Picture Perfect DREAM HOME with Harold's Purple Crayon!

Decades ago, when I was first learning to read, I loved picture book, "Harold and the Purple Crayon" by Crockett Johnson. I wanted a crayon just like that little boy who drew out his dreams in his footy pajamas. Even though I have never been a fan of the color purple, I always wanted one of those special violet Crayola-type sticks of wax to draw to draw my dreams. Imagine life being so simple.

After many years of wondering whether the dream of owning a home was dead, the housing market has made a turn around. Due to lower inventories in many areas, sellers are back in the  drivers seat and would be homebuyers are back to sitting on the fence dreaming about their perfect home. As interest rates start to creep up, the dream of a home could slip away. The reality is, there STILL are AFFORDABLE homes in the Minneapolis/St. Paul north and east metro. Maybe homebuyers just need one of Harold’s purple crayons so they can draw out a path to a perfect new home…

Draw YOUR perfect REALTOR® Grab that magic purple crayon and sketch out your ideal of a trusted professional REALTOR®. The first step in owning a dream home is to find the agent of your dreams to represent you throughout the process. Make certain to sign the buyer’s representation agreement for with a blue ink pen not a purple Crayola.

Draw Your Preapproval letter. Pre-approval is an important step before you begin looking for a home. It not only determines how much home you can afford to spend on a home, it guarantees that you are ready to write up the offer when you find your dream home. The letter will serve as notice to the sellers that the bank has committed to lend you a specified amount based on your financial history. This gives you significant buying power as a seller recognizes you are approved for a loan. Your professional REALTOR® can assist you in locating a qualified loan officer that will work with you to make your dream home a reality.

Draw YOUR perfect home!  Here’s the drawing you have been waiting for...glide that purple crayon across the page and sketch out your dream home. Your perfectly depicted REALTOR® will set up an MLS search for homes that meet your needs. As perfect homes hit the market, showings will be set to view the homes in person.

Draw up a Purchase Agreement and happy seller! Use that magic purple crayon to draw up a contract on your dream home. Okay the contract will more than likely be completed in something other than that crayon, but here is where you work with your REALTOR® to draw up a contract including all of the details such as what you want to pay for the home, what personal property is to be included as well as the date you want to close and move in.

Draw a Qualified Inspector. To be certain that you didn’t miss any important details when you sketched out the beautiful purple palace, draw a home inspector that is qualified to check out your new purchase.

Draw up a SOLD sign. A big purple "SOLD" sign will announce to the world that this is YOUR dream home! It will stay on the sign while the home is in "pending" status prior to the closing. During this period prior to closing, your dream professionals work closely together to ensure that details such as the appraisal and updating the title are handled in a timely manner. Now you can use a REAL purple crayon to cross off the days on the calendar until you get to the closing table!

Draw the Keys to your new front door! ! One final purple colored work of art will complete the home buying process—Sketch up a set of house keys! When closing day arrives, be prepared to attend with your state issued picture identification, a 10 year address history, your checkbook, and all other information requested by the closer. At the end of this meeting, you will be handed the keys to your new home.

Wait a second! Nobody really needs a purple crayon! You just need a trusted professional REALTOR® to guide you through the story to your happily ever after!

Copyright 2012 Teri Eckholm

My First Question to a HOME BUYER--"Have YOU Talked to a Loan Officer?"

"Hello, this is Teri!"

"Hi Teri! I saw your ad for the home you have listed on 2 acres in Anoka County and would like to set up a showing."

"That is a nice home and it is still available but I have a few questions for you before I can show the home. Are you working currently working with a REALTOR®? No? Well, have you talked to a loan officer yet? "

That is how I begin almost every single conversation with a potential buyer. Have you talked to a loan officer yet? Okay...I realize it is my second question but it is the first real question regarding the buying process. See, there often is no point in setting up a showing on a home unless you have spoken to a loan officer. And this is not just about credit issues and ability to purchase either. You've no doubt heard the proverb about not putting the cart in front of the horse...which means don't get ahead of yourself. You as a home buyer need to understand type of loan you will be using, what payment you would be comfortable making and, yes, whether you have enough income and suitable credit score to get the loan. If you do not know these very important specifics on your home loan, there maybe no point in seeing the property.

An experienced FHA loan officer and blogger, Jeff Belonger, recently wrote a post about what REALTORS® need to know about specific loans in order for the deal to go through.  It is an interesting read that got me thinking about the home buying process and where it really starts. I do know that there are requirements for the sale of an FHA appraisal that would prevent me from showing most foreclosure homes to an FHA buyer. So for instance if a listing  I have is an as-is estate or foreclosed home that needs a  new roof,  but the seller refuses to replace, I know buyers that plan to use an FHA mortgage, will not be able to purchase the home. But if you haven't talked with a loan officer yet, you as a buyer will have no idea whether the type of mortgage you will use will work with the home.

