3.7. SR 01-16-2007
Item Description
Consider Request for Proposal's for Real Estate Service
Item Number
3.7.*
Prepared by
Tonya Love, Recreation
Administrative Coordinator
Reviewed by
Bill Maertz, Parks & Recreation
Director
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent January 16, 2007
Introduction
City of Elk River owns 1217 5th Street property, which is located next to the Elk River Library. Originally
the property was purchased with the intention to possibly expand the current library. It was later
concluded to build a larger library at a different site.
Discussion
Five Requests for Proposal's were received from local real estate agents. Summary and individual
proposals are attached.
Financial Impact
Elk River purchased the property for $144,000 in November 2001. Suggested list price from the realtors
proposals ranged from $159,900 to $175,900.
Attachments
· Request for Proposal letter
· Realtor's proposals
· Summary of proposals
Action Requested
Staff recommends awarding Request for Proposal to lowest bidder. Reg Powell, Broker/ Owner of
Powell Realty submitted the lowest commission.
Council Action
Motion by _
Second by _
Vote
Follow Up
C: \Documents and Settings \tallard\Local Settings \ Temporary Internet Files \ OLKF\Request Council Action-5th Ave Property. doc
Parks and
Recreation
1104 Lions Park Drive
Elk River. MN 55330
November 29, 2006
Powell Realty
Reg Powell
510 Freeport Avenue NW
Suite F
Elk River, MN 55330
Re: RFP
The City of Elk River would like to sell a property that is a'single family residence. Property address is 1217-5fh
Street NW, Elk River, MN 55330. Enclosed you will find a copy of out current appraisal. If you are interested in
being considered for marketing this property, please submit the following:
. Proposal, sale price, commission, example ofMLS listing
. Marketing materials including a Comparative Market Analysis
. Statement of qualifications including annual gross sales
Proposals will be accepted until Wednesday, December 6~ 2006; 4:30pm at lions Park Center. If you have any
questions please call me at 763.635.1154.
Sincerely,
~~
Tonya Love
Recreation Administrative Coordinator
Phone: (763) 635-1150
Fax: (763) 635-1155
www.ci.eIk-river.mn.us
recreation@ci.elk-river.mn.us
City of Elk River
1104 Lions Park Drive
Elk River, MN 55330
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P01JlTell
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December 7, 2006
To the City of Elk River;
Thank you for considering Powell Realty for the marketing of your property at 1217 5th Street in
Elk River. Our brokerage opened in January of 2003 and we currently have 11 active Real
Estate agents It is owned by Reg Powell and his two sons, Tony and Andy. We are located at
510 Freeport Avenue in Elk River.
We provide each of our clients with our industry leading marketing plan. This includes exposure
in the local and national Multiple Listing Service (MLS). as well as local and state wide print ads.
We also ensure a strong internet presence which includes Realtor.com, International Relocation
Services, and our own website at PoweIlRealtyMN.com.
Our proposal for the sale of your property is as follows:
List Price
Commission
$159,900.00
5.4% or
4.0% if Powell Realty agent brings in buyer
"'As Is" Sale
see items listed below to be in "'excellent condition"
Condition
Exterior Reoairs:
1. Soffit and fascia need paint or replacement.
2. Driveway is in very poor shape.
Interior ReDairs:
1. Walls in need of paint and repair
2. Flooring needs to be replaced
3. Window AlC unit needs to be replaced
4. Furnace venting is exposed through living room and may be a code issue.
Minimally, this should be boxed in.
5. Windows are in poor condition (original to home) and will soon need replacing.
There are investors and buyers looking for this type of property. However, in order for it to sell,
it must be priced right for today's market. We feel that given the market conditions and the
condition of the home, we are providing you with an accurate assessment of your property's
value. .
Thank you.
Reg Powell
Broker I Owner
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l'Imr lzul/ll' \o!d ill 93 dllJ.\ or WI' buy it.
Elk River, MN 55330
763.7535990 Fax: 763.633.6439
NordquistTeam.com
December 6, 2006
City of Elk River
Parks and Recreation
1104 Lion Park Drive
Elk River, MN 55330
Attn: Tonya Love
Dear Tonya,
Enclosed in this section are 3 more comparative properties in addition to the appraisal.
Based on the soft market conditions and the time of the year, I would suggest a List Price
of$179,900 - $184,900.
It is very comInon in todays market that buyer's ask the seller's to pay some type of
closing costs, however these costs are negotiable.
The Commission that I am proposing to sell this property would be 5.5%.
