Selling Your Home in Minnesota? Partner with the Top Realtor for Maximum ReturnsRecently posted or modified blog posts in the category - Real Estate Generalhttps://www.mnpropertygroup.com/blog/Copyright MNPropertyGroup.com2024-02-26T10:53:06-07:00tag:mnpropertygroup.com,2012-09-20:5756The 10 Best of 2022 From Our Twin Cities Home BlogTop Ten Real Estate Agent Blog Posts
It’s the end of another year, and like mushrooms after a rainfall, ten best lists pop up everywhere. Best movies. Best music. Best books. Best phones. Best laptops. Best recipes. Best kitchen gadgets and on it goes. I love most of them and thought, why not make a list of the ten best from our blog?
With an abundance of great content on the blog this year (I know, shameful self-promotion), it was not easy to choose only ten. So what criteria did I use? The choices address topics that continue to be relevant, add value for the target audience and address questions and concerns about buying and selling real estate we hear from clients.
In the spirit of full disclosure, it was so tricky limiting my selection to ten; I added honorable mentions at the end. Joe wrote some great stuff for Forbes this year, so I included a couple that technically is not from our blog. Ready? Top of 2022 best blog posts coming at you!
1. Why I’m Not Making New Year Resolutions
This post was the first article of 2022, and it is just as timely a year later. For those who struggle to keep New Year resolutions, my advice is don’t make them. Setting manageable and achievable goals in place of solutions is more successful in bringing about positive change. The article also includes some suggestions on how to break down an answer from the general to specific goals.
2. 10 Ways To Better Organize Your Day
The suggestions in this post were part of a routine I developed when I landed a job that required I start promptly at 7:00 A.M. Though I no longer begin work that early, I follow the system to this day. If you've set a goal for a better organization this year, you should find these suggestions timeless, practical, and easy to manage.
3. Five Ways To Prepare Your Real Estate Business For The Year Ahead
Here is one of the two posts of Joe’s from Forbes I include in the best ten lists. If you are an agent, this is excellent new year advice to prepare you to put it all out there when the busy real estate season strikes. His most famous post to date has been viewed almost 2400 times. Who am I to mess with success?
4. My Best Advice For First Time Homebuyers
Joe Houghton has been practicing real estate for 20 years. In the span of his career, he has helped hundreds of first-time buyers purchase a home. His advice is worth your time, and I say this not only because he is my friend and boss but because he helped me buy a house after a long stretch as a renter. It’s not only about great advice. It’s the way Joe feels about his clients. Here it is in the first couple of sentences: “Joy. Joy is the first word I think of when I hear first-time homebuyers. It’s what my wife and I felt moving into our first house. It’s what I want my clients to feel at closing because buyer remorse has never been on anyone’s bucket list.”
5. How Logic and Emotion Effect Buying A Home
Buying a home is more than working out the numbers on a spreadsheet. Home is where we celebrate our lives. It’s crucial to balance intellect and emotions when deciding to buy a home. Too little or too much of the other can lead to a poor decision and buyers’ remorse. Joe did an outstanding job with this overlooked but essential topic.
6. What Homeowners Should Know Before Selling That First House
My second choice from Joe’s collection published on Forbes this past year addresses another topic that receives little attention from real estate bloggers. While you can find mountains of words written about first-time buyers, there is very little out there for those who are selling their first home. For many who experience essential milestones in their first home, it can be an emotionally wrought experience. This article helps put it all in the proper perspective to facilitate the selling process.
7. Listen to Your Agent For A Smooth Home Selling Experience
Most people listen to their doctors, lawyers, and financial advisors and follow their advice. Since they are paying them for their expertise, it’s a good practice. The same should hold for the real estate professional you have employed to market and sell your home. A Realtor with a well-established career has probably been there and done that whenever an issue arises in the process of selling your home. Joe presents a solid case in this article for taking your listing agent’s advice.
8. Best Practices For Selling A Home With Pets
Pets. Most of us have them, and many have more than one. Sure we love them, but homebuyers may not feel so romantic about your pets, which could cost you a sale. When your house is on the market, and you share it with pets, buyers should not see, hear, or smell them. The best case is that no evidence of them, including fur on the sofa, feeding bowl,s or toys, should be in sight when a potential buyer tours your home. Joe’s article serves as an excellent guideline for dealing with the whole pet/selling a home situation.
9. Important Financial Numbers Everyone Should Know
Because the state of one’s finances and being able to afford to buy and maintain a home are so closely intertwined, I began a series of personal finance articles this year. Although it was difficult selecting one from the seven I wrote this year, I chose this particular article because whether you are buying a house this month, a year from now, or never, you should still know these numbers. Yes, they are that important.
10. How To Move Without Losing Your Mind
Why this one? Because 35.5 million people move every year. If you buy or sell a home, you will be one of them. Since I have moved 3 times in the last 13 years alone, more times than I can remember during my adult life, including the use of friends and a truck, my car, professional movers, intrastate and out of state, local, and cross country, I consider myself somewhat knowledgable on the subject and lucky I retain my sanity.
Blog-wise, my ten best list crushes were satisfying and a great way to close out 2022 and welcome a new year. We hope last year was great for you and yours, and this year will be even better.2023-01-01T19:26:00-07:002024-02-22T07:22:49-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:11571Bait and Switch in Real EstateBait and Switch in Real Estate
You’ve probably heard of the bait and switch game in sales and perhaps have some first-hand experience. It is a tactic where a product is advertised at a low price to get a buyer’s attention. Once the buyer is on the hook, there is an attempt to switch him to a higher-priced product or service. Car dealerships often use this trick by deeply discounting a popular barebones model vehicle to get customers in the door.
Lenders also use the bait and switch model to lure customers. For instance, mortgage companies continually advertise their lowest interest rate, but the reality is only a tiny percentage of consumers will be able to qualify for that rate. Car manufacturers frequently offer 0% financing on purchasing a new vehicle, but a high credit score is necessary to allow. It’s all in the fine print, which most people do not read.
