Minnesota Homebuyer Blog: June 2009

Friday, June 26, 2009

June 2009 Real Estate Market Video Update--Continuing to Move Out of the Woods!

Continued low interest rates and the $8000 first time home buyer tax credit continue to build on the more positive trend and path out of the proverbial real estate woods for the Minneapolis/St. Paul real estate market. According to the Minneapolis REALTORS® Association's June Monthly Skinny, the positive signs continue that the Twin Cities market is moving out of the woods. Overall inventory is at 7.6 months currently (a balanced market would be 5.6 months). But while lender-mediated inventory stands at 5 months, traditional homesellers face double the competition with 9.9 months of inventory. The supply of bank-owned and short sale homes is down considerably. Another indicator that we are marking a path to recovery is that pending sales have increased for the eleventh month in a row….up 17% in May 2009 compared to May 2008. No doubt the $8000 first time homebuyer tax credit has played a role in energizing the Twin Cities real estate market.

Not to be out done by our friends on the west side of the Mississippi, the St Paul Area Association of REALTORS® (SPAAR) has a premier edition of their own Twin Cities real estate market video. In the just released, Market Beat, SPAAR indicates this is the perfect time for first time home buyers due to the trifecta of affordability, low interest rates and the $8000 tax credit! Lower inventory and more pending sales has had a positive effect on the sales price of area homes. To take a look at the entire May Market Beat, Click HERE to go to the SPAAR website. On the right side of the page look for the “Related Media” heading and click to view the entire video. (Hopefully SPAAR will be posting their informational videos on YouTube soon so I can embed and make it easier to watch…until then, this is the process.)

The positive signs in the real estate market are the entire 13-county area and the north metro is no exception. First time buyers have been in the market for the last couple of months and multiple offers on well priced homes under $200,000 has become common place. Just yesterday, I tried to set up several homes in the Hugo and Forest Lake area for a first time buyer….6 of 10 homes that they wanted to see were under contract, had offers or were sold pending inspection. As those first time homes sell, move-up buyers are finally able to take advantage of the market. I am continuing to field questions daily from excited first time Anoka County buyers on the specifics of this unique $8000 Tax Refund opportunity. (If you have a question call on the program, just let me know with a call or text to 651-336-7073 or just send a quick email.)

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in

acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Tuesday, June 23, 2009

Best Thing Since Sliced Bread for a REALTOR®? Testimonials from Happy Home Buyers& Sellers!

In the past, I have received numerous testimonials from home buyers ecstatic with their new dream home and happy parents of first time homebuyers. I love receiving these notes from clients…as most real estate agents do.

I recently started handing out a client satisfaction questionnaire. In addition to a 1-5 rating scale for service, I have some open ended questions on what my clients had to say about working with me. Here are a couple of responses that I received this past month. I LOVE this type of feedback…best thing since sliced bread, as they say.

“We were very satisfied with your service when we bought our home and will recommend you to our friends and relatives. The best thing about working with you is that you were very likable and NOT pushy!” Bob and Gail W. of North Branch

“After a period of internet research, I was impressed by the type of feedback you were giving everyone on selling their home.

You were straightforward, honest, down to earth and extremely hard-working. The fact that you were able to sell our townhome in the worst market in decades speaks volumes about the way it was marketed.

Teri, we couldn’t have chosen a better person to work with us. We were very pleased with the attention and effort you put into selling our townhome. Thank you. Thank you. Thank You!” Brian and Dawn O. of Chaska, MN

More Testimonial Articles that may be of Interest:

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in

Monday, June 22, 2009

Understand the Risk of Loss Clause--Know WHEN a Contract be Cancelled if Severe Weather Damages YOUR Dreamhome!

Imagine for a moment the following scenario: After months of searching for the perfect place to call home, you wrote an offer on a picture perfect lakeshore rambler in Ham Lake, Minnesota. After a little negotiation, the offer was accepted and with the inspection over, you are on schedule to close in 60 days.

Three weeks prior to the closing, straight-line winds blow through Anoka County. Concerned, you drive up to your dream home and see that the picturesque oak trees that had given the home character have been uprooted. Worse yet, one of the huge trees fell onto the house severely damaging the roofline. You are devastated as this was no longer the dream home you wrote an offer on a few weeks ago. So, what happens now?

Risk of Loss is one of those "boiler plate" clauses on page four of the purchase agreement used most often in the State of Minnesota. Being preprinted, some agents and/or their clients will gloss over this clause but it is very important to understand, as is every other line in the document you sign to buy a home.

Line 147 clearly states that the risk of loss due to any reason whether an act of God or the acts of vandals will be the responsibility of the seller from the time the purchase agreement is signed until the date of closing. That means if there is a fire or accident the seller is required to bring the home into the condition that it was in at the time the contract was written and signed.

So if that temperamental decade old dishwasher goes out, the seller would replace it. If a neighbor backs over the mailbox at the end of your driveway, it is the seller who must repair the post and replace with a new one. Final walkthroughs are essential to ascertain the condition of the home prior to signing the closing documents. But what happens to those irreplaceable picturesque trees that have fallen on the roof?

