Before you Buy A Home in the Twin Cities

Before you buy a home in the Twin Cities, do your homework. When purchasing a home, it's a given that you will establish criteria regarding the number of bedrooms, bathrooms, size, condition, school ratings, and location.

Do not buy a home in without assessing the neighborhood

When you evaluate an area, there are many considerations to consider. Is it an old or new neighborhood? Does it have easy highway access but is situated so that you do not hear the rumble of trucks in the night? Are there any zoning changes going into effect soon? Is shopping conveniently close? How are the schools rated?

Feel comfortable with neighborhood safety measurements

Analyzing the location of any home you are buying is essential. Do not forget to check your potential new neighborhood's crime statistics. Before you make a long-term commitment to a new home, there should be no doubt in your mind as to what types of crime happen on the streets and how often. With an internet connection and a small investment of your time, you can have a wealth of data at your disposal.

How to check  Twin Cities crime statistics online

There are several applications on the internet that compile crime statistics nationwide. Here is my list of some of the best.

Dru Sjodin National Sex Offender Public Website

You will want to know if there are any known sex offenders in the neighborhood you are considering. The Dru Sjodin National Sex Offender Public Website (NSOPW) creates the United States Department of Justice as a resource of sex offender registries in all 50 states. When you enter an address, the website responds with a map, names, photos, and locations of known sex offenders.

Family Watchdog

What I like about this site is that it shows you who the sex offenders are in the neighborhood and designates them as child offenders or rapists. You can also search by name or school....

Overview and Comparison of New Home Options

For most of us, homeownership remains an essential element of the American dream. For some, that dream is for a newly constructed home. It’s not difficult to see why some people aspire to live in a new home instead of a pre-owned property.

Buying a new home means not having to live with and correct other people’s choices in décor and style. It means having “smart” home features built-in and building materials that meet the safety standards of today’s regulations. It means all new and clean appliances and fixtures, HVAC systems, roofs, and siding, which keeps the cost of maintaining the home low.

There are three options for those who dream of owning a new home: tract homes, spec homes, and custom homes. They range in price from the starter home level to the “sky’s the limit” luxury housing. So even if your budget is limited, it doesn’t mean you can’t afford a new house.

Tract Homes

The largest category of new homes for sale is tract homes. They are generally built by large residential home construction companies with a regional, state, or national footprint. The contractor buys a large tract of land, makes streets, puts in utilities, separates the area into buildable house lots, and begins building homes.

Generally, a buyer of a tract home will have a few models available to choose from, each with a set floor plan. Custom choices will include paint colors, flooring, cabinets, and fixtures, but selections will often be limited to those in the builder’s design center.

Tract builders will often have a staged model home in each subdivision. They also will build homes before they have buyers and generally have houses you can see in various stages of construction.

Tract homes are available at lower pricing tiers up to the high end...

How to Determine an Offer Price When Buying a House in MN

The moment you have been waiting for has arrived. The home you want to buy has come on the market. You feel like Goldilocks when she lays in the baby bear’s bed. That felt just right.  Unlike Goldy, who proceeded to take a nap, you are ready to rock and roll. It’s time to write an offer, also known as writing a purchase agreement.

The central theme of the offer is the amount you agree to pay to the seller for the property. Your goal is to reach that magical place where deals come together. It’s that sweet price point where the seller receives the amount he wants, and the buyer knows she is not paying too much.

The starting point is the seller’s asking price. Your real estate agent’s job is to help you decide if it is reasonable or too high. Several factors to consider affecting your offer price include a comparable market analysis of homes that have recently sold, market conditions, property conditions and updates, length of time on the market, and seller motivation.

The Comparative Market Analysis or CMA

Your buyers’ agent will pull several months of data on homes that have sold in the exact general location to help you determine a range where your offer price should fall.  Comparison...

7 Steps To Buy A Home

Seven steps to buying a home in the Twin Cities. Buying a home in Minnesota is an adventure; however, you need a plan before you dive into the housing market. Buying real estate is a journey, and the road to homeownership is rarely a straight line from point A to point B. Often the route is a winding mountain road with hills and valleys, twists and turns but worth the effort to reach the top. Having your path mapped out from start to finish will help you avoid obstacles and delays. Completing each portion of the journey before proceeding to the next will build confidence in the process. Here are my 7 Steps for a successful home buying experience.