Here is What Bait and Switch Looks Like in Real Estate
Scenario 1. You meet with three agents and listen to their marketing plan to sell your home. Agent A suggests a list price of $350,000, and agent B is in the same price range and says $360,000. But Agent C tells you he would recommend listing your home at $400,000.
Red Flag. Some Real estate agents practice a form of bait and switch when they attempt to acquire a listing from a seller. However, rather than enticing a homeowner at a low price, they bait the hook by suggesting their home will sell at a higher than market value price. If you list with this agent when your home doesn’t sell a few weeks later, he will suggest a price reduction.
Listing below Market to Create a Bidding War
Scenario 2. A seller wants to sell his home at a price point that will move his property quickly. It’s a seller’s market, so Agent A suggests pricing it below market value to create a great deal of interest and result in a bidding war to bring in a higher than market price.
Red Flag. Sometimes this works but not always. Also, there is no reason to sell low in a market where the seller has a distinct advantage. A desirable property priced at the market will likely receive more than one offer.
Real Estate Agent Says They Already Have a Buyer
Scenario 3. Agent B meets with you to discuss listing your home. During his presentation, she tells you that she is working with several pre-approved buyers looking for a home like yours. If you list with her, she will sell it very quickly.
Red flags. There are a couple of things off-putting about this situation. First, ask the agent how she plans to handle a situation where she represents both the buyer and the seller?
When one agent is handling both the purchase and the sale of a property, it is called a dual agency. The practice is illegal in 8 states, Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, and Vermont. In Minnesota, it is legal when both the buyer and seller are made aware of the situation and give their consent.
While this may initially sound perfect, you don’t know if the buyers exist? If they do, Agent B can’t be sure they will want to buy your home since they have not seen it. The responsibility of a listing agent is to present your property to as many buyers as possible and ensure you get the best price. It doesn’t matter who is bringing the buyers to the table.
How to Avoid Bait and Switch When Listing Your Home
I’ve said this many times before, but it always bears repeating. It’s a fact of life when you buy or sell a home. The agent you hire to list your home for sale can either facilitate a smooth and seamless transaction or cause you to feel every bump in the road to the closing table.
When choosing an agent, it’s OK to ask for recommendations from family and friends. However, do not hire someone based solely on that criteria, and do not list with the first agent you meet. Talk with at least two agents, preferably three. Compare marketing plans. When an agent suggests a selling price, make sure market data supports it with a Comparative Market Analysis. Ask your potential Realtor how many homes he has listed and the average number of days they were on the market. Ask what percentage of original list price those properties brought.
A home for most people is their most valuable asset. Please don’t trust its sale to the first agent that comes along. The time you spend choosing your real estate professional is the best investment you can make when selling your home. Another fact of life when your home is on the market: It’s a stressful situation even under the best of circumstances. Hiring a Realtor who puts clients first in all aspects of the process will be your best defense against panic attacks when something doesn’t go as you plan.2021-06-13T07:46:00-07:002024-02-26T10:53:06-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:9124Housing Market TrendsLocal and National Housing Market Trends
Let’s be honest. Nobody can predict the future though we can look at trends and data and use them to create reasonable scenarios of what the months ahead will hold in store for us. Why is studying trends significant? Those who prefer to plan for tomorrow help us make better decisions that get us closer to achieving our goals.
While we may not know what will happen, it is safe to say trends are constantly evolving. Real estate isn’t different in that respect. What was hot in housing last year, maybe so over now. That is not to say we can keep up with the latest, and let’s face facts, if you expect to live in your current home for the next ten years or more, you probably don’t care.
But if you are in the process, on the brink, or planning to buy or sell a home in the coming months, knowing what’s happening in the market today can make the difference between a good or bad experience. What makes it even more critical is the effects COVID-19 has had on just about everything in our lives, including how we search for, buy, sell, and perceive real estate.
Housing Trends That Affect Buyers and Sellers in MN
Here is what you may want to know about some of the current real estate trends and the ways they may affect buyers and sellers both nationally and in our own Twin Cities Housing Market.
When housing demand outstrips the supply of available homes for sale, we experience a seller’s market. It seems like it’s been this way forever at times. While it may not be that long, the housing market has been trending in favor of sellers since 2012, a long stretch. We were very wrong for any of us who thought the pandemic might change the trend. If anything, the demand for housing seems to be more robust than ever.
Both locally and across most of the nation, property showings were higher in July than last year, with multiple offers on desirable homes being the norm in today’s market. <a href="http://maar.stats.10kresearch.com/docs/mmi/x/report?src=page">Both closing and pending sales were higher than 0.8% and 10.3%</a>, respectively. While on the national front, <a href="https://www.nar.realtor/newsroom/existing-home-sales-continue-record-pace-soar-24-7-in-july">The National Association of Realtors July housing report</a> showed a 24.7 percent increase in sales from the previous month.
For the moment, even with an increase in applications for unemployment insurance and a $600 a week cutback in compensation, buyers appear undaunted.
Advice for MN Home Buyers
Be ready with a pre-approval letter from a lender. Have a plan for how much your down payment will be and what contingencies you will request. Then, make an offer. Be prepared to make it your best because you will not get a second chance if you bid on a desirable property.
Advice for MN Home Sellers
Please don’t assume that it doesn’t matter how you present your home. Properties that show well are those that get multiple offers and higher prices. That being said, mazel tov, the world is your oyster right now!
Trending: The Affordable Housing Shortage
Here in the Minneapolis-St. Paul metro and nationally, we have been watching the pool of homes for sale continue to be outstripped by the demand for housing. In greater Minneapolis-St. Paul, the July housing inventory was down by twenty-eight percent, and the decline held for all pricing tiers and housing types from the same time last year. On the national housing scene, the inventory of homes for sale declined twenty-one percent in July compared with 2019.
Why is the shortage of affordable homes been so persistent over the last several years?
Homeowners are staying put longer. They are concerned that if they sell their home, they might not find something to buy and be forced to take temporary housing. Instead of moving, they are adding or creating more space by renovating basements or attics into living space.
