Nightmare on Blaine Street

The tidy house on a quiet, suburban street immediately caught Abdelhafid Fajri’s eye.

It had everything he and his wife, Kathryn, had been looking for — a big yard, a great kitchen. And the new carpet and freshly painted walls were more than they’d hoped to find in a foreclosed house.

But the Blaine house also had a grisly past, one they discovered just days after they moved in, when a neighbor told them that the previous owner was murdered there by her husband.

The Fajris have since filed a lawsuit in Anoka County District Court against Edina Realty Inc., arguing that the real estate company knew about the murder and should have told them about it.

In the suit, the Fajris contend that murder is a material fact relating to the sale of the house.

“They think they bought a lemon. They feel they were duped,” said Martin Melang, the couple’s attorney.

Maria Verven, a spokeswoman for Edina Realty, said Friday that the company had no comment on the pending litigation.

TCF National Bank, which owned the foreclosed home, was originally named as a co-defendant in the lawsuit but has since been dismissed.

The case raises questions about what real estate agents and sellers have to reveal about a home’s past.

In general, real estate agents and sellers should disclose to prospective buyers if a murder has taken place on the property, experts say.

“There are some exemptions, but murder isn’t one of them,” said Chris Galler, chief operating officer for Minnesota Association of Realtors. “If a licensee is aware of a murder and the seller is aware, they both have an obligation.”

Minnesota law requires licensed agents to disclose anything that they know of that could affect an ordinary person’s use or enjoyment of the property.

Among the exemptions listed are if the place was the site of: a suicide, a natural death, an accidental death or perceived paranormal activity.

At a time when home sales are down nationwide, it’s hard to measure what effect a past crime may have on a home’s marketability. But Galler says there is no proof that a house’s history — even one that contains a murder — has a lingering effect on the home’s value.

A 2001 study published in the Journal of Real Estate Practice and Education surveyed 102 real estate agents in Ohio and found that homes with grisly histories, such as murders, sold for 3 percent less on average, but sat on the market 45 percent longer.

The murder of Helen Tomassoni, 45, stunned the neighborhood when it happened on July 21, 2007.

Her husband, Gary Tomassoni, had amassed a crippling gambling debt and also owed large amounts to family and friends. His wife had a $500,000 life insurance policy, naming him as the beneficiary.

He shot his wife twice in the head with a pistol in the couple’s bedroom, according to court records. The couple’s then-14-year-old son was in the house at the time and called 911.

Gary Tomassoni told police that an intruder had shot Helen, who was found face-down in her bed.

Police blocked off the neighborhood, using dogs and helicopters to search the area for the supposed intruder.

Blood was found in numerous spots around the house, including on clothes that had been put in the washing machine.

Last August, a jury convicted Gary Tomassoni of first-degree murder. He was sentenced to life in prison without parole one month before the Fajris closed on their first house, the one where the Tomassonis had lived for 10 years.

The Fajris paid about $200,000 for it, a price they say they don’t expect to recoup if they sell, now that they know about the murder.

Before the couple filed the suit, they asked Edina Realty to take the house back, but they were turned down, they say.

Although they’ve been living there, they say they can’t enjoy it because they’re constantly reminded of the house’s recent ghastly past.

Sometimes they say they hear noises in the home and they feel like they have to keep the lights on all the time.

“I think about it every day,” Abdelhafid Fajri said in court records. “Every time I lay in bed, I think about it. Every time I hear something, I think about it.”

According to the lawsuit, they’re seeking damages in excess of $100,000 for the difference in market value plus “severe emotional distress” caused, they say, by discovery of the murder. They’re also asking the court to rescind the contract they made to purchase the house.

“They just want something that will make them whole again and put them in the place they would have been before,” Melang said.

Allie Shah • 612-673-4488

January pending home sales fall unexpectedly, sinking 7.6 percent in sign of dropping demand

WASHINGTON – The number of buyers who agreed to purchase a home fell sharply in January, a sign that demand for housing is sinking this winter as stormy weather slammed Eastern states.

Record snowstorms in January and February had many Americans shoveling sidewalks and driveways instead of combing through listings for open houses. Partly as a result, an index that tracks sales agreements fell 7.6 percent from December to a seasonally adjusted January reading of 90.4, the National Association of Realtors said Thursday.

It was the lowest reading since last April and a disappointment to economists, who had expected it would rise to 97.6.

The weakness, however, was not confined to the wintry Northeast. The biggest month-to-month drop was in the West, where sales fell 13 percent. Sales fell almost 9 percent in the Northeast and Midwest and 2 percent in the South.

The weather isn’t the only culprit, wrote Jennifer Lee, an economist with BMO Capital Markets. “The impact of government incentives … appears to be running out of steam, which is, frankly, a scary thought,” she wrote.

The index is considered a barometer for future sales because typically there is a one- to two-month lag between a signed sales contract and a completed deal. A reading of 100 is equal to the average level of sales activity in 2001, when the index started.