Three weeks prior to a closing, there could be plenty of time for the seller to call their insurance company and have the home repaired. But is it the same house? And more importantly, does the buyer still have to buy the home? In a word, no.

The clause goes on to say that in the case where there is substantial damage to the home or property, it is the buyer's option to cancel or continue with the purchase agreement. In the situation outlined above, which was a real situation that occurred last summer, the landscaping was changed and could not be replaced. The damage to the home caused an insurance claim that would now be reflected in a CLUE insurance report that could affect the ability to insure the home. The buyers opted to cancel the contract as was their option in the clause with all earnest money refunded.

Risk of loss can come up when buying or selling a home during severe weather season in Minnesota. In most cases the repairs are made quickly to both the buyer's and seller's satisfaction and the contract will close on time. But when the property sustains significant damage, the buyer has the option of continuing to closing or walking away from the deal. Boilerplate or not, Risk of Loss is an important clause to understand when buying or selling a home.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in

Sunday, June 14, 2009

Anoka County Lakeshore, Acreage and New Construction Foreclosures that are Move-In Ready for Homebuyers!

Looking for a foreclosure, bank-owned or short sale but need to be able to live in the home immediately after closing?

Good news is that foreclosures are no longer always trashed, fixer-uppers. Today's foreclosures can be simply AWESOME! This economy has forced builders and responsible homeowners alike to let amazing properties go back to the bank. Many are still in pristine condition. Some still may require a bit of cleanup or a few cosmetic changes but there are many in move in condition too.Here are a few of the treasures I noted on the Twin Cities MLS in Washington County this weekend:

New Construction Foreclosure on Coon Lake! 60ft of shoreline and brandnew 4BR/2BA on north side of Coon Lake in East Bethel. Builder listed at $600K;bank prices nearly ½ off at $309K.
Million Dollar Exec Home in the Lakes. 5600 sq ft of luxury! Blaine 2 story with 5BR/5BA foreclosure priced under $615K.
4000 Sq ft 2 story on Ham Lake acre. 3BR/3BA with upgrades. Builder sold for $469K in 2003. Bank asking $285K
4+ Beautiful Acres and Huge Master Suite in Columbus. Originally sold in 2003 for $295K…Bank asking $170K.
East Bethel Acreage with underground sprinklers, master suite and 4BR on one level. 4BR/4BA with 3 car built in 2005 and sold for $393K just listed this weekend by bank for $238K!
Bank-owned New Construction 5BR/4BA Rambler in Ham Lake. Executive home with 5 car attached garage. Tax valued at $589K bank asking $499K includes heated garage, wet bar, landscaping!
3BR/3BA Brand NEW St. Francis Townhome for under $100K! Former model with 1400 sq ft finished with possible seller appliance allowance. Originally priced at over $200K.

If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.

Seven Tips for homebuyers considering a foreclosed home:

Banks LOVE clean offers. Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won't be considered.

Banks reject lowball offers...often with no negotiation. They are a business and know the value of the asset they are selling.

Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first.

Banks sell homes AS-IS. What you see is what you get. Buyers must be prepared to make all necessary repairs out of their own pocket after closing.

Banks will not pay for inspections in most cases. This includes the septic system and/or well. Be prepared as all inspections could end up being the buyer's responsibility. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500.

Personal property is not included as part of the sale. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don't guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace.

Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank. In many cases, the bank will not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the bank...the listing agent is required to tell the bank everything that you say about your financing and the amount you are able or willing to pay. But the agent is not required to tell you anything in return. The agent works only for the bank.

Buying a Home? Check out my new HOME BUYER'S BLOG!

Unexpectedly Amazing Bank-Owned Homes on Lakeshore, Acreage and throughout Washington County!

2003 Built Forest Lake 2 Story. Picture-perfect 3BR/3BA/3Car home with over 2100 square feet of living space finished and unfinished basement. Last year listed at $425K bankpriced at $255K.

4BR on one level 2Story in Landings of Summerfield Forest Lake. Built in 2006 with all the bells and whistles…Master suite, granite counters, maple cabinets. Tax valued $430K…Bank asking $309K.

Lakeshore Beauty!! Almost 4700 sq ft finished, 6BR, 2 story with bank of windows to view Forest Lake. Previously listed at 700K, bank listed for under $460K.

2BR/2BA end unit townhome with vaulted ceilings in Forest Lake. Originally sold in 2005 for $173K…Bank asking $119K.

Rambler on 1/2Acre with Egg Lake View in Hugo! 4BR/3BA with 3 car built in 2005 and sold for $539K now asking $449K and not even in foreclosure!

4BR/2BA on 5Acres in Hugo. Sold in 2006 for $345K bank asking $180K includes seller pd new septic system!

New Construction Home in Victor Gardens Hugo with 2100 sq ft finished tudor with creek view priced originally at just under ½ a million but bank has listed for $369K.

West Lakeland Executive 2.8 acre Estate. 4BR/4BA/3car 2story home with nanny’s quarters and inground pool. Originally asked $900K, bank priced $580K.

If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.

Seven Tips for homebuyers considering a foreclosed home:

Banks LOVE clean offers. Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won't be considered.