Our aging Americans, the baby-boomer generation, stay in their family homes longer than downsize. Many have aging parents who need care and maybe live in their home or grown children moving back because they can’t afford to buy a home.
Levels of new construction are not keeping pace with the demand for affordable housing. Due to escalating building materials and land prices, federal, state, and local fees and permit requirements and a labor shortage has become cost-prohibitive to build affordable housing.
Advice for Twin Cities home buyers
The inventory situation is not liking to improve any time soon. Have your pre-approval in your hand and move fast if you want to buy a home. Another option is to buy a fixer up and renovate it into your dream home. There is less competition for dated homes and in need of TLC.
Advice for Twin Cities home sellers
I repeat what I said earlier. If you decide to sell, don’t just throw your home out there as is. Showing your home to the best advantage still matters regarding how fast you sell and the offer price.
Trending: Historically Low-Interest Rates
Rates for home loans have fallen below 3% and are the lowest since Freddie Mac started tracking them in 1971. The loan cost of borrowing to buy a home right now is a big deal and one of the reasons demand is so strong. According to financial analysts and economists, rates should remain historically low into the coming year.
Tips for MN buyers
With interest rates so low, consider the possibility of taking out a fifteen-year mortgage instead of a conventional 30-year loan. Not only will you pay thousands less in interest, but you will also own your home outright in fifteen years or sooner if you pay extra on your principal.
Tips for MN sellers
If you have been waiting for the perfect time to sell your home and either buy a move-up house or a retirement property, this might be your best opportunity. Once rates bottom out and then start to rise again, it is bound to hurt demand and push prices down as well.
Trending: Rising Home Values
While the early days of the COVID-19 pandemic exerted downward pressure on home prices, that trend is over. If we look at median home prices in the Twin Cities for July, we see an increase of 5.5 percent over those in July of 2019, while nationally, that figure was 8.5 percent at $304,100. It’s also significant to note that the median price for homes in the US went over $300,000 for the first time.
Homebuyer tips
Low-interest rates may offset the rising cost of homes. It’s a safe bet that property values will continue to rise into 2021 as long as the cost of borrowing remains so attractive. The sooner you buy, the sooner you start building equity. If you’re in a position to make a move now, do it, but pay attention to your budget. Don’t throw all caution aside and pay more for your home than you planned.
Home seller tips
If you have decided now is the time to sell, don’t mistake over-pricing your home. Request that your listing agent does a market analysis of comparable homes and suggests a selling price. Be honest when you make a comparison. And I can’t emphasize enough that if you want the best price, prepare to show your home at its best.2020-10-26T07:54:00-07:002024-02-21T11:03:15-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:568812 Steps to Transition Your Real Estate Business to The New Year<img src="https://assets.site-static.com/userfiles/494/image/Fall/winter.jpg" width="1025" height="683" alt="12 Steps to Transition Your Real Estate Business into the New Year/MN Property Group/Blog" class="img_box_center" />
Ways to Transition Your Real Estate Business Into the New Year
It’s impossible to think of ending one year without looking ahead to what’s around the corner. I love the mystery that awaits, knowing that I can prepare for events down the road. With that in mind, I anticipate the new year with excitement and optimism and a dusting of prudent vigilance.
The last couple of weeks of December is the perfect time to review the past twelve months. When the pace of the real estate market slows down, an opportunity to streamline my goals and business plan enables me to be ready for the start of the new year. My words of the day are: review, reorganize, refresh, and recycle. Here are twelve ways to do it.
1. Freshen Up Your Real Estate Bio
Now is the time to bring your bio up to date on your real estate and social media accounts. Elements you want to include when you refresh your bio are awards, achievements, real estate courses completed, professional certifications earned, and milestones reached. It would help if you could also talk about any community service projects or volunteering you participate in. Connect personally with marriage and birth announcements, interests, or hobbies. Also, consider new professional photos, especially if you didn’t take one last year.
2. Evaluate Your Real Estate Tools
Today’s homebuyer is very tech-savvy and expects the same from their real estate professional. If your tech tools are slow and outdated, how can you function at total capacity? If your laptop, smartphone, or tablet is holding you back, now is the perfect time to replace it, thanks to holiday bargains and sales.
3. Reorganize Your Electronics
Do you have apps that you never use? Now is an excellent time to free up storage space on your digital tools by deleting them. If you have others that do not meet expectations look for replacements. Also, I recommend cleaning up your emails, and if they pile up regularly, look for alternative methods of organizing them.
4. Review your Realtor Subscription Services
Review your paid mail and digital subscriptions and cancel those that didn’t add value to your business or personal life. Also, look at free updates you get via email. If you find yourself deleting them regularly, consider unsubscribing and freeing up some space and time. <img src="https://assets.site-static.com/userfiles/494/image/Fall/winter_1.jpg" width="1025" height="682" alt="12 Steps to Transition Your Real Estate Business into the New Year/MN Property Group/Blog" class="img_box_center" />
5. Prepare for Tax Season
Now is an excellent time to gather the documents you will need for filing your taxes. If you need a few more deductions, this is a perfect time to donate to your favorite charities. You should also review your contributions to retirement accounts. If you are 50 or older, you can make catch-up contributions. Younger people may want to consider adjustments to their retirement savings plan for the coming year.
6. Recognize the Upcoming Real Estate Trends
It’s imperative to determine where the market is going in the next few months to structure a workable strategy. What do market analysts say about interest rates and the general state of the economy? Do national real estate market trends reflect what is happening in your local market?
7. Establish Your Real Estate Goals
Review the goals you established for this past year. If you had some you didn’t meet, determine the cause, then decide if they are worth carrying forward into the new year and plan how to achieve them.
8. Prepare Your Budget and Real Estate Marketing Plan
You need to invest in promoting yourself and creating some buzz. Decide home what percentage of your commissions you will spend on advertising and where you will allocate those dollars.
