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

Question from First Time Homebuyer--Is a Home a Good Investment?

 “Is buying a home really a good investment?" That question is asked quite often these days especially as the real estate market continues to show signs of recovery. As the market heats up and there are more homes with multiple offers due to low interest rates, some first time homebuyers continue to wonder whether buying a home is a good financial investment.

For decades, buying a home was considered one of the safest investments a person could make. It was "The American Dream". But then came came the crash or burst bubble and people became more cautious about real estate investing. Now, homes are selling again but the question does remain; Is owning a home a good financial investment?

In my opinion, YES, buying a home can be a wise investment and not just because I am a REALTOR®, but because I, too, am a homeowner. The key is treating your home like the investment that it truly is. It takes discipline and time for your investment to grow. And like any other investment, if you have to sell when the market is down, there is a chance that you will not realize as much profit as you may have expected.

So what are some of the key points that must be considered when investing in your first home?

• Buy Smart

**Price **Interest Rate **Type of Mortgage **Resale Potential **Equity Builder?

• Maintain and Protect Your Investment

**Home maintenance **Insurance

• Don’t Put in Your Asset in Jeopardy

The best way to have a healthy balance sheet when you decide to sell your home is to Buy Smart in the first place. Buying smart is not just about getting the home at a low price though that is a very important piece to the puzzle. Homes were a at rock bottom prices a few months ago and when coupled with extremely low interest rates, many people started thinking now may be the time to buy that first home. But with more buyers in the mix, multiple offers are becoming the norm. It is important not to over extend and get caught up in a bidding war that you cannot afford to get that "perfect" home. 

Buying smart also means getting a mortgage that you can afford and that is safe, preferably at a fixed rate rather than an adjustable rate, that can fluctuate into something that you cannot afford. Interest rates are at record-breaking low rates. Talking to a knowledgeable loan officer is a great way to get started in the home buying process and find out what options are available to first time buyers now.

But buying smart goes beyond the price paid and the loan used to finance a first home. It is also buying with resale in mind. Many, who purchased homes in the price climbing frenzy of before the market crashed, snatched up any home they could  get an offer accepted on. They were tire of submitting multiple purchase agreements and being beat out by other buyers in multiple offer situations. They stopped worrying about the perfect floor plan or caring whether the home was on a busy road or next railroad tracks. As the market picks up, buy smart and always think about the need to potentially resell the home.

As a REALTOR® who works often with first time buyers, I spend time helping my them to understand the positives and negatives of the location of each property they view. I point out how something quirky like having no basement or having a hot tub built in to a bedroom could affect the resale value by limiting potential buyers. Paint and wallpaper can be easily changed but foundation, plumbing and property location are much more expensive to deal with. Oddities it a home can drastically affect value when it is time to sell.

Lastly, buy smart by determining whether equity can be built with good old fashioned hard work! If the home hasn’t been updated, a good sprucing up could raise its value. A house that has an unfinished basement, could build equity if it can be done at a reasonable cost. Don’t take shortcuts and avoid permitting because that can be costly if you go to sell. Is landscaping your forte’? Look for a home with a yard that can be upgraded over the years. Just be frugal and realistic in what your resale will be in the end.

Beyond a smart buy, maintenance is essential as is proper insurance to be certain a home owner can afford the required repairs should the unexpected happen. Time after time I have to bear the bad news when presenting a market analysis at a home where the interior and/or exterior has not been repaired or replaced in decades. These homes are not worth what a neighboring, updated home is worth. Doing several projects over time allows a homeowner to enjoy the improvements while retaining the property value. Likewise, not insuring a home properly can be a huge risk. Worse yet, are the homeowners that make a home insurance claim and receiving payment for a repair but opt to use the money for something else.

Finally, it is important for a homebuyer to not put their investment in jeopardy. Many of the people who lost their homes in the market downturn put their homes in jeopardy but taking risky loans against the equity. Some people took home equity loans at reasonable rates but didn’t use the funds to improve their home. Some of these loans were at very high adjustable rates and as the payment rose, the homeowners just couldn’t make the payment. When I was growing up, I remember learning to never take a risk with anything you couldn’t afford to lose. I think a home falls into this category.