Please contact me if you have any questions at 612-720-6554 or 763-753-5990.
www.edinarealty.com
DINA REALTY. EDINA REALTY MO~TGAGE . EDINA REALTY TITLE
City of Elk River
Tonya Love
Parks and Recreation
1104 Lions Park Drive
Elk River, MN 55330
Dear Ms. Love:
Enclosed please find the following.
. Proposal, sale price, commission, example ofMLS listing
. Comparative Market Analysis, Customized Marketing Plan
. Personal Brochure, qualifications, and gross sales and units for 2005
. Market share in Sherburne County
I personally inspected the home on Friday December 1, 2006. I found the home to be
marketable but in need of repair. You will notice on the appraisal report on page 1.
toward the bottom that the appraiser did a "exterior inspection only". The inside of the
home is in need of paint, carpet, new furnace chimney coming through the living room
floor should be boxed in for safety reasons, original windows are marginal, the exterior
trim and garage is in need of paint, etc. . There are two ways the city could market this
property, one. with needed repairs or two "as is".
It is my opinion the home could bring in this market with repaired items approx.
$182,000-$185,000., or "as is" $165,000-$170,000.
IDtimately this could be discussed with the city as to where they want to start with the
price. I have been selling homes in Elk River since 1972. Thank you for your
consideration.
tr~
Dave Guimont, CRS
Edina Realty
Elk River office
Real Estate commission 6%
Typical marketing period 120-180 days
EDINA REALTY 592 Dodge Ave. NW. Elk River, MN 55330 PHONE 763.241.3000 FAX 763.241.3030
.
The Discovery Team RE/MAX
Associates Plus
650 Dodge Avenue NW
Elk River. MN 55330
Office: 763-441-8833
Fax: 763-441-7562
www.thediscoveryteam.com
Proposal for the Marketing and Sale of the property at1217 - 5th Street NW;
Elk River
I suggest that the list price 00$180,000. Thecommi~ion charged will be 6%. The
listing would be for 6 months. '
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I have included examples of thetypesoffuarke1:ingthat I do to get properties sold along
with examples of some of myMst: ~gs. '
I have been successfully marketing propeJ:tiesinthearea-(Ql"thepast 37 years. Annually
my gross sales have been 18,OOO,OO()+.~'i' ",', '
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I appreciate your considerationofthtafta6hedIruiteriMsand look forward to your
positive response. ' ",; ',' '
Thank you!
Sincerely,
'1V\
Mel Beaudry
The Discovery Team
RE1MAX associates plus
www.thediscoveryteam.com
Discovering The Best Move For YOU!
Each Office Independently Owned and Operated
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VISION
RESIDENTIAL REAL ESTATE
www.coldwellbankervision.com
231 MAIN STREET
ELK RIVER, MN 55330
BUS. (763) 241-0155
FAX (763) 241-9234
December 5, 2006
Tony Love
Recreation Administrative Coordinator
I am submitting this CMA for the Property at 1217 5th Street NW in Elk River, currently owned
by the City of Elk River.
After doing a visual of the property from the exterior only and from the sold comps and the
active comps, I suggest that the market price of this home be $174,900 with a maximum price
being $179,900. .
Although the appraisal I received indicates a price of $185,000 as an appraised value., in today's
market with the homes that are currently on the market and this time of year I would suggest the
174,900 price.
Again, not seeing the interior of this home, I WliS able to determine that there is some work
needed to the exterior and the fact that there is really no yard for a young family that warrants
this price. As you can see, the current active listings for like houses in ElkRlver have a higher
average price that the sold comps and also average.} 0 more days on the market than do the solds.
..' ,....'..., ,
. . . "-.'. . . .
I am the Broker/Owner of Coldwell Banker Visioriltere in Elk :River andha.,,~ been in real estate
for 22 years. We currently have 44 agents who will all beworking to sell this home. In 2005
Coldwell Banker V. isi. o...n. bad. .. . $.13..2 ffi.i.l. l.i.o...n in sa. Ie. s. an.. .d. .. ar... e.. .on tra.ck to sell $...1....16 m..... illion for 2006.
Coldwell Banker Vision. is one of the PreIl1ierReaLEstateOfficesin this northwest quadrant of
the metro area and have been for many years. Coldwell Banker Vision was also named Business
of the Year for 2006. Our marketing consists of MLS input, visual tours, mass mailings, local
advertising and open houses. Our goal is not to list homes, but to sell homes and that is what we
do best. We give honest and direct prices on homes and do what we need to do to sell them. My
proposal reflects a 6% commission and closing fees if using First American Title here in Elk
River. If the city chooses to do their own closing, those fees may vary.
I submit this proposal as written and look forward to hearing from you in the near future.
M Urista
Bro er/Owner
Coldwell Banker Vision
An Independently Owned and Operated Member of Coldwell Banker Residential Affiliates, Inc.
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