9. Review Your Listing Presentation
Determine how upcoming market conditions will affect your strategy for sellers. It’s essential to keep ahead of the curve and establish your reputation as an authority.
10. Review Your Contacts and Pending Business
Sort through your emails and social media for new contacts and update your customer relationship management system. Are you not using a CRM yet? Consider putting that on the top of your to-do list.
<img src="https://assets.site-static.com/userfiles/494/image/Fall/WTR.jpg" width="400" height="599" alt="https://rismedia.com/2019/12/08/best-books-real-estate-professionals/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews" class="img_box_left" />11. Catch Up on Reading
It’s essential to keep up with real estate and what business leaders are doing in terms of strategy and best practices. Sit down with that book you have wanted to read. Need suggestions? If you haven’t read “The 7 Habits of Highly Effective People”, consider putting it at the top of the list. A couple of others I recommend is “The Happiness Advantage: The Seven Principles of Positive Psychology That Fuel Success and Performance at Work” and “The 10X Rule: The Only Difference Between Success and Failure.” There is also a list of <a href="https://rismedia.com/2019/12/08/best-books-real-estate-professionals/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews" target="_blank">notable real estate books </a>published on RISMedia. Your welcome!
12. Recharge
Acknowledge that your most valuable business asset is you. Take advantage of the end-of-year slowdown to reward yourself for a job well done by engaging in activities that bring your joy. You deserve it! See a movie. Splurge on an expensive dinner with your significant other at your favorite upscale restaurant. Get a massage. Go sledding and skating with the kids. Embrace the magic of the season. Hang out with friends and family enjoying holiday foods and traditions.
As always, thank you for reading. Celebrate! Stay safe! Stay warm! And raise a glass to a rewarding and prosperous new year!2019-12-14T17:15:00-07:002021-12-13T20:57:41-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:4477Best Year End Advice For Real Estate AgentsBest End of Year Advice for Real Estate Agents
In just a couple of weeks, the New Year will be upon us. It was a fast twelve months, wasn’t it? It feels like I was talking to you about fall home maintenance only a couple of weeks ago when it was actually in early October. Many trees were still stubbornly holding on to a few leaves, there was no snow on the ground, and we had not even had a hard frost. Now here we are decking the halls and talking about closing out the year and getting ready for 2019.
Admittedly I approach the new year with excitement and optimism tinged with a dash of trepidation and uncertainty. The new year is, after all, filled with mystery! What new clients will I meet? Which buyers and sellers will I reconnect with in the coming year? What changes in the market will surprise me? Which of my predictions will be proven correct? Am I ready for what lies ahead and if not what do I need to do so I don’t fall short of my expectations?
As the days and weeks of the next year unfold, I plan to be ready. One of the ways I prepare is by starting the year without the clutter of the last twelve months. It starts now. Here are some tasks we can take care of before January is on the doorstep because ready or not, soon 2019 will be knocking on the front door!
Last Chance for Tax Deductions
Do you plan to take a real estate or business related course? Now would be a good time to sign up. Not only is the beginning of the year slower paced, but if you sign up now before 2019, you may be able to take the deduction if applicable on this year's taxes.
Make a charitable donation. Since we are talking about 2018 tax benefits, now is your last chance for contributing some cash or assets to your favorite non-profit.
Be Prepared With a Fresh Look
When we talk about business needs for a Real Estate professional, don’t overlook your car. If your lease is expiring this year or you plan to purchase a new vehicle do the shopping and looking now before the busy season arrives when you may not have time. When you settle on the make and model, ask your salesperson to send you a reminder when the best deal is available.
Update your Business Profile. Refresh your bio. Add any achievements or professional awards or certifications. Add any pertinent and interesting personal updates like marriage or children. If you have added some community service to your life, this is the perfect time to let people know. It’s good to update your professional headshot as well and team photo. Don’t forget to update Social media and other professional sites where you are active.
Clean up your data act. Go through your emails and archive what you need to save and delete what you don’t. If the amount of emails hanging out in your inbox is daunting, sort through the last three months and archive all the rest just in case. It also makes sense to organize your computer files, especially if you can never locate a document or image you know you saved. Review your bookmarks too. You might find a gem that you kept and forgot you had.
Learn from Last Years Hits and Misses
Review the goals you set last year. Are there any you didn’t complete? If they still fit in with your overall business plan add them to your 2019 list. If you haven’t thought about goals for the new year, start that project now.
Review your budget. Did you have a surplus this year or fall short of what you needed for optimal effectiveness? If you didn’t allocate enough in 2018, determine whether it is in the best interest of your business to increase your budget or do some trimming.
Improve your chances for a successful year. Pay attention to the economic, financial and housing market analysts for both the national and local market. Their input will help you determine what real estate will look like next year. This valuable knowledge will help you establish realistic expectations leading to attainable professional goals.
Sprinkle with Holiday Sparkle and Shine
Spread some holiday joy. There is no better time than the winter holiday season to connect with those on your mailing list. Don't forget vendors you work with on a regular basis. Let coworkers who stepped up when you needed a special favor or an employee who went the extra mile know you appreciate them with a handwritten note of gift.
Last but not least, spend as much quality time with family and friends over this festive season as possible. Celebrate! Be happy. Stay safe.2018-12-18T15:37:00-07:002024-02-22T12:23:34-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:35262017 Favorites From Our Twin Cities Home BlogOur Favorite Blog Posts of 2017
It’s that time again. As we say goodbye to the old year and look ahead to 2018 with great expectations it is always worthwhile to reflect on the last 12 months and review the work accomplished with some satisfaction. On Our Twin Cities Home Blog, we try to bring you the best information we can find on everything real estate from buying and selling a home to living well in our vibrant and beautiful Twin Cities Metro.
As we look forward to more good work this year we’d like to share some of our favorite posts with you again. So without further ado, here is what we think deserves a second look before we close the books and begin the first chapter of the brand new year!
