Twin Cities North and East Metro | Wondering If You Can Buy Your First Home?

 

Are YOU facing the home buying dilemma? When is the right time to buy a first home in the North and East Twin Cities Metro? Funny thing is, there is no right answer. We are fortunate in the Minneapolis St Paul area. Homes are affordable for both single people and couples. There are abundant down payment resources available for Minnesota home buyers too. 

Today I would like to talk more about the topic: Wondering If You Can Buy Your First Home?

There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family, others might think they are too young, and still, others might think their current income would never enable them to qualify for a mortgage.
We want to share what the typical first-time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first-time buyer:

Bottom Line

You may not be much different than many people who have already purchased their first homes. Let’s meet to determine if your dream home is within your grasp.

Source: KCM Teri Eckholm Blog

 

READY to Make YOUR Move? It IS essential to have a knowledgeable agent at your side. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of BOARDMAN Realty, a call at 651-336-7073 or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. 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 2018 terieckholm.com

Back to Basics—When the First Time Buyer is Your First Born

Buying a first house is difficult whether you’re in your mid-20’s or mid-30’s or really at any age. Over the years I have assisted people making this first big purchase in every age group from 18 on up. No matter the age, there are things that must be considered to be a successful homeowner. Buying a home should not be on a whim but a thought out plan. I always let a buyer make their own final decision but I do offer helpful advice throughout the home buying process.
My kids have grown up watching my educational sales process. Often I would have to pick them up from their elementary school and head directly to an afternoon showing with them in tow. They sat in the back of the minivan with snacks and Gameboys but I know they could occasionally hear conversations through the windows. 

Now my oldest is in that process of graduating from renter to home buyer. This is somewhat of a challenge for both of us requiring me to rely on my basic approach to educate rather than just say “don’t buy that one”. Over the years I have seen parents have to resort to a “tough love” approach with their children buying a first home. Sometimes it backfires even when the parents are right. The buyers are trying to spread their wings and make their first major adult purchase. It can be embarrassing to them when a parent vetoes their decision on their dream home. 

My job has been a balancing act of educating both parents and the buyer to somehow make everyone happy. After all, the buyer will have to live in the house and pay for updates and repairs whether Mom & Dad like the house or not. It is better for all concerned if they have come to some sort of understanding before the purchase agreement is signed that this particular home is the buyer’s best option.

Now as the parent of the buyer, it is a bit of a different ballgame. I get to educate the buyer while letting him make his own decision. So it is back to basics….

1.    Get pre-approved by a good, reputable loan officer to pre-approve prior to starting the home search.
2.    Make a list of target areas to live in. Understand how different municipalities and properties taxes can fluctuate greatly.
3.    Decide what features are “must haves” in a house. Educate on how to read an MLS listing for things like foundation type and size, heating source, and room sizes. Scan the photos for possible issues like asbestos siding, deteriorating driveway or gigantic trees to narrow down the "must see list".  Eliminate any home with an issue that might be a huge expense down the road. 
4.    Remember not to get too invested in a specific house until after the offer is accepted and the inspection is done. 

Putting my 20+ years of experience as a REALTOR® and homeowner to use to help a home buyer understand the basics is one of the services I provide. Not just to my family, but to all of my first time buyers.  

Helping this particular home buyer will be a bit more of an adventure. But like everything else, one step at a time.

Are you ready to buy YOUR First Home? Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of Boardman Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. 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 2016 terieckholm.com
 

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

New Year's Resolution for 2012: Resolve to Save for a First Home!

In a few days we will all be turning the calendar page and entering 2012. After the champagne corks pop and the big ball drops in Times Square, it will be time for resolutions. If you want to be a first time home buyer in 2012 maybe it is time to set a financial resolution or goal. If despite all the gloom, doom of the foreclosures during the past several years you still plan to own a homeowner one day soon, it's time to start saving! 

Those dreaming of buying a first home are in very good company. According to a CNNMoney.com article, Housing Bust? So What? We Still Want to Own, over half of Americans still want to own their own home. In fact, over a quarter of Americans indicated are even MORE likely to buy real estate since the foreclosure crisis. 

Does this surprise you? Not me. As a REALTOR® who has sold homes during this entire decade of rising and falling housing prices, one thing has remained constant: People prefer the freedom of owning their own house and piece of land. Whether it is a multi-level on a corner lot in Shoreview, a rambler on acreage in Anoka County or 50 feet of sandy lakeshore on  Forest Lake, people want to OWN! The biggest change (and reason I believe that there has been a rise in wanting to own) is simple. Owing a home is affordable again!