Like any investment, a home’s value will fluctuate. But a house is unique as an investment because it serves a dual purpose: It is a your place to live as well as a way to increase your net worth. By using the money that would be paid for rent and putting it toward a house you can afford with a plan to protect and maintain your property, a home purchase is still a good investment. 


 Copyright 2012 www.terieckholm.com

First Time Buyer Question—Is a Buying a Home a Good Investment in 2012?

Is Buying a Home a Good Investment?

“Is buying a home really a good investment?" Great question huh? Especially in this slowly stabilizing economy. For decades buying a home was for decades regarded one of the safest investments a person could make; the epitome of the American Dream. But now first time buyers are confused as home values and average sales prices plummeted. Is the real estate market current downturn a opportunity to grab one's piece of the American Dream? Does owning a home make sense as a financial investment?



MOST AMERICANS say YES! In a January 2012 survey of voters by the National Association of Home Builders, "74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make." That is 3 out of 4 voting Americans who still believe in the value of home ownership!

And I agree,  buying a home is a wise investment and not just because I am a REALTOR®, but because I, too, am a homeowner. The key is to treat your home like an investment. It takes discipline and time for an investment to grow. And like any other investment, if you have to sell a stocks, mutual funds or a home, when the market is down, there is a chance that you will not realize as much profit as you may have expected.

So what are some of the key points that must be considered when investing in your first home?

• Buy Smart

**Price **Interest Rate **Type of Mortgage **Resale Potential **Equity Builder?

• Maintain and Protect Your Investment

**Home maintenance **Insurance

• Don’t Put in Your Asset in Jeopardy

The best way to have a healthy balance sheet when you decide to sell your home is to Buy Smart in the first place. Buying smart is not just about getting the home at an extremely low price. With many homes at rock bottom prices, it is a good time to consider buying a first home. But buying smart also means getting a mortgage that you can afford. One that is safe, preferably at a fixed rate rather than an adjustable rate, that won't fluctuate into something that you cannot afford. Interest rates are at record-breaking low rates. Talking to a knowledgable loan officer is a great way to get started in the home buying process and find out what options are available to first time buyers now.

But buying smart goes beyond the price paid and the loan used to finance a first home. It is also buying with resale in mind. Many, who purchased homes in the price climbing frenzy of a few years ago, snatched up any home they could after submitting multiple purchase agreements on several homes. They often overlooked an unusual floor plan or that the home was railroad tracks with several trains passing by at all times of the day and night. They adjusted their needs to accept the powerlines in the backyard or the noise from Interstate 35 just a few blocks away. But now if these same families are faced with trying to relocate, they are frustrated that buyers refuse to compromise on same aspects that they overlooked.


As a REALTOR® who loves to work with first time home buyers, I spend time helping my them to understand the positives and negatives of the location of each property we view. I point out how something quirky like having no basement or having a hot tub built in to a bedroom could affect the resale value by limiting potential buyers. Paint and wallpaper can be easily changed but foundation, plumbing and property location are much more expensive to deal with. Oddities it a home can drastically affect value when it is time to sell.

Lastly, buy smart by determining whether equity can be increase with good old fashioned hard work! If the home hasn’t been updated, a good sprucing up could raise its value. A house that has an unfinished basement, could build equity if it can be done at a reasonable cost. Don’t take shortcuts and avoid permitting because that can be costly if you go to sell. Is gardening your hobby? Look for a home with a yard that can be upgraded over the years. Just be frugal and realistic in what your resale will be in the end.

Beyond a smart buy, maintenance is essential as is proper insurance to be certain a home owner can afford the required repairs should the unexpected happen. Time after time I have to bear the bad news when presenting a market analysis at a home where the interior and/or exterior has not been repaired or replaced in decades. These homes are not worth what a neighboring, updated home is worth. Doing several projects over time allows a homeowner to enjoy the improvements while retaining the property value. Likewise, not insuring a home properly can be a huge risk. Worse yet, are the homeowners that make a home insurance claim and receiving payment for a repair but opt to use the money for something else.