The Minnesota Property Group A Twin Cities Success Story
Has a year really passed since I wrote this one? It was one of my favorites because I am proud to work with Joe all 365 days of the year. He has a great real estate story and a great philosophy on how he approaches real estate so I felt it appropriate to tell it one more time.
Passive Savings - Like Giving Yourself a Raise
Saving more money is a popular new year’s resolution for many people. Well, it just so happens we know a little about that here at the Minnesota Property Group. When I started researching the topic of how to save, it got me thinking of other ways that you could do it without feeling the pain or strain of giving up stuff you like. I called it passive savings and I fell head over heels in love with all of these ideas and incorporated them all into my own life. So this became a practice what you preach stories. This is definitely advice worth sharing over and over again so for any of you who would like to put a little more cash in your pocket at the end of the month, this article is for you!
Let the Magic of This Wayzata Home Enchant You
We believe that every home has its own unique story to tell and Joe, as team leader, believes that telling that story best is what his marketing plan accomplishes. In addition to professional photos and virtual tours we also like to tell that story in words, pictures, and anecdotes. We like to tell you about the neighborhood and the personal experiences of the people who have lived in and loved their home. I really love the result when we coax the personality of the home as the central theme of the story. Here is one of this year’s special homes, in a magical location.
Three Things You Should Not Do When Buying a Home
So it’s established already that I am a sucker for a good story. Here is the story of three buyers who made some big mistakes. We can learn from them. The good news is, it all worked out well for them in the end and in a couple of cases, even better than anticipated. So if you are buying a home this year, don’t do these three things!
Joe’s Favorites
This has been another amazing year for real estate. This market has broken records for housing values, and for inventory shortages. Buyers have been tenacious and undeterred to fulfill their dreams of homeownership. So is 2018 the year of the home? I think so!
Is 2018 the Year of the Home?
This has been another amazing year for real estate. This market has broken records for housing values, and for inventory shortages. Buyers have been tenacious and undeterred to fulfill their dreams of homeownership. So is 2018 the year of the home? I think so!
Should I Buy a Home This Winter or Wait for Spring?
If you ask me what one thing I know for sure about the housing market heading into this new year is that inventories of home for sales at the first time buyer level will definitely continue to be constrained. My best advice, if you want to purchase a home in 2018, the sooner you start looking the better.
New Construction vs Existing Home
The good news for housing in 2018 is the expectation of an increase in new construction and the surge in new housing permits in November backs this up. Given we will have more newly built homes adding to our inventory I wanted to give this blog post another go-round. I get asked frequently by buyers about the advantages of buying new vs. an existing home purchase.
10 Ways to Grab Buyers at Hello
My absolute best advice for those who plan on selling their homes. The market may change and styles and trends come and go but some advice is simply timeless. Putting your best foot forward in regards to showing off your home when it’s time to sell will never go out of fashion.
The Biggest Buyer Turnoffs
In keeping with the same theme of how to present your home for sale here are some situations that will have buyers looking for the closest exit. This is about issues that must be addressed if you are planning to sell your home.
There you have the best of our best. As we look forward to another great year we hope we have helped in some small way or even some really big way! As always, if you have any questions, Joe has answers. Give him a call. He’s not only very knowledgeable, he’s a really nice guy and so easy to talk to!
2018-01-03T20:25:00-07:002024-02-22T14:47:21-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:2523What is a Short SaleExactly what is a Short Sale?
What is a Short Sale? A short sale occurs when the sale of a property does not bring the seller enough money to pay what is owed to the lien holder. When the sale falls short of the amount owed on the mortgage, the bank must agree to release the homeowner of any debt that otherwise may have been incurred. Sounds simple but it can be complicated to execute. Making a short sale purchase can be a long and drawn out process. Sometimes the outcomes are well worth the roller-coaster ride of emotions. Other times they can be a huge disappointment.
Buying a short sale in MN
Whether you are a buyer or a seller involved in a short sale the best way to handle the process is to work with a professional, ethical and honest Realtor who has experience dealing with short sales and is a certified short sale and foreclosure resource. A Realtor that has not taken the time to be trained, educated and certified to sell distressed properties will not have the energy, knowledge and skill necessary to pull off a successful short sale.
Short Sale in MN vs Foreclosure in MN
A short sale can be one of the best ways for a homeowner to get out of a home that is in an upside-down mortgage situation because it will not completely destroy their credit. The average credit score decline for a homeowner that goes through a successful short sale is 50 points. The average credit score for a homeowner that goes through a foreclosure is 250 points.
Help with a Short Sale and Help with a Foreclosure
Although things are better for some, there are still many people suffering. It may be job loss, income reduction, debt, or the threat of foreclosure. Sadly, the national statistics say that 80% of all people that suffer the loss of their homes never contacted a professional for advice on their options. The FHFA (Federal Housing and Finance Agency) recently announced that they have reached a milestone of 3 million foreclosure preventions.
Statistics published by DA News and Five Star show that approximately one in 8 of all mortgages in the US are still in default and in need of help. 3.1 million homes are 30 days in default, 1.3 million homes are 90+ days in default but not in foreclosure, and 1.2 million homes are in foreclosure. That is over 5 ½ MILLION families still in trouble.The positive impact on an individual or family when a short sale is successfully closed is significant.
Since there are lots of moving parts when you successfully sell short, homeowners should be completely educated on the process before attempting one. It is very important that you seek advice from your attorney and CPA prior to beginning the short sale process.
The most important takeaway you can have from this post is that you seek advice from your attorney and CPA prior to beginning the short sale process.2017-09-23T11:42:00-07:002024-02-22T14:14:05-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:3078Five Reasons The Minnesota Property Group Team is Extraordinary TopTwin Cities Real Estate Agents
Real estate in MN is the story about homes and about the people and the families that live and love in them. It is also about the real estate professional helping a family sell or buy a home and whether it is their first home or their last, the agent has a golden opportunity to become a hero in their narrative. Here at the Minnesota Property Group, we have a few heroes! Talking about them, even bragging a little bit, is the favorite part of my job as the content creator.