Home prices have started to stabilize and even inch upwards in some communities at the lower price points.  But overall housing prices in the Twin Cities remain at all time lows. This past year we saw first time buyer and starter priced homes start to sell again. Inventory is low for starter homes and demand is picking up. Though most communities are seeing significantly lower housing prices than a few years ago, prices are starting to edge up again. Record low interest rates combined with low prices meant that there was a really opportunity for the first time home buyer in 2011 and it will continue into 2012 too!

But like last year, first time homebuyers  must have a down payment. It is also important to have some cash reserved for repairs, remodeling and of course new furnishings for the new house! So what is the best way for a first time buyer to begin saving?

Copyright 2011 Teri Eckholm http://www.terieckholm.com/

Buying a Home Soon? A Good Credit Score Will Save You MONEY!

Thinking of  buying  a house soon? You know you your credit report and FICO Score will affect your new home purchase, but did you ever think of how much an affect it has? I was reading an article by a fellow REALTOR® today who pointed out that a 20-40 point lower credit score will mean you will be paying quite a bit more in closing costs than someone who's FICO score is a bit higher. That is SERIOUS money out of your pocket!

When buying a first home, it is imperative to keep your closing costs as low as possible. That way you can have money in reserve for any repairs, updates and expenses that will come with home ownership. Being aware of your credit score and how it affects the cost of a loan could save you thousands.

Copyright 2011 www.terieckholm.com

Friday Fun--Which Home in the Hundred Acre Wood would be YOUR Choice?

Okay all you homebuyers out there....Just imagine for one moment that you were going to buy a home in the Hundred Acre Wood (you know that wonderful place where Winnie the Pooh and all his pals hang out). Let's pretend that Pooh and all his friends have decided to put their homes up for sale. Whose home would you choose?

• Eeyore's? I'd avoid this one. An A-Frame built of sticks without a proper foundation that a butterfly could knock down in a second isn't worth consideration.
• Gopher's? Though Gopher's actual home is never shown, it would appear to be underground. Underground, earth berm homes lack the curb appeal necessary for most buyers.
• Owl's? The tree Owl's house is built in doesn't seem to support the weight of the home. On a very blustery day, the whole thing could be blown down.
• Pooh's? Now at first glance, Pooh's place looks sturdy but I'd question the upkeep of a home maintained by a bear of very little brain. When a homeowner cannot even take down the name plaque of the previous owner, Mr. Saunders, it is doubtful that he would have the ability to do the upkeep on the interior. Besides when the rain, rain, rain came down, down, down, much of it ended up inside Pooh's house.
  
• Rabbit's? Now Rabbit was a character that really took care of his property! He always seems to have a rake or broom in his hand. His garden is fenced and meticulously arranged. But he does seem to have a egress problem with his door. If a guest cannot have dinner, or several pots of honey, without getting stuck on the way out, there is a problem.
• Tigger's? It seems that Tigger may be the homeless resident of the Hundred Acre Wood as he is always bouncing up to his neighbor's homes but never appears to be at his own.
• Christopher Robin's? Though probably the best choice of a home as it is currently being occupied by humans, Christopher Robin's home is not located in the Hundred Acre Woods and so it does not meet your current buying criteria.
• Kanga's? All things considered, I would choose Kanga and Roo's home. Kanga seems to have a lovely, well maintained rambler with a covered front porch. We know it is a two bedroom because Roo has his own bedroom. All other homes in the wood appear to be one room efficiency dwellings. To me, Kanga's two bedroom gem appears to be a choice for a home buyer in the Hundred Acre Wood.

The question above is whimsical but not unlike what an actual buyer might go through when considering homes for sale currently listed in the Minneapolis/St. Paul Multiple Listing Service (MLS). I have shown a few foreclosures in the past that were not much better than Eeyore's pile of sticks. This is especially true when it comes to unmaintained decks. There have been several so rickety, that my clients and I avoided being on at the same time, if at all.

I have also shown homes with narrow hallways and doorways. Though, I only recall one home where a full grown person could have actually gotten stuck in the floor opening of a spiral stairway, there were several others where I had to recommend buyers to consider how furniture would get in and out due to tight corners and narrow spaces.

And maintenance issues, or lack there of, by people whose heads seem to be a little "stuffed with fluff" is a common occurrence. I have seen homes where repairs were quite literally made with duct tape rather than a proper replacement.