Shop For a Mortgage 

Now it’s time to find a lender. Of course, your first instinct is to secure a mortgage at the lowest possible rate. Don’t get me wrong that is extremely important. But customer service also matters. The variety of programs offered will make finding a loan that meets your particular financial situation easier.

Obtain a Pre-Approval

A mortgage banker will review your financial documents and run your credit. Then she can tell you how much you can borrow, the rate, terms, and estimate of closing costs. You are going to gather two years of tax returns, 1-2 months of pay stubs, 1-3 months of bank statements, other asset documentation, debt statements, a copy of your driver’s license, proof of residence of the last two years for your appointment. Hopefully, you will walk out with a preapproval so you can start shopping for a home.

Choose the Best Real Estate, Professional

There is no good reason for a buyer not to work with a professional when buying a home. Find one with experience, ...

A particular excitement surrounds buying a home that makes other major life purchases pale in comparison. Expect to be excited and joyful about the prospect. If, by chance, you are lucky enough to find a home that feels perfect as soon as you step through the door, it can be magical.

Don't Overlook Important Considerations

Remember that magic can also be an illusion, and reality may be around the corner, waiting to tap you on the shoulder. Don’t let the euphoria of the moment keep you from delving deeper when you are purchasing a home.

Your relationship with your home is not a superficial one, and neither should your hunt for it be either. Here are mistakes you can easily avoid when buying a home. It will be a small investment in balancing your time with how long you may live there.  

Failing to Research the Location

It’s not enough to look at the properties surrounding the home you want to buy; you want to dig into the details. Start by doing a practice run on your commute to work and determine if it is doable or so far away that you will be sure to experience regret from making the drive twice a day.

Scope...

Buying a Home in the Twin Cities MN

The logistics of buying a home in the Twin Cities can be complicated for most of us. There is a lot of paperwork and steps we take before we arrive at the closing table and are given the keys to our new kingdom. What many buyers are not aware of is the battle between logic and emotion that is part of the homebuying process.

For most of us here in the Twin Cities, the purchase of real estate is the most substantial monetary investment we will make in our life. Given that, we should consider the pros and cons of buying a home logically and make sure the numbers work before offering any property. However, buying a home is more than values on a spreadsheet, and emotion must play a part in the process.

Important things to Consider When Buying a Home in MN

A home is a place we celebrate our lives. It’s where we display family heirlooms and treasured mementos. It’s the place we rock our babies, dry their tears, share their laughter, and help them realize their dreams. It’s where memories are born of family gatherings, where we break bread with friends, toast success, and mourn a loss. When considering a home’s potential, if our heart is not singing a little song, it may be wise to take a pass.

Every buyer wants to avoid remorse over the long term, and there are ways to achieve that tricky balance between logic and emotion. Working with a professional whose advice you trust is the first step, but as a buyer, you need to set some ground rules for yourself from the beginning of the home buying process. You need to know...

Buying a Home in MN Takes a Team

If you have decided to transition from renter to homeowner, you are probably feeling excited and nervous at the same time. That is perfectly normal because it’s a big decision. Some think it is the litmus test for adulthood. While I’m not sure that is true, I will admit that it means taking on a whole new set of responsibilities. Heck, by the time I bought my first house, I was already working in real estate but still had the jitters.

While you may find the home buying journey intimidating, thankfully, it’s not a solo adventure. You will have lots of real estate professionals helping you along the way. Some of them you’ll interact with regularly and others you will never meet. Yet, they will all be doing their part to get you across the finish line. Let me introduce them to you.

The Real Estate Agent

Your agent will scout out homes for you, pointing out the positives and negatives of each one. Once you have found the property you want to buy, he will do a comparative market analysis to decide on your offer. He will prepare the purchase agreement and help with the negotiations between you and the seller.

