The Saint Paul Condo Blog

And why do I need one?

Two more questions I get asked by both buyers and sellers.  The Resale Disclosure Certificate (RDC) is required for the "resale" of any condominium.  Developers selling their original, never-been-sold, condos are not required to produce this document.

The RDC is a state requirement designed to protect buyers who are purchasing a condominium (Lofts and Townhomes are also considered condominiums, its a type of ownership).

The RDC goes over the keys facts of the health of the association.  How much money is in the bank?  Are there any future assessments that are on the books?  Does the unit I am purchasing owe back dues?  Is the association being sued by anyone? 

It should also have a Profit and Loss statement or a balance sheet of some sort to show you what money is coming in and what is going out.  If a building had lots in reserves, but was taking less in than they are collecting, it's a good bet the association will have to take money out of reserves or raise due, sometimes both.

Depending on what management company the association has hired (if any) there will likely be a charge for this document.  The prices range from $50-$150.  This is at the expense of the seller and is part of the complete condominium documents that the buyer receives at time of an executed purchase agreement.

Should a buyer write an offer on a condo, have it accepted, then find out there was no money in the association reserves, the buyer can cancel the contract without forfeiting their earnest money. Release of earnest money requires both seller and buyer signatures, so if the seller is stubborn sometimes they wont sign it, even though they are legally required to sign it.  If they accept another offer, they have to release your funds first.

How much money is needed in reserves?

This is a difficult question to answer, because there is no blanket amount that would work.  Newly constructed buildings, will likely not have much in reserves, which is generally OK because much of the building is under warranty and will not need replacement for many years.

The size of the building will also make a difference as well.   With 20 units, you would not need as much money as you would with 200 units.

As an association president, I have a pretty good grip what buildings should have in reserves.  Also, years of selling condos help too ;)

What happened to the Ground Breaking?

Construction projects always have holdups, and Farmers Market Flats was no different. With the road bumps in the past, the project is on full tilt to get it built before the 2008 RNC.

As we were discussing the date of the ground breaking, it dawned on us that the construction crew would be on site September 4th to put up the fence, and prepare the site for digging.  We decided on a site dedication.  There was no way we were going to hold up construction any longer for a ground breaking party, so we will celebrate the big hole in the ground on September 15th at 10:00am at the corner of 5th & Wall.

The mayor of Saint Paul (Chris Coleman) will be there to help celebrate the occasion, as will many other hard working people that helped make Farmers Market Flats a reality.

Come one, come all!  See why this is going to change Lowertown forever!

You've asked for it, so here it is.  More Downtown news!

Equipt Fitness has opening a personal training facility in the Rossmor building along 10th street.  Check out www.equiptfitness.com for more information.

Camp Bar has also recently opened in the Rossmor building in the old Trixx space along Robert Street.  I have heard estimates that they have spent nearly $250,000 in additional sound proofing as part of their build out.  It should help with sound mitigation issues within the building.  Check out www.Camp-Bar.com for more information.

The newest of them all is called HeadQuarters Salon located in the Produce Exchange building along Jackson Street.  I talked to the Salon owner who sounded excited about his space in Downtown.  They have scheduled a photo shoot in the coming weeks, and once that's complete they will have a website up and running.  For more information, you can call HeadQuarters at 651-967-0299

This is another question I get asked a lot.  When you find the condo or loft you want to buy, what do you do?  Can you just ask the seller if they will sell it at your price?

Most (if not all) sellers want to see an offer in writing. That is one way knowing if you are serious about buying.  They will also factor in your earnest money deposit and if you are approved by a reputable mortgage broker.

How do you make a strong offer?

Even in a buyers market, you want to write an offer that enables you to get the lowest price, while not offending the seller.  It can be a difficult task at times.  If you come in too low, you run the risk of offending the seller and possibly not negotiating to their lowest price out of spite.  As much as realtors coach buyers and sellers to leave their emotions out of the negotiating process, we are all still human.

When writing an offer, I have found it advantageous to try and negotiate your lowest possible price with out asking for any seller contributions (closing costs or discount points).  Most sellers when receiving a low offer will automatically kick that out of the process, or not go any lower because they feel they have to sell for below their listed price PLUS give the buyer money for closing costs.

How does the closing date affect the offer?

Typical offers have closing dates within 30-45 days of the time of the initial offer.  Being flexible with the closing date can sometimes be beneficial if the seller has yet to purchase a home.  The purchase agreement must state an actual date but that doesn’t stop you from adding an addendum saying you are OK to close in a 10 window, with two weeks notice.  Sometimes too quick of a closing can be detrimental to your offer, as can too long of a time.

What if the seller is a bank?

That does change things quite dramatically.  Banks have their own set of rules on the negotiating process and it usually takes weeks to come to a conclusion as to what the selling price will be.  Also, there are normally penalties if you can’t close when you say you are.  The penalty is generally between $50 to $100 a day.  What’s kind of funny about that, is the BANK is usually the one who can’t close on time, yet there is no penalty for them.

What do I do next?

For starters, call me.  I deal with many buyers in Downtown.  I’d be happy to sit down with you to talk about what you need to do to put a good offer together.

Here is the market update for June of 2007.  The reason I am posting statistics a month behind is sometimes houses don't post for weeks after the change is status took place.

After looking at the data, the closed sales show a pretty strong trend for less expensive condos.  Only one sold and closed about $200k.  Looking at what went pending in the month of June, it looks like about half of the sales are under the $200k price point.  I can tell from what I have been showing, that this is about right.  Most of my showings have been for condos and lofts under that price point.  I think that in July, the numbers will be about the same.

I have noticed an increase in inquires for properties above the $250k, so my guess is that in October-November will have more sales in the higher price point.  We will have to wait and see if my prediction is true!

June of 2007...

These are the condos that actually closed in the month.

The Pointe of Saint Paul had four close for $112,500 - $120,000, $138,000 - $184,000.
Gallery Tower had two close for $92,500 & 115,500.
City Walk had one close for $100,800
The Rossmor had one close for $132,000
LOT270 had one close for $199,900
The Essex had one close for $217,330

Condos that went Pending.  Prices indicate list price, not sold price.

The Pointe of Saint Paul had four for $124,000 - $128,000 - $198,900 - $200,000.
Gallery Tower had one for $131,100
City Walk had one for $133,599
Farmers Market Flats had two for $179,900 & $244,900
LOT270 had two for $209,900 & $299,900
The Essex had one for $289,900
The Lowry had one for $369,900

Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC for the period (6/1/2007) through (6/30/2007). 

It's all over the news today, about the 35W bridge collapse in Downtown Minneapolis.  I am very thankful that none of my family or friends were involved, but my heart goes out to those effected.

I am encouraging everyone I know to donate to the Red Cross of the Twin Cities.  If you live here in the metro, please consider donating blood.  If you live outside of the metro, a monetary donation will go to good use.

I have included a link to the Red Cross's local site.  Be patient with it, when I was on last night, it kept timing out because of all the people on it.  Any amount will do, just think if everyone even donated $5.

www.RedCrossTC.org