The index has declined for two out of the past three months because home shoppers feel less rushed after a deadline for a homebuyer tax credit was extended from Nov. 30 to April 30.

In addition, the Federal Reserve is on track to complete $1.25 trillion in purchases of mortgage-backed securities this month. That has kept interest rates low. The average rate on a 30-year fixed rate loan fell this week to 4.97 percent from 5.05 percent a week earlier, Freddie Mac said Thursday.

Despite lower rates, millions of homeowners are still facing foreclosure and government efforts to help them have largely failed. Droves of people who want to sell or refinance are stuck because their homes are worth less than they paid. Job losses also have led many homeowners to fall behind on their mortgages.

On Thursday, the government said new claims for jobless benefits fell last week in a sign that layoffs may be easing as the economy slowly recovers. The Labor Department said that initial claims for unemployment insurance fell by 29,000 to a seasonally adjusted 469,000.

Still, any improvement in the job market is likely to be slow, as companies are reluctant to add workers. Last week’s drop only partly reverses a sharp rise in claims in the previous two weeks.

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AP Economics Writer Christopher S. Rugaber contributed to this report.

Eden Prairie MN Market Conditions

The median sales price for homes in Eden Prairie MN for Nov 09 to Jan 10 was $252,250. This represents a decline of 6.2%, or $16,750, compared to the prior quarter and a decrease of 12.7% compared to the prior year. Sales prices have depreciated 11.1% over the last 5 years in Eden Prairie.

The average listing price for Eden Prairie homes for sale on Trulia was $438,846 for the week ending Feb 24, which represents a decline of 0.2%, or $1,045, compared to the prior week and a decline of 5.2%, or $24,190, compared to the week ending Feb 03. Average price per square foot for Eden Prairie MN was $176, a decrease of 2.8% compared to the same period last year.

Minneapolis MN Market Trends

The median sales price for homes in Minneapolis MN for Nov 09 to Jan 10 was $147,750. This represents a decline of 5.3%, or $8,250, compared to the prior quarter and an increase of 20% compared to the prior year. Sales prices have depreciated 27.9% over the last 5 years in Minneapolis.

The average listing price for Minneapolis homes for sale on Trulia was $316,398 for the week ending Feb 24, which represents a decline of 3.4%, or $11,136, compared to the prior week and a decline of 1.9%, or $6,215, compared to the week ending Feb 03. Popular neighborhoods in Minneapolis include Linden Hills, Whittier, Fulton, Kingfield, Bryn Mawr, and Diamond Lake.

Lakeville MN Market trends

The median sales price for homes in Lakeville MN for Nov 09 to Jan 10 was $240,900. This represents a decline of 5.5%, or $14,000, compared to the prior quarter and a decrease of 32.8% compared to the prior year. Sales prices have depreciated 8.8% over the last 5 years in Lakeville.

The average listing price for Lakeville homes for sale on Trulia was $351,214 for the week ending Feb 24, which represents a decline of 0.8%, or $2,917, compared to the prior week and a decline of 1.5%, or $5,390, compared to the week ending Feb 03. Average price per square foot for Lakeville MN was $113, a decrease of 6.6% compared to the same period last year.

Different Types of Mortgages

Mortgage rates are one of the most important factors to consider in looking for a new home. Finding the best deal in the market does not only mean looking for a home which falls under our budget. Locking in a type of mortgage which gives you the best deal in terms of mode of payment and maximum flexibility could mean the difference in making your next monthly mortgage payment.

Fixed Rate Mortgages (FRM)

15 Yr and 30 Yr FRMs are the most popular type of mortgages available. This is because they are easy to understand and straightforward. Mortgage payments are broken down into monthly payments over a predetermined number of years. They are computed over fixed interest rates that are not affected by market fluctuations.

Adjustable Rate Mortgages

ARM offer lower interest rates compared to fixed rate mortgages. These are great for homeowners planning to get short term loans. Adjustable Rate Mortgages also allow larger loans to be made. ARMs offer comparatively lower interest rates at the onset but fluctuate with market forces once the predetermined period expires. For homeowners wishing to maintain a budget, ARMs could be tricky as future payments may depend on prevailing interest rates in the market.

Adjustable Fixed Mortgages

Adjustable fixed mortgages are a mix between FRMs and ARMs. Mortgage rates start out with a fixed rate and after a predetermined period of time changes to an ARM type of mortgage. One advantage of having an Adjustable fixed mortgage is that interest rates during the first period are lower. This enables a new homeowner time to plan for future payments.

Minimum Payment Loans

Making a 20 percent downpayment on a new home is the most ideal step to make in taking out a loan. Homeowners who are able to make a 20 percent downpayment are able to lock in the lowest interest rates and avoid expensive insurance payments. Minimum payment loans allow homeowners to lock in a home with little downpayment and start with smaller interest rates. One problem however is that interest rates may pick up by as much as a three folds once the initial period expires.

