs and owning homes or not owning homes or even living in their parents basements.

    Any trend that spans the entire millennial generation or the entire baby boomer generation is going to have a huge impact on our housing market and economy but I seriously doubt there will ever be a time when people who are twenty years apart in age will all be doing the same things. I can’t see my entire generation making a decision that is going to work for 70 year olds and for 52 year olds.

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  • Public home buying

    There are people who like to share everything online and I mean everything. A couple of years ago I watched a drama play out on Facebook as a friend of mine who is a Realtor® worked with a client who posted just about every aspect of the home search on Facebook. The buyers friends and real estate agents from everywhere gave the buyer loads of advice every step of the way as some friends will do.

    While other agents compete to get the business when someone on Facebook announces that they are looking for a real estate agent I tend to back away. Everyone knows a real estate agent and I suspect that just about everyone has a neighbor, friend or relative who is a real estate agent. There are at least three agents that I know of within three blocks of where I live.

    Everyone knows about a home that is going to be for sale or that is for sale that they can recommend. It usually isn’t insider information and can be found on all over the internet but it is nice to have the information come from a friend.

    People who like to crowd source their home purchase or sale through Facebook can be very hard to work with as clients. In fact sometimes they will take bad advice from a well meaning friend over the advice of an experienced real estate agent and everything that happens during the transaction if made public. There have been times when I have found information in Facebook posts that I have shared with my clients. A home buyer shared that she wanted a house so badly that he would pay more for it and so I let the sellers know and because of that she did pay more.

    I’ll generally avoid working with real estate clients who like to share it all on Facebook. I don’t believe that the details of buying or selling a home is something that should be shared with too many people.

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  • Know where the snakes are

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    Some people are terrified of snakes, even the harmless garter snakes that live in St. Paul.

    The garter snake is common in Minnesota in both rural and urban areas.  They don’t have teeth, and don’t attack people, they eat insects and slither away when people come close.

    Garter snakes live in my garden, in the rhubarb.  They like heat and need it to aid the digestion of food.  On a warm fall day it is not unusual to see them sunning them selves along the foundation of my home or on the walk ways.  On occasion I have seen them come out of hibernation during the winter to catch a few rays.

    Every couple of years a snake gets inside the house.  We get them out before the cat figures it out.  They do not live in the house and since they can not climb in they usually get in through an open window in the basement.  They prefer to live in the ground and are fond of compost heaps and wood piles and are plentiful along the river bluff in St. Paul in the residential areas.  The soil on the bluff is warmer because of all the lime stone close to the surface.

    Home shoppers should let their REALTORS know if they are afraid of snakes.  Sellers are not required to disclose the presence of snakes outside the house.  They are not required to disclose the existence of bees, bats or any other kind of wild life found out doors in most urban areas.  For some home buyers their ability to enjoy their property is greatly diminished by the presence of these creatures.  Read about ophidiphobia, fear of snakes.

    Learn more about garter snakes from the University of Minnesota extension service web site.

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  • What is district energy?

    connectionsI thought this would be a good time to write about district energy. It has been awhile and I actually had some trouble this week convincing a lender that there is such a thing.

    Most of downtown Saint Paul receives heat and cooling from District Energy on Kellogg Blvd. That is where the plume of steam that you see coming from downtown originates. Buildings are connected to the plant by pipes that carry water to heat exchangers in the buildings.  In the condo buildings the bills are divided up by square footage and split among the residents.

    The hot water district heating system is twice as efficient as the previous steam heating system in downtown Saint Paul; we now heat twice the square footage of building space with the same amount of fuel. The buildings don’t need boilers.

    Heat is generated by hot water and cooling by cold water that is chilled during the night when electric energy costs are the lowest. The plant uses electricity and generates electricity that is sent back to Excel energy. They burn wood waste (biomass) too and sometimes I can smell it.

    Learn more by looking at the District energy web site and remember boys and girls that just because you have not heard of something doesn’t mean that it doesn’t exist. 🙂