Finally, it is important for a homebuyer to not put their investment in jeopardy. Many of the people who lost their homes in the market downturn put their homes in jeopardy but taking risky loans against the equity. Some people took home equity loans at reasonable rates but didn’t use the funds to improve their home. Some of these loans were at very high adjustable rates and as the payment rose, the homeowners just couldn’t make the payment. When I was growing up, I remember learning to never take a risk with anything you couldn’t afford to lose. I think a home falls into this category.

Like any investment, a home’s value will fluctuate. But a house is unique as an investment because it serves a dual purpose: It is a your place to live as well as a way to increase your net worth. By using the money that would be paid for rent and putting it toward a house you can afford with a plan to protect and maintain your property, a home purchase is still a good investment. 

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of RE/MAX Specialists, a call or visit my website for a FREE Relocation Packet or Homebuyers Success Packet. 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 2012 www.terieckholm.com

First Time Buyer Question—Is a Home Still a Good Investment?

Since the economy, in a word, tanked a few years ago and the values of homes in some areas plummeted, I often get asked the question, “Is buying a home really a good investment?" It was for decades considered one of the safest investments a person could make; the epitome of the American Dream. A few years ago, skyrocketing values seemed to put home ownership out of reach for many but with the market downturn many would be first time homebuyers are confused. Does owning a home make sense as a financial investment?

In my opinion, YES, buying a home is a wise investment and not just because I am a REALTOR®, but because I, too, am a homeowner. The key is treating your home like the investment that it truly is. It takes discipline and time for your investment to grow. And like any other investment, if you have to sell when the market is down, there is a chance that you will not realize as much profit as you may have expected.

So what are some of the key points that must be considered when investing in your first home?

• Buy Smart

**Price **Interest Rate **Type of Mortgage **Resale Potential **Equity Builder?

• Maintain and Protect Your Investment

**Home maintenance **Insurance

• Don’t Put in Your Asset in Jeopardy

The best way to have a healthy balance sheet when you decide to sell your home is to Buy Smart in the first place. Buying smart is not just about getting the home at a low price though that is a very important piece to the puzzle. With many homes at rock bottom prices, it is a good time to consider buying a first home. But buying smart also means getting a mortgage that you can afford and that is safe, preferably at a fixed rate rather than an adjustable rate that can fluctuate into something that you cannot afford. Interest rates are at record-breaking low rates. Talking to a knowledgable loan officer is a great way to get started in the home buying process and find out what options are available to first time buyers now.

But buying smart goes beyond the price paid and the loan used to finance a first home. It is also buying with resale in mind. Many, who purchased homes in the price climbing frenzy of a few years ago, snatched up any home they could after submitting multiple purchase agreements on several homes. They didn’t worry about the perfect floor plan or that the home was on a busy road or next railroad tracks or if it had a weird small room that could not be used for anything. Now, if they are faced with trying to relocate, they are frustrated that buyers refuse to compromise on aspects that they overlooked.
As a REALTOR® who works often with first time buyers, I spend time helping my them to understand the positives and negatives of the location of each property they view. I point out how something quirky like having no basement or having a hot tub built in to a bedroom could affect the resale value by limiting potential buyers. Paint and wallpaper can be easily changed but foundation, plumbing and property location are much more expensive to deal with. Oddities it a home can drastically affect value when it is time to sell.

Lastly, buy smart by determining whether equity can be built with good old fashioned hard work! If the home hasn’t been updated, a good sprucing up could raise its value. A house that has an unfinished basement, could build equity if it can be done at a reasonable cost. Don’t take shortcuts and avoid permitting because that can be costly if you go to sell. Is landscaping your forte’? Look for a home with a yard that can be upgraded over the years. Just be frugal and realistic in what your resale will be in the end.

Beyond a smart buy, maintenance is essential as is proper insurance to be certain a home owner can afford the required repairs should the unexpected happen. Time after time I have to bear the bad news when presenting a market analysis at a home where the interior and/or exterior has not been repaired or replaced in decades. These homes are not worth what a neighboring, updated home is worth. Doing several projects over time allows a homeowner to enjoy the improvements while retaining the property value. Likewise, not insuring a home properly can be a huge risk. Worse yet, are the homeowners that make a home insurance claim and receiving payment for a repair but opt to use the money for something else.

