Real Estate Information

New Homes come with warranties to protect the buyer in case of the unexpected? But what about existing homes? Fortunately, there are a number of companies today who offer warranties on existing homes. Sellers can now offer their buyers a level of assurance that was previously reserved for new construction, and buyers can buy with confidence!

If you are in the market to buy or sell, ask us about the advantages of a home warranty. You might be surprised at how much protection is offered for a very reasonable fee.

According to a report published in March by The National Association of REALTORS®, the country saw a 3.9 percent month-over-month increase in sales of previously owned, existing homes. The Northeast led all regions with a 14.2% rise in sales in February, while existing home sales increased 1.6% in the South and 3.9% in the Midwest. Sales of existing homes remained unchanged in the West. The national median home price dropped to $212,800, which is a 1.3% decline from a year earlier.

Sales of new homes fell for the second consecutive month according to a March report by The Commerce Department. Sales of single-family homes fell 3.9 percent in February to a seasonally adjusted annual rate of 848,000 homes, which is the slowest rate in almost seven years. The decline follows another decline in January. Prices also fell in February to a median new-home price of $250,000, down 0.3 percent from a year ago. The inventory of unsold homes reached 546,000 units.

Economists say the difference between new-home sales and existing-home sales could be explained by a number of factors. New home sales are calculated from contracts actually signed in February when the weather was cold, while existing home sales reflect purchase agreements signed in December and early January, when the weather was unseasonably warmer in most parts of the country.

In the past week I have received a commonly asked question and I want to share my response with you.

I’m getting ready to close on my first home and wanted to know what actually happens at the “closing” and do I need to bring anything with me?

The closing is basically a meeting at which time all remaining documents relating to the sale are signed. The deed is transferred from seller to buyer, title insurance is paid, and the mortgage papers are signed by the buyer.

Things that you absolutely need to bring with you include:

All paperwork that was requested by the lender.

The insurance binder and a paid receipt for one year of Homeowner’s Insurance on the property.

A personal or cashier’s check in the amount to cover the closing costs - usually the amount on the Good Faith Estimate.

Picture Identification

If you have any questions about the closing process or real estate in general please give me a call.

Have a Great Day!

Did you know that mortgage fraud is running wild across the U.S., posing potential financial damage to homeowners and the local community. The FBI reports that the illegal activity can have a domino effect on the local housing market and the economy at large.

Here are some tips for recognizing and preventing mortgage fraud:

SELLERS

Get references for real estate and mortgage professionals -- and check them. Make sure they're licensed with the state, county or city.

Read and understand everything you're asked to sign, and talk to an attorney if you need something explained.

Be wary of offers to "save" you from foreclosure. You may pay thousands of dollars in fees without reducing or eliminating your debt and could even end up losing your home. Work with your lender instead, and insist on getting a complete set of the closing documents.

BUYERS

Be extremely wary of "no money down/cash back at closing" investment opportunities.

Do your homework. Check the sales history of the property -- several sales within a short period of time could indicate inflated values -- and have your own real estate agent or appraiser establish the value.

Deal directly with the lender or the mortgage broker. Do not let a third party arrange your loan.

If you have any questions in regards to Mortgage or Real Estate please give me a call.

Have a Great Day!

Lately several of you have emailed questions. I thought many of you would like to see the answers about three common issues.

Question # 1

What should I do If I'm stuck between two homes--one I'm trying to sell and one I've contracted to buy?

When this situation arises, you're normally left with two choices: putting both properties on the market to see which sells first, or cutting the price of the first property, taking your loss, and moving on.

Question # 2

What kinds of repairs are worth making before I sell?

The kitchen and master bath are the hot items for buyers in today's market. Consider doing fix-ups in the midrange. Don't go crazy by putting in granite and high-end appliances. Paint the cabinets, spruce them up with new hardware, replace dated light fixtures. In other rooms paint and replace worn carpet.

Question # 3

Is it bad if my house sits on the market for a long time?

It's not good, certainly, but market times are longer now than they once were. Generally, the first six weeks a home is on the market is the "hottest" time for a sale. So before you list your house, make sure that everything is in tip-top condition and that is priced competitively. If you do, you shouldn't have to worry about your house being on the market for too long.

Thanks to all of you who have sent questions. I look forward to hearing from more of you.

When listing a property, Realtors commonly refer to it as a "house." When showing the property, they often refer to it as a "home."

Why?

Buying a home is not "just" a purchase. Buyers are looking for a place to go after a long day's work, a place to raise a family, a private, safe haven. That is a "home," a place the buyer can envision calling his/her own.

Someday, you will sell that place you call "home." You have done countless things to make this your own personal safe haven. If you plan to market your home with all of your personal touches, selling may be difficult.

How do you let go of those things that make it "home" to you?

Letting go may be a difficult, if not painful, process, but it is very, very necessary. To sell your home effectively, you need to let go of many of your personal touches and begin to detach yourself emotionally from it. Potential buyers looking at it need to be able to imagine that this is their own home. You need to help them see it that way.

Begin by removing family photos and personal materials like trophies and awards. Clean the "junk" our of drawers in the kitchen and remove the kid's art work from the refrigerator. Remove accumulated items from the garage, basement, closets, and attic. Enable the buyers to see that there is plenty of space for their personal effects. Begin to plan your move by putting those personal effects and "junk" in storage. It will be waiting for you to make that next "house" your new "home."

If you would like more advice on selling your house or buying a home, please give me a call.

Currently there are 1230 home for sale in the Rochester Minnesota area. The average days on market is 137 with an average listing price of $244,848. The area showing the most activity were homes listed in the price range of $130,000 to $150,00. These homes had an average of 80 days on the market.