So the conversation with myself and the potential buyer usually continues with the following:

"I would be happy to show you the home as soon as you have met with a loan officer to be pre-approved for a loan. That way, you will know what type of financing you will be using and if the payment is something that will work with your budget. I would be happy to refer you to a loan officer that would be able to assist you."

Please don't think that requesting you speak with a loan officer first is to putting  off showing you a home. This is really about "putting the horse in front of the cart" rather than the other way around. No buyer ever wants to be looking at homes they cannot afford. Knowing what price point for a home is considered affordable to your budget and the type of loan you will be getting will make the home buying process smooth and relatively stress-free!

Copyright 2011www.terieckholm.com

“They Don’t Need an Agent!”—How First Time Homebuyers Find their Way Home!

My cell phone rang as I pulled into the parking lot of my RE/MAX real estate office in White Bear Lake one afternoon. The caller said he and his fiancée had just driven by a listing of mine and could I show them the inside. My first question is always, “Are you working with a real estate agent?” “No”, he answered. The meeting was set for the next evening.

The young man and his fiancée arrived with an entourage of parents and assorted other friends and relatives. Being first time buyers, they wanted assistance and approval on their very first home purchase. Looking over the home from top to bottom, they liked what they saw but needed time to think. I asked the question I always ask, “When you are shopping for a home, are you shopping for a REALTOR®?” One of the dads quickly answered. They don’t need an agent and won’t be signing any contract with a buyer’s agent. They will get a better deal working directly with the listing agent.

I explained why this wasn’t true but could tell from the look on this dad’s face, he wasn’t about to believe me.

I avoided the debate but went on to explain agency to the young couple. I asked them to sign the disclosure on agency as required by the State of Minnesota. Buyers need to understand that with any of my broker's listings, I am under contract to work for the seller and protect their interests. However, if the couple decides to sign a buyers’ representation agreement with me, they would be in a DUAL agency when looking at any property currently listed with RE/MAX Specialists. They had seen many homes over the last several weeks with dozens of other REALTORS®, but I was the only listing agent who explained agency to them or asked them to sign the required disclosure.

Days later, a decision was made; the young couple wanted to make an offer on my listing. A contract was signed for buyers’ representation for the specific home only. Dual agency now applies. As an agent working for both parties, I could not do anything that would hurt either the buyer or seller. Because the agreement was only for the specific home, I could not discuss other property options. An offer was presented, but terms could not be agreed upon. The buyers went away.

A few weeks the price was reduced on my listing. I called this young couple to see if the lower price would be enough to renew their interest. It would. But there was also another new construction house in a different area that was being considered.

Another showing. They were sure that they had it down to between the two homes. I could see the indecision and confusion on their faces. I asked about the other home they were considering to help them contrast it to my listing to help my selling clients and put their home in a better light. As with most homes, neither home was a perfect fit. I am a firm believer that after weighing all of the pluses and minuses, homes will sell themselves if they are the right home. A week passed. No offer came forth.

Finally a phone call came from the young man. We have made a decision. We are not going to offer again on your listing. It is not the right home for us. In fact, neither home is right. We are starting over and think we need our own agent. "Would you help us find a home?"

Now as their buyers’ representative, I got to work. For the next few weeks, we visited half a dozen or so homes from the hundreds currently on the MLS that met their criteria. Traveling from Stillwater to White Bear Lake and Hugo to Forest Lake, we narrowed down the field of potential homes to a couple of favorite houses. Finally, one sparked enough interest for a second showing with the parents, but this home also had a few quirks that raised concerns. That same evening, since we were out, I set up another showing for a home in a development that hadn't considered but I knew would be a very good match for their needs. As it turned out, the second home was perfect for these buyers!

With the perfect home, there was no delay or hesitation in signing the offer. Things fell into place. With every visit to the home for the inspection and showings, the young couple became more excited about their first home.

At the final walk-through, with minutes to go before they were to receive the keys to their first home, I asked them, “So, are you glad that you decided to sign with a REALTOR®?”

They answered together, “Yes!! You made it so much easier to find the right home! Especially for first time buyers.” I don’t make this stuff up…Those were their exact words.

After the closing, I received a hug and sincere, “thank you for everything”, from my young clients. As they set off to begin life in their dream home a thought struck me, I absolutely LOVE my job!

Counties in Minnesota.



Copyright 2010 Teri Eckholm 

Frugal Resolutions~~Save Your Way to a New Home!