Most home buyers strive to find the well maintained gem similar to Kanga's house. Buyer's dream homes usually are properties where all repairs and replacements have been made to code with proper materials. It is a house that is usable and accessible to everyone in the family without ducking their heads or turning sideways to squeeze through a doorway. Sometimes a buyer will even choose to look outside their original location parameters and consider a home on the edge of the preferred community to buy the exceptional home of their dreams.

Finding and buying the perfect home takes time but the process is made much easier when working with a knowledgeable REALTOR® that can tell an Eeyore-designed pile of sticks from a comfortable cabin like Kanga's.

*Note All Character Photos were shots of Disney® Pins in a personal collection.

Copyright 2011 www.terieckholm.com

It's the Weekend! Let's Hit the Road and Check Out Open Houses!

It’s almost spring! (Okay...after the winter we have been having we can pretend right?) Now that springtime-buy-a-new-house bug is starting to bite. You know that little feeling that tells you that this is the year to buy a new home.

Interest rates are low still at record breaking lows (and we know they cannot stay there much longer). There is a great selection of new and existing homes. And frankly, you are just tired of renting!

So how do you go about finding a first home? Most people start on the internet. Since you are reading this, it is a good bet that your first step will be an online search. But after spending days, weeks and months online, now its time to venture outdoors and see some houses.

So on a perfect winter Sunday, you start driving by some of the properties that were presented so beautifully on the computer screen. You see the real estate signs and the open house arrows, you drive slowly past the home but can't step on the pedal that will slow the car. You are frozen with questions.
What will you say to the agent in the home?
What do you do?
Relax. You are not alone. Many first time home buyers panic outside of an open house because the are unsure of what will be expected of them after they walk through the door. Heck, some aren’t sure before they step over the threshold whether or not to ring the doorbell or just walk in. So you are in very good company if you have been driving by your dream homes.Here’s a few tips for getting the most out of attending real estate open houses.

1. Get out of the car! Sounds so simple but you can tell more about the home from the inside of the house than the inside of your car.


2. Walk right in! If you feel self conscious, ring the doorbell first just for fun. That way you can be certain it works.


3. If the agent doesn’t say “Hello”, say it first. Let them know you are just checking out the place.


4. Take a look around. Check out every room, closets, basements, attics and ask the agent questions about the home.


5. While you are checking out the house, check out the agent. Size up REALTOR to see if he or she is someone that you would want to represent you in the purchase of your home.

Here’s the thing, the first home you visit may or may not be your dream home after all. Heck, probably not even the second or third one will have that "IT" factor for you.
But stopping in open houses gives you a unique opportunity to size up REALTORS. Yep you want to check out several agents to find one that you would want to work with for the next few months. (The home buying process can take a 3-4 months ....you want to make sure you LIKE the person you are working with!) If you take a Sunday and go to 6-7 open houses, you will meet 6-7 different agents. Some you will like; some you will hate; and one you will downright love to work with.
When you make that connection with a REALTOR, sign a buyers’ representation agreement, visit with a loan officer for pre-approval for a loan, and then have your agent show you every home on your short list. Not all home owners allow open houses. Working with one agent will save you time and frustration and allow you to quickly see all of the homes you have been scouting out online.

So what are you waiting for? Get in the car and get out there. Your perfect home and REALTOR awaits!
One Last Tip...If you really don't think you can get out of the car, start visiting REALTOR blogs to get a feel of an agent's personality. Find a few agents that you like and call them to discuss your needs. When you make a connection, sign a representation agreement with the agent. Now your REALTOR will set up private showings and take the open house pressure away.

Copyright 2011 www.terieckholm.com

First Time Homebuyer’s Real Estate Word for Today is Easement

A couple of weeks ago, a friend mentioned a new company had opened in the Minneapolis/St. Paul area. He later realized it was just Fair Isaac now going by the new name, FICO. I was taken aback by the confusion because most people living in the Twin Cities north metro are aware the business analytics company, Fair Isaac Corporation, has been located in Shoreview for decades. What surprised me is that few outside the real estate and mortgage industry may have made the connection that FICO is an acronym for the Fair Isaac Corporation.

Once again, I was a bit surprised that such a simple term I use everyday as a REALTOR® would be unknown to others. But then it got me thinking of all the times a glazed look came over a buyer’s eyes when I talked about escrow or earnest money. These can easily be confused with other real estate and mortgage terms like down payment or cash to close. It is totally understandable because most homebuyers do not buy houses everyday.