Five uniquely talented professionals came together as a team with one common goal; providing the best service by treating each client like a member of your family. (This paid off in July 2016 with being recognized as "America's Best Real Estate Agents" by Real Trends, a designation given to less than 1% of agents and teams nationally.) We already heard from Joe Houghton, the RE/MAX Results agent that leads this team. He is the one prominent reason this group is the best. It is his vision and plan that moves the team forward and inspires them to grow and reach their full potential not only as individual agents but as part of the team. The four other reasons this team is extraordinary are members, Derek Irving, Mike Milne, Andrew Klinkner and Paul Mcquire who make up the strength of this great team. Here are their stories.
Mike Milne
My real estate story is one of appreciation. This past year completed my third in real estate and by all accounting it was fantastic! Every transaction brings a new situation and challenge. This is the opportunity that allows me to evolve in this business. I’m inspired to learn and improve because I know this will result in better service for my next client as I help them with the purchase or sale of a home.
What I love most about my work is that each person I meet has their own unique story, and it is truly an honor to be part of their next chapter. Nothing feels better than knowing you are making a positive impact on a client's home purchase or home sale. Being a hero is awesome! Who doesn’t want to feel like one right?
Another reason I love my work is being a member of this team of good-hearted and dedicated people. They are always there to support you every step of the way, and given the pressures inherent in this business, it is a definite benefit. In Joe, I have a team leader that generously shares his knowledge and experience. He is a great motivator, inspiring me to grow in the business. Who doesn’t want to get better? I never want to be described as mediocre, I want to be great!
Given the market situation for the last 2 years, Realtors need to be aggressive in all aspects of pulling a deal together. There is a high level of urgency to not only find the right home but to see that property as soon as it hits the market. You have to be prepared to put offers together quickly and advise your client on how to be in a position to close the right deal. This urgency has certainly made me a better Realtor but I also realize it must be tempered with patience. Serving the best interest of my client is something I will never sacrifice for expediency. My motto in this business: my goal is not to sell my client a house, but to help them find their home. That is what motivates me in every transaction.
My goals for next year are quite simple. First to continue to love my work and be true to myself and my clients. Learn more, care more and focus on a dedication to providing the best customer service on the planet.
Client Recommendation
"My wife and I had Mike help us sell our home. He was very helpful and worked with us to make sure we had the home priced right and ready to sell fast. He did a great job handling negotiations with the buyer’s agent and made sure the sale went as quick and as smooth as possible. I would highly recommend Mike to anyone buying or selling their home. He is always generous with his time and was extremely knowledgeable about the market conditions. Buying or selling a home can be stressful, but I wouldn't know because Mike made the process easy and fun!"2017-02-03T13:48:00-07:002024-02-22T18:44:25-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:3073The Minnesota Property Group - A Twin Cities Success StoryThe Minnesota Property Group
Real estate is about stories. Each seller, buyer, home, and Agent has a tale. Real estate is undoubtedly a challenging and competitive business, and it's also exciting and rewarding. The one thing most agents agree on is that it takes dedication, grit, and hard work to break into the business and to become successful. Being part of a robust and supportive team can often differentiate between a story with a happy ending and the other kind.
One of the critical elements to any successful group is a robust, supportive and talented leader, like veteran RE/MAX Results agent Joe Houghton. As the Minnesota Property Group leader, he brought together like-minded and talented agents and one content and marketing professional to form his team. As Marketing Director for the group, Joe has been an inspiration that led me to challenge myself and go where I had never gone before professionally. We connected three years ago when I had been booted from corporate America, and he wanted someone to create content for his blog and website.
That tentative story that began on a cold January afternoon in 2014 has become a successful narrative still unfolding. I have never regretted that decision even once. Joe has a talent for connecting with people to help them live up to their potential. If there is a harder worker than Joe, I haven't met him yet. If there is a leader more willing than Joe to try something new or make improvements, we have not crossed paths, and in a state known for the kindness and generosity of its people, if there is a more likable human than Joe, I have not found him yet. Now, let's hear Joe's story.
Joe Houghton
As the team leader of the Minnesota Property Group of RE/MAX Results, it has been my pleasure to oversee the personal and professional growth of 5 successful Real Estate agents. What makes me most proud is that each of them consistently considers the needs of our customers as their priority. The golden rule of this team, to advocate for our clients as if they were members of our family, is always at the forefront of every transaction. Seeing that play out over 150 times this year as a win situation for both the client and the team is both gratifying and validating for me as lead Agent.
My favorite personal real estate story of 2016 actually started the previous year when I was working with buyers who found a home they loved but were not sure how the location would work for them in the years to come. They needed some assurance that if they wanted to sell over the short term, they could at least break even. I knew the negotiated price of $585,000 was a great deal in this area, and based on the fact that I believed the following year the home would sell at $650,000 if marketed correctly, I felt confident that I could give them the guarantee they needed to move forward. I promised them that if by the following year they chose to sell and did not at least get all the money back they put into the purchase of their home, I would market and sell it for them at no charge.
In early 2016 there was indeed a job change, and my clients wanted to sell. What followed was a month of home selling preparations, staging consultations, visits from our marketing team and content writer, three individual professional photoshoots, and 3-D virtual imaging. We set up a website for the listing. We hit social media with a blitz campaign on Facebook, Twitter, Pinterest, and LinkedIn and on The Minnesota Property Group website with a blog post dedicated to telling the story of this fantastic home. After four open houses, we received our first offer of $605,000. Even though the Agent representing the buyers pressured us to accept the offer with claims of being the neighborhood expert, having both lived in the area and practiced real estate there for 20 years, on my advice, we respectfully declined because now I was sure we could and would get more. We had a full-price offer for three days, two very happy clients, and one very grateful real estate agent later!
For me, real estate is not only about buying or selling homes; it's also about making friends along the way. Two other great stories that bear that out involve estate sales. This type of transaction can be very emotional when it consists of selling a family home filled with memories. In both cases, the families I worked with wrote me the most heartfelt letters of gratitude after the homes closed and the long journey to arrive there was over.