In a nutshell, your licensed real estate professional will answer your questions, provide guidance, make recommendations, advocate in your best interests, provide emotional support, and help keep the whole process of buying your first MN home on the track. Your Realtor is a valuable resource in assembling the other professionals you...

MN Realtor On Buying a House in the Winter

Real estate is not a seasonable business. People are relocating for jobs every month of the year. People are moving out of state and into the state. Others may be moving to another city, across town, or down the street. In the process, they are buying and selling homes.

Without a doubt, spring is the prime season for real estate. Buyers come out of hibernation when the first signs cold-weather spring appear. “For Sale” signs pop up on front lawns like mushrooms after a rain shower. That doesn’t mean that because spring is most popular, that you shouldn’t consider the other alternative of buying a home in the colder months.

Winter is the time that many potential buyers would rather hunker down with a good book and a mug of hot chocolate than spend an afternoon sloshing through the wet and cold. You probably prefer to spend a frosty Sunday watching sports or a movie munching your favorite snack. I get that. But I have some solid reasons why you might want to slip into your favorite cold-weather gear and check out some homes for sale.

Winter Sellers Are Serious Sellers

Often people who sell their homes in the winter are responding to job relocation, financial woes, divorce, estate settlement, or various other compelling circumstances. Because they have a strong motivation to close a deal they may be more flexible on asking price and terms.

There Is Less Competition for Homes in the Winter

In the spirit of full disclosure, there are generally...

My Best Advice For First-Time Home Buyers

Joy. Joy is the first word I think of when I hear the term first-time home buyer. It’s what my wife and I felt moving into our first house. It’s what I always hope my clients feel at closing because buyer remorse has never been on anyone’s bucket list.

The process of buying a house has a lot of moving parts and involves many people. It can be stressful and intimidating even when it’s going well. When the pieces do not fall into place as you expect, it will be frustrating and even overwhelming on occasion.

Over the years, I have shared all those emotions with my clients on their journey to home-ownership. No two experiences are ever the same. However, it becomes glaringly evident that buyers who have the best outcomes are those that are most prepared. Knowledge is power. Here is some of my primo advice if you are buying your first home or even your last.

Make an Appointment with a Mortgage Broker

Before you get serious at looking for a home, you need to know if you qualify for a mortgage and how much the bank will lend you. You will also discuss what type of mortgage will best suit your financial circumstances and how you can receive the best interest rate. Shopping lenders is wise. Some offer better deals and options. A half-point or even a quarter-point less on your rate can generate significant savings over the life of your loan.

Decide How Much You Can Afford

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How to Write a Winning Offer in a Seller's Market

Forget the spin. Take off the rose-colored glasses too. Let's be honest. Most buyers are hoping to score a home at the current real estate market's lower pricing tiers and face fierce competition, creating a process fraught with disappointment.

That's the bad news. But I am by nature a confident guy, a problem solver, and a believer in the philosophy that winners never quit. So here is the good news. A buyer with a savvy agent can write an offer that a seller will find hard to refuse.

Be Ready to Act Fast

Desirable properties often have multiple offers a couple of days after hitting the market. There is no margin of error for indecisiveness or being unprepared to offer a hot property as quickly as possible. That means you should not even consider offering a home if you do not have a preapproval letter from an accredited lender.  

Don't Be Coy

In this market, you can feel reasonably confident that if you have fallen in love with a home, so have other buyers. The occasion calls for an assertive approach, not a timid one. Open with your best offer, which should equal the asking price or higher. Your real estate professional will provide insights based on competitive properties also for sale in the neighborhood and homes that have already sold.

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Look Past the Pretty Package

When a buyer looks at a beautifully staged home that fits their criteria, emotions rule. Fall in love with a particular house, and almost immediately, the heart works against our own best interest by suppressing our better judgment. You know what I mean, that little voice inside your head saying, "but what about those battered floors?"

Consider the facts first.

The more you know about a home before making an offer, the better. The condition of the house should be a significant consideration. Hopefully, unless expensive, unforeseen repairs are part of your plan, you will have a professional home inspection as a contingency in the offer. But, before you even make that offer, you can do your preliminary evaluation of the home's condition yourself. 