Finally, it is important for a homebuyer to not put their investment in jeopardy. Many of the people who lost their homes in the market downturn put their homes in jeopardy but taking risky loans against the equity. Some people took home equity loans at reasonable rates but didn’t use the funds to improve their home. Some of these loans were at very high adjustable rates and as the payment rose, the homeowners just couldn’t make the payment. When I was growing up, I remember learning to never take a risk with anything you couldn’t afford to lose. I think a home falls into this category.

Like any investment, a home’s value will fluctuate. But a house is unique as an investment because it serves a dual purpose: It is a your place to live as well as a way to increase your net worth. By using the money that would be paid for rent and putting it toward a house you can afford with a plan to protect and maintain your property, a home purchase is still a good investment.

Copyright 2010 Teri Eckholm 

Anoka County Home Buyer? Going at it Alone is A Heavy Load Indeed!

Are you a homebuyer going it alone? A renegade who doesn’t need the support and expertise of a real estate agent…at least not until you have found “THE” house. Is this the best plan to get the best deal on an Anoka County home in current real estate climate?
I read a great blog today that I wanted to share with home buyers (and sellers) in the north and east Twin Cities metro area. Will Nesbitt is a real estate agent in Fairfax, VA. As an arrogant east coast youth with Minnesota’s own Fran Tarkenton as an idol, he challenged his entire neighborhood to a game of football and was CRUSHED! (Read his full posts…The day my neighborhood crushed me. ) Will learned that day the value of having a good team behind you.

Having a good real estate team behind you is a valuable lesson lesson for home buyers too. So...Who is on YOUR team?

• Do you have an expert REALTOR® to assist you through the home buying process?


• A good loan officer?


• An expert housing inspector?


• A title and closing expert?


• Septic and well inspector?


• Are you a skilled negotiator?


• Do you have neighborhood expertise and know the value of homes in different developments?

How many homes did you buy or sell last year? A good REALTOR® will have assisted in the purchase and/or sale of several. This is expertise that a home buyer going it alone will never achieve. As a REALTOR® I work everyday with buyers and sellers on the purchase and sale of homes throughout Ham Lake, Lino Lakes, Blaine and other communities in the Forest Lake school district. It is my job to be a real estate neighborhood expert! And I have a number of great contacts to become a part of YOUR team so you don’t have to go it alone.

Going it alone can seem like a no-pressure way to buy a home, but is flying solo in a home purchase cost effective? Maybe not…Did you know, it doesn’t cost most homebuyers a single penny to have a real estate expert in their corner? But it can cost thousands to work without one. Team up with a REALTOR® who is a neighborhood expert and don’t get crushed by the weight of going it alone.

Copyright 2010 Teri Eckholm 

Is Two—O—One—O a Dyslexic Zip for Beverly Hills? No...It's an Opportunity to Change Yours!

A local television station raised an interesting question. Should the New Year be pronounced “twenty-ten”, “two thousand and ten” or “Two-O-One-O”. Frankly, the latter struck me as a dyslexic pronunciation of an eighties TV show revolving around a Beverly Hills zip code. But no matter how you say it, 2010 will be a fantastic year for a person to change their zip code…At least it will be in Minnesota.

Here are a few of the reasons 2010 should be a great year to make your move to a Minnesota home:

1. Affordability—In Minnesota, homeowners get more bang for their buck. The affordability index was off the charts for most of 2009. Many buyers took advantage of this and are now happy homeowners but there are still many great opportunities available.


2. Low Interest Rates—Yep, they are still unbelievably low but these low rates cannot last forever. As interest rates creep up, affordability will decrease.


3. Extended and Expanded Tax Credit—The tax credit originally scheduled to expire has been extended until April 30, 2010 and expanded to include people who already own homes or have recently sold. For additional information on the extended and expanded tax credit CLICK HERE.


4. Selection—Though the number of MLS-listed homes is down from the record high inventory of early 2009, there is still a good selection of homes in every price point across the Twin Cities. Whether you are looking at a foreclosure to fix up or a lakeshore paradise, there are many options available.

 

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