New Homes Buyer Tax Credit

New Home Buyer’s Tax Credit Ensures Winter Home Sales By Lauren Spencer XML
Home sales over the past year or so have caused a mixed bag of emotions for many people. Many people have suffered a great deal of stress and anxiety over losing their homes and falling into foreclosure while many others are delighted with having the ability to buy into a market full of discounted homes, foreclosures, and short sales. While it is true that the real estate market is the cause of a lot of heartache for many Americans, it is also the case that the home sales are also helping to prop up a flailing economy this quarter.

The number of home sales has substantially picked up this fall and in fact, October home sales have finished higher than they’ve been in over two years. This is, in a large part, due to the fact that home buyers were racing to beat the expiration of the first time home buyer’s tax credit. Now that this credit has been extended until the end of April, however, we are sure to see another rush to buy when this deadline approaches.

The low mortgage rates have really helped the current trends in home buying. Even with fewer funds to go around, the reduced prices of homes in combination with these lower lender’s rates have created some ideal opportunities for home buyers, particularly those who’re looking to purchase their first home.

If home prices continue to fall, particularly with the home buyer’s tax credit still in place, then the home sales over the fall may just continue to exceed expectations. However, the sales that occur in late in the year tend to drop off in frequency as the weather worsens.

The increase in home sales has certainly helped the economy somewhat, though experts say that it needs support from a wider range of industries before it really starts to recover. With fewer and fewer homes on the market hopefully this will impact the home building industry soon as it is still struggling with a lack of business due to the glut of homes on the market due to foreclosures and short sales.

Hopefully we will see a slow but steady increase in not only home sales, but also a variety of other industries over this winter. The more confidence that we can put in the economy, the more we will benefit from the increased productivity that our dollars stimulate in it. Only time will tell how the economy will withstand the eventual withdrawal of government stimulus though.

Market Condition at Lakeville

Lakeville’s market trend is like most Twin City suburban communities which it is currently is in a buyers market. Interest rates are currently experiencing slight downward pressure.

Location Characteristics: Lakeville is located in the southeast corner of the Twin Cities metropolitan area, within Dakota County. The community offers a well-balanced atmosphere of planned development and managed growth, coupled with a respect for rural history and an appreciation of the city’s beautiful environment. At one time Lakeville was a rural community that serviced surrounding agricultural activities. In recent years, it’sconvenient access to the metropolitan area has stimulated both residential and commercial growth. Located at the edge between urban and rural service areas, Lakeville proudly maintains a historic downtown neighborhood and other mature residential areas. The community realizes that growth is inevitable and has focused on planning for development that retains the community’s unique atmosphere.

Everything’s in Lakeville

A friend of mine lives at Lakeville Minnesota while I am from California. We grew up together at San Diego however they have to transfer due to her dad’s work. It was 5 years ago since I last saw her and even though we chat regularly, we still miss the old times of being together.

Last summer we were able to both have our free time and we immediately planned for a vacation for the two of us. We have decided that I would be the one to come to her place since I haven’t been there before, my dad was very strict that we are not suppose to go anywhere that he thinks might be too far.

We agreed to spend the whole 5 days by going to some beautiful places at Lakeville and aside from the fact that I was so excited to meet her after such a long time, I was so excited to go places too.

Some of the places we went to are Mall of America which was really full of fun especially the Underwater Adventure Aquarium as well as the Nickelodeon Universe. We also went to the zoo which made us feel like we were before when we were younger and to make us feel more like of teenagers, we also went to the amusement park and took a lot of pictures to document our trips.

I sometimes wish I live closer to her; I don’t have any siblings so the time that she left California was really sad. I even thought of getting a house nearby when I came across a house near their street that’s for sale, I even got a flyer that says Lakeville home for sale, and included on the paper were some great attractions at Lakeville.

Lakeville Minnesota

I know how important it is to have a peaceful surrounding especially if you have a family and your kids are still young. I have been working in a company for more than 10 years already and just recently had our second baby.

Let me describe what kind of place I mean when I say a peaceful one. The first thing that I consider when I finally decided to transfer my growing family was security. I look into a place where in police stations are almost everywhere to ensure that I could easily get there in case of emergencies. Also, fire departments should be somewhere near my place as well, not that I am expecting a fire to happen to us but you could never tell that it might occur in the neighborhood so at least they are within the location.

When your kids started to grow, they usually look for place where in they can mingle with other kids as well and a place where in there is space for their activities, this is why I make sure a good school and clean nice parks are present.

For quite sometime, I have been looking for a place that could satisfy me, and I was lucky to meet an old friend who lives at Minnesota and offered me for a visit and check on the properties that are for sale. It was a good trip but I wasn’t sure that I would like to decide on my own, so I went back a few days after and brought my wife with my and she liked the place.
It’s been almost a year now since we have moved here at Lakeville MN and I can say that it was really a good decision we made. The kids are enjoying it too and my new job was great too. So if there are some people out there looking for a great place to live at, try to visit Lakeville, it’s really nice to live here.