Don't set the stage today for financial regrets later.

There is no way to say that refinishing floors, painting, or other minor repairs should be dealbreakers. But if too many items fall on the fix list, added altogether, they may prove to be a tipping point on the no-sale side or affect the dollar amount of your offer. Even when a home checks off all the needs boxes and many of the nice-to-haves, costly repairs can quickly lead to regret.

Look before you leap.

Here is a suggested list of items you can check before you take that first step by offering to purchase. A second visit to the property is preferred. Still, given the competitiveness of the housing market at the lower price brackets, this is also something you can do on the initial tour of the property.

Warning signs to look for inside the home.

• Floors – squeaks or sponginess, or worn-out carpet or wood that needs refinishing.
• Walls –water stains, cracks,...

Buying a Home in Today's Market is a Challenge

You are rooted in the trenches in your quest for homeownership. The last property you toured had the kitchen of your dreams, but it is too close to the highway. The retirement condo you saw on the internet has everything on your wish list, but the building doesn't have an elevator.

A warning to buyers, especially first-timers, in this market, finding everything you want is rare when there are not many homes to choose from, and properties rarely last a week without an accepted offer. Although you agree that compromise is a given, it's wise to remember that some factors cannot be changed if you discover the deal you made is not working. You don't get an opportunity to test drive a home.

In a recent survey by Trulia, 51 percent of homeowners have regrets about some aspect of their home. It is a given with the lack of inventory and the stiff competition for homes. Circumstances may call for more compromise than you may want from your sacred wish list. There is nothing wrong with being adaptable. However, there are certain things you should never concede if you're going to be among the 49% without buyer's remorse. 

1. Location

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Get Ready to Buy A House MN

The decision to buy your first home is a major, life-changing event and should never be taken lightly or made quickly. Not only is it the most significant financial purchase you will likely ever make, but it’s also a commitment to your lifestyle and personal sense of well-being.

Indeed, a home is a valuable asset, but it is much more than a number we see on a financial spreadsheet. It’s our haven. It’s where we plan to raise our children. It’s where we will dream about our future. It’s where we will celebrate our victories and cope with life's setbacks. There is the whole story of homeownership.

Yes, buying real estate is a big deal, and I won’t lie to you; it can be a stressful and intimidating process, especially for a first-time buyer. However, it isn’t written in stone that it will be this way for everyone. It can and should be an exciting and joy-filled process. Being financially ready is critical in making it work in your favor.

Let’s look at five positive signs that say you may be in the financial position to become a homeowner.  

1. Your Finances Are Solid

One of the critical factors to ensure a positive...

Home Buying Advice MSP

One thing I know for sure is the passage of time always brings a change in its wake. Fashion, food, hairstyles, home décor, and lifestyles have become extremely sensitive to trends. Some embrace change, and others fight it.  Whichever the case, a constant we can depend on is that trends will come and go regardless.

Sifting Through  Home Buyers Advice

Along with style changes, there is an incredible amount of advice about what we should hold on to and what goes off. Real estate is no different, and we must weed through all the bits and pieces of information and discover what is still meaningful and what no longer serves us when we decide to put a roof over our heads.

Purchasing a house is the most expensive buy of a lifetime for most of us. It is predominately a joyful experience, but a certain amount of stress is inherent in the process, especially for first-time homebuyers. We want to make the right choices, so we seek advice from family, friends, and the internet. But with so many tips out there, how do we know which keepers we should ignore? Here are several pieces of home buying advice that have not met the test of time.

You Will Always Be Better Off Owning Than Renting

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Can You Recognize a Super Real Estate Agent When You Meet One?  Take This Quiz!

You have finally made the big decision to buy a home, and you’re ready to dive headlong into the real estate market! Congratulations!  Given today’s market and the great opportunities that abound in the Twin Cities Metro for homeownership, I applaud your decision.  But, (and yes, there is always a “but,”) before you take the plunge, just like every great athlete needs a coach, or every talented artist needs an agent, you need a Realtor© by your side, advocating for you.

