New Construction vs Existing Home

When you bought your charming starter home, it was perfect.  As a newly married couple living in the Twin Cities, the 950 square feet with two bedrooms and one bath felt spacious after living in a one bedroom apartment. Now, two children later and you feel like your once spacious home more closely resembles a hobbit hutch and you know it’s time to move up to something larger. Like many young potential buyers in your position, you are facing the conundrum of should you buy another used home or opt for a shiny new one? Should I buy a new construction home or buy an existing home? According to a Zillow survey, 41% of buyers responded to having a preference for a newly constructed home, but as in every incidence when you are at a crossroad, there are pros and cons on both sides of the equation. When you purchase a home, there is never a one size fits all option and depending on lifestyle and priorities one choice, new vs. existing, may be clearly preferable to the other.

Pros of New Home Construction 

• Buy or build a new home and you get to make all the choices, every single...

Buying vs Renting in Mpls and St. Paul, MN

Are you currently a renter in the Twin Cities who is thinking about buying a home but still apprehensive about making that move?  A home is the single largest purchase you will probably make in your life and I applaud you for your careful consideration, that’s a good thing.  In addition, maintaining a house is a large responsibility and you need to determine if you are ready to take that on.  If cutting the lawn and cleaning the gutters is more than you want to deal with, perhaps a condo or townhouse is a good option for you. Let's take a look at a few good reasons which might make you decide to turn you the renter, into you the proud home owner!

Downside of Renting in The Twin Cities, MN

Experience has taught me that the quality of your rental experience is largely based on your neighbors above, below and on either side of you.  If they are inconsiderate and unmindful that they are living in a community where loud music, unruly children, slammed doors, and late night parties will have a detrimental effect on the peace and sanity of their fellow tenants then you are in for an experience resembling the Mad Hatter’s Tea Party.  You may be unlucky and rent from an apathetic landlord who is slow to respond to maintenance requests or perhaps one only interested in temporary fixes while you, the...

The difference between a Condo, Single Family, and Townhome in Mpls, MN

You, the first time home buyer have now been through the preapproval process and know how much the lender is willing to give you for a mortgage and at what rate. You also know how much of a down payment you need and your approximate closing costs. You know how you will pay for your home. Check!

You, the first time home buyer know the current Twin Cities real estate market favors the seller and competition for homes is keen at your price range. Knowledge is power and you feel confident that you will move quickly when you find “the one” because you have done the work and are fully prepared. You know how to maneuver through the Twin Cities real estate market. Check!

You the first time home buyer feel confident and prepared because you have a real estate professional at your side for each important step of the home buying journey and will use his...

Buying Your First Home in MN | How to Buy a Home in the Twin Cities

After reading our first post in this series, The First Time Home Buyers Journey – The First Step Begins with 3 Questions; you have answered all of these in the affirmative and are anxious to buy that home!  Congratulations on your decision! The enthusiasm is great!  Everyone should be excited about buying their first home but let's take a deep breath and think about the following three steps – knowing the market, getting lender approval, and selecting a Real Estate Professional. 

The Twin Cities Metro Housing Market

First, let me say that as a first-time home buyer, I have good news for you. Second, let me say, I also have some bad news. Let's start with the good news. Interest rates are the lowest they have been in the last three years. Right now, with excellent credit, it is possible to get a rate as low as 3.5 percent. Want to hear more good stuff? You do not have to have a 20 percent down payment. As a matter of fact, with good credit, you may be able to get a conventional mortgage with only 3 percent down. Recognition is not so good, or do you still need down payment assistance? FHA might be the way to go. So now for the not-as-good news.

The twin cities are a seller's market for anyone purchasing a home under $500,000. The dynamic causing this is far more demand than supply, and the lower the price range, the less inventory of housing you will find. According...

The First Time Home Buyers Journey In the Twin Cities Real Estate Market

Spring in The Twin Cities metro is about temperatures rising, flowers blooming, green lawns, residents hitting the biking and walking trails in large numbers and the real estate market in full swing. There are plenty of buyers out there and if you are one that has decided to take the plunge and buy a home I applaud you for beginning the journey towards home ownership.  For those of you who have yet to take that first step but are seriously thinking about doing so, I’d like to help.

First let me say I fully understand the decision to transition from renter to owner is not an easy one. The purchase of a home is for most adults the largest financial investment of resources in their lifetime. It’s not a small deal, it’s a big deal and should never be minimized. Not to mention that buying your first home can be a very scary thing, and believe me you don’t have to be a virgin home buyer to get those jitters. There are the practical considerations that need to be explored such as your personal financial situation, market conditions, and future plans. You will also need to ask yourself some hard questions about how much change to your lifestyle in terms of responsibility you are ready to embrace.  

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Spring has arrived in the Twin Cities Metro and the housing market is in full swing! The onset of warmer temperatures has caused buyers to shed their boots and mittens and start house hunting in earnest.  Traffic at Minnesota Property Group Open Houses has been brisk. We are seeing many more first time buyers, move up buyers, and buyers who are coming back after going through foreclosure or short sale experiences, (dubbed boomerang buyers) as well. 

According to data published by The Minneapolis Association of REALTORS©, March showed an increase in pending sales of 30% over last year and was the highest level for that month since 2005. Additionally new listings were up 21% over March 2014, but due to avid buyer activity the market advantage is still tipping towards sellers. So, it’s a strong market, an active market, and what I would describe as a “snooze and you lose market” with desirable properties often selling within days or even hours of being listed.

Incredibly low mortgage interest rates are holding steady at least for now, so this is really an awesome time to make your move.  However be aware that competition among buyers for desirable properties can be stiff, so as a buyer, to get the edge you need to be prepared to make your move when you find that dream property.  Here are my 3 best do’s...

Do you want to buy a home but don't have enough saved for a down payment? For some, saving equals sacrifice. Granted, to save you need to spend less but there are ways you can cut expenditures in the short term that you won’t miss and over the long term can help you realize your dream of home ownership. So whether you are a veteran saver or just getting your down payment fund off the ground, consider my 5 painless, no-anesthesia-necessary ways you can start saving today.

1. The Double Play - Improve Your Credit Score

The health of your FICA or Vantage Score has a direct effect on your interest rates. The higher your score, the lower the rate of interest you will pay to borrow money. Individuals with good scores can often negotiate lower rates on credit cards and generally also pay lower auto insurance rates. As an additional incentive, if you are thinking of buying a home, an excellent credit score will not only save you thousands over the life of your mortgage but make it easier to be approved for a loan when the time comes. So in terms of buying your dream home, this is a double play!

2. Evaluate Your Auto Insurance Coverage

Speaking of auto insurance, if you have not reviewed your policy recently, now is a great time. One way to save on monthly premiums is to raise the deductible limits. If your car is older and you own it, perhaps...