There are so many terms that could possibly confuse a First Time Homebuyer that I thought an online glossary of real estate terms might be helpful. So over the next several weeks I am going to have a series of posts for the first time homebuyer with explanations of the most often used (and sometimes confusing) real estate terms. This way you can skip buying that big “how to buy a house” book or attending that First Time Homebuyer Class and have a quick resource at your fingertips. Today’s Real Estate Term is:

Easement—A right given by the landowner for a specific use of a portion of his/her property granted to a third party. Once the right is given and recorded on the title it continues unless vacated by the entity that received it. Common easements include utility and driveway easements. There can be more than one easement on any given property. When buying a home it is important to understand where the easements are as they can dictate what you can and cannot do with the land.

For instance, a new septic system, storage shed or flower garden cannot be constructed in a utility easement as the easement holder uses the easement for access to under and above ground utilities. Likewise a drainage easement could literally wash away your landscaping investment.

Driveway easements allow access to a landlocked property. While such agreements often provide an acceptable solution for access, they can cause headaches for neighbors who aren’t respectful of each others.

Easement holder does not own the land but has a right to use the land as specified in the easement agreement. This differs from an encroachment where a third party uses the land without permission.

Copyright 2010 Teri Eckholm

Remember When REO Used to be a Rock Band?

In the early 1980’s, when someone was talking about REO they probably meant REO Speedwagon not a home owned by a bank. Yep, back in the day when many of my friends and relatives were buying their first house, few thought a foreclosure home was a good deal. There was a section in the paper at the time for HUD homes. They were all dumps in the minds of buyers. It was deemed “too risky” to buy a bank owned home. Better to leave those houses for an investor.

In 1981 when REO (the band) was tearing up the charts with the now oldie but goodie rock tune, “Keep on Lovin’ You”, interest rates were 17%. That’s not a typo…Seven-TEEN percent! Geez…it’s a wonder anyone bought a house in the 1980’s!

Back in the days of big hair and parachute pants, first time buyers had to scrimp on hairspray to save for a down payment AND closing costs. Sellers might pay a point or two to help bring down the interest rate but they rarely wanted to pay closing costs AND points. So a first time buyer needed to have thousands to put down on their first home.

There was no internet back then either so with REO belting out “Take it on the Run” on the cassette player, buyers would traipse around town with the Sunday open house ads looking to find a home. When they stopped in to talk to a friendly REALTOR®, there was no required agency disclosure. The buyers were supposed to instinctively know that the agent worked for the seller. Almost all agents were under contract to work in the best interest of the seller in those days no matter how nice the agent seemed to treat the buyer.

And believe it or not, despite all the cards stacked against them, many, many people bought their first homes in the early 80’s—It was the American Dream after all!

FLASH FORWARD to TODAY
When someone is talking REO now, they are more than likely talking about Real Estate Owned by a bank. These foreclosed homes are no longer thought of as dumps for investors to deal with; they are opportunities. These homes are sold as-is but many are in amazing condition and at tens of thousands less than the homes sold for just a year or two ago. Some homes are even new construction.

Can you say affordability? It is off the charts when you consider a foreclosed home! Check out this video which explains the 239% Affordability Index currently in the Twin Cities. (The music isn’t rock, but the information rocks!)

Today, interest rates continue to hover around 5%. FIVE percent guys…Your parents, aunts and uncles signed documents agreeing to over 300% more than the rate available in this market. What an opportunity for a buyer today!

In this internet age, first time buyers can prescreen houses online with photos, virtual tours and more. Less driving and more time viewing the homes you really want to see!

Now first time buyers are in the driver’s seat when it comes to representation too. You can hire a REALTOR® to represent your interests—Usually at no cost too! Since the early 1990’s, buyer’s representation has become a wonderful opportunity for home buyers to hire an agent to represent their interests. The seller still pays a commission which is split by both agents so there is no additional cost to have your own agent working for YOU!

And in 2009, first time buyers get an unprecedented $8000 tax credit to boot! This program isn’t going to last forever but if a first time home buyer (or someone who hasn’t owned a home in the last three years) buys a home between January 1, 2009 and November 30, 2009, they will get an $8000 credit on their taxes. There are a few details and restrictions (read more here) but most first time buyers will get to take advantage of this program.

First Time Buyers! What are you waiting for?

If you are the fence about buying your first home, thinking their might be a better opportunity coming, think again! This is a great time to be a first time home buyer. People who bought homes in the early 1980’s did okay even with all the disadvantages they faced. First time home buyers today have opportunities only dreamed of when REO was on the Top 40 charts. Don’t miss out…It won’t be long before your best chance at the American Dream is just a retro memory!

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