“Why can’t I just advocate for myself?” you say.  Great question, and I am so glad you asked. An honest and ethical real estate agent will steer you in the right direction to not waste time spinning your wheels. He will offer expert advice when called for, even if it might not be what you want to hear, and will put your best interest at the forefront of any transaction.  Not only will he protect your interests, but he will also limit your liabilities and even save you money. 

“Wow,” you say, “having an agent will give me an edge!  I want one, but, with all those agents out there, how will I know a great one...

Top Mpls MN Realtor on Buying a Home in the Fall

With summer in the rearview mirror, the fall home buying season is in full swing. As we move into the last quarter of the year, many disappointed summer home shoppers wonder if they should suspend their search to renew efforts in the spring.

As you ponder the question, you should take into consideration that the fall home buying season has some distinct advantages. Instead of taking a break, you may want to stay with the program and intensify your search for a home. Here are some of the perks and rewards you can expect if you decide to stay engaged in the hunt for a home.

Fall Home Buying Means Less Competition

Like most markets, real estate has seasonal adjustments. Fall home buying season is generally less busy than the spring and summer markets. The “must buy a home before school starts” mentality is one reason. Another is that some people do not want to move in the winter months.

Those who have no school-age kiddos or are more flexible about their moving timetable can take advantage of that market slowdown. They will find less competition for homes and less chance of getting into a multiple offer minefield. Let’s face it, “I want to be in a bidding war,”...

So You Want To Buy a Home

Taking the step from renting to homeownership is a life-altering event. Many people consider it the litmus test for adulthood. It is both thrilling and scary at the same time. It should be because not only is owning a home in itself a significant responsibility but it is the most significant purchase the majority of people will make in their lifetime. Owning a home is also a source of pride, of achievement, and for millions, still an essential component of the American Dream.

If owning a home is on your bucket list, perhaps you are waiting for the right time. The question is, how will you know when that is?  There is no stock answer. There are many factors to consider, both pro and con on the subject of buying a home. For many first time home buyers, money is an obstacle. But that isn’t always the case. Nor should the considerations of when to purchase a house be strictly limited to the financial ability to do so.

There are outstanding advantages that come along with owning a home and there are detriments as well. Let’s take a look at how the pros and the cons balance each other. When we evaluate both and can get to the intersection where rewards offset risks, we will have a clearer picture of how we can proceed.

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Advice on Buying a Home in MN

When you make the transition from renter to owner, you become the recipient of many benefits, both practical ones, and emotional ones as well.  For many people, homeownership is an important rite of passage on the highway into adulthood, probably second only to becoming a parent. Why? Because owning a home enables you to assume more control of two very important aspects of your life; your net worth and your personal environment. Most people would find that pretty exciting stuff!  Many of us, when we become adults especially, want to have as much control over our lives as possible, or at least feel that we do!

So if 2018 is your year to purchase that downtown Minneapolis loft, starter home in the burbs, or downsize to the townhome you have always dreamed of, we have some great tips we are dying to share with you.

Prepare Your Finances

If you haven’t already done so, contact a mortgage broker or banker and get pre-approved. This is the only way to know for certain how much house you can afford to buy and what amount of cash you will require for a down...

Should I Buy a Home This Winter or Wait for Spring?

If you are a Twin Cities’ buyer that missed out on snaring a deal this past spring or summer, you might be asking yourself, your family, your friends and your realtor whether or not you should keep your search ongoing or simply hunker down for the winter months and venture forth again when the forsythia bloom.  Maybe you just started the process and are thinking of putting it on hold until the new year arrives or wondering if there is an advantage to staying the course.  As a realtor, I can tell you that I am being asked that question from many of my clients, especially the first time buyers.

Because everyone has a story and no personal situation is exactly the same, there is no right or wrong answer. But generally speaking, I tell my buyers that nobody is too cool for thermal underwear in Minnesota. Let’s get some and keep looking for that home. Patience is a virtue and tenacity pays off in the end. 

To those just getting started in the process, if you have your pre-approval letter in hand start your search and if not get that preliminary work completed and then press go! Now before you get out your list of 7 reasons why you shouldn’t go out in the cold, here are my 7 reasons why house hunting this winter is an excellent idea....