Real Estate News for Rochester MN and Surrounding Communities

Beth Nordaune

Blog

Displaying blog entries 61-70 of 73

Avoiding Mortgage Fraud

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!

Real Estate Q&A

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 is house not a home?

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.

Market Update for the Rochester MN area

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.

www.blogtopsites.com

Real Estate Blogs - Blog Top Sites

What is the Multiple Listing Service (MLS)

Basically, the MLS is a big property warehouse - sort of like a "home depot." When property is available for sale, it goes in the warehouse. When it is sold, it gets taken out of the warehouse.

Since real estate cannot actually be stored in a warehouse, the MLS only contains information.

So the MLS is actually a database - an extremely convenient way to know what is available for sale at a given moment. That is why real estate agents developed the MLS. Quick knowledge of home inventory made agents more productive.

Why the MLS works for home sellers:

The whole MLS idea is a boon to sellers because of "supply and demand."

How can you, as a seller, get access to the largest number of buyers? Placing an ad in a newspaper? Or putting your home information into a computer accessible by every MLS member who will show your property to their qualified buyers in your price range?

Being placed in the MLS expands a home seller's sales force, exposes the property to a larger pool of prospective home buyers, and creates more demand for the property. The higher the demand, the more pricing power enjoyed by the homeowner - and the quicker a home will sell.

Why the MLS works for home buyers:

It is extremely convenient, does not cost a penny to buyers, plus...

...you get a qualified and experienced guide to help you through the complicated process of becoming a homeowner.

When Your Selling Price is too High, Beware!

Meeting With Realtors

So you’re selling your home and have a fairly good idea of its value. Being a sensible home seller, you set up three appointments with local listing agents who’ve been hanging stuff on your front doorknob for years. Each Realtor comes prepared with a "Competitive Market Analysis" and they each recommend a specific sales price.

Amazingly, a couple of the Realtors have come up with prices that are lower than you expected. Although they back up their recommendations with recent sales data of similar homes, you remain convinced your house is worth more.

When you interview the third agent’s figures, they are much more in line with your own anticipated value, or maybe even higher. Suddenly, you are a happy and excited home seller, already counting the money.

A Sales Practice Called "Buying a Listing"

If you’re like many people, you pick Realtor number three. This is an agent who seems willing to listen to your input and work with you. This is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right?

After all, everyone else does it!

The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing." He "bought" the listing by suggesting you might be able to get a higher sales price than the other agents recommended. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price.

Why do some agents "buy" listings this way?

There are basically two reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value. On the other hand, there are some agents who engage in this sales practice routinely.

8 Myths About Your Credit Score

Your credit score is one of the most important pieces of information in your financial life. You should probably know the truth behind some of its most common myths.

Myth 1 - You have one credit score. Actually you have three, one from each of the three major credit bureaus. These score can vary by 50 points or more, so make sure to check all three.

Myth 2 - Checking your own credit will lower your score. You can check your score as many times as you want without any impact. Just make sure you check it through a legitimate source like www.myfico.com rather than a car dealership.

Myth 3 - Your age, income and sex are factored into your score. None of this information has any affect on your score.

Myth 4 - A higher salary will boost your score. Earning more money will not improve your it, only by paying off debts can you improve you score.

Myth 5 - To remove unfavorable info just dispute it. If there is information in your report that is legitimately inaccurate, you should by all means dispute it. Getting rid of inaccurate information can sometimes improve your score dramatically.

Myth 6 - Shopping around for a loan hurts your score. While it’s true that too many inquiries to your credit will lower your score, you absolutely can shop around for a mortgage, home equity loan or car loan without worrying about damaging your credit. As long as the same kind of inquiries are made within 14 days of each other, they count as one inquiry on your credit score.

Myth 7 - Credit card offers are hurting your score. Credit card solicitations, while annoying, don’t affect your score. Myth 8 - When you get married your credit scores are merged. Your credit score will always be “your” credit score.

Spring Cleaning Time

4 Easy steps to reclaim your home from the clutter and disorganization.

Amid the endless piles of laundry, dishes, forgotten bills, and overdue library books, you have a house. A house you would desperately love to show off with pride. It makes you depressed even to think about how to get this mess organized. You feel your only hope now lies in the chance that one of your horrified relatives will recommend you for a cable show home makeover. While you are waiting for that lightning bolt to strike, let's try instead some simple steps and ideas to help you make your home into a place that allows cleaning and organization to be easily achievable.

Step 1: Analysis of Areas

Grab a spiral notebook and a pencil. Take a few minutes and mentally survey each room. In your notebook, jot down the problem areas in the room, putting one problem on a page. You will need the rest of the space on that same page for the following steps. The items on the paper should be parts of the room that really bug you, or that your family finds impossible to keep neat.

2: Analysis of Reasons

For each of the problem areas in a room, figure out why the disorganization and mess is happening. I find this most easily done if you are actually in the room you are surveying. All answers are acceptable here, including the fact that you live with slobs. Usually there is more than one reason why an area of your home is continually unorganized.

Step 3: Solutions

Now comes the fun part. Lets find ways we can fix the problems. Think about habits, behaviors, and tools that can make those messes disappear. Do you need some sort of a tool for organization to help your problem? Is the problem a habit that just needs to be enforced and practiced? Is it a combination of containers or tools and habits that need to be changed? Many of the problems you will encounter will require organizational tools and behavioral changes. Keep in mind that the best organizing system of shelves, hooks, and labels does no good if it isn’t utilized.

Step 4:Implementation.

Begin by making a list of the tools needed from your lists of solutions (Step 3). Buy the tools that you need and set them up in their new home. Warning: organizational tools will not help if you do not use them! You must also start to implement the behavior changes associated with keeping the mess clean.

Keep yourself and your family honest by reviewing the room with your list in hand once a day. It may be best to do this at the same time each day. If it was done right before dinner, the family could then discuss problems or successes over the meal.

If you have substantially more work to do, do not expect that you will be able to instantly do the changes that you desire, especially if your solutions involved hundreds of dollars of organizing equipment. It may be necessary for you to pick one room at a time to overhaul. Follow the same steps for the overachievers above who are already almost perfect. If you have a lot to do in one room you may have to set aside a Saturday to put together and install shelves, racks, etc. Try to involve your family as much as possible. Add other rooms and areas of your home as you see how you and your family maintain the ones that you have begun. If you are diligent there may actually be a day when someone says, “Have you seen my…” and you will be able to answer, Yes!”

Aging Boomer population affecting housing market

Here's a very interesting article from Kare 11: http://www.kare11.com/news/investigative/extras/extras_article.aspx?storyid=241979 If you have time watch the "Extended interview with Glenn Dorfman with the Minnesota Realtors Association" click under the photo of Glenn Dorfman on the same page. I highly recommend it!

Contact Information

Photo of Beth Nordaune  Real Estate
Beth Nordaune
RE/MAX of Rochester
4600 18th Ave. NW
Rochester MN 55901
Direct: 507-287-7755
Fax: 507-288-9022