One family I helped needed to empty a huge house full of 45 years of personal belongings. I arranged and managed the sale of private property, cleaning, staging, and handyman repairs. All of the profits from the sales paid for the improvements, and in the end, we sold the house for $22,500 more than the highest price any of the six other agents they interviewed said they would sell it for.
The second family didn't believe that they would be able to coordinate the sale of the belongings, the cleaning and fixing of the house, and the marketing, selling, and closing without traveling to Minnesota. Through technology, trust, references, and professionalism, peppered with timing and hustle, we sold their home for $16,000 more than the next highest Agent suggested as a best-case scenario.
In 2017, my team and I expected to serve over 200 families and continue telling stories through our media and writing teams about the incredible homes we choose to market. We are very fortunate to work by referral only, and one primary reason I had such a fun year. Filling 60 hour work weeks with people who already know me or have been referred to me by someone they trust makes me keep loving what I do. This also allows me to spend some time following through on a successful and unique marketing strategy that realizes significantly more money for my sellers. Marketing someone's home is an art, and I am dedicated to my art.
Twin Cities Client Reviews
We had a fantastic experience working with Joe Houghton and Minnesota Property Group. Joe was exactly what we needed as a realtor in helping us find the perfect house for our family. He is diligent, hard-working, and takes the time to understand your needs. We toured homes in south Minneapolis several times with Joe over about five months (we were moving from out of town, so our outings were a bit spread out). Each time, Joe gave valuable insight into housing in general, market values, construction/quality, and potential sources of problems in the future. He also asked questions that helped us understand what we wanted out of a house and allowed him to further tailor our future outings. Joe is patient, a great listener, and can give more or less guidance depending on the buyer's style and preferences. We couldn't be happier with the home we ended up in! I would never hesitate to highly recommend Joe to anyone looking for a top-notch realtor in the Twin Cities. Thanks, Joe! -Ben H
Joe recently helped me sell my home and buy a new one. I'd met him a few months earlier at an open house when I was still in the thinking stages, and I was impressed--he was anything but your typical Agent, looking to snag new clients as they stroll in for an open house. He encouraged us to look around let us know he was there if we had questions but didn't get in our space. That was huge, as that style turns us off. When it was "go-time," I reached out to Joe, and he jumped all over my listing, advising every step of the way. We sold my house and found a new home within just a few days--and he was a true negotiator, representing my interests to the nth degree, all the while maintaining the highest integrity. In short, Joe is a real pro, and I've since recommended him to friends and family. - Ben O2017-01-26T12:39:00-07:002024-02-22T18:47:51-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:3069The 2017 Twin Cities Real Estate Market Gets a Thumbs Up2017 Twin Cities Real Estate Market Outlook
The 2016 Housing Market reached an all-time high nationally with a housing stock value $29.6 trillion, regaining all it lost in the last recession. When we look at the numbers for the Twin Cities, they tell the story of a market that strongly favored sellers with fewer and fewer homes for sale spending less time on the market and selling for higher prices. In spite of inventory levels being down 26.3%, we saw the year close out with pending sales up 4.7%, closed sales up 6.7%, with an overall medium sales price up 5.5% to $232,000. The single family market segment earned the highest gains in price topping out at $251,000 up 5.7%.
For buyers lucky and quick enough to close a deal for a home, their journey had a happy ending. For others it was a tale of frustration and disappointment, especially as the year closed with interest rates spiking up from 3.375% to 4.5% Still, buyers remain undeterred and with interest rates that have leveled off at about 4.125% many begin the new year with the hope they will be moving into their own home by spring. For sellers the past year can be likened to one continuous ode to joy with days on market in decline and, median sale price rising and percentage of asking price received topping 97.5%. With sellers in the Twin Cities still playing hard-to-get, the big question is will the threat of rising interest rates inspire them to finally make their move? If we do see an increase in listings will the market achieve balance or at least move us in that direction?
Predictions for Twin Cities Real Estate 2017
Now here is where I go out on the limb with my expectations for next year. One factor that looms over the market is with a new administration taking over this month, how is it going to affect the real estate in 2017. Right now there is a great deal of confusion, mixed speculation and uncertainty about the effect this will have on the economy, interest rates, and lending regulations.
Interest rates are still favorable currently just over 4% but not the bargain they were last year. It is believed the Fed will go up 3 more times in the coming months but even given that I do not anticipate rates to hit 5%. However, even a modest rate hike will force some buyers to be left out. The bright spot that might offset some of the increase in rates is that those who are getting FHA mortgages will be rewarded with a reduction of a quarter percent in mortgage insurance which should save the average borrower about $500 per year but we do not currently know if the incoming Secretary of HUD will keep this policy in effect or rescind it.
Additionally, rents fell 9 percent in the Twin Cities from November to December according to ADOBO. While it is still less expensive to buy a 3 bedroom home in the Twin Cities metro versus renting according to Realty Trac, if incomes do not rise as fast as median home prices in the coming year, and if rents continue to fall that situation could change and although we have several new apartment projects breaking ground this year in Minneapolis and the suburbs, they will be in the luxury category which will not take the heat of rental costs for more moderate end of the market.
Twin Cities Home Prices
Home prices are also expected to level off and I think it highly unlikely home values will see the increase in 2017 that we witnessed the past couple of years given the rise in rates. According to realtor.com economist Jonathon Smoke, 2017 will signify “a continued trend toward moderation with the foreclosure years finally behind us. Second, we’re now in record price territory nationally, so that is starting to have its own moderating effect.”
Given these market conditions nationally, the question for the Twin Cities that could be pivotal is how will the market end up balancing itself? Will more Twin Cities sellers see this as the absolute tail end of a market that favors them and with home values moderating finally make their move? I feel fairly certain that with each hike in the mortgage interest rate we will see less qualified buyers this year.