As we celebrate the beginning of 2010 many are asking, “How will I ever be able to afford a new home, new car or vacation?” I was taught by my grandmother, if you take care of the pennies, they will become dollars. The New Year is a perfect time to assess spending habits and make a few frugal resolutions. Here are few ideas of where waste could be occurring in everyday spending. By making a few small changes now, you could build a big down payment by 2011!

1. Brownbag It! The average American spends an average of $6 when they go out to lunch at work. I don’t remember a lunch out with the girls to be less than $10 myself. But if you chose to brown-bag at lunchtime, the average cost drops to $2! That works out to $4 a day, $20 a week, or over $1,000 a year.


2. Check it Out at the Public Library People forget all of the publications that are available in the public library. A person can save on books, magazines, and DVD rentals. If your family buys an average of 2 books, 2 magazines and 3 DVD rentals a month, that can add up to nearly $500 a year. If you are like my family and like to OWN your books and DVD’s, consider buying at a used book stores where prices are 50% off the list price.


3. Ask for Discounts Most people would never consider paying sticker price for a car but forget to ask about discounts and sales at other stores and restaurants. If you belong to AAA or employed by an organization offering a MERSC discount, this can save $3-5 and more on every day purchases like oil changes, haircuts and lift tickets at Wild Mountain. Many companies provide discounts but only for those customers who request them. The total annual savings can be significant depending on the number of offers that your family takes advantage of.


4. Declutter and Sell Don’t wait to spring clean! Go through your closets, garage, basement and attic now and find the items you no longer use. In the spring have a garage sale. Or locate stores which buy and sell used merchandise for cash or will do consignment sales on EBay for you. My family has held periodic garage sales over the years and sold hundreds, sometimes thousands of dollars of unwanted stuff during each sale. We pack up what hasn’t sold and donate the rest to charity. A clean house, money in our pockets and a donation to boot…what more can you ask for?


5. Print and Clip Coupons Many store have coupons and discounts online that other shoppers are not aware of. By registering for emails from favorite stores and restaurants, we save hundreds of dollars a month at stores shop at regularly. SuperTarget has weekly coupons that you can select and print to take to the store for additional discounts. Sometimes the price is discounted so much it is nearly given away for FREE. A local Forest Lake and Ham Lake favorite, Mansetti’s emails a new coupon to registered customers weekly to print out and bring in. My family is also registered with TGIFriday’s in their Give Me More Stripes program which sends out coupon special s in a similar way. It may seem like only a few dollars here and there but when I tracked our savings for a few months, it was several hundred dollars EACH month!


6. Shut off the Lights…And Turn Down the Heat! If you haven't already switched over to lower energy, long lasting light bulbs, now is the time. By installing a programmable thermostat in your home, you can save gas by having the heat turned down automatically when you are not home. When we first had a programmable thermostat installed decades ago, we saw a 25% drop in our heating bill! Pretty significant money was kept in our budget.

Simple changes in your shopping patterns and daily life can mean huge money in your bank account over time. And then you can use the money for that trip to Hawaii, new car or as a down payment on your new home!

 

Copyright 2010 Teri Eckholm http://www.terieckholm.com/

Buying a Home and Avoiding a Wild Goose Chase!

“Hi! We are looking for a REALTOR® who works in Hugo. Can you help us?”
“Absolutely! What can I do for you?”

“We are relocating from St. Cloud and want to be in a home before school starts, is that going to be a problem?”
“Are you a first time buyer or do you have a home to sell?”

“We are first time buyers and are currently renting month-to-month.”
“There should be no problem. Have you talked to a loan officer?”

“Not since last year.”
“The first step is getting preapproved and then we can start looking at homes.”

So began my relationship with a new first time buying couple early in July. They were on a tight time schedule and were a bit of a distance from Hugo so planning was key. I wish I could say everything turned out perfectly for them but it didn’t. Chasing wild geese is a fun activity for dogs not for serious homebuyers. Here’s what happened:

I set up Christy and Mike in my Listingbook system so they could view new listings as soon as they hit the internet. Their price point put them in tight competition with many other first time buyers as there are few nice single family homes under $160,000 with three bedrooms on one level in move in condition in Hugo.

Christy selected a dozen homes to see on their first trip out. Of the homes selected, only four were still available. From the preliminary discussion with the loan officer, they were qualified to purchase FHA. That meant that a home would need to pass an FHA inspection. Unfortunately neither of the two single family homes we saw would pass as the were both foreclosures in very questionable condition but the two townhomes were a match. Christy and Matt loved the townhomes, BUT…

“We really need a yard for the kids to play.”

Not a problem…Maybe we should expand the search area. Are you okay with White Bear Lake? It is the same school district as Hugo? What about Forest Lake, Lino Lakes or Blaine?

