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...
Twin Cities Real Estate Review
Even as we advance into the new year, we have one piece of unfinished business to conclude in 2019 before closing the books. The Twin Cities housing market numbers are out for December, and here is the story they told.
It’s a tale that is long in the tooth by now about a market that is struggling to find balance. Limited inventory at lower price points makes the real estate market in the Twin Cities a seller’s dream. Even in the face of strong demand and insufficient stock, millennial buyers are achieving the objective of buying their first home.
Housing Inventory
While new listings for December saw a gain of 3.9%, overall inventory levels were down 19.6% compared to December 2018. The townhouse segment, down 12%, lost the least inventory, while single-family homes were down 20.8%, and condos lost 14.2%. The month’s supply of inventory for December was dipped 21.2% overall. In the Twin Cities metro, we saw 1.6 months of supply for single-family homes (down 20%), 1.1 months for townhomes (down 8.3%), and 1.5 months for condos (down 11.8%).
Real Estate Sales
Closed sales in the Twin Cities were up 13% in December, and pending sales were up 8.2% compared to the same time from the previous year. The category with the most significant gain in sales was single-family homes, with the most robust sales falling in $500,001 to $1,000,000 pricing tier, up 17.2%
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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, ...