The other wild card is will more affordable rents become the trend, and how much insecurity will millennials feel about the change in government’s effect on jobs and the economy? Will this bring the balance to the market between supply and demand for housing in 2017? I don’t believe it will in the first few months. When we look at the first week of the new year and compare that to last year, we find new listings down 15.1%, inventory down 25.5% and pending sales 21.1% lower than the beginning week of 2016.
My 2017 Twin Cities Market Predictions in a Snapshot:
Interest rates will rise as the year progresses and force some first time home buyers out of the market
The effect of rising rates will be off-set by continued pressure on rents to rise especially for those with moderate incomes
Property values will increase but not at the rate we have seen over the past 2 years. I estimate about 3.5%
Inventory will continue to be tight in the 190,001 to 250,000 price range but will open up more in the higher price ranges as empty nesters continue to downsize and move-up sellers make their move to become buyers while interest rates remain attractive.
Overall I expect 2017 to be another good year for the market, though it will move a little slower in terms of rising prices and inventory levels and may become more balanced by the second half of the year.
Bring it on 2017 because I am ready! Feeling very positive and optimistic and looking forward to good things happening this year for the Minnesota Property Group and the Twin Cities Real Estate market.2017-01-19T15:49:00-07:002024-02-22T14:05:45-07:00Joe Houghtontag:mnpropertygroup.com,2012-09-20:2748The 2016 Twin Cities Real Estate Market – Hot or Not? How does the Minneapolis-St. Paul Real Estate market look for 2016
In case you haven’t heard, 2015 was a great year for real estate, and with home sales reaching a 10 year high, many industry leaders say the housing market has fully recovered. Now that we are several weeks into the New Year with the spring housing market hovering around the corner waiting to pounce on the Twin Cities, let’s take a look at January’s statistics and make some projections for what is ahead.
January Was Cold But the Twin Cities Housing Market Wasn't
The January real estate market in Minneapolis-St. Paul was strong with enthusiastic buyer activity, brisk sales, and rising home values setting the trend. Pending sales rose 3.5 percent, the median sale price rose 10.3 percent to $215,000, and the median list price climbed 6.1 percent to $259,900, a record high. However on the seller side we saw a less inspiring performance with the number of new listings declining 7.2 percent from last year which brought inventory levels down 22 percent and the lowest they have been since 2003.
Home Buyers in Minneapolis-St. Paul Aren't Messing Around
Buyers were serious and proved it by making offers close to asking prices. This translated into the percent of original list price at 95. With sellers giving this activity a “high five” cumulative days on the market fell to 85, down 15.8 percent, considered a lively pace for the month of January. Given the energy in the market and the decline in new listings, current inventory levels are at 2.1 months’ supply. Five or six months are considered a balanced market, making our current situation in the Twin Cities one that continues to favor the seller.
What Does 2016 Look Like for Twin Cities Real Estate?
So how will rising values, higher listing prices, higher interest rates and a low inventory play out in the real estate market this year? Even without a crystal ball, I can say that demand for housing will continue to be high as buyers see this as perhaps the last year to get a good deal on the purchase of a home. First time millennial home buyers continue to aspire to the dream of home ownership. Folks who have been burdened with foreclosures from 2009 will have them falling off their credit report and they will be entering the market. Baby boomers who have been waiting for home values to increase may see this as the year to make their move. Ditto for current home owners desiring a change in their current living situation.
Here in the Twin Cities a low unemployment rate, an active job market, rising incomes, and consumer confidence are inspiring more young first-time buyers to make their move. Data from the Bureau of Statistics show the Minneapolis-St. Paul metro had the second-lowest unemployment rate of any major metropolitan area at 3.1 percent compared to 4.9 nationally. Coupled with those factors we have high rents and a shortage of rental housing which continues to put pressure on their spiral upward. Banks continuing to ease up on credit requirements, and mortgage rates below 4.0 percent are still historically low, although expected to be marginally higher towards years end.
Minneapolis-St. Paul Housing Construction Will Increase
New construction starts were up 11.8 percent in the Minneapolis metro in the 4th quarter of 2015 with 2.2 percent increase in new home construction over the year. Housing starts in 2016 are expected to grow 4 or 5 percent, according to Metrostudy. How much this will relief pressure on the housing demand is questionable with just 16% of new homes expected to list for under $250,000. The rising cost of land and construction are causing a continued widening of the gap between existing homes to newly built to a range of $125K to $225K causing a lock out of most first time home buyers.
How Does Minneapolis-St. Paul Compare Nationally
A recently conducted national survey on real estate market trends for 2016 finds Minneapolis moving into the top 20 emerging real estate markets. It also shows the Minneapolis metro area as the highest-rated market in the Midwest and now ranked 18th in the nation. Minneapolis ranks 2nd in the Midwest for a positive market outlook. On a scale of 1 to 5, with 1 representing a weak market, 2 representing a declining market, 3 representing an average market, 4 representing an improving market, and 5 representing a strong market, Minneapolis scored a 3.94%, well within the improving market range. What does all this mean? The Minneapolis-St. Paul Real Estate market is hot!
If you are thinking of selling your home, given market conditions which are heavily leaning in favor of sellers, now would be an excellent time to do it and move up to a larger one, or downsize to a smaller one, or just move into a more convenient neighborhood or town where you always wanted to live. Buyers writing really good offers, higher home values, and shorter days on the market all point to a winning situation for today’s home seller.
Twin Cities Real Estate Market 2016 – Hot!
All indicators for the 2016 Real Estate market are positive and point to a great year for both buyers and sellers. Home values will continue to rise, interest rates will remain low at least in the first part of the year, credit will be easier to obtain, employment will be strong, and rents will remain high. This indicates a strong potential for overall demand to lift housing sales to the highest level since 2007. It’s going to be a great year!
Are you planning to buy or sell a home in 2016? I know making predictions is a tricky business. However, one thing I can predict for sure and that you can count on, is that my team and I are standing by and ready to make your buying or selling experience as seamless and stress-free as possible.
<br />2016-02-19T18:14:00-07:002024-02-22T12:04:22-07:00Joe Houghton