The search was expanded to include Chisago City as the young couple was interested in the zero down USDA financing in Chisago County.

Another trip down and another dozen…down to half dozen…showings scheduled. Two of the homes were a perfect fit. Huge yard. Well priced. Move-in perfect. BUT…

“The thirty mile commute to downtown St. Paul is too long after all.”

Not a problem. Christy and Mike decided to expand the search to include Blaine, Spring Lake Park and Coon Rapids. These areas were closer to work for Mike and in school districts that were appealing to the young family.

A third trip down. Third time’s the charm right? It was! They found a perfect home with a 20 minute commute in Spring Lake Park. BUT…

“We don’t think they will accept our offer.”

“Why don’t we write up an offer and find out if it works for the sellers?”

“Maybe…we will think about it.”

Now with the Listingbook system I can see the homes my clients view. Christy and Mike didn’t call over the weekend to write an offer but starting to search in some pretty out of the way areas while skipping over many closer in and better options. They wanted a newer home with all the bells and whistles for $150K or less. This can be done in a suburb of St. Cloud but not a suburb of St. Paul.

Christy and Mike began a hunt for an elusive wild goose. No matter how hard I tried to explain the situation and point them back toward their goal, they just kept heading off in unusual directions.
I saw the couple had now started to search for homes in Otsego about an hour northwest of St. Paul and Farmington, another long commute to downtown to the south of the cities. Sure, in these communities a person can find a newer home at a lower price, just like in Chisago City, but they said no to a long commute a few weeks earlier on a home that fit all their criteria AND that had a zero down financing option available. A short commute time was one of their top “must haves in a home.” These communities are both well beyond the commute to Chisago City that was vetoed earlier.

Another day of searching was set this time in Blaine. They decided an end unit quad home would have more yard to play for their children and again found a perfect place. They were ready to write again BUT…

“The association fees are too high.”

Now we are into the last week of July and their timeframe is next to nil if they want to get in to a new home before school and the new job starts. I remind them of their timeframe and the several homes that were still available that they loved but didn’t write an offer on. BUT…

“We decided we want to see some homes in Otsego.”

“Sorry. I don’t think I am going to be able to help you buy a home after all.”
I don’t know if Christy and Mike ever found a home or ever will find one as I decided I wasn’t the right agent for them. I did hear through their loan officer that they found a “perfect” home in Otsego but something went wrong and they never wrote an offer. Now they were searching in Farmington.

What went wrong? Being focused is essential to buying a home!

Sometimes a client’s criteria will need to be adjusted to fit what is currently available on the market. The first time buyer’s $8000 tax credit has created a big demand for Twin Cities starter homes. This couple’s inability to make a decision on what they were looking for and inability to accept the market conditions had them running in too many different directions—Chasing a wild goose!

It is not often that I have to say “goodbye” to a client that hasn’t walked away with a good buy on a house! I have successfully assisted numerous first time homebuyers find their way home. In this case, we found several “Good Buys” but in the end, Christy and Mike ended up without a house.

In my homebuyer’s success guide, I outline how important it is for buyers to stay focused on what they really want in a home. As a REALTOR® it is my job to help my clients stay on track throughout the home buying process; from the first showing of a property to the handing over of the keys at the closing table. Too many options can cause confusion. Combined this with an inability to regroup and make a decision, buyers can let good homes to be sold out from under them. Changes will come up and if as a team we can refocus and start again, the unending wild goose chase is avoided.


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

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

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!


· 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.



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

Does a Buyer in Anoka County NEED to Take a First Time Homebuyer Class?

People who have never owned a home before are excited about the new $8000 tax credit for first time buyers. They want to learn as much as they can and as fast as they can because this credit is only available for those who buy a home before December 1, 2009. Every day I am talking to excited potential home buyers and friends wondering where they can take a class to learn more about buying a home. They want a class that will fit their schedule and get them out searching for their dream home very quickly.

Well, I will let you in on a little secret. You don’t need to sit in a class on someone else’s schedule with a bunch of others to learn to buy a home. There is no class requirement for receiving the 2009 $8000 tax credit.

What I tell all of my friends and referred clients is that if you are serious about buying a home and taking advantage of this credit, let me be your guide.

As an experienced and professional REALTOR® with hundreds of extremely happy clients, I can educate you quickly on the process of buying your first home and at no cost to you.
Contact me  and request your homebuyer success package. As soon as I receive your information, I will send you a list of seven simple steps to home ownership, a Q&A sheet to address the $8000 tax credit and booklet containing all the information you need to buy your first home. In minutes you will have all you questions answered on the home buying process.

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