Buying a First Home? Define YOUR Dream!

Minnesotans are fortunate to live in an area where housing is affordable. Couple that with the low interest rates and first time buyers who live in the Minneapolis/St Paul metro have opportunities to buy that aren't available in other parts of the US.

However affordable, buying a first home can be quite intimidating. Understanding the difference between a lender mediated short sale,  a bank-owned foreclosure and traditional sale is essential. The Twin Cities market still has some distressed homes in the market but there are abundantly more traditional and new construction sellers too.  From Forest Lake to Blaine to Hugo and White Bear Lake, there are homes in all shapes, sizes, price ranges and conditions. 

Savvy home buyers will educate themselves using the wealth of information that is available online, but there will come a time to view the home in person too and many first time home buyers get stuck on what is the first step to buying a home. But I can help...and surprisingly, it is commission FREE!

I love assisting first time home buyers!

The thought of owning a first home is exciting and that excitement bubbles right out of these home buyers. Most will have a picture in their heads of what their dream home should look like.  Part of my job is to help draw out that picture and locate a home that will fit their dream. But each dream is different.

• Is it a little bungalow with the white picket fence?

• A new trendy condo in the heart of downtown St. Paul?

• Or maybe a vintage, fixer-upper to renovate and build equity?

As a REALTOR® working for home buyers, I work with you to define YOUR dream. But my service while invaluable is FREE!  It doesn't cost buyers one cent in commission to have representation but and is received is priceless!

As the real estate market in the metro becomes more balanced, there still are options in almost every price range for a homebuyer to consider. So how does a buyer narrow down the choices? 

Working with a professional real estate agent can help. The first step is always to get pre-approved for a mortgage to define an affordable price range and mortgage program. As a REALTOR®, I work with loan officers and can direct you to someone who is experienced and professional. Once we understand the financial parameters, my job really begins. I work hard to understand my client's needs and lifestyle so we can find the perfect home.

One of my favorite ways to assist buyers is to ask questions that help define their dream...What is most important their home? I take this beyond the number of bedrooms and baths or how many garage spaces. I want to know how do they really plan to live. By taking the time to talk with my buyers about their lives and what is important to them, I better understand their needs and wants in a property.  By taking a short, lifestyle inventory, I focus in on what makes up an ideal house. 


Once home buyers have outlined their needs and wants, putting a priority on the NEEDS of course, the list of potential properties can be narrowed down to good potential options. By understanding what my buyers' picture perfect home is, I help them stay focused and avoid wasting time with homes that don't fit the dream. It most cases it's not long before one house will stand out as the "perfect" home to make an offer on.

Copyright 2013 www.terieckholm.com

The BIG Affect a Rise in Interest & Price has on Home Affordability

 

(Or Why NOW may truly be the best time to buy a house.)

For a number of years the housing market in the Minneapolis/St Paul metro has be extremely affordable. Even with the rise in housing prices since the beginning of the year, our market continues to be affordable compared to other areas of the country. A home buyer can find a very good quality starter home for under $200,000 in the Twin Cities if they are flexible with their location. But that appears to be changing.

Housing prices are on the rise across the metro area. And, interest rates won’t be at historically low levels forever. In fact, rates have crept up a bit in the past few weeks. So when a REALTOR® tells you “NOW is the Best Time to Buy”, I’m not just marketing. It will be more expensive to purchase a home next year if the economy and real estate market continue to improve.

Don’t just take my word for it. An article I read on the KCM (Keeping Current Matters) Blog today,  Buying a House: Is NOW the Time? reiterates this point. It shows how the slight uptick in the market really affects the payment on an every day starter home purchase from 2012 to 2013. This is based on prices rising 10% from June 2012 to June 2013. According to KCM, a home priced at $200,000 in June of 2012 would have roughly $100/month higher payment if purchased today. And  the required down payment for the same house would be higher too.

Home prices in Twin Cities north and east metro are continuing to rise. In Anoka County MN, the average sales price of a single family home is up 14% since the beginning of the year. The average sales price of Washington County homes is up 4.5% and Chisago County has seen a dramatic  23% increase in average home value just in 2013.  These rising prices did affect by buying clients this year. Most had to spend more than they had expected as prices changed dramatically from the time they initially began the buying process about 6-12 months ago. Whether they were looking at townhomes in Hugo or single family homes in Blaine, prices jumped since the beginning of the year and it did affect where they bought and what the paid for a home. Almost all buyers were in multiple offer situations too.

Local real estate market remain poised for continued improvement affecting home prices AND interest rates. I don’t need a crystal ball to know that this could be the best time to purchase. Of course, I could look back with my 20/20 hindsight and say that last year was better too. But there are still MANY OPPORTUNITIES in this market still. It would be wise to listen up and realize it isn’t just marketing puffery, NOW is a great time to buy a home!

Copyright 2013 www.terieckholm.com