Banks reject lowball offers...often with no negotiation. They are a business and know the value of the asset they are selling.

Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first.

Banks sell homes AS-IS. What you see is what you get. Buyers must be prepared to make all necessary repairs out of their own pocket after closing.

Banks will not pay for inspections in most cases. This includes the septic system and/or well. Be prepared as all inspections could end up being the buyer's responsibility. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500.

Personal property is not included as part of the sale. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don't guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace.

Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank. In many cases, the bank will not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the bank...the listing agent is required to tell the bank everything that you say about your financing and the amount you are able or willing to pay. But the agent is not required to tell you anything in return. The agent works only for the bank.

Are YOU ready to get a GREAT DEAL on a foreclosed home? Let me be your professional REALTOR®! If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Thursday, June 11, 2009

100% Financing IS AVAILABLE for Chisago County Buyers: The USDA Rural Development Program

Home buyers with limited funds for a down payment are in most cases required to scrimp and save for that first house again. Conventional mortgages can require 5, 10 or 20% for a down payment. Even government backed FHA loans will require that buyers have a minimum of 3.5% of their own funds to invest in their home. Our veterans have always had a wonderful zero down program available and the VA loan program is still a great option to those who have served our country. But for other buyers trying to come up with the minimum 3.5% down payment required by FHA or 5% down for a conventional loan is a road block to in their path to a new home.

There is good news for those considering buying a home in Chisago County. Most communities in Chisago County are designated rural areas and qualify for the zero down option, Rural Development Program through the USDA. Best of all this is NOT a program just for first time home buyers…Anyone can take advantage of the program if the home and your income meet the requirements.

Now when some people hear "rural", they immediately conjure up a picture in there head of an old-time farm in the middle of nowhere. Nothing could be further from the truth! According to the USDA Rural Development website, the program was created to "build stronger, more vibrant rural communities across the nation." This unique housing loan program does apply in many counties in the north and east metro that aren't so far from the cities and they don't have to be farmsteads either! Communities in Isanti and Chisago Counties including North Branch, Stacy, Chisago City, Lindstrom, Shafer, Taylors Falls and many others can possibly qualify for this program. If you are considering buying a home in any of these communities, it is a great program to look into. But very few loan officers really know the ins and outs that make a program like this work.

I do work in several of these communities and have shown homes in these areas of the past few weeks. The deals throughout Lindstrom and North Branch are nothing short of amazing. Homes that are 5-6 years old are being sold for $30-50K less than just a year ago! In Lindstrom this week I have seen a number of 5-6 year old homes with 4 Bedrooms, 2 Baths, 3 car garages and ½ acre yards for well under $200K. Beautiful homes in move in condition…And with the USDA program they are available for ZERO DOWN!

My go-to Minnesota loan expert, Mary Chris Gallo, is one such person. She knows I work with buyers and sellers all over Chisago County and the north and east metro so she gave me quick lesson on this unique CONVENTIONAL LOAN program. Some of the features and benefits include:

· NO down payment

· NO monthly PMI

· The seller is allowed to pay all reasonable closing cost and prepaids up to 6%

· NO hit to the interest rate for the zero down

· NOT just for first time home buyers

· No reserves needed

There are income limits to the program. These numbers have recently increased to allow more potential buyers to take advantage of this unique opportunity. For households in non-high cost areas, with up to four people, the income limit is $70,750. (Yes, your teenager’s income from a job at the local fastfood chain will be included as would be your retired mother’s social security payment if they are living in the home.) In households where 5-8 people reside, the income limitation is $93,400. These income limitations are guidelines and, in some cases, may be exceeded.

Understanding the restrictions is essential but the benefits to the program are enormous! If you are considering a home in Chisago County, plan on speaking with a qualified loan officer that understands the rural development loan program before starting your home search. You could be able to afford more home than you expect. Likewise, working with a REALTOR ® that knows understands the current market conditions of the communities within this program are just as critical to your dream home becoming a reality.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in

Monday, June 1, 2009

Pohlad Funding Update…Plan Ahead when Planning to Use this Funding

6/2/2009 UPDATE: Application is on-line as of today!

Buyers that want to take advantage of the up to $8000 in special funds available for the 55106 and 55411 zip codes made available by the Pohlad Family Giving Foundation need to do their homework and plan ahead.

As of today, the funding is NOT yet available at the Dayton's Bluff Neighborhood Housing Services of St. Paul (DBNHS). I spoke with a representative of DBNHS last week who said that the funding should be in place any day now but applications cannot be accepted for the program until the funds are received.

Once the funds are in place DBNHS will start accepting on-line applications but be advised it will take 30 days to process the application and first time homeowners are required to take a class before the funds are distributed. The funds will be distributed as a seven year forgivable loan so it cannot be retroactive to your purchase. If you were planning to close on your property at the end of June or first part of July, this may be a problem if you expect to use these funds.

The representative at the DBNHS advised to keep watch on the website as the link to the application will be posted as soon as the funds are available. Also remember there are limited funds available and this is a first come, first served program. When the funds are gone, the program is over so it will pay to stay vigilant if you want to take advantage of this unique opportunity.

Need MORE information?