It May Not Take a Village But It 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 are going to have lots of 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 so you can 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...
Real Estate is a Year-Round Business
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,...
Buying Your First Home
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...
July Kicks Off the 3rd Quarter
There are currently numerous factors that affect the housing market. However, right now more than anything, it is the consistent lack of homes available for buyers in the lower pricing tiers. This fact holds true both in the Twins and in most markets across the nation.
It’s significant that while home values are still increasing, it is at a slower rate more closely matching income and wage growth. While you may be frowning if you are thinking about selling your home in the future, the alignment is healthy for the market. We all knew that sharply escalating prices for homes could not continue indefinitely.
Housing Market Trends Consistent
While we continue to see constraints on available homes for sale in the first-time buyer level, the market is becoming more balanced as we move up to higher price ranges. So sellers are still enjoying a market that favors them under $500,000.
Meanwhile, lower interest rates are helping to continue to make housing affordable in spite of the rising prices. Even though new listings were up 1.8 percent over July of 2018, inventory levels in the Twin Cities fell 4.4 percent. In spite of the fact, demand remains strong with closed sales up 4.5 percent and pending sales up 3.2 percent.
Although prices are not rising as quickly and steeply, the median selling price was up 5.9 percent over July of last year and up 7 percent as a rolling 12-month comparison....
17035 32nd Avenue N, Plymouth MN 55447
We found a treasure of a home in Plymouth, and we are excited to share it with you. This 2700 square foot residence sprawls lavishly along a circular drive, surrounded by enchanting gardens of flowering perennials, shrubs, and trees.
This home is meticulous and lovingly maintained by the current owners since 1973. It’s easy to see why they moved in and never wanted to leave. This property has so much to offer in terms of lifestyle, comfort, and location. Let us tell you some of the features we love about this home.
Plymouth, MN has been on America’s Best Places to Live list on three occasions and once including winning the #1 spot in 2008. With an outstanding location 12 miles northwest of downtown Minneapolis, extensive parks and trails, several bodies of water for recreation, convenient shopping and entertainment, excellent public and private school options, it is not surprising that it is one of the sought after western suburbs.
Right around the corner from this home, you will find a wide variety of shopping...
Buyers Be Aware
Forget the spin. Take off the rose-colored glasses too. Let’s be honest. Most buyers hoping to score a home at the lower pricing tiers of the current real estate market, 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 make an offer on a hot property as quickly as possible. That means you should not even consider making an offer on 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. ...
Look Past the Pretty Package
At times 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 home should be a major consideration. Hopefully, unless expensive, unforeseen repairs are part of your plan, you are going to 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 condition of the home yourself.
Don’t set the stage today for financial regrets later.
Now there is no way I am saying that refinishing floors, painting or other minor repairs should be dealbreakers. But if there are too many items that fall on the fix list, added all together 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 as well, costly repairs can quickly lead to regret.
Look before you leap.
Who Cares About Your Credit Score
By the time you experience initiation into the adult world, you've probably heard the term credit score. It’s a number you should be concerned about because other’s will be. They will use it to judge your ability to pay back a loan.
So who cares about your credit score exactly? Credit card companies, banks, mortgage brokers, cell phone companies, insurance companies, and landlords, to name a few. Some companies even want to look at your credit score before offering you a job to see how responsible you are.
How is Your Credit Score Calculated
Your credit score is a number that captures your creditworthiness based on your credit history. Three major credit bureaus, Experian, Equifax, and TransUnion, track your...
Buying a Home in Today's Market is a Challenge
You are rooted in the trenches in your quest for home ownership. 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. ...
Minneapolis-St. Paul Big Picture
The Spring Housing Market is in play. Prices are on the rise as inventory levels continue to decline. Hopeful buyers in the lower price range are jumping on desirable properties hoping their offers rise to the top of the heap.
Months supply of inventory is improving in the mid-price housing range. We see steady sales activity in the higher price ranges while in the lower tiers buyers are still finding that landing a deal on a home to be a challenge especially for desirable homes in sought after locations.
What’s Up and What’s Down
Compare new listings to April of last year; we see an increase across the 16 county Twin Cities region of 4.5%. Closed sales were down 6.9% while the median sale price rose 5.2%. Pending sales were also down 1.1% and inventory levels 1.2% lower.
April weather was wintery at times, which discouraged buyer traffic and slowed sales. This trend was seen across Minneapolis as well as other parts of the nation. Higher prices, less affordability, and low inventory combined forces to dampen sales.
Let’s Dig a Little Deeper into the Housing Stats
While the median sale price rose...
It Isn’t a Race – Take Your Time
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.
Certainly, 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 the setbacks of life. 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
The Ups and Downs of the 2018 Housing Market
The 2018 housing market has sure been a wild ride. The year began with rapidly rising home prices and low mortgage interest rates. Bidding wars were the norm for highly desirable homes. It was not unusual for sellers to find a buyer in the first few days after putting their house up for sale, generally at full asking price or even above. Sellers were riding high while buyers struggled to close a deal on a home.
But in the last few months of the year, we begin to see a shift in the market. Prices are finally stabilizing or increasing at a slower pace. Interest rates reach 5.2 percent, an 8-year high. Though now rates have fallen back to 4.59 as a benchmark for a 30-year fixed rate mortgage. The market still favors sellers but to a lesser degree.
2017 compared to 2018
- new listings down -0.3%
- pending sales down -3.6%
- closed sales down -3.4%
- overall median sales price up +7.7%...
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 home ownership, 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, so you don’t 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 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...
