home buying advice

Buying a Home In The Winter

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 fewer homes for sale in the winter. However, it’s a fact there are fewer buyers than the other seasons of the year as well. You know, those that are not inspired enough to face the cold and are waiting for the spring. So for the spunky folk that will not be deterred by a little inconvenience like single-digit temperatures and a bit of snow will not be bumping into other buyers at open houses. They may see the home of...

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

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.

Go Above and Beyond

Let the sellers know your degree of commitment by upping the earnest money to 3% of the sale price. Doing so will instill seller confidence that you will not be likely to walk away from the deal since you have more money at risk. Another enticement is to make the earnest money offer non-refundable should you as the buyer cause the value to fall apart for any reason.

However, let me insert a caveat here. Consider the option carefully and talk it over with your agent and lender. You would need to prepare to forgo other contingencies to make this work.

It Isn't Only About Money.

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Here's How to Determine Offer Price When Buying a Home

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 factors will include the number of bedrooms and baths, price per square foot, age of the home, and condition.

When you find comparable properties, you want to compare the sold price to the listing price. Did most homes sell above, below, or at the listing price?

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Homebuyers Take a Closer Look Before Making an Offer

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,  bulging areas
  • Ceilings – water stains, damages, or sagging
  • Windows – open and close all the windows. Look for cracked panes, condition, and age of...

5 Ways You Should Never Compromise When Buying a Home

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

The place is one characteristic of a home you can't change or adapt to. You should make sure that the area meets your family's needs now and for the amount of time, you expect to own your home. There are a few factors about the location you should consider. So when you evaluate a street address, ask yourself these questions.

  • How is the school system rated?
  • What is the crime level?
  • Is this a...

Get Ready to Buy A House MN

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 homeownership experience is stable finances. A reliable source of income that can cover your mortgage, property taxes, and homeowners insurance should not be more than 30% of your gross monthly income.

Also, consider that debt will feel when you apply for a mortgage. If you carry a high amount of credit card debt and other consumer loans, you might want to pay that down before buying a home.

If you are currently living paycheck to paycheck and not putting anything towards savings, you are probably not ready to buy as yet. Work out a plan to cut back on expenses or increase your income. Setting up a budget might help you achieve your financial goals.


2. You Have a Down Payment

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Home Buying Advice MSP

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

Bad Advice. There are occasions when renting is a far better option than buying. If you plan to move in less than five years, you may not recoup what it will cost you to buy and sell your home. Renting may be a better fit for someone who would resent doing home chores like mowing the lawn and seasonal maintenance. Perhaps you travel a great deal for business, and renting a small apartment makes more sense personally and financially.

Good advice: One size does not fit all when it comes to the question of should you rent or buy. Evaluate your situation, personal preferences, and work-life balance, and make a decision based on what will work for you now.

Never Buy a House in Winter...

What is a Short Sale

Exactly 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...