Minneapolis-St Paul Housing Overview
As we approach years’ end, we see some subtle changes in the Twin Cities Metro housing market. The increase in inventory of homes for sale was10.5 percent over last month giving home buyers something to rejoice. This inventory boost by is by no means enough to bring the market into balance but does bring us closer. For consumers who have been trying to buy a home for several months, it was welcome news.
What’s Up and What’s Down
As we compare November of this year to November 2017, we find new listings up 12.6 percent, closed sales down 0.9 percent, the percentage of list price received down 0.1, and the median sale price of $265,150 up 8.2 percent. Meanwhile, pending sales were down 5.2 percent, inventory levels rose 2.3 percent with months supply up 10.5 percent. Days on the market fell 7.1 percent.
So while inventory is increasing and sales are decreasing, we are seeing more price reductions and fewer deals closing for full price offers. Although housing prices are still higher than last year, they appear to be slowing down. Properties for sale are still spending less time on the market than last year, an indication that demand is still robust, and buyers are scooping up homes quickly....
The Minneapolis-St Paul Housing Market Overview
As we look at the Twin Cities Housing Market Statistics for the first month of the final quarter of 2018 the one thing that hasn’t changed for months is the shortage of properties for sale in the lower end of the market. With so few homes that fit their budget, coupled with rising home prices and interest rates, would-be buyers continue to struggle with fulfilling their dream of ownership. Homes at this price range are still selling quickly, but we are finally starting to see that shift we have been talking about, in market conditions overall as we look at narrowing gaps in year over year data for sales, inventory, and price.
What’s Up Doc?
As we compare October of this year to October 2017, we find new listings up 9.2 percent, closed sales rose 3.4 percent, the percentage of list price received up 0.2, and the median sale price of $265,000 up 8.6 percent. Meanwhile, pending sales were down 1.7 percent, inventory levels dropped 2.2 percent, days on the market fell 7.7 percent. In summary, in the Twin Cities 16 county metro at least, we are still experiencing fewer homes on the market taking less time to sell with prices even on an upward trajectory.
What About the Economy?
Our local economy remains strong. The ...
5315 Howards Point Road, Shorewood, Minnesota 55661
Lake Minnetonka 2.22 acre estate featuring 250 feet of shoreline
6 Bedrooms and 9 Baths, 9075 Square Feet
Proudly offered at $5,750,000
A Majestic Presence on Lake Minnetonka
Sitting majestically on the shore of Lake Minnetonka in Shorewood is one of the area’s most breath-taking homes. It’s so grand; you might expect to see Prince Harry and Meghan Markle walk into the grand foyer for an evening of cocktails and dinner. It’s a home that would feel comfortable with heads of state, titans of business and industry, and world-renowned celebrities of every genre.
5901 Chowen Ave S
4 Bedrooms, 2 Baths, 2,350 square feet offered at $449,900
Who says you can’t have your cake and eat it too? Tucked away in a lovely neighborhood of Edina we fund a delightful mid-century rambler. This fabulous tastefully updated family home has all the amenities on today’s family wish list.
You cannot beat this location. Edina is one of the most desirable 1st tier suburbs of Minneapolis. The new owners will appreciate the easy access to both Highway 100 and 35 and the Crosstown. Surrounded by parks, lakes, shopping, fun, and food with a 15-minute commute to downtown Minneapolis, what more could you ask for? Great Schools? You have that too. Edina has a nationally recognized school system which has been a magnet for families with kids over the years.
2860 Zanzibar Lane N Plymouth, MN.
4 Bedrooms, 3 Baths, 2148 Square Feet, Offered at $374,900
Open House: 9/16 11:30 AM - 1:00 PM
If you are on a search for a home in the award winning Wayzata School District we’ve got you covered. This stylish tri-level home is open and bright and offers warmth, charm, and comfort coupled with modern functionality. All the features and amenities on most buyers’ wish list are present in this well-appointed home, and you will love the improvements and updates that have recently been done by the current owners.
Four bedrooms and three baths on three levels of beautiful living space offer your family lots to enjoy. Its excellent location is convenient to highways, shopping, parks, and recreation. Located in the sought after neighborhood of Mapledell, this outstanding home is right off the Maple Creek Trail and Park. Did we mention your kiddos would attend ...
First Time Home Buyer Options in the Twin Cities
It’s an indisputable fact that buying a home today is a complicated process. It can be especially intimidating for a first-time buyer. Also, there is a severe shortage of inventory in the category of entry-level homes making the transition into homeowner a challenge. The home buying process in the Twin Cities Metro is not as simple as searching for a house, finding one that suits you, making an offer and going to closing. Although these are indeed the basics, it is not the complete picture. There are a lot of pesky details that are not understood and become fertile ground for the seeds of mistaken beliefs. The topic that seems to represent the most confusion is obtaining a mortgage. Let’s take a closer look at some of the most common myths about mortgage eligibility.
First Time Home Buyer Mortgages and Myths
Many people still believe you need a 20% down payment to buy a home in MN. No, you don't. Although a buyer needs to put 20 percent down on a home to avoid paying Private Mortgage Insurance, most can buy a house with much less money. When you look at real estate market statistics for home buyers in MN, the medium...
1512 Fairfield Rd S, Minnetonka, Minnesota 55305
Offered at $524,900
Open House: Sunday 8/12 2:30-4:00 PM
If you are looking for a great family home in a sought after community with excellent schools we have the perfect choice for you. Consider this gracious and elegant three bedrooms three bath residence in Minnetonka. With 2376 square feet of living space this traditionally styled two story home not only fits the needs of a family but is also the perfect setting for entertaining.
Prepare to be inspired by classic style with undertones of warmth and contemporary elegance. From your first glimpse, it is obvious this home is meticulous. We are very impressed, and you will be too!